Local tax hike on small businesses and families

House Bill 2097 would allow counties to create their own local business and occupation taxes. These taxes are based on a business’s total revenue, not profit, and would be added on top of existing state and city B&O taxes.

Why is this a bad policy?

• Creates a new tax increase + doubles down on a tax-first budget strategy. HB 2097 authorizes a brand new county-level tax on businesses, expanding Washington’s already heavy tax burden. Coming on the heels of the largest tax increase in state history in 2025, this bill continues the pattern of raising taxes to cover budget shortfalls instead of addressing government overspending and poor fiscal management.
• Pushes higher costs onto families and consumers. Businesses don’t absorb higher taxes; they pass them on. New B&O tax rates would mean higher prices for groceries, services, and everyday essentials, worsening the affordability crisis facing Washington families.
• Hits small and local businesses the hardest. Because B&O taxes are owed even when a business isn’t profitable, small businesses with thin margins are especially vulnerable. Higher tax burdens make it harder to stay open, hire workers, or grow.
• Makes Washington less affordable to live and work. Adding new county taxes on top of existing state and city taxes raises the overall cost of doing business, discourages job creation, and makes it hard for families to get ahead in Washington.

Bottom line
HB 2097 raises taxes, increases prices, and deepens Washington’s affordability crisis.