Tax Payer Bulletin

B & O Information

1. The threshold for paying B&O tax to the City of Olympia has increased from $3,600 per year of gross income to $20,000 if filing an annual return. If a quarterly return is filed the threshold is $5,000 (most filers with less than $20,000 per year will file annual returns). Even if under $20,000 per year reporting may still be required.

2. Included in the expanded exemptions is an exemption for non-profit organizations, which are exempt from federal income tax under section 501-c-3 of the Internal Revenue Code, except with to respect to retail sales of those organizations.

Tax Rate Table

Extractor  0.1%
Manufacturer  0.1%
Wholesale 0.1%
Retail Sales 0.1%
Retail Service 0.1%
Printing 0.1%
Service & Other 0.2%

 

New Tax Category: Retail Service

  • Amusement & recreation
  • Abstract, title insurance & escrow
  • Credit bureau
  • Automobile parking & storage garage
  • Landscape maintenance & horticultural
  • Service charges associated with tickets to professional sporting events
  • Physical fitness services
  • Tanning salon
  • Tattoo parlor
  • Steam bath
  • Turkish bath
  • Escort services
  • Dating services
  • Rental or leasing of tangible personal property to consumers
  • Rental of equipment with an operator

Exemptions

  • Accommodation sales
  • Amounts derived from liquor as defined in RCW 66.04.200
  • Amounts derived from manufacturing, selling or distributing motor vehicle fuel
  • Amounts derived from the lease, rental or sale of real estate
  • Boxing contests and sparring and/or wrestling matches and exhibitions for the conduct of which a license must be secured from the State Athletic Commission
  • Casual and isolated sales
  • Certain corporations furnishing aid and relief
  • Certain fraternal and beneficiary organizations
  • Credit unions
  • Employees
  • Any farm produce or edibles raised, caught, produced or manufactured and sold by any farmer or gardener
  • Hospitals, clinics run by religious organizations
  • Horse Racing
  • Income received from the DSHS Operation by sheltered workshops. for care, maintenance, support, and training of persons with developmental disabilities
  • Any person in respect to insurance business upon which a tax based on gross premiums is paid to the state, nor Agents of insurers as defined by RCW 48.17.010
  • International banking facilities
  • Certain investment income and dividends from subsidiary corporations
  • Mortgage brokers' third-party provider services trust accounts
  • Non-profit 501(c)(3), except with respect to retail sales
  • Premiums or prepayments that are taxable under RCW 48.14.0201 by Health maintenance organizations
  • Public utilities, income taxed under OMC 5.84
  • Ride sharing
  • Taxes collected as trust funds
  • The gross income received by the United States or any instrumentality thereof and by the state or any municipal subdivision thereof
  • Community Events and Farmers Markets, Licensed as such

Deductions

  • Amounts derived from bona fide: initiation fees, dues, contributions, donations, tuition fees and endowment funds
  • The amount of cash discount actually taken by the purchaser
  • The amount of credit losses actually sustained by taxpayers whose regular books of account are kept upon an accrual basis
  • Amounts derived from business which the city is prohibited from taxing under the Constitution or laws of the state or the Constitution or laws of the United States and any amounts collected by the taxpayer as an excise tax.
  • Membership fees for non-profit youth organizations
  • Income from business activities of artistic and cultural organizations from government grants, tuition and income from business activities excluding retail sales
  • Artwork manufactured by artistic or cultural organizations for exhibitions
  • Day care activities by organizations organized under IRC 501(c)(3)
  • Governmental grants for social welfare organizations
  • Interest on investments or loans secured by mortgages or deeds of trust
  • Interest on Federal, State or Municipal obligations
  • Interest on loans to farmers and ranchers, producers or harvesters of aquatic products or their cooperatives
  • Receipts from tangible personal property delivered outside the State
  • Home owners association and associations of property, owners, amounts used for maintaining common property and buildings
  • Sales of metal bullion and monetized bullion
  • Rent for boarding homes
  • Radio and television broadcasting advertising fees for interstate advertising.

Contact Information:

Address: Olympia City Hall 900 Plum St. SE
Hours: 8:00 a.m. to 5:00 p.m., Monday-Friday
Phone: 360.753.8327
Email: licensing@ci.olympia.wa.us