Business and Occupation Tax

Bellingham’s B&O taxes must be filed separately from state taxes. All registered Bellingham businesses are required to file a Bellingham B&O tax return, unless they qualify for specific exemptions. Read on to learn when Bellingham’s B&O tax is owed, how to file it, Bellingham’s B&O tax rate, and to see exemptions, deductions, and credits.

Tip: While not all businesses will owe taxes, all registered Bellingham businesses must file their Bellingham taxes to maintain their business licenses. You do not owe tax if your Bellingham-sourced revenue is less than $20,000 (annual filers) or less than $5,000 (quarterly filers).

Filing your Bellingham B&O tax return

A tax return must be completed, signed and returned each period, even if no tax is due. If you are unsure of your filing status, please contact our Business Licensing Team at bls@cob.org or call 1-360-778-8012.

File online

Through our online filing system, you can do more than file your taxes. You can also pay balances, update account information, and close your business. Balances are paid via e-check – there’s no convenience fee. To file online, you will need to create an account.

Our system does not retain copies of online returns. If you would like to retain documentation of your filing, you must take a screen shot or print the confirmation page when filing. 

File Online or Create Account

How To: Business and occupation tax portal guide

Complete this form and mail or deliver to the City of Bellingham Finance Department (210 Lottie Street Bellingham, WA 98225). Balances can be paid by check, or, if paying in person, with a credit card or cash. Make your check or money order payable to the “City of Bellingham.” All correspondence must include your City of Bellingham account number and contact information.

Tax returns must be filed for each period, even if no tax is due. If you mail your return, it must be postmarked by the due date or it will be considered past due and subject to late fees and penalties. Filing deadlines depend on how often you file.

Tip: Mail is not always postmarked on the same day it is deposited into a receptacle. If a payment is received after the due date with no postmark or the postmark is after the date due, the payment will be considered late and penalties will be imposed.

Monthly returns

Tax is due the last day of the following month (example: December 31 for tax period ending November 30).

Quarterly returns

Tax PeriodTax Due Date
Jan, Feb, MarchApril 30
April, May, JuneJuly 31
July, Aug, SeptOct 31
Oct, Nov, DecJan 31

Annual returns

Tax is due April 15.

If your return is past due, it will be subject to the following penalties depending on your filing schedule. If tax is due, the minimum penalty is $5.

Penalty rates for quarterly filers

  • If received after the due date – 9% of tax due 
  • If received after the last day of the month following the due date – 19% of tax due 
  • If received after the last day of the 2nd month following the due date – 29% of tax due 

Penalty rates for annual filers

  • If received after April 15th – 9% of tax due  
  • If received after May 15th – 19% of tax due
  • If received after June 15th – 29% of tax due 

You must file through your closure date before requesting a closure. For example, if your closure date was in the previous year, you must file a return for that year before requesting a closure. You can request a closure online. Paper filers can indicate a closure on their tax form.

Make sure to keep your email address updated to receive important notices. Registered businesses may receive an email with instructions and a PIN number.

You can change your address using the online portal or by emailing bls@cob.org  with your account number, business name, your old address, and your new address. Please specify if this is a mailing or physical address.

Your PIN can be found in your “welcome” email, “reminder to file” email, and through the online filing portal:

  • Visit the portal 
  • Click on the “Home” button in the center of the page 
  • Click on “Renew Business Online”  
  • Click “Click here to have the PIN emailed”  

Exemptions, deductions, and credits

Bellingham allows certain tax deductions and exempts some business activities from taxation altogether.

City of Bellingham B&O tax is calculated based on the gross revenues of your business. You do not owe tax if your Bellingham-sourced revenue is less than $20,000 (annual filers) or less than $5,000 (quarterly filers).

While not all businesses will owe taxes, all registered Bellingham businesses must file their Bellingham taxes to maintain their business licenses.

The most common exemptions from the gross receipts tax are below. To see eligibility and additional exemptions, visit BMC 6.04.090.

  • Manufacturing, selling, or distributing motor vehicle fuel 
  • Manufacturing or sale of liquor, beer, and wine (over 1% alcohol by weight)
  • Sale and long-term lease or rental of residential or commercial real estate (long term is defined as being more than 30 days). However, short-term rentals of less than 30 days are not exempt. This includes Airbnb, VRBO, hotels, or other travel lodging. 
  • Farm products or edibles raised, produced, or manufactured within the State of Washington and sold by the farmer 
  • Casual and isolated sales, such as an accountant selling his or her office furniture 
  • Daycare (pre-schools are not exempt) 

Common deductions

While there are no deductions from the B&O tax for labor, materials, taxes, or other costs of doing business, your business may qualify for certain deductions. The most common deductions from the gross receipts tax are below. To see eligibility and additional exemptions, visit BMC 6.04.100.

  • Retail or wholesale sales delivered outside of Bellingham city limits 
  • Foreign retail or wholesale sales 
  • Cash discounts taken by customers 
  • Credit losses or bad debts sustained by taxpayers who keep their books on an accrual basis 

How are deductions calculated?

It depends on how you file:

  • Paper filers will write in gross income, write in the amount of deduction taken, then calculate the difference to arrive at taxable income.
  • Online filers only need to report taxable income, and do not specify the amount of deduction taken or type of deduction.

The Urban Village and Downtown Pedestrian Core Tax Credit

If you’re opening a new business in an urban village you might be eligible for a 3-year B&O tax reduction – or 7 years if you’re in the downtown pedestrian core. See eligibility requirements and other details.

>> If you’re eligible, you can apply for this credit by submitting the Urban Village Tax Credit Application before your first return is due.

Multiple Activities Tax Credit

If your business is subject to an eligible gross receipts tax on the same activity in more than one jurisdiction, you may be entitled to a deduction. See eligibility requirements and other details.

>> If you’re eligible and would like to receive this credit, submit the Multiple Activities Tax Credit Form with your Bellingham B&O tax return.

B&O tax rates

The tax rate for your Bellingham business depends on the type of activity it does. Your business can have multiple activity classifications. You are responsible for determining which classification(s) to report your income under.

Rates for each business activity

  • Extracting 0.17% 
  • Manufacturing 0.17% 
  • Retailing 0.17% 
  • Wholesaling 0.17% 
  • Services and other activities 0.44% 

How are rates applied?

These tax rates are applied to the gross receipts of a business (gross receipts refer to the total income a business receives from all sources, including sales and other forms of revenue, before any deductions or expenses).

Retailing:Only report revenue from products sold to and/or delivered to customers inside Bellingham. Revenue for products shipped outside Bellingham can be excluded.

Extracting and Manufacturing:The B&O tax is based on the value of the products extracted or manufactured from within city limits. Note that these businesses may qualify for the Multiple Activities Tax Credit (MATC).

Wholesaling: Only report revenue from products sold to and/or delivered to customers inside Bellingham. Revenue for products shipped outside Bellingham can be excluded.

Services and other activities: If you are uncertain as to whether (or how much of) your business’ service revenue is taxable, please use the Service Apportionment form to determine taxable revenue

To determine the classification, refer to the DOR’s Tax classifications for common business activities webpage and the Definitions section of Bellingham Municipal Code 6.04.

The City cannot offer tax advice on what type of classification your activity falls into.

If your tax classification is “service,” you will need to fill out the Service Income Apportionment Schedule. If it is any other classification, only report the Bellingham activity on your Bellingham B&O tax return. If you are unsure how to report your taxes, contact our Business Licensing Team at bls@cob.org or call 1-360-778-8012.

Tip: When you file your Bellingham B&O tax return, you are also renewing your Bellingham business license. That means renewing your license and filing a B&O tax return are one and the same.

Frequently asked questions

Can’t find the information you’re looking for above? Here are some other frequently asked questions. If you still need help, please reach out.

Any changes to previously filed returns must be done on a paper return. Write “Amended Return” on the top of the form and fill out the corrected amounts. Calculate the taxes and penalties as normal, and in the previous balance box enter as a negative amount any payment that was submitted with the original return. Amended returns must include a letter describing the changes to your return and why you are making them.

If you pay online, the system will automatically apply the credit.

You can pay online with an e-check; with a standard check by mail; or in person by check, credit card, or cash. There are no fees for paying by e-check online.

Our system does not retain copies of online returns. If you would like to retain documentation of your filing, you must take a screen shot or print the confirmation page when filing.

You will need to complete and submit this Confidential Tax Information Authorization form.

If you sold your business, make sure all filing periods are paid up to the date of closure and then request to close your account through the online portal or by contacting the Finance Department.

If you bought an existing business or your business changed structure, you need to apply for a new City of Bellingham business license.

If you have an ACH debit block on your account, you may need to add City of Bellingham as a payee to pay by e-check. To do so, you will need our company ID: 10000079161.

Contact Us

Do you have questions about Bellingham’s B&O tax? Contact our Business Licensing Team at bls@cob.org or call 1-360-778-8012.

Get more business resources

Business license and registration

Learn about licensing and registration requirements.

Data and regional business support

Find everything from labor statistics to local organizations that support businesses. 

Incentives and financing

Learn about incentives that could support your business and where to get financing support.

Zoning and permits

Before signing a lease, make sure the property is zoned for your type of business. You’ll also want to see which permits and fees will be required.

Home > Services > Business

Our public calendar is being upgraded and may be unavailable for periods of time on Friday, Jun 19.

Secret Link