Below is a press release issued today (9/30) from the City of Everett, Washington about a plan to overhaul the City’s B&O Tax Collections. The City Council is expected to vote on the plan next month.
Mayor Cassie Franklin is proposing a new economic investment package designed to provide meaningful relief for thousands of small businesses and retailers while making strategic investments to strengthen Everett’s economy for the long term.
The Everett Forward Business Support & Reinvestment proposal would reform Everett’s decades-old business & occupation (B&O) tax structure and invest approximately $3.5 million in new annual revenue in three areas: better service for businesses, stronger commercial districts and great places that generate economic activity.
The goal is to create a reinforcing cycle: make strategic investments today that strengthen Everett’s business climate, encourage additional economic activity and private investment, and create more opportunities to reinvest in the community over time.
“Everett is growing, and we have an opportunity to make sure that growth strengthens our community for the long term,” said Everett Mayor Cassie Franklin. “This proposal provides meaningful relief to thousands of our smallest businesses and retailers while making targeted investments that will help businesses succeed, strengthen our commercial districts and create great places that bring more people and investment to Everett.”
“Everett Forward is about being intentional with how we support economic growth,” said Everett Deputy Mayor Michael Fong. “We heard from businesses that they need City government to be easier to navigate, they need safe and active commercial areas, and they need more customers coming through their doors. This proposal takes that feedback and puts resources behind it — while modernizing our tax structure to provide relief for thousands of small businesses.”
Small-business relief and B&O reform
Everett’s B&O tax structure has not been substantially updated since 2002. The proposed reform would significantly increase the exemption for small businesses, lower the tax rate for retailers and restaurants, and update rates across other business classifications.
Under the proposal:
- The annual gross receipts exemption for B&O tax would increase from $20,000 to $250,000, exempting approximately 6,500 businesses from Everett B&O tax.
- The B&O rate for retailers and restaurants would decrease by 25%, from $1 to $0.75 per $1,000 in gross receipts, providing relief to approximately 2,000 retailers and restaurants.
- The manufacturing B&O rate would increase from $1 to $1.20 per $1,000 in gross receipts.
- Wholesale and services B&O rate would increase from $1 to $1.50 per $1,000 in gross receipts.
- The smallest businesses would also receive licensing relief. Businesses with less than $45,000 in revenue would no longer pay City business licensing or renewal fees.
The proposed rates would remain competitive with other regional cities, and Everett would continue to not charge employee-based business fees assessed in several nearby jurisdictions.
Increasing the exemption would also significantly reduce the number of B&O transactions processed by the City, reducing administrative work for both businesses and City staff.
Together, the proposed B&O changes are expected to generate approximately $3.5 million in new annual revenue.
Turning business feedback into investment
The proposal follows outreach to Everett businesses throughout summer 2026, including an online survey, small-business roundtables and visits to businesses across the city.
Businesses reported broad cost pressures, with 87% of survey respondents saying the cost of doing business had become more challenging over the previous two years. Businesses also identified faster and easier City processes, public safety and access, and reaching more customers as important to their success.
In addition to exempting thousands of businesses from B&O taxes, the Everett Forward proposal would direct the new revenue toward investments intended to respond to those priorities and strengthen the overall business environment.
Better service for businesses
The proposal would establish a business support team to provide Everett businesses a clear point of contact when they need help navigating City government.
The team would help businesses navigate City processes, coordinate across departments to solve problems, work with Everett Police and other partners on public safety concerns, and connect businesses with outside resources and expertise.
The team would place particular emphasis on helping businesses that may have fewer resources to navigate government, including small businesses, new entrepreneurs, and minority- and immigrant-owned businesses.
Stronger commercial districts
Everett would establish a new annual competitive grant program to support projects that strengthen commercial areas throughout the city.
Working with community partners, the City would establish economic development goals and invite organizations to propose projects that help achieve them. Funding could support commercial-district safety, events and activation, storefront and public-realm improvements, placemaking, business outreach, district marketing and other economic-vitality initiatives.
The approach is intended to pair City investment with local knowledge and partnerships, allowing solutions to reflect the different needs and opportunities of Everett’s commercial districts.
Great places: Outdoor Event Center
The package would also invest in the proposed Outdoor Event Center, creating a long-term home for professional baseball and USL soccer – and a new year-round destination for sports, concerts, festivals and community events.
The proposed facility is projected to bring nearly 400,000 visitors to Downtown Everett annually and generate approximately $85 million each year in business revenues.
The investment is intended to have an impact beyond the facility itself. More activity downtown means more customers for nearby businesses, more reasons to visit Everett and additional opportunities for private investment, development and redevelopment.
“This package recognizes that a healthy local economy depends on both supporting existing businesses and making thoughtful investments that generate new economic activity,” said Andrea Reay of the Washington Hospitality Association. “We appreciate the City’s direct engagement with the business community and its effort to develop a balanced proposal that responds to the concerns employers have raised.”
“The Outdoor Event Center represents a significant opportunity for Everett,” said Tammy Dunn, executive director of the Snohomish County Sports Commission. “Sports tourism consistently generates high-value economic activity. With updated tax policy and strategic capital investment, Everett will capture more events, more visitors, and more local spending.”
Investing in Everett’s economic future
The proposal reflects the City’s broader approach to economic development: creating the conditions that allow businesses, entrepreneurs, employers and private investors to succeed. That includes maintaining safe and vibrant commercial areas, creating places that attract people and investment, and making City government easier for businesses to navigate.
Existing B&O tax revenue would continue to support Everett’s general government fund and core City services, including police, fire, parks, libraries and streets. The Everett Forward proposal identifies investments specifically for the approximately $3.5 million in new annual revenue anticipated from the proposed B&O reform.
The Everett City Council will receive a briefing on this proposal at their September 30, 2026 meeting. Learn more about watching live, providing comment or viewing past meeting recordings by visiting everettwa.gov/council.
Additional information about the Everett Forward proposal, including proposed B&O rates, regional comparisons and details about the proposed investments, is available at everettwa.gov/everettforward.