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
I had the pleasure of working with Bryn when he was our inside counsel. Our interactions were centered around supplier contracts and the occasional issue where I needed guidance. Bryn was always helpful, thoughtful and thorough in his responses. Very good to work with.
Scot R.
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’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.
Bryn is an extremely attentive business-focused attorney driven to “get the deal done”. Always willing to share experiences, advice and observations from a legal perspective, Bryn makes extraordinary efforts to understand the business side of issues and the potential opportunities therein.
Woody J.
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.
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.