Business & Occupation Tax

Anyone conducting business within the city limits of Bremerton, Washington, is required to file a Business & Occupation (B&O) tax return with the city, in addition to any state-level B&O tax obligations. This local tax is based on your gross receipts from business activities conducted within Bremerton. 

Even if your situation seems like you owe nothing, the City of Bremerton still requires a B&O tax filing. This is true in all of the following cases:

1. You have already filed with the Washington State Department of Revenue (DOR)
   • Filing your state B&O taxes does not automatically satisfy Bremerton’s local filing requirement.
   • The city uses its own B&O tax system to track businesses operating within city limits.
   • Even if your state return shows your revenue and taxes, the city still wants its own filing to ensure local compliance.
2. You had no revenue to report ($0 filing)
   • If your business did not generate any income in a given reporting period, you are still required to file a “zero” B&O tax return.
3. Your revenue was under the allowed exemption
   • Bremerton has an annual exemption threshold (currently $1,040,000 in gross revenue). Even if your gross revenue is below this threshold and no tax is due; you must still file a return.

What is the Exemption? 

A B&O exemption refers to an exemption from the Business & Occupation (B&O) tax, which is a type of gross receipts tax that some cities (like Bremerton) or states (like Washington) levy on businesses for the privilege of doing business. Unlike income taxes, the B&O tax is based on gross revenue, not profit.

Here’s a detailed breakdown of how it works:

• A B&O exemption means your business does not have to pay B&O tax on certain types of income, activities, or under certain conditions.
• It does not mean your business is automatically exempt from filing. Most jurisdictions still require you to file a return, even if you claim an exemption or have zero tax due.

In 2025, the first $1,040,000 of taxable gross revenue earned within Bremerton is exempt from the city's B&O tax. This exemption amount typically changes each year, so be sure to check the current B&O tax form for the applicable figure.

The Bremerton B & O tax varies by business type:

How the Tax Works

Your gross revenue determines the amount of tax you pay. To calculate this amount, multiply your taxable gross revenue amount by the tax rate.

For example, the 2025 retail B & O tax rate is 0.00125 (.125%). If your business grosses $1,050,000 in Bremerton during 2025 you would list $1,050,000 as your gross revenue, then deduct the allowed exemption of $1,040,000 from the gross. The taxable revenue is $10,000 with is multiplied by the tax rate .00125, for a tax liability of $12.50.

Past Exemptions

Due Dates

Any filing or payment not postmarked or received on or before the noted Due Date Are subject to Late Fee.

*For due dates that fall on holidays or weekends, the following business day is the due date

Penalties

Additional Forms

• Business Change Form 
  • All Changes to your business must be completed with the WA DOR first. We no longer process requests directly. For assistance please contact the WA DOR at 360-705-6741.
• Job Credits Information Supplemental Sheet (PDF)
• Service Income Apportionment Worksheet (XLS)

Utility Tax

The City Utility tax refers to a tax on public service businesses, including businesses that engage in telecommunications, supply of electricity and natural gas, and solid waste collection. Utility tax is a gross receipts tax that is measured on the value of products or services, gross proceeds of sales, or gross income of business.

The tax is in lieu of the business and occupation (B&O) tax but is consistent with B&O tax. Utility tax is calculated on the gross income from activities. This means there are no deductions from the Utility taxable income for labor, materials, or other costs of doing business. 

How to Report

The Utility tax is reported and paid monthly. Monthly returns are due within 30 days after the end of the month of the reporting period. 

Tax Classifications & Rates

All business activity is reported under a certain tax classification and each classification has its own tax rate:  

• Telephone 6% 
• Natural gas 6%
• Electricity 6%
• Cable 7%
• Garbage 9.5%

Please refer to BMC 3.50 for further details

Gambling Tax

Every person who is licensed by the Washington State Gambling Commission (see RCW 9.46.0237 for definition) and conducts gambling activities in the City is required to pay gambling tax. Such activities include bingo games, raffles, amusement games, and punchboards & pull tabs. The rates are as follows: 

• Amusement Games 2% 
• Bingo 5% 
• Raffles 5% 
• Punchboard/Pull Tabs (Profit) 3%
• Punchboard/Pull Tabs (Non-Profit) 10%
• Card Rooms (Player Backed) 10%
• Card Rooms (House Backed) 2%

Please refer to BMC 3.72 and 3.74 for further details

Commercial Parking Tax

Anyone who is engaged in a commercial parking business within the City is required to pay commercial parking tax equal to 15% of the gross proceeds of the parking business.

Please refer to BMC 3.82 for further details.

You can read the Bremerton Municipal Code (BMC) Chapter 3.48 for details about the Bremerton business and occupation tax. 

Bremerton Business and Occupation Tax Overview

STEP BY STEP GUIDE: How to Complete the Bremerton Business & Occupation Tax Form