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NOVEL CORONAVIRUS (COVID-19)

King County is currently in Phase 2 of reopening.

Information for Shoreline

 

COVID-19 UPDATE

The City has issued a temporary waiver/suspension of B&O and Gambling Tax reporting and payment deadlines. The new deadline for 1st and 2nd quarter 2020 is October 31, 2020. 

How do I file?

Deferred tax returns for 2020’s first and second quarter B&O Tax and Gambling Tax returns must be submitted on a paper copy of the Multi-Purpose Tax Return for the 2020 Tax Deferral for Eligible Small Businesses. Quarter one and quarter two deferred returns must be filed separately.

Contact the City if you have any questions at c19bizresponse@shorelinewa.gov.

 


 

The Shoreline Business and Occupation (B&O) tax is a gross receipts tax effective January 1, 2019. It is measured on the value of products, gross proceeds of sales, or gross income businesses earn.

There are no deductions for labor, materials, rent, or other costs of doing business. If you do business in Shoreline and generate equal to or more than $2,000 in gross receipts annually, you must have a Shoreline business license and file a B&O tax return.

Businesses are subject to the B&O tax if the annual taxable revenue is above $500,000 in 2019.

The Shoreline B&O tax is not the same as the Washington State B&O tax. Shoreline taxes must be filed separately from your state taxes. For more information on the Washington B&O tax please visit Washington State Department of Revenue.

Links

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 (for tax year 2019)

 
Quarterly Filing

Reporting Period Return and Payment Due
January 1 - March 31 April 30 (for tax year 2020 and beyond
April 1 - June 30 July 31
July 1 - September 30 October 31
October 1 - December 31 January 31

 

Background

On December 4, 2017 the Council adopted a B&O tax in Shoreline. All businesses operating in Shoreline that have gross receipts in excess of $500,000 per year (or $125,000 per quarter), except 501(C)(3) non-profits, will be subject to the tax effective January 1, 2019. A rate of 0.001 will be applied to all gross receipts for all business classifications except services which will be taxed at a rate of 0.002.

Two workshops were held in June 2017 to provide information to businesses on the City’s financial forecast and budget, and to collect feedback on the potential B&O tax. For more information please see the Business Outreach Workshop Presentation and City of Shoreline Services Video.

Shoreline, like most cities in Washington, faces a structural imbalance in funding core operations, where the cost of maintaining services is growing faster than the revenues available to support them.

In 2014, Council developed a 10 Year Financial Sustainability Plan that identifies seven strategies to help achieve financial sustainability over the 10 year forecast. The City forecasts sufficient revenues through 2021, primarily relying on a voter-approved levy lid lift that expires in 2022.