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Council hears first reading of business-license threshold update to $4,000
Summary
City staff presented a state-recommended update that would raise the out-of-city business-license minimum from $2,000 to $4,000 effective Jan. 1, 2026, with automatic CPI-U adjustments every four years; cities using the state's Business Licensing Service must notify BLS by Oct. 17, 2025.
City staff presented the first reading of Ordinance 1592, describing state-required changes to local business-license thresholds and the Association of Washington Cities' recommended update. Staff explained the change would make a one-time increase to a $4,000 threshold for out-of-city businesses effective Jan. 1, 2026, and that the threshold will adjust every four years based on the CPI-U (rounded to the nearest $100 and capped per statutory limits).
Staff noted cities that partner with the state's Business Licensing Service must provide 75 days' notice of changes and therefore face an Oct. 17, 2025, deadline to notify BLS if they adopt modifications. The update may slightly reduce business-license fee revenue for businesses with gross receipts between $2,001 and $12,000, but the staff assessment described the fiscal impact as minimal.
