CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
title
AN ORDINANCE relating to the business and occupation tax; requesting that a special election be held concurrent with the November 4, 2025 general election for submission to the qualified electors of the City a proposition to lift the limit on business and occupation tax rates under RCW 35.21.711, authorize the City to levy additional taxes for the purposes of providing housing, human services, workforce, and small business support, increase the business and occupation tax threshold, create a business and occupation tax standard deduction, and revise the business license tax consistent with changes to the business and occupation tax; amending Sections 5.45.050, 5.45.100, 5.55.030, and 5.55.040 of the Seattle Municipal Code; proposing a ballot title; and ratifying and confirming certain prior acts.
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WHEREAS, the Office of Economic and Revenue Forecasts' April 2025 revenue forecast projected a $241 million reduction to revenues in 2025 and 2026, compared to amounts used to balance the 2025 and 2026 budgets; and
WHEREAS, as presented at the May 7, 2025, Finance, Tribal Governments, and Native Communities meeting, the combined financial plans of the City's General Fund and JumpStart Payroll Expense Tax Fund show a $233 million average deficit in 2027 and future years; and
WHEREAS, 2026 budget guidance provided by the Mayor's office requested, for all departments supported by the General Fund and Payroll Expense Tax, a two percent reduction targeted for homelessness, public safety, and public-safety related departments and an eight percent target reduction for all other departments; and
WHEREAS, such reductions, if included in the Executive's 2026 Proposed Budget, could impact the City's ability to provide critical services that support vulnerable workers and small businesses, and that address food insecurity, gender-based violence, and homelessness; and
WHEREAS, according to a pres...
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