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Business & Occupation Tax
Apply for a new license, renew an existing license, file taxes, or update business information by contacting the Tax and Licensing Division at 360-473-5311 or taxinfo@ci.bremerton.wa.us.
The Bremerton business and occupation tax (B & O tax) , or gross receipts tax, is applied to the gross revenue that businesses earn within the city. It is measured on the value of products, gross proceeds of sales or gross income the business receives.
The Bremerton B & O tax is not the same as the Washington state B & O tax. You must file your Bremerton taxes separately from your state taxes. To learn more about the state B & O tax, visit the Washington State Department of Revenue's website.
If you do business in Bremerton, you must:
Please contact our office or refer to the Bremerton Municipal Code for other types of taxes and rates.
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 2019 retail B & O tax rate is 0.00125 (.125%). If your business grosses $250,000 in Bremerton during 2019 you would list $250,000 as your gross revenue, then deduct the allowed exemption of $200,000 from the gross. The taxable revenue is $50,000 with is multiplied by the tax rate .00125, for a tax liability of $62.50.
You can read the Bremerton Municipal Code (BMC) Chapter 3.48 for details about the Bremerton business and occupation tax.
By clicking on the name of the city, Access Washington will help you determine the tax and licensing requirements for that city in Washington State.
The Washington State Office of Regulatory Assistance was created to help businesses navigate the permitting and licensing required by local cities, counties, state and federal agencies. They also provide small business assistance and strive to help businesses plan, run, grow and even close a business in Washington State.
The U.S. Small Business Administration provides information on how to buy, merge or acquire a business, how to obtain loans and funding, as well as material regarding setting up a business as a veteran or as a minority in Washington State.
The Bremerton business and occupation tax (B & O tax) , or gross receipts tax, is applied to the gross revenue that businesses earn within the city. It is measured on the value of products, gross proceeds of sales or gross income the business receives.
The Bremerton B & O tax is not the same as the Washington state B & O tax. You must file your Bremerton taxes separately from your state taxes. To learn more about the state B & O tax, visit the Washington State Department of Revenue's website.
Overview
If you do business in Bremerton, you must:
- have a Bremerton business license
- file a business license tax return
In 2020, the first $220,000 of taxable gross revenue that you earn in Bremerton is exempt from Bremerton B & O tax.
You are required to file a tax form even if there is no balance due.
The Bremerton B & O tax varies by business type:
You are required to file a tax form even if there is no balance due.
Tax Rate
The Bremerton B & O tax varies by business type:
| Type | Rate |
|---|---|
| Retail Sales and Retail Services | 0.00125 (.125%) |
| Wholesale | 0.00160 (.160%) |
| Service | 0.00200 (.200%) |
| Manufacturing | 0.00160 (.160%) |
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 2019 retail B & O tax rate is 0.00125 (.125%). If your business grosses $250,000 in Bremerton during 2019 you would list $250,000 as your gross revenue, then deduct the allowed exemption of $200,000 from the gross. The taxable revenue is $50,000 with is multiplied by the tax rate .00125, for a tax liability of $62.50.
| 2019 Gross | 250,000 |
| Less Exemption | -200,000 |
| Taxable Revenue | = 50,000 |
| Multiply by Tax Rate | x 125% |
| 2019 Tax Liability | = 62.50 |
Past Exemptions
| Year | Exemption |
|---|---|
| 2019 | $200,000 |
| 2018 | $180,000 |
| 2017 | $160,000 |
| 2016 | $140,000 |
| 2015 | $120,000 |
Read the code
You can read the Bremerton Municipal Code (BMC) Chapter 3.48 for details about the Bremerton business and occupation tax.
Other Resources
By clicking on the name of the city, Access Washington will help you determine the tax and licensing requirements for that city in Washington State.
The Washington State Office of Regulatory Assistance was created to help businesses navigate the permitting and licensing required by local cities, counties, state and federal agencies. They also provide small business assistance and strive to help businesses plan, run, grow and even close a business in Washington State.
The U.S. Small Business Administration provides information on how to buy, merge or acquire a business, how to obtain loans and funding, as well as material regarding setting up a business as a veteran or as a minority in Washington State.
Tax Returns
Many of these forms are available in Microsoft Excel (XLS) or Adobe PDF format.
- Business Changes Form (XLS)
- Business Change Form (PDF)
- Job Credits Information Supplemental Sheet (PDF)
- Service Income Apportionment Worksheet (XLS)
Tax Return Forms & Instructions
| Year | PDF Format | XLS Format | Instructions |
|---|---|---|---|
| 2020 | Tax Return Form (PDF) | Tax Return Form (XLSX) | Instructions (PDF) |
| 2019 | Tax Return Form (PDF) | Tax Return Form (XLS) | Instructions (PDF) |
| 2018 | Tax Return Form (PDF) | Tax Return Form (XLSX) | Instructions (PDF) |
| 2017 | Tax Return Form (PDF) | Tax Return Form (XLS) | Instructions (PDF) |
| 2016 | Tax Return Form (PDF) | Tax Return Form (XLS) | Instructions (PDF) |
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. Every person who is licensed by the Washington State Gambling Commission (see RCW 9.46.0237 for definition).
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