AN ORDINANCE relating to taxation; increasing the Business and Occupation Tax threshold for tax due; and amending Section 5.55.040 of the Seattle Municipal Code.

WHEREAS, the City wishes to provide some measure of tax relief to the small businesses operating within Seattle to assist them through the current recession and more generally promote their growth and long-term term success; NOW, THEREFORE,

BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:

Section 1. Effective January 1, 2010, Subsection 5.55.040 D of the Seattle Municipal Code is hereby amended as follows:

SMC 5.55.040 When due and payable -Reporting periods --Monthly, quarterly, and annual returns -Threshold provisions Computing time periods -Failure to file returns.

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D. 1. For purposes of the tax imposed by SMC Chapter 5.45, any person whose gross proceeds of sales, gross income of the business, and value of products, including by-products, as the case may be, from all activities conducted within the city subject to tax after all allowable deductions, is less than the tax threshold amount defined in subsection D 3, below, in the current calendar year, shall complete and file a return, declare no tax due on their return, and submit the return to the Director. The gross receipts and deduction amounts shall be entered on the tax return even though no tax may be due.

2. Any person who reasonably estimates that the gross proceeds of sales, gross income of the business, and value of products, including by-products, as the case may be, from all activities conducted within the city subject to tax after all allowable deductions, will be less than the tax threshold amount defined in subsection D 3 below, in the current calendar year may file a declaration so stating on a form supplied by the Director at the same time he or she files his or her application for a business license or a renewal. The Director may assign any person who files such declaration to an annual reporting period.

3. For calendar years prior to 2008, the Business and Occupation tax threshold amount shall remain at Fifty Thousand Dollars ($50,000) as established under Ordinance 116945. For calendar years 2008 and thereafter and 2009, the Business and Occupation tax threshold amount shall be Eighty Thousand Dollars ($80,000). For calendar years 2010 and thereafter, the Business and Occupation tax threshold amount shall be One Hundred Thousand Dollars ($100,000).

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Section 2. This ordinance shall take effect and be in force thirty (30) days from and after its approval by the Mayor, but if not approved and returned by the Mayor within ten (10) days after presentation, it shall take effect as provided by Municipal Code Section 1.04.020.

Passed by the City Council the ____ day of _________, 2009, and signed by me in open session in authentication of its passage this _____ day of __________, 2009. _________________________________ President __________of the City Council

Approved by me this ____ day of _________, 2009. _________________________________ Gregory J. Nickels, Mayor

Filed by me this ____ day of _________, 2009. ____________________________________ City Clerk

July 16, 2009 version #2 t