Every licensed business in Bellevue could soon face an annual renewal fee instead of the city's current one-time $119 license.
The City of Bellevue Finance Department is proposing to simplify how it calculates the square footage business tax, aligning Bellevue's method with five other Puget Sound jurisdictions that levy the same type of tax.
The city said the financial impact of the square footage change is expected to be neutral for most businesses.
Under the current system, a Bellevue business pays $119 once and never renews. The proposed tiered annual fee would be based on a company's total gross receipts:
- $0–$50,000 in gross receipts: $0 (no fee)
- $50,001–$250,000: $50 per year
- $250,001–$1,000,000: $150 per year
- Over $1,000,000: $350 per year
For comparison, Seattle's annual business license fee ranges from $73 to $3,210 depending on revenue.
A small retailer on Main Street grossing $200,000 a year would pay $50 annually. A tech firm in the Spring District grossing $5 million would pay $350.
The Finance Department said Bellevue's perpetual one-time license limits communication between businesses and city departments that need updated contact and operational information. An annual renewal, the department said, would maintain a more accurate database of active businesses and support outreach to the business community.
On the tax side, the current square footage B&O rate is approximately $0.33 per taxable square foot per quarter. The simplification proposal would not change the rate but would make the calculation method easier for businesses operating across multiple cities in the region.
The city is collecting feedback through an online survey and a virtual information session scheduled for July 30 from 6 to 7 p.m. Business owners can contact the Tax Division at [email protected] or 425-452-6944 for questions or accommodations (at least 48 hours in advance).
The Finance Department plans to bring a refined proposal to the Bellevue City Council for a vote in fall 2026.
