The square footage B&O tax was implemented to tax those businesses who lease, own, occupy, or otherwise maintain a warehouse or outdoor warehouse within the city for purposes of engaging in business activities in the city. There shall be a tax measured by the number of square feet of business warehouse floor space or outdoor warehouse space. The amount of the tax shall be equal to $0.10 for each quarterly period of a calendar year (or $0.40 annually) for each square foot of warehouse or outdoor warehouse floor space that is leased, owned, occupied, or otherwise maintained within the city during the reporting period, calculated to the nearest square foot.
A person who opens or closes their business location in Auburn during the tax reporting period, or whose business space within Auburn otherwise changes during the tax reporting period, shall prorate the tax due based on a ratio of days that the space was occupied to total days of the tax reporting period. This ratio is computed based on a 90-day calendar quarter or 360-day calendar year.
Any person who maintains a facility in the City in which a portion of the facility is used and/or intended to be used for the storage of goods, wares, merchandise, commodities, inventory, materials, equipment, or other items and a portion is used for other business purposes (manufacturing, retail floor space, repair shop, etc.) must report in the manner that most accurately reflects the respective tax liability of all space within the facility.
Square Footage B&O Tax Threshold:
The square footage tax imposed in subsection ACC 3.53.040 (B) of shall not apply to any person unless that person’s total area of business space within the city exceeds one of the following thresholds:
a. Four thousand taxable square feet of business warehouse space; or
b. Two hundred sixty-one thousand three hundred sixty taxable square feet (six acres) of outdoor warehouse space;
The square footage B&O tax is reported under the Square Footage Tax Classification on the multi-purpose tax return Section 2. If Square Footage tax is less than or equal to the B&O Gross Receipts tax (Section 1), no square footage B&O tax is due. City B&O tax imposed only on one of those two B&O taxes – whichever is higher!
This tax rate may be reviewed annually to reflect the effects of inflation or deflation on the local economy. If the taxable square footage changed during the reporting period, provide an explanation in writing and enclose with your tax return.
Definitions
“Warehouse” means structure wherein facilities are offered for the storage of tangible personal property (whether or not for compensation) in furtherance of engaging in business. It includes “storage warehouses,” “cold storage warehouses” and “automobile storage garage” as defined in ACC 3.53.020(WW).
Included in measuring:
- the inside finish of permanent outer building walls and
- shall include space used by columns and projections necessary to the building.
Not included in measuring:
- stairs
- elevator shafts
- flues
- pipe shafts
- vertical ducts
- heating or ventilation shafts
- janitor closets
- electrical or utility closets.
“Outdoor warehouse” means an area that is outdoors and is primarily used for the storage of merchandise, goods, wares, commodities, inventory, materials, equipment, or other items (whether or not for compensation) in furtherance of engaging in business.
Included in measuring:
- areas used and/or intended to be used for the storage of goods, wares, merchandise, commodities, inventory, materials, equipment, or other items (whether or not for compensation) in furtherance of engaging in business.
- the entire space used for outdoor warehousing and is not measured solely based on the size of the goods, wares, merchandise, or commodities that are being stored.
Not included in measuring:
- areas used only for employee, customer, or visitor parking
- dock high loading areas
- buildings
- areas used only for retail floor space or rentals to consumers
- landscaped areas
- storm water facilities
- maneuvering areas and drive aisles
- areas used only for garbage or recycling pickup
- rights-of-way, or other areas clearly not used for the temporary storage of goods, wares, merchandise, and commodities in transit
- rights-of-way
- other areas clearly not used for the storage of items described in the outdoor definition