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Business & Occupation Taxes
What It Is
The City of Issaquah levies and collects a tax called the Business and Occupation (B&O) tax to every person for the act or privilege of engaging in business activities within the city, whether the person’s office or place of business is located within or outside of the city limits of Issaquah (IMC 5.04.050).

As a businesses engaged in any business activity in Issaquah, you must have an Issaquah endorsement on your Washington State Master License. You can verify your license status by visiting the State of Washington Business licensing Service Website.

How it Works
Once your business is licensed at the State level, you will automatically receive quarterly tax forms near the end of each quarter. If you qualify for annual filing, you will receive your annual tax return form near the end of the fourth quarter.

Effective January 1, 2015, businesses filing their B&O taxes quarterly and having a gross income of more than $25,000 for Issaquah business activities in the quarter being reported must pay B&O tax based on their business classification. Annual filers must pay taxes when grossing more than $100,000 in the calendar year. If your business income qualifies you to file your B&O taxes annually, you will need to submit an Annual Filing Affidavit.

Effective April 1, 2015, B&O tax rates were increased. The business classifications and their new respective tax rates are:
Business Classifications
Tax Rate
Manufacturing / Extracting
Printing, Publishing or Extracting/Processing for Hire
Retail Services*
Services & Other Business Activities**

Quarterly filers who gross income of less than $25,000 still need to file a Quarterly Tax Return Form, even though no tax is due. Annual filers grossing less than $100,000 do not need to pay any taxes, but still need to file a 2015 Annual Tax Return Form. Other tax forms for previous reporting periods are also available.

Payment Procedures
Tax return forms must be completed and returned with payment of any taxes due (if applicable) by the last day of the following month. All business must submit a tax return form even if no tax is due. B&O Tax is payable quarterly on the following schedule:
Quarter Ending
Payment Due
March 31
April 30
June 30
July 31
September 30
October 31
December 31
January 31

Annual filers must file and pay any taxes due by January 31 following the end of the previous calendar year.

Penalties are due if tax returns are not filed and taxes paid by the due date. Penalties are charged as follows:
Days Past Due
If postmarked 1 – 30 days after the Due Date
9% of Tax Due, Minimum of $5 Due
If postmarked 31 – 60 days after the Due Date
19% of Tax Due, Minimum of $5.00 Due
If received 61 or more days after the Due Date
29% of Tax Due, Minimum of $5.00 Due

When submitting your return, please:
  • Use the return provided. Substitutions can cause errors.
  • Use the pre-addressed envelope provided.
  • Make check or money order payable to City of Issaquah; Do not send cash!
  • Advise the Tax Division in writing of any changes in address or status of ownership.
  • $0 (no tax due) returns may be scanned and emailed, or faxed to 425-837-3029.

Tax Code Changes of Note
In accordance with RCW 35.102.130, the City adopted Allocation and Apportionment provisions as part of the Business & Occupation (B&O) Tax changes which took effect on January 1, 2008. These changes were a legislative requirement (EHB 2030) for all cities that currently collect B&O Taxes. Beginning January 1, 2008, specific rules for how you allocate and apportion revenue to the jurisdictions in which you engage in business will vary depending on the classification under which your business income is reported.

An Apportionment Worksheet, as well as worksheet instructions for the worksheet are available for your reference.