TAXES & CITY FINANCES

Business and Occupation (B&O) Tax



The City of Lacey collects taxes from businesses in the form of the business and occupation (B&O) tax.  B&O tax revenues support general government functions. 2012 revenue projections for Lacey's B&O taxes are $1.55 million. 

 

There are some exemptions, but generally, every person, company, corporation, and association that engages in business in Lacey is subject to the city’s B&O tax.   The B&O tax is based on gross receipts.

Chapter 3.02 of the Lacey Municipal Code provides additional information for specific businesses.



General B&O Tax Information:

 

  • All businesses conducting transactions in Lacey, whether or not the business is physically located within the city, must be registered with the City of Lacey.

 

  • All business activity is subject to the B&O tax unless specifically exempted by Lacey Municipal Code.

 

  • For customers filing quarterly: B&O taxes do not apply if gross receipts are less than $5,000.

 

  • For customers filing annually: B&O taxes do not apply if gross receipts are less than $20,000.