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City of Kent Adopts Local Business and Occupation Tax


The City of Kent has adopted a local Business and Occupation (B&O) tax effective January 1, 2013.  Similar to other local B&O taxes, Kent’s tax applies to all companies doing business in the City, regardless of where their physical office is located.

There are seven different classifications under which revenues may be reported, with rates varying between 0.046% (Manufacturing, Retailing) and 0.152% (Wholesaling, Service).  There will also be a square footage tax (between 1-3 cents per square foot).  Businesses will pay the higher of either the B&O or square footage tax.

All tax returns will be due on a quarterly basis.  Businesses with $62,500 or less in gross receipts per quarter ($250,000 annual) will be exempt from B&O tax.  Businesses with less than 4,000 square feet of warehouse space or 12,000 square feet of other business space will owe no square footage tax, but will still be required to file.

Information on the tax can be found in the recently released Guide to Kent’s Business and Occupation Tax.  Tax forms have not yet been released but will be available on the City of Kent website http://KentWA.gov.