Oak Harbor staff outlines three business-and-occupation tax options to fund marina, parks and public safety

David, a city staff member, presented three options for a local business-and-occupation (B&O) tax during an Oak Harbor online informational session. He said the tax would be a local option that requires council approval and described estimated revenues, exemption rules, filing cadence and an example implementation timeline.

The presentation matters because council members have identified several capital and maintenance needs — including marina dredging and repairs, a potential new parks and recreation facility and deferred maintenance at the police station — and staff told attendees they are exploring local revenue options to help pay for them.

Staff explained the B&O rate would follow the state cap for most jurisdictions: 0.002 of gross annual receipts (one‑fifth of 1 percent) unless a city had a grandfathered higher rate. Three threshold options were shown:

- Option 1: Exempt the first $5,000,000 of gross receipts. Based on Department of Revenue data, that threshold would apply to 27 businesses (about 1.2% of Oak Harbor businesses) and generate an estimated $793,000…