Washington’s Business and Occupation tax is a gross receipts tax – meaning you owe it based on total revenue, not profit. The 2026 rate changes, driven by legislative action during the 2025 session, affect multiple business classifications and have caught many small business owners off guard. Mercer Island businesses face a layered obligation: state B&O rates that have shifted, potential city-level B&O taxes from neighboring jurisdictions like Seattle and Bellevue, and eligibility thresholds for the small business B&O credit that may have changed as revenues grew. The businesses most at risk are those with mixed revenue streams, multi-city customer bases, or operations that have expanded since they last reviewed their B&O classification. Getting the recalculation right now – before quarterly estimates compound an underpayment into penalties and interest – is the priority. A six-step action plan, document checklist, and FAQ section cover everything needed to assess your current exposure and correct course heading into 2027.
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Testimonials
Bryn has been a big asset to me as he is always thorough and has impeccable integrity. Bryn’s knowledge and skills have made it easy to accomplish projects on time and on budget. He always has a great attitude and is a pleasure to work with.
Ray C.
Bryn was very helpful in reviewing our company’s transportation contracts and recommended several changes that have come to be very beneficial.
Lonnie R.
Bryn was detailed and thorough in reviewing agreements. Bryn was responsive and communicated well the major points I need to be aware of before signing an agreement. Bryn was personable and was knowledgeable in his area of study.
William C.
Bryn helped with a few members who were in dealing with legal situations. I was very pleased with his ability to listen and understand their situations and to provide a well thought out conclusion that was fact based. Each situation meet the demands and needs of our members.
Monty S.
Personable and professional at all times, under all circumstances. Demonstrates a “bias for action, clarity, and consistency” through utilization of excellent collaboration and listening skills.
Joe B.
I had the pleasure and privilege to work with Bryn Peterson for over two years at Tree Top, Inc. During that time, I worked with Bryn on several company issues and always found his work to be professional and well done. Bryn demonstrated his legal experience and knowledge on many levels throughout the organization, and always had the best interests of the company in mind.
Scott T.