Bothell, WA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Refuse collection tax
- Five percent of gross income since January 1, 1991
- Water, sewage, storm water
- Six percent of gross income each
- Cable television
- Eight percent, dropping to six percent March 1, 1988
- Minimum exemption
- Total gross income under $125.00 per month
- Remittance due
- Fifteenth of the month after the tax accrues
- Record retention
- Five years, open to the city treasurer
Summary
Bothell sorts taxable utility businesses into classes under BMC 5.08.020 and taxes each class on gross income. Refuse collection is taxed at five percent, while water, sewage, storm and surface water, and telegraph businesses are taxed at six percent and cable television at eight percent, then six percent from March 1, 1988.
There is levied and there shall be collected from every person a tax for the act or privilege of engaging within the city in any one or more of the businesses mentioned in this section. The tax shall be based upon the income of the business, multiplied by the rate set out after the business, as follows: A. Telegraph Business. A tax equal to six percent of gross income; ... E. Refuse Collection and Disposal Business. A tax equal to five percent of gross income effective January 1, 1991; F. Water Distribution Business. A tax equal to six percent of gross income effective January 1, 2025; G. Sewage Collection and Disposal Business. A tax equal to six percent of gross income effective January 9, 2017; H. Cable Television Business. A tax equal to eight percent of gross income; provided, however, that the rate shall decrease to six percent of gross income effective March 1, 1988; I. Storm and Surface Water Management Business. A tax equal to six percent of gross income effective January 9, 2017.
Full Breakdown
In the City of Bothell, Washington, the city council levies a utilities business tax on the act or privilege of engaging in listed businesses within the city. Section 5.08.020 sets the tax at a rate multiplied by the income of the business, and the rate depends on which business class you fall in. Telegraph business: six percent of gross income. Refuse collection and disposal: five percent effective January 1, 1991. Water distribution: six percent effective January 1, 2025. Sewage collection and disposal: six percent effective January 9, 2017. Storm and surface water management: six percent effective January 9, 2017. Cable television: eight percent, dropping to six percent effective March 1, 1988. Telephone, gas distribution, and light and power each carry a dated schedule that steps from 7.2 percent on January 1, 1985 to 6.0 percent on March 1, 1988. Gas distribution receives a credit for franchise fees paid to the city, and 5.08.025 extends that franchise fee credit to every taxed business without allowing a double credit.
A business that fits two or more classes is taxable under each applicable schedule (5.08.030). Interstate and foreign commerce income is outside the tax (5.08.040), and persons whose total gross income is less than $125.00 per month are exempt, though they can still be required to file returns (5.08.050). Section 5.08.070 lists deductions such as cash discounts actually taken and credit losses on an accrual basis.
The tax is paid in monthly installments on or before the fifteenth day of the month after the month in which it accrued (5.08.090). Unpaid tax draws a five percent penalty after the last day of the month, a total of 10 percent at one month delinquent, and a total of 20 percent at two months (5.08.150). Records must be kept for five years (5.08.120).
Separately, general business license fees under Chapter 5.04 BMC are set by city council resolution (5.04.400). In counting employees for the fee, owners and officers count, only work done in the city counts, and anyone under 20 hours per week counts as a fraction of 40 hours (5.04.410).
Violations & Fines
A deficient payment is assessed the additional amount plus interest at six percent per year, due within 10 days of the treasurer's notice (BMC 5.08.100). Delinquency penalties climb from five to 10 to 20 percent of the tax (5.08.150). A taxpayer who fails to file a return faces a treasurer's estimate and assessment under 5.08.160. Chapter 5.04 license fees carry a five percent late penalty per 30 days, up to a maximum of 25 percent (5.04.450).
Frequently Asked Questions
What rate does Bothell charge on water distribution income?
Is a small utility business exempt from Bothell's business tax?
When is the Bothell utilities business tax due, and what are the late penalties?
Who sets Bothell's general business license fees?
Sources & Official References
Other rules in Bothell
Compare Bothell to another location·View the Washington local taxes & fees overview
See something wrong?
Help us keep this page accurate. If you notice an error or outdated information, let us know.
Business Tax Classification in Nearby Cities
How other cities in King County handle business tax classification.