The Lacey City Council approved a tax break for small, new businesses in the city.
Beginning Jan. 1, any business with less than $500,000 of gross revenues per year won’t have to pay a business and occupation tax.
The tax break is largely symbolic, sending a signal that Lacey is a welcoming place for new businesses and where entrepreneurs can get a fresh start in the wake of the Great Recession.
The B&O tax is particularly loathsome to businesses because of the paperwork and the requirement to pay, even if a business is not turning a profit.
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The tax exemption represents a revenue loss of about $30,000 a year for the city. But the City Council made short work of the deficit by approving an annual business license renewal fee of $10 per year.
Lacey had been one of only a few cities that didn’t require annual renewal of business licenses. Without the license renewal, it was hard to maintain an accurate data base of the number and types of businesses in the city.
Both moves last week had merit. One provided benefits to startup businesses and the other improved record-keeping at City Hall.