Blaine Business and Occupation Tax (B&O Tax)

Business and Occupation Tax Update

In 2018, the Blaine City Council instructed staff to prepare information about a Business and Occupation tax to fund city services. Council scheduled two study sessions and two public hearings on the issue where input was taken from businesses and members of the community. 

The original proposal called for a 0.2% (two tenths of one percent) Business and Occupation tax on manufacturing and wholesale businesses grossing $20,000 or more in the city. This tax would have taken effect after Council passed the ordinance.

The current proposal would be for 0.2% (two tenths of one percent) on most businesses in the city with annual gross receipts of $250,000 or more. Retailers and businesses providing medical services, food and accommodation, or tourism-related services are exempt.

Other compromises were negotiated in this new proposal. 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.

This has been a collaborative effort between the city and businesses in the community. Council will meet to consider the final proposal on March 25, 2019 at 6:00 p.m. in Council Chambers, 435 Martin Street, Suite 4000, Blaine, WA 98230. 

Questions about the proposal can be directed to Jeff Lazenby, City Finance Director at (360) 332-8311 ext. 3305 or jlazenby@cityofblaine.com