Lacey staff to update B&O model ordinance after state expands taxable services; council warned of a short transition period City staff briefed council on required changes to the local business-and-occupation model ordinance following the 2025 state law (SB 5814) that reclassifies certain services as retail sales; staff will return Dec. 16 with a draft ordinance and definitions and warned businesses may face a temporary overlap of sales tax and B&O filings during the transition.

Lacey's businesses may face a double taxation dilemma as new state legislation reclassifies key services, prompting urgent ordinance updates before 2026 rolls in.

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