FAQs

Finance

B&O TAXES: Can I file and pay my tax return online?

No. Not at this time. Cash or check are currently the only acceptable forms of payment.

Update as of 05/28/2025: The City is currently exploring options for an integrated online filing and payment system for B&O Taxes.  We hope to be able to provide a more user-friendly and eco-friendly option to our business customers in the near future.

B&O TAXES: Can I file my City taxes jointly with my State taxes?

No. The City’s B&O tax program is separate from Washington State's.

IMPORTANT NOTE: The City of Port Townsend has a minimum filing threshold of $100,000 in gross revenue annually.  

If your gross revenues from work/services performed or from goods delivered/sold inside City limits is $100,000 annually or more, you are required to file B&O tax returns with BOTH Washington State & the City of Port Townsend.

If your business generated LESS than $100,000 inside City limits, then you DO NOT owe City B&O tax and you DO NOT need to file a City B&O tax return.

Please be sure to check our zoning map to determine if your location or delivery point falls inside City limits proper! City of Port Townsend Zoning Map

B&O TAXES: Can I take any deductions?

Yes. City-allowed deductions and exemptions are listed below. Review any deductions you are claiming to ensure that they fall into one of the listed categories.

1. Revenue resulting from a person’s performance as an employee, as opposed to an independent contractor.
2. Revenue from insurance sales, upon which a tax based on gross premiums, is paid to the State of Washington.
3. Sale by a farmer or gardener of his/her own produce.
4. State licensed athletic exhibitions or race meets.
5. Certain gross receipts of fraternal benefit societies.
6. Hospitals owned by a government body or religious corporation.
7. Revenue from the sale, lease or rental (if more than 30 days) of real estate (does not include commissions).
8. Certain amounts resulting from the banking, trust or savings and loan businesses.
9. Sales, distribution or manufacturing of motor vehicle fuel.
10. Liquor sales and distribution (includes beer and wine).
11. Investment revenue for non-financial businesses.
12. Bona fide initiation or membership fees, tuition, donations and contributions to endowment funds & non-profit fundraising income.
13. Trade or cash discounts taken by customers.
14. Bad debts incurred by accrual basis taxpayers.
15. Amounts collected by taxpayers as excise taxes.
16. Business transactions which federal and/or state laws and constitutions prohibit the City from taxing. Must provide documentation of proof.

 Refer to Port Townsend Municipal Code Section 5.04A.090  and  Port Townsend Municipal Code Section 5.04A.100 for detailed explanations.

B&O TAXES: Do I have to file B&O taxes?

State of Washington: YES.

Information on State of Washington Business & Occupation Taxes can be found here: Washington State Department of Revenue - Business & Occupation Tax

City of Port Townsend: It Depends.

Any business generating at least $100,000 in revenue for work/services performed or for goods delivered/sold inside the City of Port Townsend is required to file a B&O tax return. Review the gross revenue amounts below relevant to your business.  As a reminder, gross revenue is the total amount of money a business makes from selling its products or services before subtracting any costs, taxes, or other expenses.

Gross revenue over $100,000: You are required to file a quarterly return.

Gross revenue is under $100,000: You do not owe any B&O tax and you do not need to file a B&O tax return.

Questions about whether or not your work was performed inside City Limits?  Refer to our zoning map here (City Limits is delineated by a bold, blue border): City of Port Townsend Zoning Map

Refer to our Business & Occupation Tax page for more information, tax return form and filing instructions.

B&O TAXES: How do I amend a previously submitted City B&O tax return?

You may submit an amended B&O tax return at any time.

You may use the City's fillable B&O Tax Return form OR you may choose from one of our printable AMENDED return forms on our B&O Tax Page, HERE: Business & Occupation Tax | City of Port Townsend Washington

If additional tax is owed, please enclose check or money order payment for the additional tax amount and remit it with your amended return.

If less tax is owed, you may hold credit on file towards your next quarterly or annual return or you may request a refund of the overpaid amount.

B&O TAXES: How do I change my address / phone number?

You will need to update your information with BOTH the State of Washington AND the City of Port Townsend.

Washington State Department of Revenue - Business Licensing System:

  • Call the BLS at (360) 705-6741

City of Port Townsend:

  • Email your request to: frontdesk@cityofpt.us OR
  • Cross out any incorrect information on your B&O tax return and write in your updated address / phone number and submit your tax return to the City at: 250 Madison St, Port Townsend, WA 98368
B&O TAXES: How do I close my business?

You will need to update your information with BOTH the State of Washington AND the City of Port Townsend.

Washington State Department of Revenue - Business Licensing System:

  • Call the BLS at (360) 705-6741 - they will need to know if you are terminating your entire business or just your City endorsement.

City of Port Townsend:

  • Email your request to: frontdesk@cityofpt.us OR
  • Complete a final B&O tax return for all revenue through the closing date and enter in the date your business closed on the bottom left, then submit your tax return to the City at: 250 Madison St, Port Townsend, WA 98368
B&O TAXES: How much City B&O tax do I owe?

The amount of B&O tax owed is 0.2 of one percent of the taxable amount of gross revenue received during the reporting period.

To calculate your tax owed, you would take your Gross Revenue amount (- less any applicable deductions) and multiply the result by x .002.

For further information or details, please review Port Townsend Municipal Code, Section 5.04A - Business & Occupation Tax.

B&O TAXES: What do I have to do before submitting my return?

Important Things To Remember:

  • Did you sign and date your return before submitting to the City?
    • Any return that is missing the revenue amount, has invalid deductions, or is missing the signature will be returned.
  • Did you enclose your payment with your return before submitting to the City?
    • Returns filed without a payment are considered delinquent until the payment is received and may be subject to penalties if not received by the due date.
B&O TAXES: When are City B&O Tax Returns due?

City of Port Townsend B&O Taxes are only owed from businesses whose annual gross revenue (before any deductions or expenses) is $100,000 or more.

Gross Revenue of $100,000 or more?

  • You should file B&O Tax with both the State of Washington and with the City of Port Townsend QUARTERLY.

Gross Revenue NEAR $100,000?

  • You should be filing B&O Tax with the State of Washington and you may request to be placed on an ANNUAL filing basis (so that you only pay when revenues meet or exceed the $100,000 threshold). 

Gross Revenue Consistently Under $100,000?

  • You should be filing B&O Tax with the State of Washington, but you DO NOT need to file a tax return and you DO NOT owe any tax.

The City of Port Townsend quarterly filing periods are as follows:

  • 1st Quarter - Revenue for January, February & March - Payment Due: April 30th
  • 2nd Quarter - Revenue for April, May & June - Payment Due: July 31st
  • 3rd Quarter - Revenue for July, August & September - Payment Due: October 31st
  • 4th Quarter - Revenue for October, November & December - Payment Due: January 31st

The City of Port Townsend annual filing period is as follows:

  • Revenue for January through December - Payment Due: April 15th of the following year.
BUSINESS LICENSE: Do I need a City license even if my business location is outside the City?

Yes. It doesn't matter where your business is located. If you conduct any business activities inside City limits such as: meeting clients; giving estimates; performing service calls; selling products at farmers markets, festivals or local stores; etc., you are required to have a valid city license.

BUSINESS LICENSE: How and when do I renew my State Business License and City Endorsement?

When the City partnered with the state, the Department of Revenue (DOR) assumed all responsibility for business license and endorsement activity on both state and local levels. Your license may be renewed annually through the state, and the Business Licensing Service (BLS) will notify you annually of your renewal due date.

BUSINESS LICENSE: How do I apply for a State Business License or a City Endorsement?

The City of Port Townsend has contracted with the Washington State Department of Revenue (DOR) to provide business license services. Businesses are able to apply for a City of Port Townsend endorsement when they apply with the state for their Unified Business Identification number (UBI). You must have a State of Washington business license (UBI) to obtain a City of Port Townsend business license.

To register for a state business license (UBI) go to Washington State Department of Revenue - Business Licensing Service and add the City of Port Townsend endorsement during this process.

If you already have a state license and only need to add the city endorsement, go to Washington State Department of Revenue - City of Port Townsend Endorsement

For help with the DOR website or general questions relating to your business license call 360-705-6741 or visit their website.

BUSINESS LICENSE: What if I need to update my license or endorsement information?

Any questions regarding updates to your state license or to your city endorsement information, such as: change of address, ownership, phone numbers, business structure, etc., should be directed to the Washington State Department of Revenue (DOR) Business Licensing Service (BLS) by calling: 360-705-6741

BUSINESS LICENSE: What if I stop doing business within the City of Port Townsend?

You will need to notify BOTH the State of Washington AND the City of Port Townsend when terminating your city license.

Washington State:

  • Department of Revenue - Business Licensing Service: (360) 705-6741

City of Port Townsend:

  • Notify the City in Writing.  Be sure to include the name of your business, your UBI number, the date business closed and your City endorsement number if you have it.
    • Write Us: City of Port Townsend - 250 Madison St, Port Townsend, WA 98368 OR
    • Email: frontdesk@cityofpt.us
  • If applicable, final B&O tax returns will need to be filed in order to close your account.  The City B&O Tax Return form can be found here: B&O Tax Return (Fillable)
BUSINESS LICENSE: What is the cost of a City business license endorsement?

The City of Port Townsend business license endorsement cost is tiered based on gross receipts:

  • Businesses reporting gross receipts < $20,000 =  $30/year*
  • Businesses reporting gross receipts > $20,000 =  $75/year*     

          *A one-time records retention fee of $3 is applicable on first-time applications.

UTILITY: Does the City offer an income-based discount?

The City of Port Townsend offers a program to qualifying residents that provides a reduced rate for the water, sewer and storm services provided by the City.

Income-Based Discount Application

UTILITY: How are utility rates determined?

Utility rate studies are conducted regularly by an independent party to ensure rates adequately cover the costs of providing utility services. Rates need to ensure adequate long-term funding of operations, including maintenance and improvements in infrastructure.

UTILITY: How do I close my account?

Call (360) 385-2700 at least one business day prior to the day you wish to discontinue service. Please have your forwarding address available when you call.

UTILITY: How do I make a utility payment?

Cash, Check or Money Order/Cashier's Check:

Payments are accepted at City Hall (located at 250 Madison Street) by mail or hand-delivered.  For your convenience, there is a payment dropbox at City Hall, sunken into the brick wall to the right of the front entrance doors.  City Hall Hours: Monday through Thursday, 9:00am-4:00pm.

Credit/Debit Card or Electronic Funds Transfer (EFT):

Payments may be made online through your bank or credit card. For more information, click here.

Online banking:

Please contact your financial institution about their online banking services.  Please include your utility account number to ensure you are properly credited for your payment, and allow five to seven business days for your payment to reach the City.

Important note: electronic payments are not instant transactions. To avoid penalty or a possible service disconnection, please allow enough transit time for your payment to reach the City.

UTILITY: How do I set up a Utility Account?

Please contact the City Finance Department at 360-385-2700.  A completed authorization form is required for all accounts.

Forms can be found on our Utility Billing page.

UTILITY: How often does the City bill for utility services?

The City bills monthly for all utility services.  Bills are mailed on the last day of each month and due on the 20th of the following month.

UTILITY: If I go out of town, am I charged for utility services?

Yes, the City charges a monthly base rate for all meters connected to City utility infrastructure.  Base fees allow the City to identify any unexpected activity, such as a leak, as well as maintain the infrastructure that delivers services to your property and allows you to continue to reserve capacity in our system.  Whether you use it or not, the city is required by state regulations to provide you with that capacity and your account is charged accordingly.  Base Fees are necessary to recover the ongoing expenses required to keep service available at the property even if there is no water usage. The City must operate and maintain the water and wastewater treatment plants and these costs continue to be incurred regardless of actual water consumption and are allocated to all utility customers.

UTILITY: If I have a leak, how do I get an adjustment from the City?

Customers must apply for a water leak adjustment, in writing, within 30 days of the City's issuance of the water bill sought for adjustment.  You must provide a detailed explanation of when and where the leak or break occurred and what action was taken to repair it (you will need to provide proof of the repair such as photos, receipt from a licensed plumber, etc.).    

UTILITY: Is there a utility deposit?

No, but there is a non-refundable $10.00  start-up fee for new accounts which is reflected on the first bill as an “Additional Billing”.

UTILITY: What are the capital surcharges on my bill and will they go away?

State and Federal mandated health rules required the City to build a new water treatment facility and water storage tank. The capital surcharges address the associated utility infrastructure debt. While City Council has approved rates through 2023, the majority of the debt is for 20 years, so it is expected that some level of capital surcharges will continue beyond 2023.

UTILITY: What do I do if I think I have a leak?

Water leaks between the street and meter are the City’s responsibility to repair.  Leaks in the home or in the line between the meter and the home are the customer’s responsibility.  Customers may repair leaks on their side of the meter or contact a plumber for assistance.

UTILITY: What does the City charge for sewer services?

Most residential accounts have a flat rate usage charge while multi-family & commercial accounts have a base rate determined by meter size Utility Rate Schedule in addition to a volume/usage charge. 

UTILITY: What does the City charge for storm services?

Stormwater charges are calculated using square foot measurements and are assessed on that area of your property designated as impervious surface. This means areas that are paved or otherwise do not let water pass through (i.e., your driveway and/or area covered by your house or other structures).  City Ordinance allows for Storm charges even though you may not actually have storm drains on or near your property. The charges cover construction and maintenance of the entire city-wide system. The minimum fee for impervious surfaces ≤ 3,000 square feet is $8.93. Utility Rate Schedule

UTILITY: What does the City charge for water services?

Your total monthly water fee is comprised of two charges; the Base Rate and a Usage Fee.  See the Utility Rate Schedule for the base charge related to your specific meter size.  Typical single-family homes have a ¾” meter.

Water consumption is rounded down to the nearest thousand gallons, i.e., use of 3,268 gallons will be billed for 3,000 gallons, the balance of 268 gallons will roll over to next month’s reading.  

UTILITY: What is the charge for late payments?

$5.00 or 1½% of the balance owed, whichever is greater.    

UTILITY: What utilities are provided by the City of Port Townsend?

Water, sewer, and stormwater services:
Provided by the City. Depending on the location of your service address, water-only services are available.

Garbage and recycling services:
Required for all city residents, are provided by Olympic Disposal. Contact Olympic Disposal at (360) 385-6612 for service.

Electricity:
Provided by the Jefferson County PUD. For more details, contact the Jefferson County PUD at (360) 385-5800.

UTILITY: When is my meter read?

Port Townsend water distribution personnel read all meters in the first two weeks of each month.