Budget and Finance Committee

**Business License Modernization** The ordinance implements requirements from Engrossed House Bill 2005 (2017), which mandated uniform business licensing standards across Washington cities. The AWC developed a model ordinance that all 222 participating cities must adopt to ensure consistency statewide. The threshold increase from $2,000 to $4,000 reflects inflation adjustments and reduces administrative burden on very small businesses. Asbjornsen explained that the ordinance includes provisions for automatic Consumer Pric…

**Andy Asbjornsen (Finance Director):** Supported the ordinance as necessary for state compliance and noted the minimal fiscal impact. Estimated the change would affect a small number of businesses but could not quantify the exact number due to the narrow revenue range between $2,000-$4,000 for out-of-city businesses. **Daniel Hammill (Committee Member):** Characterized the ordinance as straightforward housek…

**Daniel Hammill, on the ordinance:** "I don't really have any questions. I think this is housekeeping to me and I think it's pretty straightforward." **Andy Asbjornsen, on the fiscal impact:** "It's $40 a business license, so it's a very small amount that we suspect will be missed." **Michael Lilli…

After this meeting, AB 24672 has committee approval and will advance to the full City Council with a unanimous recommendation. Small businesses operating in Bellingham but located outside city limits with annual revenue between $2,000-$4,000…

### 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, th…