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.
“Any reduction in fixed operating expenses provides real relief for restaurants and bars navigating tight margins,” said Sean Drought, owner of The Way Group Hospitality including Tapped and Net Sheds. “This update strengthens Everett’s competitiveness in the region and signals that the City understands what it takes to operate a profitable hospitality business today.”
Reinvesting in Everett’s economic future
The second component of Everett Forward focuses on putting new revenue back to work in the community through three priority areas:
- Better Services for Businesses: Improving City processes, permitting and customer service to make it easier for businesses to open, operate and expand in Everett.
- Stronger Commercial Districts: Supporting improvements and initiatives that attract customers, encourage private investment and strengthen Everett’s neighborhood business districts.
- Great Places: Investing in projects that bring people together, attract visitors and generate economic activity, including the proposed Outdoor Event Center. The Outdoor Event Center is envisioned as a year-round destination for sports, entertainment and community events, with the potential to attract approximately 400,000 visitors annually and generate an estimated $85 million in annual visitor spending.
“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.”
Together, these investments are intended to create a cycle of reinvestment: supporting businesses, attracting more customers and visitors, strengthening the local economy and generating additional opportunities for growth.
What’s next
With Council approval of the B&O modernization package, the City will begin preparing for implementation of the updated tax structure and new investment initiatives. This includes meetings with businesses, business support networks and cities with comparable programs.
A draft implementation plan will be shared with Council for input in November or December and a budget amendment allocating funding for the proposed investments will be brought forward in January 2027. New programs would launch as soon as the first quarter of 2027.
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.
Additional information about Everett Forward, including details on the B&O tax changes and future investment proposals, will be available at everettwa.gov/everettforward.