Everett council approves required B&O tax expansion

EVERETT — The city of Everett updated its business and occupation tax code on Wednesday to reflect changes in state law that required a number of services to become subject to certain taxes.

The new state law, Senate Bill 5814, changed the classification of a number of services — including advertising, live presentations, information technology, website development, security and more — making them subject to business and occupation taxes, known as B&O taxes, and sales tax. It also makes more nicotine products subject to specific taxes regarding tobacco products.

On Wednesday, the City Council approved an ordinance adding those services to the city’s B&O tax law. Cities across the state were required to update their B&O tax codes to align with the new state law, but don’t have to update rules regarding sales taxes as those are administered by the Washington Department of Revenue, a city spokesperson wrote in an email.

The state law passed this year and was put into place to help prevent a looming state budget shortfall. The law is expected to raise $1.1 billion over two years and $2.6 billion over four years, according to the Washington State Standard.

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