Following months of analysis and community input, the Olympia City Council provided staff with direction on October 14 to move forward with Business & Occupation (B&O) tax Scenario 4, a plan designed to close the City’s $6 million budget gap while protecting small businesses.
WR commends the Council for its thoughtful approach in considering the unique realities retailers face. Prior to the vote, WR submitted a letter to council outlining the vital contributions retailers make to public revenues and the disproportionate costs they shoulder. While over 90% of retailers have less than 50 employees, they provide an uncompensated public service by collecting and remitting sales taxes on behalf of state and local governments—an uncompensated responsibility that directly supports public budgets. They also incur higher transactional costs than most other sectors due to the widespread use of credit cards by consumers.
In earlier proposals, the retail B&O tax rate was slated to double. The Council’s final decision reflects a more balanced approach—raising the retail rate from 0.1% to 0.15%—while also increasing the filing threshold to ease administrative burdens for the smallest businesses.
In addition, the Council also raised the sales tax by .1% to fund public safety with the intent to qualify for state matching funds available through HB 2015, a 2025 legislative measure that WR supported to help cities strength public safety investments.
WR thanks Mayor Dontae Payne and the Olympia City Council for engaging the business community throughout this process to preserve Olympia’s reputation as a vibrant and inclusive place to live, work, and shop.
