The Washington Retail Association (WR) has urged the Everett City Council to support provisions in Mayor Cassie Franklin’s proposed 2026 Business and Occupation (B&O) tax reform and economic investment package while strengthening public safety in commercial districts.
In a letter to Councilmembers, Crystal Leatherman, vice president of government affairs for WR, expressed support for raising the city’s annual gross receipts exemption threshold from $20,000 to $250,000. According to the letter, the change would exempt approximately 6,500 of Everett’s smallest businesses from the city B&O tax, reducing financial and administrative burdens for small retailers and emerging businesses.
WR also supported lowering the retail B&O tax rate from $1.00 to $0.75 per $1,000 in gross receipts. The letter noted that businesses pay B&O taxes regardless of profitability, making the tax particularly challenging for retailers operating on thin margins.
WR also highlighted public safety concerns, including retail theft, organized retail crime, and repeat offenders, which can increase business costs, discourage shoppers, and put employees at risk.
The letter encouraged the city to incorporate safety measures into its economic investment plans through three recommendations: dedicating a portion of commercial district grants to safety initiatives, including retail theft prevention; making public safety a core responsibility of the Business Support Team with a direct connection to the Everett Police Department; and considering the use of some new revenue to fund additional patrols in commercial districts.
WR is grateful that the Everett City Council approved this B&O tax reform package on October 14. These changes to the city’s tax system will strengthen the ability of retailers of all sizes to serve their customers in Snohomish County.
