A Penny for Your Thoughts: The City’s $10 Million Question (and a 0.1% Answer)

August 28, 2025

The City of Bellingham has recently floated the idea of a new sales tax — specifically, a 0.1% increase. Yes, that’s one-tenth of one percent.

On paper, that means if you buy a $10 sandwich, you’d pay an extra one penny. If you splurge on a $1,000 couch, it’s an extra dollar. Which, depending on your perspective, is either no big deal or the beginning of a slippery slope paved with pennies.

So why is this on the table? The City is facing a $10 million budget shortfall. This potential tax is estimated to raise about $4 million annually, which would go toward existing criminal justice and public safety expenses. In other words, it’s not about adding new programs — it’s about helping maintain the ones already in place.

The bigger story isn’t just about the lone penny, though — it’s about where those pennies go, who pays them, and how additional revenue impacts both businesses and residents. For businesses, even modest increases in sales tax can have ripple effects, especially when stacked on top of existing state and local taxes. For residents, it’s one more notch in the belt of “just small” increases that, over time, don’t feel so small.

At the Chamber, we want to hear directly from you — the business community. That’s why we’re asking for your feedback. We want to know:

  • Do you support this proposed 0.1% sales tax?

  • Do you see it as negligible, or one more straw on the proverbial camel’s back?

  • Are there circumstances where you’d support it (for example, if the funds are directed to specific community priorities)?

Your input will help us shape our advocacy and provide a unified voice back to city leadership.

So, while the City might be asking for your pennies, we’re asking for your perspective.
Please take a few minutes to complete our survey.

After all, your opinion may just be worth every cent.

And if you do happen to stumble across that mythical $10 sandwich in Bellingham, let us know — we may feature it. In the meantime, we’ll be back to share what we hear from the business community once the survey closes.

Guy Occhiogrosso
President/CEO