CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
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AN ORDINANCE relating to taxation; increasing the threshold above which an out-of-city business must obtain a business license tax certificate, pursuant to changes in the state model ordinance on general business license requirements; and amending Section 5.55.030 of the Seattle Municipal Code.
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WHEREAS, the Municipal Business Licensing Model Ordinance (RCW 35.90.080) created a minimum income threshold above which out-of-city businesses must obtain a business license tax certificate; and
WHEREAS, the current threshold is $2,000; and
WHEREAS, the Municipal Business Licensing Model Ordinance will, as of January 1, 2026, update that threshold to $4,000 and provide an inflation-based adjustment every four years; and
WHEREAS, local amendments implementing the Municipal Business Licensing Model Ordinance must be adopted by cities with the same effective date (RCW 35.90.080(1)(c)); NOW, THEREFORE,
BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:
Section 1. Section 5.55.030 of the Seattle Municipal Code, last amended by Ordinance 126880, is amended as follows:
5.55.030 License requirements—Minimum license threshold
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1. Through December 31, 2025, any ((Any)) person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the City is equal to or less than $2,000 and who does not maintain a place of business within the City shall be exempt from the business license tax certificate requirements in this Chapter 5.55.
2. Beginning January 1, 2026, any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the City is equal to or less than $4,000 and who does not maintain a place of business within the City shall be exempt from the business license tax certificate requirements in this Chapter 5.55. The threshold amount will be adjusted every 48 months on January 1, by an amount equal to the increase in the Consumer Price Index (CPI) for West Urban, All Urban Consumers (CPI-U) for each 12-month period ending on June 30 as published by the United States Department of Labor Bureau of Labor Statistics or successor agency. To calculate this adjustment, the current rate will be multiplied by one plus the cumulative four-year (48-month) CPI increase using each 12-month period ending on June 30 of each prior year, and rounded to the nearest $100. However, if any of the annual CPI increases are more than five percent, a five percent increase will be used in computing the annual basis, and if any of the annual CPI decreased during the 48-month period, a zero percent increase will be used in computing the annual basis.
Section 2. This ordinance shall take effect on January 1, 2026.
Passed by the City Council the ________ day of _________________________, 2025, and signed by me in open session in authentication of its passage this ________ day of _________________________, 2025.
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President ____________ of the City Council
Approved / returned unsigned / vetoed this ____day of _______________, 2025.
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Bruce A. Harrell, Mayor
Filed by me this ________ day of _________________________, 2025.
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Scheereen Dedman, City Clerk
(Seal)