In place of a corporate income tax, Washington levies a B&O tax on the gross receipts of business activity occurring in the State. Complete information on the B&O tax and additional rate categories can be found through the City of Everett Business Tax Division.
City of Everett B&O Credit
The City offers a credit of $1000 per job created to be taken against the City B&O Tax
The program requires a minimum of 50 new jobs and has a lifetime cap of $500,000
The Sales and Use Tax is Washington’s principal revenue source. It is comprised of a state component at 6.5% and a local component at 1.2% – 3.8%; total 7.7% – 10.3%. Businesses making retail sales in Washington collect sales tax from their customer. A retail sale is the sale of tangible personal property. It is also the sale of services such as installation, repair, cleaning, altering, improving, construction, and decorating. Major exemptions to the sales tax include purchases for resale, groceries and prescription drugs, interstate and foreign sales, and manufacturing/processing equipment. The Use Tax is applied on taxable items purchased in another state and brought to Washington if that state did not collect sales tax. Use Tax rates are the same as Sales Tax.