WELCOME

Seattle voters have the opportunity to make our city’s tax code more fair, protect critical community services, and provide lasting relief for small and neighborhood businesses. Proposition 2 updates Seattle’s Business & Occupation (B&O) tax by asking the city’s largest corporations to pay their fair share—so that 90% of Seattle employers see their taxes reduced and over 75% of our smallest businesses pay no city B&O tax at all.

At a time when Trump’s devastating cuts threaten housing, public safety, and social services, Prop 2 ensures Seattle can protect vital programs that working families rely on.

ABOUT PROPOSITION 2

Prop 2 is a modest, targeted adjustment to Seattle’s B&O tax structure that:

  • Reduces or eliminates taxes for small businesses – Over 75% of the city’s smallest businesses will no longer pay any B&O tax.
  • Shifts responsibility to the largest corporations – The tax burden is adjusted so that the biggest companies, not local shops and restaurants, shoulder more of the responsibility.
  • Protects housing, safety, and social services – Funds will help keep people housed, fed, and supported, especially as federal cuts loom.
  • Includes strong accountability – All funds are subject to audits, and most provisions sunset in 2033 to ensure future flexibility.

More benefits from Prop 2

Revenue from the B&O tax update will support the City’s General Fund and help sustain existing programs including:

  • Food access
  • Gender-based violence prevention
  • Small business support
  • Emergency shelter & homelessness prevention
  • Worker protections
  • Public health
  • Workforce development & job training
  • Arts & culture
  • Immigrant & refugee services

Endorsed by small business leaders, unions, democratic organizations, nonprofits, Mayor Bruce Harrell, Councilmember Alexis Mercedes Rinck, and advocates for tax fairness, Prop 2 offers a balanced approach to protecting Seattle’s future.

Frequently Asked Questions

  • What does Proposition 2 do?

    Prop 2 shifts a portion of Seattle’s B&O tax from small and neighborhood businesses to the city’s largest corporations. This means permanent tax relief for small businesses, while ensuring large corporations contribute more fairly to city services.

  • Who benefits from Prop 2?
    • 90% of Seattle employers will pay less in B&O taxes.
    • More than 75% of small businesses—including many restaurants and retailers—will pay no B&O tax at all.
    • Seattle residents benefit from stable investments in housing, public safety, and social services.
  • Why is Prop 2 needed now?

    Trump-era cuts threaten the funding Seattle relies on for housing, public health, and safety. Without local action, critical programs could be slashed, worsening the homelessness and overdose crises. Revenue from the Seattle Shield Prop 2 update on B&O tax would support the City’s General Fund to sustain essential services.

  • How will accountability be ensured?

    Prop 2 requires that all funds are audited. Additionally, most provisions expire in 2033, so city leaders can revisit and adjust the policy as needed.

  • Who supports Prop 2?

    A broad coalition including small business owners, women- and minority-owned business leaders, unions, Mayor Bruce Harrell, and Councilmember Alexis Mercedes Rinck.