Spokane Valley Council reviews business licensing and fees for local startups

In a recent special meeting held via Zoom on March 5, 2025, the Spokane Valley City Council engaged in a robust discussion centered on business licensing fees and their implications for local entrepreneurs. The meeting highlighted the council's commitment to fostering a business-friendly environment while balancing the financial needs of the city.

A key topic of discussion was the current business license fee, which some council members argued is too low, potentially undermining the city’s revenue generation. One council member expressed that raising the fee to $100 would not deter business startups, citing their own experience of starting a business in Spokane Valley, where operational costs are significantly lower compared to Spokane city. This sentiment was echoed by Deputy Mayor Hatenberg, who shared positive feedback from a local business owner who recently opened a clothing store. The owner praised the streamlined process and affordability of starting a business in Spokane Valley, suggesting that the city is an attractive location for new ventures.

Council member Wieck raised concerns about the impact of increased fees on small businesses, particularly those with five or fewer employees, which constitute approximately 62% of local businesses. He emphasized the importance of not creating barriers for startups, advocating for a careful evaluation of how fee adjustments might affect these smaller enterprises.

In contrast, Council member Yaker, who recently launched a new business, argued that the current fee of $25 is minimal compared to the potential returns on investment. Yaker suggested that a modest increase in fees could be justified, especially for businesses with larger staff numbers, as they already contribute through employee taxes.

Additionally, the council briefly discussed the introduction of a technology fee for building permits, noting that most surrounding jurisdictions have implemented similar fees. This proposal aims to align Spokane Valley with regional practices and ensure adequate funding for technological advancements in city services.

The discussions during this meeting reflect the council's ongoing efforts to balance the needs of local businesses with the city's financial sustainability. As Spokane Valley continues to grow, the council's decisions on licensing and fees will play a crucial role in shaping the local economic landscape. The council plans to further evaluate the implications of these discussions in upcoming meetings, ensuring that the voices of small business owners are considered in future policy decisions.