Seattle voters to decide in November if city cuts BO for small businesses, boosts taxes on Amazon, Starbucks, and many other hometown companies

Seattle voters will decide in November on a proposal to exempt small businesses generating under $2 million from the city's B&O tax while raising rates for larger companies like Amazon and Starbucks. The initiative aims to relieve approximately 90% of local businesses and generate an estimated $81 million in new revenue. Mayor Bruce Harrell signed the legislation, reflecting an improving economic outlook despite a projected $143 million revenue shortfall over the next two years. The council added exemptions for organizations like Fred Hutchinson Cancer Center but rejected other proposed breaks. Business advocates support the relief for small companies but caution against increasing costs for larger employers, which may create economic volatility.

The revenue generated would fund vital social programs, including emergency housing vouchers and food assistance. This proposal follows a shift in the city's budget forecasting from a pessimistic to a more optimistic view. The upcoming ballot will also include Harrell and Councilmember Alexis Mercedes Rinck, who championed the initiative.