The municipalities in Spokane County provide a customer-oriented approach to meet timelines and create a competitive advantage through service. There is no income tax or personal income tax in Washington State. Instead, there is a Business and Occupation Tax based on gross receipts.
Check out more information below about taxes and for more information, chat with a Department of Revenue specialist.
Regardless of the profitability of the company or the personal wealth of the employees, the company will only be taxed on its gross receipts. In neighboring states, such as Oregon, Idaho and California, as the profitability of the company grows, so do the taxes a company pays.
Persons that engage in business in Washington are subject to Business and Occupation Tax and/or public utility tax (B&O). The tax is based on gross receipts and the rates vary according to thirty-two classification categories ranging from 0.13% to 3.3%. The B&O is administered by the Department of Revenue. Visit the Department of Revenue’s site for more information about the Business and Occupation Tax and specific industry tax rates.
Washington State relies on consumer taxes rather than personal income taxes; primarily the retail sales tax. Sales tax does not apply to food products, prescription drugs, or professional and personal services. Manufacturers are exempt from sales tax on machinery and equipment used in their production or research operations, but consumers purchasing construction services and building materials are subject to sales tax. The combined state and local retail sales tax rates range from 8.1% to 8.9% in Spokane County.
Washington state property taxes vary due to voter-approved special levies. The average property tax in Spokane County is approximately $14.5 per $1000 of the assessed value.
Businesses making retail sales of property and services in Washington collect sales tax from their customer. There are some exemptions.
The State of Washington has put out an easy-to-understand video about the basics on how to plan for, prepare, and pay state business taxes and insurance premiums. This video provides a step-by-step process on how to properly file a tax report.