Statement
SEATTLE – In response to today’s announcement of a proposed increase to the city of Seattle’s business and occupation tax, Rachel Smith, president and CEO of the Seattle Metropolitan Chamber of Commerce, issued the following statement.
“Giving a B&O tax break to many Seattle businesses right now is a great idea – one that we have advocated for to help fill empty storefronts downtown, spur small business growth, and to help offset rising costs, including from public safety challenges.
However, raising the B&O on any employer right now is a bad idea – especially given the economic facts presented last week by the City of Seattle itself: regional employment has declined, Seattle office vacancy is one of the highest in the U.S., consumer spending has weakened, there are fewer international visitors expected, and economic uncertainty looms from tariffs. And this proposal comes just months after the legislature passed the largest tax increases in state history.
One of the original spending priorities of the Payroll Expense Tax is economic development. We urge the Seattle City Council to adopt the proposed B&O exemption immediately and fund it with the city’s accumulating cash balance in the Payroll Expense Tax fund, or through the normal budgeting process. This will be a welcome boost for many businesses.
The mayor’s proposal to restructure the B&O tax has some interesting ideas to explore, but the current proposal has been rushed, the beneficiaries and payers have not been sufficiently identified or engaged. Everyone deserves to understand the impact of any proposed tax restructuring with more than just 45 days of consideration before heading to the ballot.
And while we appreciate the Mayor commissioning an assessment of Seattle’s business climate and competitiveness, he need look no further than the economic facts referenced above – or even the city’s own revenue forecast. We can’t say it any better than the City’s presentation itself: ‘tax policy changes at the federal, state, and local level….are likely to notably increase costs for households, businesses, and to weigh down on job growth.’ Undermining our local economy won’t protect us from negative economic moves at the federal level.”
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About the Seattle Metropolitan Chamber of Commerce
The Seattle Metropolitan (Seattle Metro) Chamber of Commerce is the regional business advocacy organization that engages the innovation and entrepreneurship of its 2,500 members to promote inclusive economic prosperity. Founded in 1882 by local business leaders, the Chamber today is an independent organization representing a regional workforce of approximately 750,000. For more information, visit seattlechamber.com.