Business & Occupation Tax

As an incorporated city, one way Bainbridge Island raises revenue is through its Business & Occupation (B&O) Tax levied on businesses engaging in business on the island. Businesses with gross revenue of more than $150,000 earned on Bainbridge Island are subject to the City's Business and Occupation Tax set at 1/10 of 1%. The tax is filed annually reporting gross revenue for the prior calendar year. This B&O Tax is separate from and in addition to the Washington State B&O Tax. 

Definition of "Gross Revenue on the Island":  Under Bainbridge Island Municipal Code (BIMC) 5.05.050, the B&O Tax is levied on every person engaging in business activities within the City.  The definition of "engaging in business" can be found at BIMC 5.05.030.  For B&O Tax purposes, BIMC 5.05.050.A.4 defines "total gross revenue on the island" as the "gross proceeds of sales of the business without regard to the place of delivery of articles, commodities or merchandise sold."
  • The Municipal Code does not distinguish between retail and wholesale revenue. Both types of revenue are considered part of gross revenue.
  • The Municipal Code does not distinguish between sales made to Native American tribes and the general public.


Nonprofit Organizations and City B&O Tax Filing

Nonprofit organizations are subject to Business and Occupation Taxes as a result of undertaking for-profit activities. If the nonprofit does not undertake for-profit activities, the nonprofit may write "EXEMPT" across the B&O Tax Report and return the report as directed.

 

Businesses Exempt from City B&O Tax Filing 

Certain businesses are subject to separate taxes in lieu of B&O Taxes:


Business & Occupation Tax Report

The City mails a personalized B&O Tax Report to our businesses on or around the first week of January of each year.  A generic report is provided below for your convenience. B&O Tax Reports and tax payments are due by the last day of February each calendar year.  See the Fees & Penalties to calculate penalties for reports received after the due date.

If you have questions about the City's B&O Tax, please contact the Finance Department at (206)780-8668.

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Please Note: The City cannot accept tax money for the 2018 reporting year before January 1, 2019.