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The Washington State Department of Revenue administers the State of Washington tax structure.
Washington does not have a corporate, unitary, inventory or personal-income tax. There are no taxes on interest, dividends or capital gains. State revenue is derived from three major sources: Business and Occupation Tax, Retail Sales and Use Tax and Property Tax. Business and Occupation Tax (B&O)
The B&O tax is based on gross receipts and varies depending on the type of business. Nearly all Washington businesses for-profit and non-profit are subject to the B&O tax including corporations, partnerships and sole proprietorships. Major exempt activities are farming and the sale or rental of real estate.
The City of Everett B&O tax is based on gross receipts and applies to all businesses at the uniform rate of one-tenth of one percent (.001).
Retail Sales and Use Tax
Washington businesses collect and remit retail sales tax on the sale of tangible personal property and certain services. Use tax is based on the value of tangible personal property on which retail sales tax has not been paid.
The total state sales tax charged within the City of Everett is 8.3%. The City's portion of that total tax is .0085 for the general government and .001 for criminal justice programs, 003 for transit, for a total sales tax revenue of 1.25%. Property Tax
Property taxes are essential Snohomish County taxes that go toward funding schools, libraries and other local programs.
The City of Everett's property tax is uniformly applied to all classes of property at the current rate of $3.60 per $1,000 of assessed value.
Other Taxes
Other state taxes collected by the Department of Revenue include public utility, carbonated beverage, fish, timber, tobacco products, and litter and refuse collection. Additionally, cities and town may tax businesses and corporations within their jurisdiction.
Business Incentives
Washington offers several investment-incentive programs to businesses in certain industrial/manufacturing activities. These incentives are designed to encourage specific industries to locate or expand in Washington while increasing employment opportunities.
For information, call (800) 647-7706.
Tax Registration and Reporting
To register a business in the State of Washington, contact the Department of Revenue and request a Master Business Application (MBA). The submission of this form registers a business with the departments of Revenue, Licensing, Labor and Industries and Employment Security and the Office of the Secretary of State.
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