The City of Seattle levies a tax on business activities conducted within its jurisdiction. This levy is based on the gross income of the business, with different rates applicable to various business classifications. As an example, a retail business would pay a specified percentage of its gross sales revenue to the city, while a service-based business would pay a different percentage based on its gross receipts.
This revenue stream is a significant funding source for municipal services and programs. It supports essential functions such as public safety, infrastructure maintenance, and social services. Its historical roots trace back to the need for municipalities to generate revenue independently to address local needs, evolving over time to its current structure and rate schedule. The tax is pivotal in maintaining the city’s economic health and ensuring the provision of vital public services for residents and businesses.
