HomeMy WebLinkAboutCOW 2025-08-11 Item 4C - Report - Quarterly Business & Occupation (B&O) Tax Report4.C.
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City of Tukwila
Thomas McLeod, Mayor INFORMATIONAL MEMORANDUM
TO: Committee of the Whole
FROM: Aaron BeMiller, Finance Director BY: Adam Schierenbeck, Acting Fiscal Manager
CC: Thomas McLeod, Mayor
DATE: August 4, 2025 SUBJECT: Quarterly Business and Occupation (B&O) Tax Report ISSUE The Finance Department is hereby providing the quarterly report to the city council on funding associated with the Business and Occupation (B&O) Tax. BACKGROUND Tukwila Municipal Code (TMC) 3.27.170(B) requires the Finance Director to provide a quarterly report to City Council on public safety funding associated with the B&O tax levied under Chapter 3.26 TMC. The B&O tax was implemented beginning January 1, 2024, to fund public safety positions, with revenues being allocated to the general fund.
B&O tax revenues are estimated at $2.4 million annually for both 2025 and 2026. DISCUSSION
The total B&O tax revenue for fiscal year (FY) 2025 as of July 28, 2025 is $1,174,525. This includes $291,759 received from annual filers for the 2024 tax year. The remaining revenue is attributable to quarterly taxes.
Based on amounts reported year-to-date, it is reasonable to assume that B&O tax revenues for FY 2025 will reach $2.4 million, as forecasted. The current compliance rate for annual filers for the 2024 tax year – as measured by the number of businesses that have filed returns compared to the total number of annual accounts – is approximately 57 percent. The due date for annual B&O tax returns was April 30, 2025. Tax Division staff maintain ongoing efforts toward collecting past due accounts receivable, collecting unfiled returns, and verifying amounts reported on returns filed.
FINANCIAL IMPACT n/a RECOMMENDATION n/a ATTACHMENTS n/a
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