Seattle budget committee reviews BNO tax exemption proposal for small businesses

During a recent Seattle City Council briefing, officials discussed the upcoming Select Budget Committee meeting, where they will continue deliberations on the Seattle Shield initiative and a proposed Business and Occupation (B&O) tax rebalancing. This proposal aims to significantly raise the tax exemption threshold from $100,000 to $2 million in gross receipts, which could relieve approximately 76% of current B&O taxpayers, primarily benefiting small and medium-sized businesses.

The initiative is designed to support Seattle's economy by making the city more competitive with neighboring areas and helping local businesses thrive amid rising costs. City leaders emphasized that this tax relief is crucial as they navigate a challenging budget environment and prepare for anticipated cuts in federal funding.

The legislation, crafted in collaboration with the mayor's office, has three main goals: to protect essential city investments, to shield small businesses from financial strain, and to mitigate the impact of federal funding reductions on the community. As discussions progress, city officials are optimistic that these measures will foster a more supportive environment for local businesses and enhance the overall economic landscape in Seattle.