Does Mercer Island collect B&O tax? Yes.
Will I need a business license if my office isn’t in Mercer Island? Yes, if you are “engaging in business activities” within the city of Mercer Island, you are required to obtain a business license and pay the B&O tax whether or not a place of business is maintained within the city limit.
How long is a business license valid for? Business licenses are valid until December 31st of each calendar year and must be renewed every year.
When do I need to file? Mercer Island businesses are required to file the B&O 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.
How much is the B&O tax? The gross receipts B&O tax is based on gross receipts for the reporting period. The current tax rate is 0.10% of taxable gross receipts in all classifications, with a $20.00 minimum required payment.
Are any businesses exempt? 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.
Visit our Mercer Island location page for more information.