Business & Occupation (B&O) Taxes

COVID-19 relief

The City wants to provide those who do business in Olympia with tax relief during this most difficult time and to encourage you to continue to do business as we recover from the COVID-19 pandemic.

The Olympia City Council has changed the due date for 2020 first quarter B&O taxes from April 30, 2020 to July 31, 2020 with no late filing penalties or interest on any 2020 first quarter B&O taxes.

This means you have until July 31, 2020 to file both your 2020 first quarter and second quarter B&O taxes. Please note that late filing penalties for first and second quarter B&O taxes will apply if the filings are not received by July 31, 2020.

3 businesses in Olympia: Vendor selling handbags, Construction site, Meeting at law office

What is the B&O tax?

The City collects and administers a local Business & Occupation (B&O) tax as authorized by Olympia Municipal Code 5.04. The City uses revenue generated from B&O taxes to help support City expenses (General Fund) that do not have a dedicated funding source.

Who needs to file B&O taxes?

All businesses conducting business in Olympia are required to file a return, even if there has been no activity or no tax is due.

How much is the B&O tax?

Most businesses fall into the 1/10 of 1% rate, including Retail Service such as restaurants and clothing stores. Service providers such as CPA firms, architects, attorneys, and doctors (those who do not normally pay sales tax), fall into the 2/10 of 1% rate.

Business Classification Tax Rate
Extracting .001 (1/10 of 1%)
Manufacturing .001 (1/10 of 1%)
Wholesaling .001 (1/10 of 1%)
Retailing .001 (1/10 of 1%)
Retail service .001 (1/10 of 1%)
Printing and publishing .001 (1/10 of 1%)
Public road construction (included in retailing) .001 (1/10 of 1%)
Service and other activities (not in any other category) .002 (2/10 of 1%)

When are B&O taxes due?

Annual total gross revenue less than $20,000

No B&O taxes are due, but business must still file a return by April 15 of the following year.

Annual total gross revenues between $20,000 and $750,000

Must file and pay taxes by Jan. 31 of the following year.

Annual total gross revenues over $750,000

Must file and pay taxes quarterly on:

  • April 30 (changes to April 15, effective Jan. 1, 2021)
  • July 31
  • October 30
  • January 31

  • 9% of the tax due if not received on or before the last day of the month in which the tax is due.
  • 19% of the tax due if not received on or before the last day of the month following the due date.
  • 29% of the tax due if not received on or before the last day of the second month following the due date.
  • Minimum penalty on all late returns where tax is due is $5.00.
  • There is no penalty on late returns with no tax due.

File and pay B&O taxes

Complete and return the appropriate form below based on your business's annual total gross revenue.

Make checks payable and return forms to:

City Treasurer
P.O. Box 2009
Olympia, WA 98507-2009

Questions?

Contact the Tax and License Accountant at 360.753.8327 or licensing@ci.olympia.wa.us

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