Local Business Taxes
Cities and Towns. Most cities have local sales taxes as well as local B&O taxes. The Department of Revenue collects sales taxes for local communities, but cities have the option of collecting their own local B&O taxes. Depending on the amount of money your business makes, your local B&O tax may be due quarterly or annually and is paid to the respective municipality, not the state’s Department of Revenue.
Counties. Counties are responsible for assessing and levying property tax on real and personal property. For the purposes of this discussion, personal property includes business furnishings, fixtures, equipment, supplies and other assets. If assessed and collected, property taxes are usually due April 30 and October 31 of each year.
Incentives. Washington State and many county and local governments offer special tax incentives for specific growth industries. These can offset some of the taxes you may otherwise pay. Be sure to check with the Department of Revenue’s list of incentives to see if your business qualifies for specific reductions on B&O taxes, deductions, credits and other offsets.