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Centennial Building

400 W. Gowe St., Suite #406 

Kent, WA 98032

Office Hours: 9 a.m. to 4 p.m.

Business and Occupation Tax

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Updates for B&O Tax effective January 1, 2020

  • The gross receipts tax rate for wholesaling increased to 0.2% (0.002) from 0.152% (0.00152)
  • The square footage tax rate for Business Warehouse increased from $0.06 per sq. ft per quarter to $0.09 per sq. ft per quarter while the tax rate for Other Business Floor Space remains the same as prior years at $0.02 per sq. ft per quarter

These rate increases were already approved in 2018 as part of the city's long-range financial strategy.

  • The service income factor has been updated on Schedule A for service apportionment to reflect the requirements of HB 1403 which was passed by the state legislature in the 2019 session
  • The due date for the 2020 annual tax return has been updated to April 30, 2021 as required by HB 1059 which was passed by the state legislature in the 2019 session

Register, File and Pay My Taxes

  • Taxpayers are encouraged to register, file and pay B&O taxes at Online filing is free, fast, secure and results in fewer errors and omissions.
  • Alternatively, B&O tax returns for previous years may be requested by contacting the Tax Division.
  • Taxpayers who are unable to file online because they do not have access to the Internet may file the return by visiting the kiosk in the Centennial Building, 400 W. Gowe St., Suite 406.


What is the B&O tax?

The B&O tax is a gross receipts tax levied upon a person or company for the act or privilege of doing business, whether the person’s office or place of business is located within or outside of the city limits of Kent. It was established effective January 1, 2013 to pay for critical street repairs within the City and to ensure a safe and efficient transportation system.

What are the B&O tax Classifications and Rates?

The B&O tax has two components: gross receipts tax and square footage tax. Taxpayers located within the city will report in both the gross receipts and square footage tax categories while taxpayers located entirely outside the city will report only in the gross receipts category. For taxpayers reporting gross receipts and square footage, remittance of the tax will be based on the greater of the two categories.

The gross receipts tax classifications and applicable tax rates are as follows:

Business Activity

Tax Rate

Manufacturing; Processing for Hire; Extracting for Hire

0.046% (0.00046)

Service & Other Activities; Retail Service; Extracting

0.152% (0.00152)

Retailing; Printing/Publishing

0.046% (0.00046)

 Wholesaling  0.200% (0.00200)

The gross receipts tax applies to taxpayers who report receipts in excess of the threshold amount of $250,000 during the calendar year. 

The square footage tax applies to taxpayers that lease, own, occupy or otherwise maintain warehouse space or other business floor space in excess of the threshold amounts within Kent.

The applicable square footage tax thresholds and rates are as follows effective January 1, 2020:

Square Footage Classification

Threshold Amounts (Sq. Ft.)

Quarterly rate per Sq. Ft

Business Warehouse


$ 0.09

Other Business Floor space


$ 0.02

When do I File and Pay the B&O tax?

Taxpayers may request to be assigned an active non-reporting filing frequency or an annual filing frequency.  Otherwise, the B&O tax is paid quarterly on the following schedule:

Quarter Ending

Payment Due Date

Quarter 1 – January 1 through March 31

April 30

Quarter 2 – April 1 through June 30

July 31

Quarter 3 – July 1 through September 30

October 31

Quarter 4 – October 1 through December 31

January 31

If approved, B&O tax can be paid annually:

Tax Period

Payment Due Date

January 1 through December 31

April 30

No returns are required to be filed when assigned an active non-reporting filing frequency. 

Tax returns filed and paid late are subject to penalties as follows (with a $5 minimum):

Period Returns Overdue

Penalty Rates

1 day – 1 month


Over 1 month – 2 months


Over 2 months


Late payments are subject to an annual interest rate as follows:

 2% (two percent)  2013 through 2016
 3% (three percent)  2017 & 2018
 4% (four percent)  2019 & 2020



Tax Returns for previous years maybe requested by contacting (email/call) the Tax Division


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