2008 B & O Tax Changes
Gross Receipts B&O Tax
For tax periods beginning Jan. 1, 2008, the Revised Code of Washington (RCW) 35.102.130 requires wholesale and retail sales of tangible personal property to be allocated to the delivery location for taxation. Revenue taxable under the service & other tax classification will be apportioned using a two-factor (payroll and service-income) apportionment formula method.
Other Key Changes:
- Specific provision for newspaper and publishing businesses to exempt them from service apportionment requirements.
- Specific exemption for professional employer services.
- Definition changes.
Square Footage B&O Tax
The square footage tax was implemented to tax space in the city used for business activities that does not generate or support revenue which is taxable under Bellevue’s gross receipts tax. Examples of taxpayers that historically have paid the square footage tax include businesses that maintain headquarters or administrative offices in the city, and those that use their Bellevue location to generate or support sales of goods delivered outside the state.
To maintain fairness and equity among Bellevue-based businesses that use their space to generate or support sales of goods, the tax code was changed to be consistent with the new gross receipts allocation requirements. For tax periods beginning Jan. 1, 2008, businesses located within Bellevue that sell goods delivered to other locations outside Bellevue will be subject to the square footage tax. This includes deliveries to locations within Washington as well as out-of-state.
New Tax Forms
Multi-Purpose Tax Return
The tax return has been updated for uniformity and to provide more information. All of the business taxes administered by the Bellevue Tax Division are included on the same return.
When a deduction or credit is claimed, service gross receipts is apportioned or if your business is located in Bellevue, the appropriate schedule(s) must be included with the Multi-Purpose Tax Return.
Schedule A – Service Income Apportionment Detail
Only taxpayers engaged in activities under the Service and Other gross receipts B&O tax classification in more than one local jurisdiction need to complete this form. This schedule is used to calculate receipts taxable under the Service and Other gross receipts B&O tax classification.
Schedule B – Square Footage Tax Detail
Complete this form if your business is located in Bellevue. This schedule is used to calculate the portion of your Bellevue location space subject to the square footage B&O tax.
Schedule C – Multiple Activities Tax Credit Form
Complete this form if you engage in business activities that are subject to tax under two or more gross receipts B&O tax classifications on the same revenue. This schedule is used to calculate your available multiple activities tax credit.
Schedule D - Deduction Detail
Complete this form if you claim any deductions. This schedule is used to detail the deductions available for each tax reporting classification.
B&O Tax Forms