Business & Occupation (B&O) Tax

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Business & Occupation (B&O) Tax

Tumwater B&O Rate: .001 or .1%
Special Services B&O Rate:.002 or .2%

Local B&O Tax

The City of Tumwater collects and administers a local Business & Occupation tax as authorized by Tumwater Municipal Code (TMC) Chapter 5.08

The tax applies to the gross revenues of businesses at the rate of one-tenth of one percent, except those engaged in certain types of service industries (see TMC 5.08.030§(Q)) which shall pay at the rate of two-tenths of one percent. If the gross proceeds of sales or gross income of the business from all activities is less than $5,000 per quarter, no tax is due.

The tax for annual filers is due on the last day of April. If the gross proceeds of sales or gross income of the business from all activities is less than $20,000 per year, no tax is due.

All businesses conducting business in Tumwater are required to file a quarterly or annual return, even if there has been no activity or no tax is due.

Tumwater Municipal Code 5.08 - B & O Tax

Tumwater Municipal Code 5.10 - B & O Tax Administrative Rules

Electronic delivery

You can elect to sign up for electronic delivery of online filing information when you file your return online and our system will be updated automatically.

Online filing

Our free electronic filing form is now live. Online filing requires your license # and an activity # provided by the B&O/Licensing Department. Please note each quarter will have its own activity #. Refund requests and prior period adjustments are not available online at this time, please see below for more information. If you would like to file your return online and do not have any of the required information or have any questions, please contact us by email or call (360) 754-4136.

Filing $0 returns online

Please select "No" when asked if you have any receipts to report this filing period. Then all you will need to do is complete the Tax Preparer Information section and click "submit"

Credit card payments

The City of Tumwater has a $3,000 credit card threshold. Payments $3,000 and over will still be able to submit a return but, will need to remit payment by check and mail to the City of Tumwater. An email confirmation* of payment due or successful processing will be sent to the email provided upon submission. We will be accepting free online tax credit card payments up to $3,000 using:

visa mastercard discover logos

B&O Tax important dates

1st Quarter – January 1st through March 31st – Due April 30th
2nd Quarter – April 1st through June 30th – Due July 31st
3rd Quarter – July 1st through September 30th – Due October 31st
4th Quarter – October 1st through December 31st – Due January 31st
Annual – January 1st through December 31st – Due April 30th

If you need an extension for your B&O taxes or would like to setup a payment plan please email us.

The Service Income Apportionment Worksheet is only for business reporting apportioned sales under the Retail Service or Service & Other Activity categories, see Retail Service Definition.

Service Income Apportionment Worksheet pdf-icon-sm

Tumwater B&O Quarterly Form pdf-icon-sm (print and mail with payment to the address listed below)

Tumwater B&O Annual Form pdf-icon-sm (print and mail with payment to the address listed below)

Business & Occupation Tax refund/amended return policy

All requests for amended returns, credits and refunds must be made in writing accompanying amended paper returns pursuant to TMC 5.10.100. Refunds may not be processed through our online system at this time. Please return requests to:

City of Tumwater
Attn: B&O Tax Dept.
555 Israel Rd SW
Tumwater, WA 98501

Multiple Activities Tax Credit

The multiple activities tax credit (MATC) ensures that a business is not taxed twice when it performs multiple taxable activities (manufacturing and selling, for example) that result in the same product.

Who qualifies for it?

Take this credit if you perform two or more taxable business activities on the same product.

For example, if you both manufacture and sell a product, report sale revenue under two tax classifications: Manufacturing and Retail Sales. Then take the credit so you only pay tax on the product once.

Both business activities can occur in Tumwater. Or one can occur in Tumwater and the other in another Washington city that imposes a B&O tax (also called a gross receipts tax).

Guidelines to Follow

Skip the MATC if you are reporting revenue in only one classification.

Please note that the MATC applies to local B&O taxes only, so paying the Washington State B&O tax does not qualify you for taking the credit for a local B&O tax.

How the Credit Works

Example:

Company A makes furniture in Tumwater's industrial park . It also has a retail store in town where it sells the tables, dressers and desks that it manufactures.

During one quarter, it sells $40,000 of furniture. So on its Tumwater business license tax return, Company A enters a gross amount of $40,000 for the Retail Sales classification. And because it also made the furniture, it enters $40,000 for the Manufacturing classification.

At this point Company A owes $86 for Retail Sales and $86 for Manufacturing, or $172 total.

Company A then enters multiple activities tax credit (MATC) under "Details of Tax Deductions" on the B&O tax form, and it receives a credit for $86. This insures that it is only taxed once. And its tax due is now $86, not $172.

Retail and Service Definition

Retail Service

Sale or charge made for personal, business, or professional services including amounts designated as interest, rents, fees, admissions, and other
services by persons engaged:

Amusement and recreation services including but not limited to golf, pool, billiards, skating, bowling, swimming, bungee jumping,
basketball, racquetball, handball, squash, tennis, batting cages, day trips for sightseeing.
Abstract, title insurance, and escrow services.
Credit bureau services.
Automobile parking and storage garage services.
Landscape maintenance and horticultural services.
These specific personal services: Physical fitness services, tanning salons, tattoo parlor services, steam bath services, Turkish bath services, escort services, and dating services.
Rental or lease of tangible personal property to consumers and the rental of equipment with an operator.

Service & Other Activity

Persons engaging within the city in any business activity other than or in addition to those enumerated in the above descriptions. This would include, but not be limited to businesses or professionals that provide medical, legal, engineering, architectural, janitorial, instructional, consulting and accounting services.

Contact us

Our B&O Tax Division is available to answer any questions you may have. You may contact a specialist by email or by calling (360) 754-4136.

City of Tumwater, WA

Business & Occupation (B&O) Tax