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Tacoma City Council to discuss increasing next year's business license fees

Depending on revenue, a business could see an increase between 100% and 900% for their license fees.

TACOMA, Wash. — The Art of Crunch has been bringing baked goods to Tacoma for the past ten years thanks to the work of its owner, Rhonda Hamlin.

But these last few years have been hard on the bakery.

Hamlin said she lost most of her business due to COVID, but was able to hold on and recover. But then she had to deal with rising costs due to inflation.

“A case of eggs, which is 15 dozen, a year ago used to cost $14.99, and now it’s up to $65,” she said.

Now Hamlin is preparing for another potential increase in her expenses.

The Tacoma City Council will discuss changes to a proposed ordinance that would significantly raise the annual license fees for businesses starting next year.

Although the original proposal called for fee increases for businesses with an annual gross income of over $12,000 under a tiered system, the changes would expand that system to include all businesses in the city.

Depending on revenue, a business could see an increase between 100% and 900%.

During the Oct. 25 city council meeting, councilmember Keith Blocker, the lead sponsor for the changes, said the increased license fees would bring in millions of dollars for Tacoma.

“This would provide essential funding into the always constrained General Fund, and allow the city additional flexibility in supporting the needs of businesses and community, especially as it relates to addressing property crime,” Blocker said.

Councilmember Catherine Ushka, however, expressed reservations over concerns that it may drive innovative entrepreneurs away from Tacoma.

“I’m really worried about those lower levels to make sure that we’re not just allowing for that creative innovation from people who have nothing but an idea, but that we’re supporting those people through,” she said.

Under this new system, Hamlin says her license fee would increase from $250 to $570.

“We give so much to the community, in taxes and fees and all the other stuff,” Hamlin said. “I just don’t think that doing this kind of an increase is fair.”

Hamlin says in this economy, every little bit counts when it comes to keeping her doors open, and there’s only so much her bakery can endure.

“I’m a fighter, but I got to tell you, I got to pay my house payments, you know? It’s kind of hard,” she said.

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