Exemptions, Deductions & Credits

The following section discusses a number of the most common exemptions from the gross receipts tax, deductions allowed for certain business activities or sources of income, and the multiple activities tax credit. This discussion is not intended to be all inclusive, please reference Bellevue City Code for further detail. If you have questions about specific exemptions, deductions or credits, please contact the City’s Tax Division.

Common Exemptions

  • 2018 taxable gross receipts equal to or less than $40,000 per quarter ($160,000 annually).
  • Manufacturing, selling, or distributing motor vehicle fuel
  • Liquor, beer, and wine sales
  • Sale, lease, or rental of real estate.  However, no exemption is allowed for license to use real estate or for amounts received as commissions
  • Insurance agents (brokers are subject to tax)
  • Farm products or edibles raised, produced or manufactured within the State of Washington and sold by the farmer
  • Certain activities for nonprofit organizations holding Federal IRS nonprofit status under 26 U.S.C Section 501(c)(3), (4), or (7).
  • Casual and isolated sales, such as an accountant selling his or her office furniture
  • Day care homes in residences

Common Deductions

Deductions are to be included in the gross receipts amounts and then deducted when calculating the taxable amount on which the gross receipts tax rate applies. 

  • Retail or wholesale sales delivered outside Bellevue
  • Cash discounts taken by customers
  • Credit losses or bad debts sustained by sellers

Common Credits

The multiple activities tax credit applies to persons who engage in business activities that are subject to tax under two or more tax classifications on the same revenues.

Contact

Bellevue Tax Division

Telephone

425-452-6851

Email

tax@bellevuewa.gov
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