Business Taxes

Collection

The City of Issaquah collects certain taxes from businesses, primarily the Business and Occupation (B&O) and Utility Occupation taxes, which are gross receipts taxes. These taxes generate approximately $6.6 million per year, and support general governmental services.

Business and Occupation (B&O) Tax

Although there are exceptions, every person engaging in business activities within the city, whether the person's office or place of business is within or outside of the city limits of Issaquah, is subject to B&O Tax. The amount of tax levied on each business is determined by the application of rates against gross proceeds of sale, gross income of business, or value of products, including byproducts, as the case may be. For more information, see the City Code.

The Issaquah business and occupation tax is not the same as the Washington state B&O tax. You must file your Issaquah taxes separate from your state taxes.

Utility Occupation Tax

This tax is similar to the business and occupation tax, but it is imposed on utility businesses. The business activities affected by this tax are telephone, cellular, gas, electric, water, cable and garbage. The utility tax rate is 6 percent applied against the gross income of the business. For more information, see the City Code.