### Meeting Overview The City of Bellingham Budget and Finance Committee met on September 29, 2025, to consider a single ordinance updating business licensing requirements. Committee Chair Lisa Anderson led the brief 4-minute meeting with members Dan Hammill and Michael Lilliquist to approve changes mandated by Washington State law. ### Key Terms and Concepts **General Business License:** A registration required for businesses operating in Bellingham, separate from specialized permits or regulatory licenses. **Threshold Exemption:** The minimum annual revenue amount below which businesses are exempt from general licensing requirements - currently being raised from $2,000 to $4,000. **AWC (Association of Washington Cities):** A statewide organization that develops model ordinances for cities to adopt, ensuring uniformity across municipal jurisdictions. **BLS Cities:** The 222 Washington cities that participate in the Business Licensing Service system coordinated through the state Department of Revenue. **Model Ordinance:** A standardized legal template created by AWC that cities must adopt to comply with state requirements for business licensing. **CPI Adjustment:** Consumer Price Index adjustments that automatically update the threshold exemption amount every four years based on inflation. **BNO Tax:** Business and Occupation tax, which starts at $5,000 quarterly revenue - separate from the general business license requirement. **RCW (Revised Code of Washington):** The compiled statutes of Washington State, including Chapter 35.90 which mandates uniform business licensing. ### Key People at This Meeting | Name | Role / Affiliation | |---|---| | Lisa Anderson | Budget and Finance Committee Chair, Fifth Ward Council Member | | Dan Hammill | Committee Member, Third Ward Council Member | | Michael Lilliquist | Committee Member, Sixth Ward Council Member | | Andy Asbjornsen | Finance Director, presenting the ordinance | ### Background Context In 2017, the Washington State Legislature passed Engrossed House Bill 2005 requiring all cities with business licensing to work together on uniform standards. This prevents a patchwork of different requirements across the state's 222 participating cities. The Association of Washington Cities develops model ordinances that cities must adopt to stay in compliance. The current update raises the minimum revenue threshold from $2,000 to $4,000, meaning small businesses with annual revenues below $4,000 won't need to pay the $40 licensing fee. This change recognizes inflation since the last adjustment and provides relief to very small businesses. The ordinance also includes automatic inflation adjustments every four years to prevent the need for frequent legislative updates. ### What Happened — The Short Version Finance Director Andy Asbjornsen presented Bill 24672, explaining that the Association of Washington Cities updated their model ordinance to raise the business license exemption threshold from $2,000 to $4,000 annual revenue. This change must take effect January 1, 2026, to keep Bellingham in compliance with state law and aligned with the other 222 cities in the Business Licensing Service system. Committee members had minimal questions. Dan Hammill called it "housekeeping" and moved to approve. Michael Lilliquist asked about how many businesses would benefit from the higher threshold, but city staff couldn't quantify the exact number - they noted it would be small since businesses between $2,000-$4,000 revenue represent a narrow band. The committee unanimously approved the ordinance 3-0, with Chair Anderson indicating she would bring it to the full City Council that evening. ### What to Watch Next - The full City Council will consider this ordinance at their evening meeting on September 29, 2025 - If approved, the ordinance takes effect January 1, 2026 - Small businesses with annual revenues between $2,000-$4,000 will no longer need to pay the $40 licensing fee starting in 2026 ---