Councilmember raises concerns about proposed B&O tax impacts on nonprofits and small businesses

A councilmember expressed concern that a proposed change to the business-and-occupation (B&O) tax could have unintended effects on research centers and smaller businesses. The councilmember said they had heard from "a couple of large research centers in my district and from across the city who will be impacted by the proposed BNO tax" and noted that some nonprofits that receive federal grants could lose funding as a result.

The councilmember said small and what they described as "medium-sized" businesses would also be affected and urged more outreach and analysis to determine who would be impacted and how. They cited a specific local business at Pike Place Market, saying the business provides health care to employees and could face increased costs if the proposed tax threshold or structure changes. The councilmember called for better information on impacts as the city prepares for budget discussions this fall.

The councilmember also contrasted the city's projected deficit and revenues: they said the city's deficit is $253 million and the B&O change as presented would raise only about $90 million, framing the tax as a partial response to a larger budget gap and arguing for program review alongside any tax changes. No formal action or vote on the tax was recorded in the briefing excerpt.