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Committee backs ordinance to raise threshold for out-of-city business licensing to match AWC model
Summary
The committee supported an ordinance to increase the minimum licensing threshold for out-of-city businesses from $2,000 to $4,000 and to index the threshold to the CPI every four years; staff said the change aligns city code with the Association of Washington Cities model and RCW 35.90.080 and will require two readings.
The Snoqualmie Committee of the Whole moved forward with an ordinance to raise the minimum business-license threshold for out-of-city businesses from $2,000 to $4,000 and to index that threshold to changes in the consumer price index every four years.
Staff said the proposed ordinance aligns city code with a model ordinance adopted this year by the Association of Washington Cities (AWC). Staff referenced state law — RCW 35.90.080 — and told the committee that the Department of Revenue has already incorporated the change into system design with an effective date of Jan. 1, 2026. Because of those state-level changes, staff said the city must update its code so the Department of Revenue can process licensing correctly.
Staff estimated 101 businesses fall between the old and new thresholds; if all such businesses opt out of obtaining a local business license under the higher threshold, staff estimated the city could collect about $3,000 to $4,000 less in business-license revenue over time. Committee members generally agreed the city should adopt the model language; staff noted the ordinance is an ordinance and will require two readings.
Staff also said the AWC has recently released a separate business and occupation tax model update tied to Senate Bill 5814; that update will be brought to the committee at a future meeting.
