SEATTLE — This story was originally posted on MyNorthwest.com
Seattle Mayor Bruce Harrell’s proposed budget for 2026 does not include any new layoffs, but it will raise taxes.
Harrell’s budget includes a new B&O tax that will be included on a ballot for voters to decide. Also incorporated is a permanent public safety sales tax, according to Seattle City Budget Office Director Dan Eder.
Looking at the potential $8.9 billion Seattle budget
The mayor’s office gave reporters a sneak peek of its $8.9 billion budget one day before presenting it to the Seattle City Council.
Eder said the budget’s B&O tax increase won’t apply to all businesses.
“The B&O tax proposal, the biggest move here in the budget, provides tax relief or entirely exempts 90% of current B&O taxpayers,” Eder explained.
In 2027, the city could face another $140 million deficit to pay for it. They’ll look to the state to eliminate a cap on raising property taxes.
The mayor will present his proposed budget to the city council on Wednesday, with a final vote in November.
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