Title
Business and Occupation Tax Online Software Update
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Receive an update on the Business and Occupation Tax online software.
Report
Issue:
Whether to receive t an update on the Business and Occupation Tax online software.
Staff Contact:
Mike Githens, Finance Director, 360.753.8465.
Presenter(s):
Mike Githens, Finance Director
Background and Analysis:
The City of Olympia collects Business and Occupation (B & O) taxes from businesses. he B&O tax is based on gross receipts and is separate from taxes filed with the Washington State Department of Revenue. Businesses file returns either annually or quarterly depending on the annual gross taxable amount claimed by the business. Currently, businesses must complete and submit a paper return along with payment. A paper return is required even when no payment is due. This process is time-consuming and inefficient for both businesses and the City's Finance Department.
The City is evaluating software solutions that would allow businesses to file B&O tax returns electronically, submit payments online, and use multiple payment options, including credit cards and electronic bank payments. There are only a few software vendors capable of supporting Washington State B&O tax requirements while also accommodating the City of Olympia's specific requirements.
The City is seeking a solution that improves the experience for businesses while also increasing efficiency within the Finance Department. Desired capabilities include online filing and payment, multiple payment options beyond credit cards, the ability to amend returns, and the ability for businesses to print or save copies of submitted returns. For City staff, the solution should improve compliance tracking, reduce manual data entry, and streamline administrative workflows.
All businesses engaging in business activity within Olympia must have an Olympia endorseme...
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