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Council discusses raising Shoreline business license threshold to $4,000; ordinance set for Sept. 29
Summary
Staff presented Ordinance 1037 to update the city's business license minimum threshold to $4,000 starting Jan. 1, 2026, with future adjustments every four years tied to CPI‑U (Western); council asked questions but took no action tonight.
City staff reviewed Ordinance 1037 on Sept. 15, proposing to update Shoreline Municipal Code chapter 5.05 to set the business license minimum threshold at $4,000 beginning Jan. 1, 2026, and to adjust the threshold every four years based on CPI‑U (Western) subject to caps (5% per year, maximum 20% every four years). No vote was taken; the ordinance is proposed for adoption at the council's Sept. 29 meeting.
Johanna Miller, the city's business and occupation tax analyst, said the Association of Washington Cities' 2018 model ordinance originally recommended a $2,000 threshold and that AWC updated its guidance in 2024 to $4,000. "Shoreline proposed ordinance number 1037 updates the minimum threshold to $4,000 beginning 01/01/2026," Miller said. Miller told the council the change is expected to reduce annual revenue by less than $10,000 and that the change is already reflected in the 2026 budget.
Council members discussed whether the threshold should be higher to reduce administrative burden on very small or occasional vendors. Council member Scully raised the example of food trucks that may earn $4,000 in Shoreline over a few nights and asked whether a much higher threshold (for example, $50,000 or $100,000) might better reduce red tape. Miller noted the city maintains exemptions for retail or food‑truck activity under $5,000.
Council member Roberts said tracking local economic activity has value for planning and economic development. Several council members said changes to the registration fee itself (the business license registration fee has been $40 since the 2009 adoption) could be considered separately; staff indicated they will examine fee recovery and bring recommendations during upcoming budget discussions.
No formal motion or vote occurred on Sept. 15. Staff indicated the ordinance will be brought to the Sept. 29, 2025 consent calendar for possible adoption, and that any change to the $40 registration fee would be considered separately through the city's fee schedule and budget process.
