Seattle Council members discuss BNO tax reform to support small businesses

In a recent Seattle City Council meeting, community members voiced strong support for proposed changes to the Business and Occupation (B&O) tax, highlighting the urgent need for reform to support small businesses amid a looming budget deficit. The meeting, held on July 2, 2025, featured passionate testimonies from local business owners and advocates who emphasized the critical role small businesses play in the city's economy.

Jordan Crowley, a representative of a West Seattle small business, urged the council to act decisively, stating that the current tax structure disproportionately burdens small and medium-sized businesses while failing to generate adequate revenue for essential city services. He called for a shift in policy that prioritizes community investment and equitable tax contributions from wealthier entities.

Caleb Fitzgerald, owner of Black Aina Consulting, echoed these sentiments, advocating for raising the B&O tax threshold from $100,000 to $2 million. He argued that this change would demonstrate the city's commitment to supporting small businesses, allowing them to reinvest in their operations and employees. Fitzgerald highlighted that many small business owners struggle to achieve a living wage, and easing their tax burden could lead to tangible benefits for the community, such as increased wages and improved employee benefits.

Several speakers, including former business owners and community advocates, pointed out the broader implications of the proposed tax reform. They noted that while the B&O tax changes could raise an estimated $90 million, this amount falls short of addressing the city's projected $250 million budget deficit. Many urged the council to consider additional progressive revenue measures to ensure that essential services, particularly those supporting vulnerable populations, remain funded.

The meeting also featured discussions about the Seattle Shield initiative, which aims to provide a safety net for residents amid potential federal funding cuts. Advocates stressed the importance of proactive governance to protect the community from the impacts of austerity measures.

As the council prepares to move forward with the B&O tax proposal, community members are hopeful that their voices will lead to meaningful change. The council is expected to vote on the proposal in November, with many residents eager to see a more equitable tax structure that supports the backbone of Seattle's economy—its small businesses.