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COVID-19 Tax Relief for Tacoma Business

COVID-19 Tax Relief for Tacoma Business

We are all in this together and we are here to help.

 

Deferral of Quarterly B&O Taxes  

Mayor Victoria Woodards announced that the City of Tacoma is deferring taxes for qualified small businesses located in Tacoma. 


You are considered a small business if you pay $10,000 or less in B&O taxes annually.

If you are a small business, and you pay Tacoma B&O taxes on a quarterly basis, you will automatically be switched to a “Quarterly Deferred” tax status and allowed to defer payment of your quarterly taxes until January 2021.

Note: Delinquent tax returns prior to these periods may not be considered.


If you qualify, your 1st, 2nd and 3rd quarter B&O taxes will be due:

On or before January 31, 2021. 

You Will be Notified if You Qualify
A notice from the City of Tacoma’s Tax & License Office will be emailed and/or mailed the week of March 23rd or March 30th to your business notifying you that your business has been automatically moved into a “Quarterly Deferred” tax status. If this is the case, you will still receive 1st, 2nd and 3rd quarter tax returns with a due date of January 31, 2021. 

If you prefer to continue filing on a quarterly basis:
You can keep doing so. Deferred filing is not mandatory. It is only an option for small businesses who need help getting through the current financial hardship they may be experiencing due to COVID-19.

You can simply file on F
ilelocal-wa.gov or send by mail. There is no need to contact the Tax & License Office. 

 

Due Date Extension - B&O Tax

If your business needs additional time to file any of your City of Tacoma taxes due to COVID-19, but don’t necessarily qualify under the definition of what a “small business” is, you can request an extension by completing this form. The request may be made after the due date.  If you have any other questions email taxinfo@cityoftacoma.org.

 

Fill Out The Extension Form 


Due Date Extension - Monthly Gambling Tax

Monthly gambling tax returns are due on March 31, 2020 and April 30, 2020.

The City can extend the due date for monthly gambling tax returns by up to 90 days. You can request an extension by completed this form
 The request may be made after the due date. To take advantage of the extended due date:

  • Mail in your tax return with your payment –OR-
  • Email your tax return to taxinfo@cityoftacoma.org and call (253) 591-5252 to pay over the phone with your credit card

You cannot file and pay on filelocal-wa.gov if you are taking advantage of the extended due date without being required to pay the penalty and interest.  


Job Tax Credit

Businesses taking advantage of the job tax credit will not be required to pay back the tax credit used on prior tax periods if they lose eligibility for the credit due to a reduction in workforce because of the state of emergency or a general economic recession. 


If you have lost eligibility for one or more job credits due to COVID-19:
Complete a Job Credit Economic Recession/State of Emergency Declaration form and send to taxinfo@cityoftacoma.org or Tax & License, P.O. Box 11064, Tacoma, WA 98402.  


An auditor will review the information and determine the positions that remain eligible for the credit.


If you have already paid back job credits used for prior periods but lost eligibility due to COVID-19:
Complete a Job Credit Economic Recession/State of Emergency Declaration form and send to taxinfo@cityoftacoma.org or Tax & License, P.O. Box 11064, Tacoma, WA 98402.  

An auditor will review the information and issue a refund if appropriate. 


If you have lost eligibility:
Although you are not required to pay back the credit used on prior tax periods, you cannot continue to take the credit on future tax periods that were included in the five-year tax credit term.


Questions?

The Tax & License team is here to help. For questions or concerns, email taxinfo@cityoftacoma.org or call (253) 591-5252.