10/15/2026
Tonight the Everett, Washington City Council Passes B&O Tax Revision Providing Millions For Outdoor Event Center and lowering B&O Taxes for small businesses in the City.
At its October 14, 2026 meeting, the Everett City Council approved the Everett Forward Business Support and Reinvestment package, a major step toward modernizing the City’s business and occupation (B&O) tax structure, supporting local businesses and creating new opportunities to reinvest in Everett’s economy.
The package provides significant tax relief for small businesses, reduces the tax rate for retailers and generates approximately $3.5 million in new annual revenue to support economic development initiatives that will strengthen Everett’s commercial districts, improve services for businesses and help attract new investment.
“Everett Forward is about making our city an even better place to do business, invest and grow,” said Everett Mayor Cassie Franklin. “Thanks to Council’s support, we will be able to provide meaningful relief for our small businesses while creating a sustainable way to reinvest in our community. This package will help us build on our progress, support our local economy and create more opportunities for the future.”
Modernizing Everett’s B&O tax
The approved changes represent a significant update to Everett’s B&O tax structure, with a focus on supporting small businesses and improving the City’s competitiveness.
Key changes include:
Small business tax relief: Increasing the B&O tax exemption threshold from $20,000 to $250,000 in annual gross revenue, eliminating B&O taxes for approximately 6,500 businesses, or 70% of businesses operating in Everett.
Reduced retail tax rate: Lowering the B&O tax rate for retail businesses by $0.25 per $1,000 in gross revenue.
Eliminating license renewal fees: Removing business license renewal fees for businesses with less than $45,000 in annual gross revenue.
Updating other tax rates: Adjusting manufacturing, service and wholesale B&O tax rates to help support the new structure, align rates with peer cities and generate revenue for reinvestment.