Council advances 'Shield Seattle' B&O tax proposal after hours of public comment and amendments

The Seattle City Council’s Select Budget Committee voted unanimously to forward Council Bill 121028, the Shield Seattle B&O tax restructuring, to full council after a lengthy hearing that included more than 20 public commenters and debate over 17 amendments.

The measure would change the city’s B&O tax to raise roughly $90 million a year while reducing the tax burden for most small businesses by increasing the small-business exemption and adjusting rates. Sponsors and supporters said the revenues are intended primarily to backfill budget cuts to housing, homelessness prevention, food access and behavioral-health services caused by recent federal policy changes.

Why it matters: Supporters, including dozens of meal-program operators, homeless-service groups and housing advocates, told the committee that federal cuts are already producing higher local demand for services and that the proposed revenue is needed to avoid deep program reductions. Opponents and some business groups argued the proposal risks increasing costs for some businesses and urged guardrails and transparency provisions.

Committee chair Dan Strauss opened the meeting and noted the package was intended to shield core services “in a very challenging budget environment.” Council member Rink, sponsor of the underlying bill, said the measure aims “to…