Business & Occupation Taxes

Note: A sales tax increase of 0.3% is in effect as of April 1, 2024. The tax will fund transportation related work in the city. Click here to read more about the Transportation Benefit District. 

Who Should File a Return?

Every person, firm or other organization doing business in the City of Port Townsend is subject to the licensing and taxation requirements set forth in Port Townsend Municipal Code, sections 5.04A, 5.04B and 5.08. We encourage you to review these sections to familiarize yourself with the city requirements. Every business whose annual gross receipts are equal to or exceed $100,000, is required to file a Business and Occupation (B&O) tax return on or before the last day of the month following the end of the reporting period. Returns are due back to the City by the due date. Late returns may be subject to penalty.

• Quarterly Filers - Businesses whose annual gross receipts are equal to or exceed $100,000 must maintain their business license and file quarterly tax returns.
• Annual Filers -  Businesses that have been approved by the City to file annually. Tax may be due, and business license must be maintained. Annual returns are due by April 15^th of each year.

Quarterly returns are due to the City by the due date below.  Late returns may be subject to a tax penalty.

Filing Frequencies

The City of Port Townsend follows the Washington State reporting periods, due dates and penalty assessment rates

Delinquent Tax Collection Process

An account becomes delinquent when the due date for a tax return has passed and the amount due remains unpaid.

Businesses are encouraged to consult a tax professional for any questions they may have concerning their B&O tax return.