Council sends ‘Seattle Shield’ business‑tax proposal to November ballot after amendments; vote 9‑0

Seattle — The Seattle City Council voted unanimously Thursday to send Council Bill 121028, a restructured business and occupation (B&O) tax package known as the “Seattle Shield” initiative, to a special election concurrent with the November ballot, after adopting multiple amendments and rejecting a maritime tax‑credit proposal.

The measure, sponsored by Council member Alexis Rink, would change the city’s B&O structure and is intended to raise an estimated $80,000,000 annually for programs the sponsor and supporters described as protecting small businesses and funding social services threatened by federal cuts. Council member Rink said the proposal was built to “shield our small businesses, the heartbeat of our neighborhoods, from economic uncertainty.”

During public comment before the council, Jordan Crowley, chair of the 34th District Democrats, and Luzmila Friess, director of economic development at the Latino Community Fund, urged support for the changes. Crowley said he supported the proposed changes to the B&O tax because “it is not a tax to spend, but a tax to do.” Friess told the council that immigrant‑owned small businesses generate significant revenue and jobs and said the Seattle Shield proposal would provide “meaningful tax relief for small and micro businesses.” Holly Willis, policy manager for the Seattle King County Coalition on Homelessness, urged the council to restore $10,000,000 that had been lost in committee and to target funds to basic needs such as food, shelter and health.

On the floor, councilmembers debated several walk‑on amendments addressing eligible uses and technical changes. Council member Rivera moved Amendment A to add immigrant and refugee affairs (for example, legal defense) as an eligible use for the general‑fund backfill portion; that amendment passed 8‑1 with Council member Kettle recorded as the lone no. A technical correction (Amendment B) to reflect added tax credits in the bill passed unanimously. Amendment C, a four‑year stevedoring (maritime) tax credit proposed by Council member Strauss to shield maritime and port businesses, failed on a roll call, 3‑6.

Council members noted competing priorities and procedural concerns during debate. Opponents cautioned that restructuring the B&O tax now could have unintended economic consequences, pointing to the cumulative tax changes facing the city (payroll expense tax changes, a social housing tax and other legislative shifts) and the city’s reliance on B&O receipts for roughly a third of general‑fund revenue. Central staff warnings and OERF memo excerpts were referenced during discussion; Council member Strauss and others emphasized targeted relief for high‑revenue, low‑margin maritime businesses.

Despite reservations and requests for more outreach from some members, the full council approved the final, amended bill by roll‑call vote, 9‑0, and the council president signed the legislation for transmittal to King County. Council members and staff said work would continue to prepare the ballot title and supporting materials in time for the county deadline to place the measure on the November ballot.

The council’s action sends the proposal to voters rather than enacting the tax changes at the council level; if approved by voters in November the new B&O structure and uses would take effect as provided in the ordinance. Central staff and the mayor’s office were present during the session and will proceed with final administrative steps necessary for ballot placement.