Revenue & Tax Information

News & Announcements:

• Tax Rule 3-26-001 was published on April 25, 2024, which discusses the taxation of motor carriers and trucking activities within the City of Tukwila. See the Publications below.

Forms

• Business and Occupation (B&O) Tax Return (fillable)
• Business and Occupation (B&O) Tax Return (non-fillable)
• Annual B&O Tax Threshold Reconciliation
• Application for Refund or Credit
• Confidential Tax Information Authorization
• Request for Active Non-Reporting Status

Publications

• View the Guide to Tukwila’s Business and Occupation Tax
• View the Business and Occupation Tax Frequently Asked Questions
• Tax Rule 3-26-001, Motor Carriers – Trucking

General Information

The City of Tukwila’s business and occupation (B&O) tax took effect beginning January 1, 2024. The first quarterly B&O tax return due date is April 30, 2024. For details regarding the tax, refer to Tukwila Municipal Code (TMC) Chapters 3.26 and 3.27.

Tukwila’s B&O tax is filed separately from and in addition to the State of Washington’s B&O tax.

Please ensure that your city business license endorsement reflects your current mailing address, so that you receive any mailed notices from the city regarding the tax.

Who is subject to B&O tax?

The B&O tax generally applies to every person engaging in business within the City of Tukwila. To verify whether an address is within Tukwila city limits, you can search by address using our Tukwila iMap or the Department of Revenue’s Sales Tax Rate Lookup tool. Additional maps are available at tukwilawa.gov/city-maps.

Payment of the tax is not required unless the taxable gross revenue exceeds $750,000 per calendar year. Businesses with gross revenue less than the threshold amount must still file a return and report the gross income and deductions, even if no tax is due, unless the business activities are exempt or unless the business has been approved for active non-reporting.

How do I file and pay the B&O tax?

The city’s B&O tax return forms are provided in the Forms section above. Tax returns must be submitted by mail and cannot be filed or paid online. Returns will be considered filed on the date shown on the postmark by the postal service, or the date received if there is no postmark.

What are the B&O tax classifications and rates?

The tax classification depends on the type of activity. Persons conducting more than one business activity must report the gross income from each in the appropriate tax classification.

Definitions for the following tax categories are provided in TMC 3.26.040 and 3.26.050.

When do I need to file my B&O tax returns?

The B&O tax is generally paid quarterly on the following schedule.

If approved by the city, the business may be placed on an annual filing frequency. Annual B&O tax returns are due by April 30 of the following year (e.g. 2024 return is due by April 30, 2025.)

When the payment due date falls on a weekend or a city holiday, then payment becomes due the following business day.

If the annual gross income is less than $750,000, the business may be assigned an active non-reporting status, at the sole discretion of the city. If the taxable threshold is later exceeded, the business must timely notify the city and submit a tax return with payment prior to the due date.

Tax returns paid after the due date are subject to a late return penalty and daily interest. The late return penalty rate is nine (9) percent of the tax due beginning on the day after the due date, which increases 10 percent per month, up to 29 percent.

Questions?

• View the Guide to Tukwila’s Business and Occupation Tax
• View the Business and Occupation Tax Frequently Asked Questions
• Contact us at 206-433-1835 or tax@tukwilawa.gov
• Visit our Business Licenses page for questions regarding business licensing

News & Announcements:

• Effective September 1, 2024, late return penalty applies beginning the day after the due date. There will no longer be a 15-day grace period.

Forms:

• Utility Tax Return for Communications Filers (Cable TV, Cellular, Pager, Telephone)
• Utility Tax Return for Electricity, Natural Gas, and Solid Waste/Recycling Filers

General Information

Utility tax returns are due monthly by the last day of the month following the end of the reporting period. For example, the June utility tax return is due by July 31.

The utility tax applies to the following business activities within the city: cable television, electricity and natural gas, telephone business (including cellular telephone and pager services), and non-residential solid waste and recyclable materials collection services. The tax rate for solid waste/recycling collection services is 16 percent. For all other activities, the tax rate is six percent.

Activities that are subject to utility tax are exempt from B&O tax. However, some businesses may need to file both types of tax returns beginning in 2024 if they conduct multiple activities. For example, a business that provides cellular telephone service and sells phones and related equipment will need to file both a B&O tax return and utility tax return.

Until September 1, 2024, late paid utility taxes are subject to interest at an annual rate of 12 percent, and a 10 percent late return penalty applies 15 days after the due date.

Beginning September 1, 2024, late paid utility taxes are subject to a late return penalty of nine (9) percent of the tax due beginning the day after the due date, which increases by 10 percent per month up to 29 percent. Daily interest also applies to late payments or to refunds, as provided in Chapter 82.32. RCW.

Details regarding the utility tax are provided in TMC Chapters 3.50 and 3.51.

Forms:

Admissions Tax Return

General Information

Admissions tax returns are due monthly by the last day of the month following the end of the reporting period. For example, the June admissions tax return is due by July 31. The tax is collected by the business from the person paying the admission charge, which is then remitted to the city.

In addition to its usual and ordinary meaning, an admission charge includes, but is not limited to, the following:

• A charge made for season tickets or subscriptions.
• A cover charge or charge made for the use of seats, tables, and similar accommodations.
• A charge for admission to any theater, dance hall, cabaret, tavern, private club, auditorium, stadium, athletic pavilion or field, circus, outdoor amusement park, or any similar place.
• A charge made for rental or use of equipment or facilities for purposes of recreation or amusement including, but not limited to, merry-go-rounds, ferris wheels, dodge ’ems, roller coasters, go-carts and other rides.
• A charge made for entrance to any building, enclosure or area in which there is a golf driving range, miniature golf course, or other golf course.

Admissions tax does not apply to admissions charges paid to public schools or certain nonprofit organizations. It also does not apply to bowling or related equipment rental.

Beginning in 2024, businesses subject to admissions tax will also need to file a B&O tax return, as admission charges are also generally subject to B&O tax.

Until September 1, 2024, late paid admissions taxes are subject to a penalty of 10 percent of the tax due per month.

Beginning September 1, 2024, late paid admissions taxes are subject to a late return penalty of nine (9) percent of the tax due beginning the day after the due date, which increases by 10 percent per month up to 29 percent. Daily interest also applies to late payments or to refunds, as provided in Chapter 82.32. RCW.

Details regarding the admissions tax are provided in TMC Chapter 3.20.

News & Announcements:

• Effective September 1, 2024, late return penalty applies beginning the day after the due date. There will no longer be a 15-day grace period.

Forms:

Gambling Tax Return

General Information

Gambling tax returns are due quarterly by the last day of the month following the end of the reporting period. For example, the Quarter 2 gambling tax return is due by October 31.

The gambling tax applies to the following activities:

• Bingo games and raffles: 5% of the gross revenue, less the amount paid as prizes.
• Amusement games: 2% of the gross revenue, less the amount paid as prizes.
• Punchboards or pulltabs:
  • For commercial stimulant operators (restaurants, taverns, etc.), 5% of the gross revenue (with no deduction for amounts paid as prizes).
  • For charitable or nonprofit organizations, 10% of the gross revenue less the amount paid as prizes.
• Social card games:
  • 11% of the gross revenue for businesses with one to five card rooms in the city
  • 15% of the gross revenue for businesses with six card rooms in the city
  • 20% of the gross revenue for businesses with more than six card rooms in the city

Some exemptions apply for nonprofit organizations as described in TMC 3.08.030(4)(B) and TMC 3.08.040.

Activities that are subject to gambling tax are exempt from B&O tax. However, some businesses may need to file both types of tax returns beginning in 2024 if they conduct multiple activities. For example, a restaurant that sells food and pulltabs will need to file both B&O tax returns and gambling tax returns.

Until September 1, 2024, gambling taxes paid more than 15 days after the due date are subject to a penalty of 10 percent of the tax due per month.

Beginning September 1, 2024, late paid gambling taxes are subject to a late return penalty of nine (9) percent of the tax due beginning the day after the due date, which increases by 10 percent per month up to 29 percent. Daily interest also applies to late payments or to refunds, as provided in Chapter 82.32. RCW.

Details regarding the gambling tax are provided in TMC Chapter 3.08.

News & Announcements:

• Effective September 1, 2024, late return penalty applies beginning the day after the due date. There will no longer be a 15-day grace period.

Forms:

Commercial Parking Tax Return

General information

Commercial parking tax returns are due monthly by the last day of the month following the end of the reporting period. For example, the June commercial parking tax return is due by July 31. The tax is collected by the business from the person paying the parking charge, which is then remitted to the city.

The commercial parking tax applies to transactions wherein a vehicle is parked and a fee is charged for parking or allowing the vehicle to be parked. The tax rate is 15% of the gross revenues generated from commercial parking charges and fees. Non-profit organizations operating on city-owned properties have a reduced tax rate of 5%.

The following activities are exempt from commercial parking tax:

• Local employee parking
• Apartments and condominiums, where parking is provided in conjunction with residential living arrangements
• Offices, retail establishments, warehouses, and industrial buildings wherein parking is provided in association with tenant arrangements for the use of the facilities
• Vehicles with official state disabled person decals, government vehicles exempt from tax, and tax-exempt carpool vehicles

Beginning in 2024, businesses subject to commercial parking tax will also need to file a B&O tax return, as parking charges are also generally subject to B&O tax.

Until September 1, 2024, commercial parking taxes paid more than 15 days after the due date are subject to a penalty of 10 percent of the tax due per month.

Beginning September 1, 2024, late paid parking taxes are subject to a late return penalty of nine (9) percent of the tax due beginning the day after the due date, which increases by 10 percent per month up to 29 percent. Daily interest also applies to late payments or to refunds, as provided in Chapter 82.32. RCW.

Details regarding the commercial parking tax are provided in TMC Chapter 3.48.