ARTICLE | Dec 17, 2025

The Washington State Department of Revenue (DOR) is actively offering disaster relief provisions to help flood-impacted businesses manage their tax obligations and maintain compliance during recovery.

Filing Extensions and Penalty Waivers

Businesses that cannot file or pay excise tax returns on time due to flood disruption can:

• Request a filing extension
• Request a late-payment penalty waiver

These can be done through your My DOR account or by contacting Revenue customer service at 360-705-6705.

Action step: If your business is unable to meet a tax deadline, file for an extension before the due date.

Audit and License Flexibility

DOR is providing flexibility by allowing:

• Rescheduling of audits
• Rescheduling hearings
• More time to renew business licenses

Action step: Reach out to auditors or the Business Licensing Service for timelines if your site or records were affected by flooding.

Property and Timber Tax Relief

Property owners and businesses with affected timber assets may qualify for:

• Property value reductions through local assessors
• Timber value adjustment credits for damage

This can materially reduce your tax burden for 2025 and possibly beyond.

Emergency Financial Assistance Grant Tax Exemptions

Grants and financial assistance received as part of disaster response efforts** may be exempt from B&O, retail sales, and public utility tax if they meet state criteria under emergency provisions.

Note: Consult your tax advisor or DOR contact before assuming tax treatment of specific funds.

Conclusion

The flooding in Whatcom and Skagit counties represents a significant economic stress on community businesses. The Washington Department of Revenue is offering tangible, accessible relief options that can reduce tax burdens and ease compliance pressures during an emergency.