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
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 enjoy working with Bryn. He is great at picking up the legal details that I miss when we are putting contracts together. He is thorough and asks great questions. His legal knowledge is excellent and he is often able to provide a challenge that leads to a better result.
Ian D.
Bryn’s work is exemplary. Well thought through, thorough, and balanced. Bryn is very good as weighing the risks involved against the issue being reviewed. He’s an excellent advisor because he gives you the good, the bad and the ugly of each issue and helps you figure out the best route to take.
Ned R.
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.
I have worked with Bryn on projects at Tree Top Inc. and I found Bryn to be detailed and professional in his approach to legal counsel. Bryn’s willingness to understand the business needs, and subsequently assuring those business needs are met in the intent and spirit of all contracts and agreements, is invaluable.
Joel Y.
Bryn was very helpful in reviewing our company’s transportation contracts and recommended several changes that have come to be very beneficial.
Lonnie R.