Council outlines timetable for B&O reform proposal to reach November ballot

Council members described a compressed schedule to consider B&O tax relief legislation, commonly discussed as the Seattle Shield proposal, intended to raise the B&O exemption threshold and create a new deduction for many businesses. Council member Strauss said the proposal would raise the B&O tax threshold exemption from $100,000 to $2,000,000 in gross revenue and create a new B&O deduction up to $2,000,000. He said about “76% of current b and o taxpayers ... would no longer owe tax to the city, and approximately 90 of businesses would owe less than they do today.” Strauss said the legislation was drafted in partnership with the mayor’s office and aims to protect city investments while giving tax relief to small businesses. Strauss outlined the committee schedule: a second briefing is set for the Select Budget Committee on Wednesday, July 16; amendment concepts are due to central staff by July 22; final amendments will be published with the agenda by July 28; and the Select Budget Committee will vote on amendments and the underlying legislation at its long-scheduled July 30 meeting. Strauss said that if the Select Budget Committee reports the bill divided, the committee could pass a motion to refer the legislation to the Aug. 4 full council meeting, and that referral requires committee vote and consent from the council president in order to meet King County’s ballot submittal timeline (noted as a July 4/4:30 p.m. filing constraint discussed in the briefing). Strauss emphasized the goal of reducing last-minute amendments and giving members sufficient time to consider proposals.