Changes Effective January 1, 2020

Apportionment of Service Receipts

Notice of Upcoming Stakeholders’ Meeting:

Members of the Association of Washington Cities Tax Administrations have formed a working group to create a model rule for the updates implemented by Substitute House Bill 1403. For tax periods after Jan. 1, 2020, SHB 1403 simplifies the administration of municipal business and occupation tax service apportionment by:

  • Adopting a new market-based sourcing hierarchy for the income factor.
  • Establishing a rule that excludes service receipts from the income factor denominator attributable to jurisdictions where the taxpayer would not be subject to tax.
  • Establishing clear guidelines for the application of an alternative apportionment method. 

Stakeholders are invited to attend two upcoming meetings to review and comment on a proposed model rule. By Sept. 4, 2019, a draft of the proposed model rule will be at: https://www.wacities.org/news/2019/01/07/city-b-o-rates-and-licenses

The intent of the model rule is to establish consistency among cities and taxpayers in how the new apportionment law is applied. Dates and locations for stakeholders to provide feedback are as follows: 

  • Sept. 18, 2019 – Seattle Municipal Tower, 40th Floor, Room 4080, 10:30 a.m.–12:30 p.m.
    Join by phone: 206-386-1200
    Conference ID: 1513239 
  • Oct. 9, 2019 – Tacoma Municipal Building, City Council Chambers, 10:30 a.m.–noon
    Join by phone: 669-900-6833
    Conference ID: 527441060

If you are unable to attend but would like to provide feedback, please provide your written feedback to brian.collins@seattle.gov or to:

City of Seattle
Attn: Brian Collins, License and Tax Administration
700 Fifth Ave, Suite 4250
P.O. Box 34214
Seattle, WA  98124-4214

Stakeholders include members of the work group, representatives from the Association of Washington Cities and the Association of Washington Business and other interested parties.

This stakeholders’ meeting is outside the formal rule-making process and is an opportunity for those impacted by the rule to help in its development and provide comment. Formal rule hearings will be set by each respective city that formally adopts its own rule.

Changes effective January 1, 2019

Business Licensing

  • Business licenses renewed in 2019 expire on December 31, 2019. Renewals in 2020 and beyond are $40, and are active for one calendar year, expiring on December 31 of each year.
  • Only persons or businesses that generate $2,000 or more per year within city limits must renew and obtain a business license to engage in business within Shoreline. This change allows the City to comply with new State Law and maintain consistency for all businesses. For more information please refer to Shoreline Municipal Code 5.05.
  • New business registrations will be semi-annually prorated; $40 if applied for from January-June, and $20 if applied for from July-December.

  • You may search for City of Shoreline Registered Businesses by Unified Business Identifier, Shoreline registration number, legal entity, or business name: Shoreline Licensed Business Directory Please note that your UBI cannot be used to link licenses in FileLocal. 

Business Taxes

  • Business & Occupation (B&O) Tax: businesses generating gross receipts above $500,000 per year (or $125,000 per quarter) except 501(C)(3) non-profits are subject to the tax.
  • The City of Shoreline will begin to use a combined tax form for B&O Tax, Utility Tax, and Gambling Tax.

Filing Frequencies

There are two filing frequencies in the City of Shoreline:

  • Quarterly: Businesses or individuals that have annual gross receipts over $2,500,001 annually ($625,000 quarterly).
  • Annual: Businesses or individuals that have annual gross receipts between $500,000 and $2,500,000.

Tax Reporting Periods and Due Dates

Annual Filing

Reporting Period Return and Payment Due
January 1 - December 31 (prior year)
January 31

Quarterly Filing

Reporting Period Return and Payment Due
January 1 - March 31  April 30
April 1 - June 30  July 31 
July 1 - September 30  October 31
October 1 - December 31  January 31 

FileLocal

  • The City of Shoreline will partner with FileLocal as its taxpayer portal that allows users to transact business with multiple cities in one virtual location.