Business License / B & O Tax
ATTENTION: The City of Bainbridge Island cannot accept and receipt business license renewal fees. The renewal of your City business license is now handled by the State of Washington Business Licensing Service (BLS). You will receive your City license renewal statement and payment instructions from BLS, and you MUST pay your renewal fee through BLS.
If you have not received your City license renewal statement, please contact BLS directly at 1-800-451-7985. Only payment through BLS will guarantee continued licensing with the City. Business license renewal payments received at the City will be returned to the business with instructions to contact BLS.
Please Note: City of Bainbridge Island continues to oversee the City's Business & Occupation Tax reporting. B&O Tax Report packets were mailed to businesses December 31, 2018. Completed reports should be returned to the City by February 28, 2019, to avoid penalties. If you have any questions, please contact Finance and Administration at 206-780-8591.
For more information on the State Legislative initiative on the simplification of local business licensing and tax, see EHB 2005 and the Local Tax & Licensing Simplification Task Force: A report to the Legislature per Engrossed House Bill 2959. You may download a PDF of the above letter here.
Please contact the Finance and Administrative Services Department with any questions about licensing requirements for doing business on Bainbridge Island at firstname.lastname@example.org or 206-780-8668.
Business & Occupation Tax
As an incorporated city, one way Bainbridge Island raises revenue is through its Business & Occupation (B&O) Tax levied on businesses engaging in business on the island. Businesses with gross revenue of more than $150,000 earned on Bainbridge Island are subject to the City's Business and Occupation Tax set at 1/10 of 1%. The tax is filed annually reporting gross revenue for the prior calendar year. This B&O Tax is separate from and in addition to the Washington State B&O Tax.
|Definition of "Gross Revenue on the Island": Under Bainbridge Island Municipal Code (BIMC) 5.05.050, the B&O Tax is levied on every person engaging in business activities within the City. The definition of "engaging in business" can be found at BIMC 5.05.030. For B&O Tax purposes, BIMC 5.05.050.A.4 defines "total gross revenue on the island" as the "gross proceeds of sales of the business without regard to the place of delivery of articles, commodities or merchandise sold."|
Please Note: Nonprofit organizations are subject to Business and Occupation Taxes as a result of undertaking for-profit activities. If the nonprofit does not undertake for-profit activities, the nonprofit may write "EXEMPT" across the B&O Tax Report and return the report as directed.
Please Note: Certain businesses are subject to separate taxes in lieu of B&O Taxes:
The City mails a personalized B&O Tax Report to our businesses on or around the first week of January of each year. A generic report is provided below for your convenience. B&O Tax Reports and tax payments are due by the last day of February each calendar year. See the Fee Schedule to calculate penalties for reports received after the due date.