The City of Mercer Island levies and collects the Business and Occupation (B&O) tax. Businesses “engaging in business activities” within the City of Mercer Island are required to obtain a Mercer Island business license and pay the B&O tax whether or not a place of business is maintained within the city limit. Business licenses are valid until December 31st of each calendar year and must be renewed every year.
Mercer Island businesses are required to file the Business and Occupation Tax Form on an annual basis, and pay the B&O tax with the returns. Businesses with receipts in excess of $1.0 million a year are required to file and pay quarterly. The returns are due on the last day of the next month after the period covered by the return. For example, tax returns covering 2011 are due on January 31, 2012.
The gross receipts B&O tax is based on gross receipts for the reporting period. The current tax rate is 0.1000% of taxable gross receipts in all classifications, with a $20.00 minimum required payment.
Businesses with annual taxable gross receipts of $150,000 or less are exempt from paying the Mercer Island B&O tax in 2012. However, such exempt businesses are still required to complete and file the returns by the applicable due dates.
As your CPAs, we would be happy to help you with your Mercer Island tax filings. Call Huddleston Tax CPAs for an appointment with one of our experienced local Mercer Island CPAs.
Visit our Mercer Island location page for more information.