Guide to Seattle's Business License & Taxes

Frequently Asked Questions

What's a business license tax?

Seattle's business license tax is composed of the annual business license and gross receipts tax (B&O tax). The business license tax supports general government services, generating approximately $80 million a year.

Who has to pay business taxes?

Every person, firm, association or corporation who does business within the Seattle city limits is subject to the business license tax. Any business whose annual taxable gross revenue (gross receipts less allowable deductions) is less than $80,000 is not required to remit a tax payment. The business must still file an annual tax return to verify that no tax is due.

On what is the business license tax levied?

Tax is levied on all gross receipts, though some deductions and exemptions are provided under the Seattle Municipal Code.

Who is required to have a City of Seattle business license and file tax returns?

Anyone "engaging in business activities" within Seattle is required to obtain a Seattle business license whether or not a place of business is maintained within the city limits. Licensed businesses are sent either an annual or quarter business license tax return. You must file your return even if no tax is due. See definition of "Engaging in business" at Seattle Municipal Code 5.30.030.

How can I get a business license and how much does it cost?

Just submit an application to the City, with your payment of $90 (or $45 for the first year license if you start your business during the last six months of the calendar year). The license is issued for a calendar year, and must be renewed every year by December 31 for $90. Branch licenses for additional locations cost $10 per year per branch location.

When do you send out tax forms and when are they due?

Those who pay business taxes annually will receive their forms near the end of the year and the return is due by the following January 31. Tax forms are sent to quarterly taxpayers near the end of each quarter and the returns are due approximately 30 days later:

• For the 1st quarter (ending March 31), returns are due April 30
  
• For the 2nd quarter (ending June 30), returns are due July 31
  
• For the 3rd quarter (ending September 30), returns are due October 31
  
• For the 4th quarter (ending December 31), returns are due January 31

Monthly returns are due on the last day of the month following the reporting period. Penalty will be added if not received by the due date, even though no tax is due.

The forms must be completed and returned on or before the due date. A return is not considered filed until both the return and payment are received.

How do I file my tax return?

You can now file for a new business license or branch business license online, through the Seattle Electronic Filing System (SELF).  The City of Seattle also offers online tax filing and payment options for the business license tax (which includes the new square footage tax) and occupational utility tax.  If you have yet to take advantage of this convenient system, please register now using your customer number and an obligation number. Once registered, you can utilize this system to renew your business license, update addresses and phone numbers as well as change your business trade name.

For those who prefer not to file electronically, the City mails all active accounts a tax return about 30 days before the tax return is due. The tax return you receive is bar coded with your customer number and the specific period covered by the return. If you did not receive a tax return, please call us at (206) 684-8484 or send a request via e-mail rca.bizlictx@seattle.gov or fax (206) 684-5170. Include your customer number in any communication. You can also request a tax form here.

Record all gross revenue from your business activities in column B of the tax return. Some items may be excluded from gross receipts. In addition, there are a number of allowable deductions.

• Use the returns provided; substitutions can cause errors and misapplication of funds (e.g., do not photocopy a previous period's tax return or a tax return from another business because all payments made on that return will be applied to the customer account embedded in the bar code).
  
• Use the preaddressed envelope provided; do not staple or seal with tape. Make your check or money order payable to "The City of Seattle".  Do not mail cash. Do not use pre-addressed City of Seattle envelopes to send other mail; the pre-addressed envelopes are encoded with the City's address.
  
• Use the space provided on the return to notify the Revenue and Consumer Affairs Division of any change in address, status of ownership or both.

What happens if I don't file a tax return or pay any taxes due by the due date?

You will owe the City additional penalties and interest if tax returns are not filed and any resultant taxes are not paid by the due date. Penalties and interest are charged as follows:

Penalties:

• $5 or 5% of the tax due (whichever is greater) if not received on or before the due date.
  
• $5 or 15% of the tax due (whichever is greater) if received after the last day of the first month following the due date.
  
• $5 or 25% of the tax due (whichever is greater) if received after the last day of the second month following the due date.

Interest:

• If the tax and/or penalty paid is less than the amount due, interest is added from the date of underpayment until paid. You have 30 days from the notice of such underpayment to pay the balance due plus interest.
  
  
• If payment of any assessed amount is not received within 30 days, an additional penalty of 10 percent of the amount of the assessment will be added (with a minimum penalty amount of $10).

City of Seattle
Revenue & Consumer Affairs Division
700 Fifth Avenue, Suite 4250
PO Box 34214
Seattle, WA 98124-4214
Telephone: (206) 684-8484
Fax: (206) 684-5170
Contact us at: rca.bizlictx@seattle.gov

The material in this site is intended for general informational purposes only. While it is current at the time of publication, changes to the Seattle Municipal Code (SMC) or state law may invalidate some of this information. In the event of a conflict between this guide and the SMC, the SMC prevails.

Introduction

City of Seattle Tax Forms

City of Seattle On-Line Business Application and Tax Filing

Business License FAQs

Business Tax Rates and Classifications

Business Tax Allocation and Apportionment

Exemptions

Deductions

Square Footage Tax

Admissions Tax

Gambling Tax

Utility Tax

Commercial Parking Tax

Employee Hours Tax

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