Editor’s Note: This story was edited to clarify the B&O tax related to the mayor’s proposed tax holiday. MBN regrets any confusion. Latest update 6/22/26 12:08 p.m.
BELLINGHAM, WA (MyBellinghamNow.com) – Bellingham Mayor Kim Lund is looking to prioritize local businesses with a new series of incentives.
In an executive order issued Monday, June 15, Mayor Lund said that economic growth is the next step in combatting the city’s affordability issues.
The order creates a new role that helps business owners navigate the city’s complex permitting process. Few details have been released as to how that role will function, other than providing a so-called “concierge-style” service for business owners to go through permitting and understanding incentives.
It also floats the idea of a seven-year business and occupation “tax holiday,” specifically for downtown businesses. The holiday would entail exempting the Business & Operations (B&O) tax collected by the city from the business’s gross revenues on purchases over $1,000. That exemption would last for seven years if the business starts a new location in the downtown core.
The announcement comes after My Bellingham Now reported on a handful of recent closures in downtown Bellingham, including Woods Coffee and the Bellingham Antique Mall.
Outside of the downtown core, Mayor Lund is also aiming to continue expanding the city’s working waterfront in conjunction with the Port of Bellingham.
This marks the third executive order for the mayor since taking office in 2024. The first one tackled revitalizing downtown Bellingham through public safety initiatives, while the second worked at increasing housing supply in the city.
