Lakewood, WA Local Taxes & Fees: Business Tax Classification (2026)
Key Facts
- Tax rate
- 6% of gross income, all eight utility classes
- License requirement
- Business license under LMC Title 5 first
- Filing frequency
- Monthly, due last day of following month
- Late penalty
- 10-25% plus 1%/month interest
- Max fine
- $1,000 per day, misdemeanor
- Appeal body
- City Hearing Examiner, Chapter 1.36 LMC
Summary
Lakewood, Pierce County, taxes utility businesses at 6% of gross income under LMC 3.52.050, sorting telegraph, telecom, cellular, gas, electric and cable operators into separate classifications, plus the City's own storm water and garbage utilities.
There are levied upon, and shall be collected from everyone, including the City, on account of certain business activities engaged in or carried on in the City, utility business occupation taxes in the amounts to be determined by the application of rates given against gross income as follows: A. Upon everyone engaged in and carrying on a telegraph business, a tax equal to six percent of the total gross income, not including the amount of the tax, from such business in the City during the period for which the tax is due ... ... D. Upon everyone engaged in or carrying on the business of selling, brokering or furnishing artificial, natural or mixed gas for domestic, business or industrial consumption, a tax equal to six percent of the total gross income, not including the amount of the tax, from such business in the City during the period for which the tax is due ... ... F. Upon everyone engaged in or carrying on the business of cable communications, a fee or tax equal to six percent of the total gross income, not including the amount of the tax, from gross subscriber revenues in the City during the period for which the fee or tax is due.
Official source re-checked September 8, 2026: no newer edition of the code had been published (publisher’s edition: current through Ordinance 852, passed June 15, 2026).
Full Breakdown
52 is Lakewood's utility business tax, the closest thing the city's code has to a general business-tax classification scheme since it has no separate business and occupation tax chapter. 040 requires anyone carrying on a taxed activity to first hold a business license under LMC Title 5. 050 then lists eight distinct classes taxed on gross income: telegraph businesses (A), competitive or network telecommunication service (B), cellular telephone service (C), sellers of artificial, natural or mixed gas (D), sellers of electric energy (E), cable communications measured on gross subscriber revenues (F), and the City's own storm water management utility (G) and garbage collection utility (H) when the City operates them.
Every one of these eight classes is taxed at six percent of total gross income, not including the tax itself. 110). 100). 180: 10% if one to 10 days late, 15% for 11 to 20 days, 20% for 21 to 30 days, and 25% beyond 30 days, plus 1% per month interest on the unpaid balance. 160), and may withhold the disputed amount pending the appeal if interest is paid if the appeal fails.
Violations & Fines
Failing to obtain the required business license, failing to file a return, or paying late triggers the graduated penalty schedule in LMC 3.52.180 (10 to 25 percent of the tax due) plus 1 percent monthly interest. LMC 3.52.190 makes it a misdemeanor to fail to apply for a license, fail to pay tax when due, or file a false statement, with each day of noncompliance a separate offense punishable by a fine of up to $1,000 per day. LMC 3.52.170 separately makes false or fraudulent returns, or aiding another to evade the tax, unlawful.
Frequently Asked Questions
What business types does Lakewood's utility tax classify?
Do I need a license before paying Lakewood's utility tax?
What happens if a Lakewood utility tax payment is late?
Can a Lakewood utility taxpayer appeal a tax determination?
Sources & Official References
Other rules in Lakewood
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Business Tax Classification in Nearby Cities
How other cities in this county handle business tax classification.