Department of Revenue Update
- Johanna
- 4 days ago
- 2 min read
Now that it's time to file your Quarterly Excise Tax Return:
Effective Jan. 1, 2026, the following Service and Other Activities B&O tax classifications have been renamed as follows:
If you (or your affiliated group) have taxable income under $1,000,000 that was subject to the Service and Other Activities B&O tax classification in the prior calendar year, you will now report under the Service and Other Activities (Less than $1,000,000 in the prior year) B&O tax classification.
If you (or your affiliated group) have taxable income from $1,000,000 to $4,999,999 that was subject to the Service and Other Activities ($1 million or greater in prior year) B&O tax classification in the prior year, you will now report under the Service and Other Activities ($1,000,000 to $4,999,999 in the prior year) B&O tax classification.
The Service and Other Activities ($5,000,000 or More in the prior year) B&O tax classification will remain the same in 2026.
The second and third tiers do not apply to hospitals, real estate brokers, and select advanced computing businesses. For more information and examples, please visit our Workforce Education page.
Please note: If you previously reported under the combined Service & Other Activities and/or Gambling Contests of Chance (less than $50,000 a year) B&O tax classification and you have gross income from gambling activities less than $50,000 per year, you must begin reporting it under the Gambling Contests of Chance (less than $50,000 a year) B&O tax classification.
If your gross income from gambling activities is greater than or equal to $50,000, you will continue to report under the Gambling Contests of Chance ($50,000 a year or greater) B&O tax classification.
To add the new classification to your return:
Select Add/Delete Tax Classifications on the Select Taxes page of the return.
Select Gambling Contests of Chance (less than $50,000 a year).
Select Next to continue.
Need help? Call us at: 360-705-6705.
Department of Revenue
Taxpayer Information & Education
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