Seattle proposes $90M business tax plan to support small businesses and critical services

The Finance, Native Communities and Tribal Governments Committee of Seattle convened on July 2, 2025, to discuss a significant proposal aimed at addressing fiscal challenges while supporting local businesses and vulnerable populations. The meeting focused on a plan to raise $90 million for critical human services and programs, with a particular emphasis on small business relief.

The proposal, which is set to be presented to voters in November, seeks to implement a business and occupation (B&O) tax structure that would alleviate financial burdens on small businesses. Under the new plan, businesses with gross receipts of $100,000 would remain exempt from the B&O tax, while those with receipts up to $2 million would see annual savings of approximately $6,500. Businesses with receipts up to $5 million would save around $1,300 annually. However, businesses exceeding $5.7 million in gross receipts would face increased taxes.

The revenue generated from this tax adjustment is intended to support various initiatives, including small business relief, general fund investments, and mitigation of anticipated federal funding reductions. Key areas of focus include food access, homelessness prevention, and protections for workers' rights. The proposal aims to create a healthier business ecosystem and ensure that vulnerable community members receive necessary support.

The committee also discussed the proposal's sunset clause, which would allow the tax to expire after four years unless renewed by the council or approved again by voters. This approach aims to balance immediate community needs with potential long-term impacts of the tax.

Following the initial presentation, central staff members provided further insights into the B&O tax rebalancing proposal, setting the stage for a comprehensive discussion among committee members. The meeting concluded with an invitation for questions and comments from the panel, indicating ongoing engagement with the community's needs and concerns.