Washington DOR Excise Tax Policy Change

The Washington Department of Revenue has revised its excise tax rules on tax registration and the small business B&O tax credit. The department may relieve a taxpayer of its requirement to file returns and place them on the active nonreporting status if they meet the following conditions:

  • The person's value of products, gross proceeds of sales, or gross income is less than $125,000;

  • The person's gross income from all business activities subject to the public utilities tax is less than $24,000; and

  • The person is not required to pay retail sales tax.

READ MORE BELOW AND IN FULL AT

https://dor.wa.gov/file-pay-taxes/filing-frequencies-due-dates/active-non-reporting

“How can I change my filing status to active non-reporting?”

If your business is currently assigned a monthly, quarterly, or annual filing status and you think your business would qualify for active non-reporting, please update your account using My DOR or call us at 360-705-6705.

What should I do if I exceed the limit?

It is your responsibility to maintain proper financial records and notify the department if your business exceeds the income threshold for active non-reporting status. If at any time your gross income exceeds the threshold, a tax return must be filed and any tax due must be paid. Late filing and payment will cause penalties and interest to be assessed.

Call the Business Registration section at 360-705-6211 or contact your local Department of Revenue field office if your account exceeds the thresholds. We will assign a reporting frequency and make tax returns available through your My DOR account so you can report your taxes.

Do I have other responsibilities?

Businesses have a number of rights and responsibilities in regard to their tax obligations. One of your most important responsibilities is to notify the department of changes that require an update on your account. In addition to the change noted above, other changes may include:

  • New mailing address or business location.

  • New telephone number.

  • New partners or corporate officers.

  • Closing date if you cease to do business in Washington State.

You can notify the department of any changes to your business' status:

See Taxpayer Rights and Responsibilities.”

Ellie Moffat