Seattle Mayor Bruce Harrell and City Councilmember Alexis Mercedes Rinck have introduced a plan to reduce taxes for small and medium-sized businesses while increasing taxes on high-grossing companies in the city, such as tech firms, law offices, and major retailers. The proposal would impact large tech companies like Amazon, F5, Remitly, and Expedia, while exempting smaller tech startups with gross revenues of $2 million or less from paying B&O taxes. This measure is designed to address budget shortfalls resulting from federal funding cuts by the Trump administration, with an estimated additional $90 million in annual revenue earmarked for human services in Seattle. The proposal includes adjustments to the B&O tax threshold exemption and deductions, benefiting a significant portion of businesses in the city. Before implementation, the plan must receive approval from the City Council and voter support in the upcoming general election.
Seattle Mayor’s Plan: Balancing the B&O Tax Scale for Corporations and Small Businesses
Seattle Mayor Bruce Harrell and City Councilmember Alexis Mercedes Rinck have unveiled a new proposal aimed at providing tax relief for small and medium-sized businesses while increasing taxes on larger corporations, including tech giants like Amazon and Expedia. The plan seeks to address budget shortfalls caused by federal funding cuts under the Trump administration. This initiative would generate an additional $90 million annually for essential human services in Seattle, helping to offset a $251 million deficit. The proposal includes adjustments to the B&O tax threshold exemption and deductions, benefiting the majority of businesses in the city. Business leaders have expressed mixed reactions to the plan, with some voicing support for helping small businesses thrive and others raising concerns about potential negative impacts on the local economy. The proposal is subject to approval by the City Council and voter support in the upcoming general election.
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