There are exemptions from the gross receipts tax and deductions allowed for certain businesses activities or sources of income. Persons who engage in business activities subject to tax under two or more classifications on the same revenues may be eligible for the multiple activities tax credit.
NOTE: When claiming a deduction or Multiple Activities Tax Credit (MATC), the required schedules must be submitted with the multi-purpose tax return to be valid.
Common exemptions and deductions are listed below. Amounts that are exempt from tax per the Bellevue City Code do not need to be included in tax reporting; however, amounts that qualify as tax deductions must be included in gross receipts, then deducted using Schedule D.
- 2023 taxable gross receipts equal to or less than $48,750 per quarter ($195,000 annually).
- Annual Reconciliation Required: If you are assigned a quarterly filing frequency and do not pay the tax due on one or all of the quarters, you are required to reconcile your annual receipts to determine if taxable receipts exceeded the annual threshold. If you did exceed the annual threshold, tax and interest are applied to all periods when tax was not paid, which is due date of the 4th quarter tax return (Jan 31).
- Manufacturing, selling or distributing motor vehicle fuel
- Liquor, beer and wine sales
- Sale, lease or rental of real estate. (No exemption is allowed for license to use real estate or for amounts received as commissions.)
- Insurance agents (brokers are subject to tax)
- Farm products or edibles raised, produced or manufactured in Washington and sold by the farmer
- Certain activities for nonprofit organizations holding Federal IRS nonprofit status under 26 U.S.C Section 501(c)(3), (4), or (7).
- Casual and isolated sales, such as an accountant selling his or her office furniture
- Day care homes in residences
Deductions are to be included in the gross receipts amounts and then deducted when calculating the taxable amount on which the gross receipts tax rate applies.
- Retail or wholesale sales delivered outside Bellevue
- Cash discounts taken by customers
- Credit losses or bad debts sustained by sellers