When do I need to file? On a quarterly basis, unless assigned a monthly or annual reporting period. You are assigned this by the city.
How much is the B&O tax? The gross receipts are based on the reporting period. The current tax rates range from 0.2150% to 0.484% of taxable gross receipts, depending on the classifications.
What about the square footage B&O tax? The square footage B&O tax applies to businesses that maintain a business location within Seattle and conduct out-of-city business activities. The square footage B&O tax is based on rentable square feet. The current tax rates are $0.39 per square foot per quarter for “business floor space” and $0.13 per square foot per quarter for “other floor space.”
Businesses whose locations are outside of Seattle are exempt and do not report or pay any square footage B&O tax. Meanwhile businesses located in Seattle that conduct all of its business activities within Seattle are entitled to claim a 100% credit and do not pay any square footage B&O tax.
Any businesses that are exempt? Businesses with annual taxable gross receipts of less than $100,000, as well as businesses that conduct no taxable business activities, are exempt in 2012 and pay neither the gross receipts B&O tax nor the square footage B&O tax. However, such exempt businesses are still required to complete and file the returns by the applicable due dates.
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