Marysville Sound

City Hall · Sep 22, 2025

Council scheduled vote to raise business license exemption threshold from $2,000 to $4,000

A Sept. 22 agenda item proposed amending MMC 5.02.040 to double the business license exemption threshold to $4,000 starting Jan. 1, 2026, with CPI-based adjustments every four years, as required by the state Department of Revenue. 1

What the records say

The Sept. 22 City Council agenda included an ordinance amending MMC 5.02.040 to increase the business license exemption threshold. 1 The ordinance text in the packet raises the threshold from $2,000 to $4,000 beginning January 1, 2026, and adds an adjustment every 48 months based on the Consumer Price Index for West Urban, All Urban Consumers, rounded to the nearest $100, with a 5% cap on any annual increase used in the calculation. 1 The agenda bill summary says the state Department of Revenue is requiring all cities to make these changes by January 1, 2026, and that the ordinance adopts DOR's model language. 1 The recommended motion was to adopt the ordinance. 1

  • The ordinance was scheduled for the Sept. 22, 2025 City Council meeting, with a recommended motion to adopt it.
  • The ordinance raises the exemption threshold from $2,000 to $4,000 effective January 1, 2026.
  • The threshold will be adjusted every 48 months on January 1 by the cumulative four-year CPI increase for West Urban, All Urban Consumers, rounded to the nearest $100, with annual increases capped at 5% and decreases treated as 0%.
  • The agenda bill states the Department of Revenue required all cities to adopt higher thresholds and CPI-based adjustments by January 1, 2026, and that the ordinance adopts DOR's model language.
  • The ordinance would take effect five days after publication by summary.

Why it matters

Businesses with $4,000 or less in annual value of products, gross proceeds of sales, or gross income in the city would no longer need to register or pay the city business license fee, doubling the current $2,000 exemption. The exemption does not apply to regulatory license requirements or activities requiring a specialized permit. 1

What changed / what's next

  • The business license exemption threshold in MMC 5.02.040 would rise from $2,000 to $4,000 starting January 1, 2026, with CPI-based adjustments every four years.
  • The packet is a pre-meeting agenda; it does not establish whether the council adopted the ordinance on Sept. 22.
  • The ordinance's effective date depends on the date of publication by summary, which the packet does not state.
  • The available records do not establish the meeting's outcome.