Business & Occupation Tax

Who Should File a Return?

Regardless of revenue, every business performing work within City limits of Port Townsend MUST maintain both an active Washington State business license and a City of Port Townsend endorsement (City endorsements are obtained through Washington State Department of Revenue's Business Licensing Service).  For more information on business licensing, please refer to our Business Licensing Page.  

Any entity whose gross annual receipts are equal to or exceed $100,000 from work/services performed or from goods sold/delivered inside City limits (as delineated by the bold blue border here: City of Port Townsend Zoning Map), is required to file a City of Port Townsend Business and Occupation tax (B&O Tax) return, in addition to filing B&O Taxes with Washington State.

Every person, firm or other organization doing business within the City limits 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 click on the embedded links and review these sections to familiarize yourself with the requirements.  Businesses are also encouraged to consult a tax professional for any questions they may have concerning their B&O tax return.

How Do I File City B&O Taxes?

Complete the City's B&O Tax Return and submit it along with Check or Money Order payable to the City of Port Townsend.  Completed returns with payments may be mailed or hand-delivered to: City of Port Townsend, 250 Madison St., Port Townsend, WA, 98368.

The City's B&O Tax Return is linked at the bottom of this page.  Please click on the link to open and follow the instructions below to complete the form.

1. Select the appropriate Filing Frequency; Quarterly or Annual.  If you are a Quarterly filer, please select the appropriate quarterly period from the "Quarter or N/A" dropdown.  Annual filers, please select "N/A".

2. Complete all general business information (top two sections).

3. Calculate total tax owed for each applicable business classification by completing from left to right:

• Column 2: Gross Income
• Column 3: Deduction Description or Deduction Number (from B&O Instructions and Information Document linked at the bottom of this page)
• Column 4: Amount Being Taken as a Deduction
• Column 5: Taxable Amount (Take the Gross Income from Column 2, Subtract any Deduction Amount from Column 4, input the difference in Column 5)
• Column 6: City of Port Townsend B&O Tax Rate
• Column 7: Tax Amount (Take any amounts in Column 5 "Taxable Amount" and Multiply by 0.002 to get the amount of tax owed and input the result in Column 7)
• Line A: Total All Tax Amounts for each Business Classification to get the total amount of tax owed for all of your applicable business types
• Line B: Penalty Calculation (Refer to "Delinquent Taxes and Penalties" section, below)
• Total Due: Total of Line A "TAX AMOUNT" + Line B "PENALTY" - this will be your total payment amount

4. If the business has closed, please provide the date of closing in the space provided.

5. Complete the attestation on page 2 with your Name, Title and the Date you completed the form.

How Often Do I File?

Quarterly Filing: All businesses with gross receipts of $100,000 or more must maintain an active State business license and City endorsement and file Quarterly B&O returns.

Annual Filing: Requires City approval. Annual filers must maintain an active State business license and City endorsement and file their return Annual B&O return by April 15th.

The City of Port Townsend follows the Washington State reporting periods, due dates and penalty assessment rates.  Refer to the table below for quarterly filing dates.

Delinquent Tax Payments & Penalties Assessed

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

How Do I Pay My City B&O Tax?

1. Fill out and print the City of Port Townsend B&0 Tax Return.
2. Mail or hand-deliver your return with a check or money order to: City of Port Townsend, 250 Madison St., Port Townsend, WA, 98368. 

Click here for instructions and more information on filling out your B&O Quarterly Tax Form.

Updates & Other News:

05/28/2025: The City is currently exploring options for a consolidated online filing and payment portal that are fully integrated and linked.  At this time, mailed B&O Tax Returns should be filed as physical hard-copy returns with check or money order payments included.