Changes to the Renton Business and Occupation tax will change how certain businesses and practices are classified for tax purposes.

At the Dec. 1 Renton City Council meeting, the council passed an ordinance that amended the city’s B&O tax model. The changes mean that services previously reported as service activity will now be classified as retail.

“This change ensures our local regulations remain consistent with the state model ordinance and promotes transparency for affected businesses,” Renton Tax and Licensing Manager Fred Hall said.

The ordinance was necessary because of Senate Bill 5814, passed in 2025, which expanded retail sales and B&O tax to include several new service activities. All cities with a local B&O tax are required to amend city code to be consistent with the changes. Starting on Jan. 1, 2026, the following services will be classified as retail:

• Advertising services

• Live presentations

• Information technology services

• Custom website development services

• Investigation, security, and armored car services

• Temporary staffing services

• Sales of custom software and customization of prewritten software

As a result, these services will be subject to sales tax. The full ordinance with all the changes made to the tax code can be found on the city’s website on the Dec. 1, 2025, Renton City Council meeting agenda.