Service Income Apportionment

Service Income Apportionment allows businesses to proportionately divide their taxes among multiple Washington cities in which they do business.

Calculate Service Income Apportionment if you report revenue under the Service and Other Business Activities classification.

Guidelines to follow

Service Income Apportionment applies only to revenue classified as Service and Other Business Activities. If you do not have income to report under this classification, you do not have to calculate it.

Before you calculate Service Income Apportionment, gather the following information:

  • total gross service receipts
  • total payroll cost for each employee
  • office location of each employee

You will also need to know the locations of your customers. For tax purposes, customer location means the city or unincorporated area of a county where the majority of the physical contacts between you and your customer takes place.

You can calculate Service Income Apportionment in the online system, FileLocal. If you file taxes on paper, download and fill out the Service Income Apportionment worksheet.

Read the code

You can read the Seattle Municipal Code (SMC) for legal details about apportionment of revenue.

SMC Chapter 5.45.081 covers apportionment of revenue.

Seattle business tax rule 5-045 provides further information.