How to Reach Us

253-856-6266

Business-Occupation@KentWA.gov

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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NEW!! 2018 Changes and Updates for B&O Tax effective January 1, 2018

  • The City of Kent has moved to a threshold for reporting Gross Receipts Taxes
  • A Gross Receipts Tax Credit is available to all taxpayers. The credit should be reported on Schedule D of the tax return 
  • The 2018 Quarterly and Annual Tax Returns and Schedules have been updated to accommodate the changes above
  • An active non-reporting filing frequency status has been introduced for small business taxpayers
  • A new taxpayer portal is being launched and further information will be provided by May 1, 2018 for filing updated tax returns. The due date for Quarter 1, 2018 tax returns has been extended to May 31, 2018.

Register, File and Pay My Taxes

  • Taxpayers are encouraged to register, file and pay B&O taxes at TaxFile.KentWA.gov. 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)

Wholesaling

0.152% (0.00152)

Retailing

0.046% (0.00046)

Services & Other Activities

0.152% (0.00152)

Retail Service

0.152% (0.00152)

Printing/Publishing

0.046% (0.00046)

Extracting

0.152% (0.00152)

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:

Square Footage Classification

Threshold Amounts (Sq. Ft.)

Quarterly rate per Sq. Ft

Business Warehouse

4,000

$ 0.03

Other Business Floor space

12,000

$ 0.01

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

January 31

 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

9%

Over 1 month – 2 months

19%

Over 2 months

29%

Late payments are subject to an annual interest rate of two percent (2%) for taxes due from 2013 through 2016 and three percent (3%) for 2017 & 2018.


Resources


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

 

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