The Blaine city council passed an ordinance for a Business and Occupation (B&O) tax at its March 25 meeting, in order to fund city services.
The original proposal called for a 0.2 percent B&O tax on manufacturing and wholesale businesses grossing $20,000 or more in the city. The ordinance passed by city council, however, applies to most businesses with annual gross receipts of $250,000 or more. Retailers and businesses providing medical services or food and accommodation services are exempt.
Other compromises were negotiated in the final ordinance. New businesses or startups that bring 25 or more full-time jobs into the city would qualify for a tax credit over three consecutive years. Council also agreed to delay collection until January 1, 2020 to provide adequate time for notification.
Revenue will be used for public safety improvements such as an additional police officer, patrol car replacement and a faster 911 system, as well as economic development in helping manufacturing and wholesale businesses find and retain workers. A portion of the proceeds will also go toward the maintenance of parks and facilities.
City businesses will be notified of the ordinance in writing within the next month. Follow-up written communication will include information as to how the ordinance will be implemented prior to the January 1, 2020 start date.
In 2018, city council instructed staff to prepare information about a possible B&O tax to fund city services. Council scheduled two study sessions and two public hearings on the issue and input was taken from businesses and members of the community.
Questions about the ordinance can be directed to Jeff Lazenby, city finance director, at 360/332-8311 ext. 3305 or jlazenby@cityofblaine.com.
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