Revenue & Tax Information

Business and Occupation (B&O) Tax

The City of Tukwila’s B&O tax applies to revenues earned beginning January 1, 2024. The first quarterly B&O tax returns will be due by April 30, 2024. For details regarding the tax, refer to Tukwila Municipal Code (TMC) Chapters 3.26 and 3.27.

Please ensure that your city/state business license reflects your current mailing address, so that your business receives any mailed notices regarding the tax.

Who is subject to B&O tax?

The B&O tax applies to every person engaging in business within the City of Tukwila, as defined in TMC 3.26.040, unless the business activities are exempt. To verify whether an address is within Tukwila city limits, you can search by address using our Tukwila iMap or the Department of Revenue’s Sales Tax Rate Lookup tool. Additional maps are at tukwilawa.gov/city-maps.

Businesses are not required to pay the tax unless their taxable gross revenue in the city exceeds $750,000 annually. Businesses with gross revenue less than the threshold amount must still file a return and report their income and deductions, even if no tax is due, unless the business activities are exempt or the business has been approved for active non-reporting.

How do I file and pay the B&O tax?

The city is currently developing its B&O tax return forms and determining the filing frequency for each business (quarterly, annual, or active non-reporting). More information will be available here by late 2023.

What are the B&O tax classifications and rates?

The tax classification depends on the type of business activity engaged in. Businesses conducting more than one activity must report the gross income from each in the appropriate classification.

Definitions for the above tax categories are provided in TMC 3.26.040 and 3.26.050.

Businesses must report their gross income and itemize any applicable deductions as provided in TMC 3.26.100. There are no deductions on account of the costs of goods sold or cost of materials used, labor costs, delivery costs, or any other expenses.

When do I need to file my B&O tax returns?

The B&O tax is generally paid quarterly on the following schedule.

If approved by the city, the business may be placed on an annual filing frequency. Annual B&O tax returns are due by April 30 of the following year (e.g. 2024 annual return is due by April 30, 2025.)

If the gross income of the business is beneath the annual $750,000 threshold, the business may alternatively be approved for an active non-reporting status, at the discretion of the city. If a business assigned to active non-reporting exceeds the taxable threshold, it must timely notify the city and pay the tax prior to the tax return due date.

When the payment due date falls on a weekend or a city holiday, then payment becomes due the following business day.

Tax returns paid after the due date are subject to a late return penalty and daily interest. The late return penalty rate is nine (9) percent of the tax due beginning on the day after the due date, which increases 10 percent per month, up to 29 percent.

Questions?

• View the Guide to Tukwila’s Business and Occupation Tax
• View the Business and Occupation Tax Frequently Asked Questions
• Contact us at 206-433-1835 or tax@tukwilawa.gov
• Visit our Business Licenses page for questions regarding business licensing

Form name:

• Utility Tax Return for Communications Filers (Cable TV, Cellular, Pager, Telephone)
• Utility Tax Return for Electricity, Natural Gas, and Solid Waste/Recycling Filers

Utility tax returns are due monthly by the last day of the month following the end of the reporting period. For example, the June utility tax return is due by July 31.

The utility tax applies to the following business activities within the city: cable television, electricity and natural gas, telephone business (including cellular telephone and pager services), and solid waste and recyclable materials collection services. The tax rate for solid waste/recycling collection services is 16 percent. For all other activities, the tax rate is 6 percent.

Activities that are subject to utility tax are exempt from B&O tax. However, some businesses may need to file both types of tax returns beginning in 2024 if they conduct multiple activities. For example, a business that provides cellular telephone service and sells phones and related equipment will need to file both a B&O tax return and utility tax return.

Late paid utility taxes are subject to interest at an annual rate of 12 percent. In addition, a 10 percent penalty applies if the tax return is not filed within 15 days after the due date.

Details regarding the utility tax are provided in TMC Chapters 3.50 and 3.51.

Form Name: Admissions Tax Return

Admissions tax returns are due monthly by the last day of the month following the end of the reporting period. For example, the June admissions tax return is due by July 31. The tax is collected by the business from the person paying the admission charge, which is then remitted to the city.

The admissions tax applies to:

• a cover charge or charge made for the use of seats, tables, and similar accommodations
• charges for admission to entertainment activities or admission to places such as theaters, cabarets, and outdoor amusement parks and rides
• charges for rental or use of facilities or equipment for purposes of entertainment or amusement, where the rental of the equipment or facilities is necessary for the enjoyment of the privilege for which admission is charged.

Admissions tax does not apply to public school activities and other non-profit endeavors.

Beginning in 2024, businesses subject to admissions tax will also need to file a B&O tax return, as admission charges are also generally subject to B&O tax.

Late paid admissions taxes are subject to a penalty of 10 percent of the tax due per month.

Details regarding the admissions tax are provided in TMC Chapter 3.20.

Form Name: Gambling Tax Return

Gambling tax returns are due quarterly by the last day of the month following the end of the reporting period. For example, the Quarter 2 gambling tax return is due by October 31.

The gambling tax applies to the following activities:

• Bingo games and raffles: 5% of the gross revenue, less the amount paid as prizes.
• Amusement games: 2% of the gross revenue, less the amount paid as prizes.
• Punchboards or pulltabs:
  • For commercial stimulant operators (restaurants, taverns, etc.), 5% of the gross revenue (with no deduction for amounts paid as prizes).
  • For charitable or nonprofit organizations, 10% of the gross revenue less the amount paid as prizes.
• Social card games:
  • 11% of the gross revenue for businesses with one to five card rooms in the city
  • 15% of the gross revenue for businesses with six card rooms in the city
  • 20% of the gross revenue for businesses with more than six card rooms in the city

Some exemptions apply for nonprofit organizations as described in TMC 3.08.030(4)(B) and TMC 3.08.040.

Activities that are subject to gambling tax are exempt from B&O tax. However, some businesses may need to file both types of tax returns beginning in 2024 if they conduct multiple activities. For example, a restaurant that sells food and pulltabs will need to file both B&O tax returns and utility tax returns.

Gambling taxes paid more than 15 days after the due date are subject to a penalty of 10 percent of the tax due per month.

Details regarding the gambling tax are provided in TMC Chapter 3.08.

Form Name: Commercial Parking Tax Return

Commercial parking tax returns are due monthly by the last day of the month following the end of the reporting period. For example, the June commercial parking tax return is due by July 31. The tax is collected by the business from the person paying the parking charge, which is then remitted to the city.

The commercial parking tax applies to transactions wherein a vehicle is parked and a fee is charged for parking or allowing the vehicle to be parked. The tax rate is 15% of the gross revenues generated from commercial parking charges and fees. Non-profit organizations operating on city-owned properties have a reduced tax rate of 5%.

The following activities are exempt from commercial parking tax:

• Parking fees charged in conjunction with another service provided by the business, such as parking fees charged by a hotel or motel where lodging is also provided to the customer at the time the vehicle is parked
• Local employee parking
• Apartments and condominiums, where parking is provided in conjunction with residential living arrangements
• Offices, retail establishments, warehouses, and industrial buildings wherein parking is provided in association with tenant arrangements for the use of the facilities
• Vehicles with official state disabled person decals, government vehicles exempt from tax, and tax-exempt carpool vehicles

Beginning in 2024, businesses subject to commercial parking tax will also need to file a B&O tax return, as parking charges are also generally subject to B&O tax.

Commercial parking taxes paid more than 15 days after the due date are subject to a penalty of 10 percent of the tax due per month.

Details regarding the commercial parking tax are provided in TMC Chapter 3.48.