Seattle City Council Bills and Ordinances
Information modified on August 7, 2017; retrieved on April 28, 2024 9:32 AM
Ordinance 125083
Introduced as Council Bill 118715
Title | |
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AN ORDINANCE related to increasing the Business License Tax Certificate Fee and amending Sections 5.30.060 and 5.55.030 of the Seattle Municipal Code. |
Description and Background | |
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Current Status: | Passed |
Fiscal Note: | Fiscal Note to Council Bill No. 118715 |
Legislative History | |
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Sponsor: | Tim Burgess | tr>
Date Introduced: | July 5, 2016 |
Committee Referral: | Affordable Housing, Neighborhoods, and Finance |
Committee Action Date: | July 20, 2016 |
Committee Recommendation: | Pass as amended |
Committee Vote: | 4 (Burgess, Herbold, Johnson, O'Brien) - 0 |
City Council Action Date: | July 25, 2016 |
City Council Action: | Passed |
City Council Vote: | 8-0 (Excused: Bagshaw) |
Date Delivered to Mayor: | July 26, 2016 |
Date Signed by Mayor: (About the signature date) | July 29, 2016 |
Date Filed with Clerk: | July 29, 2016 |
Signed Copy: | PDF scan of Ordinance No. 125083 |
Text | |
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CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________ AN ORDINANCE related to increasing the Business License Tax Certificate Fee and amending Sections 5.30.060 and 5.55.030 of the Seattle Municipal Code. WHEREAS, Mayor Murray’s 2016 State of the City speech doubled the original goal for expanding the City’s police force from 100 new officers to a total of 200; and WHEREAS, the recently completed police staffing study validated community concerns about the need to increase police visibility and investigatory resources; and WHEREAS, Mayor Murray’s 2016 State of the City called for updates and increased capacity at the City’s 911 call center; and WHEREAS, the Seattle Police Department’s (SPD) call center is facing increasing call volumes that have placed a growing strain on the current system. Calls have increased by 13 percent since 2010, and recent trends show no slowing in this growth; and WHEREAS, initial work in developing SPD’s budget for the 2017-2018 biennium has identified the need for a number of significant information technology investments; and WHEREAS, SPD is engaged in several large-scale technology projects. These include development of a Data Analysis Platform (DAP) that will allow SPD to closely track both individual officer performance and department-wide trends with an envisioned future state allowing for better use of available crime data to target police resources and deployment of body-worn cameras to all patrol officers; and WHEREAS, additional revenues are needed in order to fund these vital measures; and WHEREAS, the City currently imposes a business license tax certificate fee on businesses engaging in business in the City; and WHEREAS, the business license tax certificate fee is currently set at an annual rate of $110 for businesses with worldwide gross income of more than $20,000 and at $55 for businesses with worldwide gross income of $20,000 or less; and WHEREAS, the City Council wishes to maintain the existing business license tax fee rates for the vast majority of businesses; and WHEREAS, the City wishes to fund a minimum of 80 percent of the total anticipated annual costs for the new goal of expanding police staffing and other law enforcement initiatives through an increase in the business and occupation tax and through changes to the business license tax certificate fee rates and tier structure; and WHEREAS, the City anticipates funding the balance of costs for expanding police staffing and other law enforcement initiatives beginning in 2019 through a combination of efficiencies and growth in the General Subfund; and WHEREAS, in order to raise additional revenue, the City intends to increase the business license tax certificate fee rates and also to increase the number of business license tax fee rate tiers; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS: Section 1. Subsection 5.55.030.A of the Seattle Municipal Code, which section was last amended by Ordinance 124808, is amended as follows: 5.55.030 License requirements
A. No person, unless specifically exempted, shall engage in any business activity, profession, trade , or occupation in the City without having first obtained and being the holder of a valid and subsisting license to do so, to
be known as a “business license tax certificate.” (( Effective January 1, 2017, through December 31, 2017, t he fee for the business license tax certificate shall be:
1. Fifty-five dollars for persons with taxable gross income of the business and value of products of less than $20,000 in the most recent complete calendar year that engage in any business activity, profession, trade, or occupation in
the City prior to July 1 and $27.50 for such persons beginning their activity on or after July 1;
2. One hundred ten dollars for persons with taxable gross income of the business and value of products of $20,000 or more but less than $500,000 in the most recent complete calendar year that engage in any business activity, profession,
trade, or occupation in the City prior to July 1 and $55 for such persons beginning their activity on or after July 1;
3. Four hundred eighty dollars for persons with taxable gross income of the business and value of products of $500,000 or more but less than $2,000,000 in the most recent complete calendar year that engage in any business activity,
profession, trade, or occupation in the City prior to July 1 and $240 for such persons beginning their activity on or after July 1;
4. One thousand dollars for persons with taxable gross income of the business and value of products of $2,000,000 or more in the most recent complete calendar year that engage in any business activity, profession, trade, or occupation in the
City prior to July 1 and $500 for such persons beginning their activity on or after July 1.
1. Fifty-five dollars for persons with taxable gross income of the business and value of products of less than $20,000 in the most recent complete calendar year that engage in any business activity, profession, trade, or occupation in
the City prior to July 1 and $27.50 for such persons beginning their activity on or after July 1;
2. One hundred ten dollars for persons with taxable gross income of the business and value of products of $20,000 or more but less than $500,000 in the most recent complete calendar year that engage in any business activity, profession,
trade, or occupation in the City prior to July 1 and $55 for such persons beginning their activity on or after July 1;
3. Four hundred eighty dollars for persons with taxable gross income of the business and value of products of $500,000 or more but less than $2,000,000 in the most recent complete calendar year that engage in any business activity,
profession, trade, or occupation in the City prior to July 1 and $240 for such persons beginning their activity on or after July 1;
4. One thousand dollars for persons with taxable gross income of the business and value of products of $2,000,000 or more but less than $5,000,000 in the most recent complete calendar year that engage in any business activity, profession,
trade, or occupation in the City prior to July 1 and $500 for such persons beginning their activity on or after July 1.
5. Two thousand dollars for persons with taxable gross income of the business and value of products of $5,000,000 or more in the most recent complete calendar year that engage in any business activity, profession, trade, or occupation in the
City prior to July 1 and $1,000 for such persons beginning their activity on or after July 1.
1. Fifty-five dollars for persons with taxable gross income of the business and value of products of less than $20,000 in the most recent complete calendar year that engage in any business activity, profession, trade, or occupation in
the City prior to July 1 and $27.50 for such persons beginning their activity on or after July 1;
2. One hundred ten dollars for persons with taxable gross income of the business and value of products of $20,000 or more but less than $500,000 in the most recent complete calendar year that engage in any business activity, profession,
trade, or occupation in the City prior to July 1 and $55 for such persons beginning their activity on or after July 1;
3. Five hundred dollars for persons with taxable gross income of the business and value of products of $500,000 or more but less than $2,000,000 in the most recent complete calendar year that engage in any business activity, profession,
trade, or occupation in the City prior to July 1 and $250 for such persons beginning their activity on or after July 1;
4. One thousand two hundred dollars for persons with taxable gross income of the business and value of products of $2,000,000 or more but less than $5,000,000 in the most recent complete calendar year that engage in any business activity,
profession, trade, or occupation in the City prior to July 1 and $600 for such persons beginning their activity on or after July 1.
5. Two thousand four hundred dollars for persons with taxable gross income of the business and value of products of $5,000,000 or more in the most recent complete calendar year that engage in any business activity, profession, trade, or
occupation in the City prior to July 1 and $1,200 for such persons beginning their activity on or after July 1.
The fee shall accompany the application for the license. Persons who did not engage in business in the City in the most recent complete calendar year shall pay the minimum full or partial year fee amount at the time of application and the Director
shall bill the person after the conclusion of the calendar year of the application for any remaining amount based on the fee schedule in this subsection 5.55.030.A and the person’s taxable gross income of the business and value of products during
the calendar year of the application.
If the licensee changes the place of business, the licensee shall return the business license tax certificate to the Director and a new business license tax certificate shall be issued for the new place of business free of charge. Section 2. Section 5.30.060 of the Seattle Municipal Code, last amended by Ordinance 124833, is amended as follows: 5.30.060 Definitions, T-Z A. “Tax year,” “taxable year.” “Tax year” or “taxable year” means the calendar year.
B. “Taxable gross income of the business and the value of products,” as used in Section 5.55.030 to determine the business license tax certificate fee, means the taxpayer’s total amount of gross income of the business
and the value of products less any deductions available to the taxpayer under Chapter 5.45.
(( Telecommunication services or telephone business also includes those activities previously used to define telephone business such as the providing by any person of access to a local telephone network, local telephone network switching service, toll service, cellular or mobile telephone service, coin telephone services, pager service , or the providing of telephonic, video, data, or similar communication or transmission for hire, via a local telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. The term includes the provision of cooperative or farmer line telephone services or associations operating exchanges. The term also includes the provision of transmission to and from the site of an internet provider via a local telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. “Telecommunication service or telephone business” does not include the providing of competitive telephone service, data processing, providing of cable television service, or other providing of broadcast services by radio or television stations.
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1. The value of products, including by-products, extracted or manufactured (( 2. Where such products, including by-products, are extracted or manufactured for commercial or industrial use, and where such products, including by-products, are shipped, transported , or transferred out of the City, or to another person, without prior sale or are sold under circumstances such that the gross proceeds from the sale are not indicative of the true value or the subject matter of the sale, the value shall correspond as nearly as possible to the gross proceeds from sales in this state of similar products of like quality and character, and in similar quantities by other taxpayers, plus the amount of subsidies or bonuses ordinarily payable by the purchaser or by any third person with respect to the extraction, manufacture , or sale of such products. In the absence of sales of similar products as a guide to value, such value may be determined upon a cost basis. In such cases, there shall be included every item of cost attributable to the particular article or article extracted or manufactured, including direct and indirect overhead costs. The Director of Finance and Administrative Services may prescribe uniform and equitable rules for the purpose of ascertaining such values.
3. Notwithstanding subsection (( a. The retail selling price of such new or improved product when first offered for sale; or
b. The value of materials ((
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(( Section 3. Pursuant to RCW 35.21.706, this ordinance is subject to the referendum procedure specified in that state law. A referendum petition may be filed within seven days of the passage of the ordinance with the filing officer of the City, which is hereby designated to be the City Clerk, located on the third floor of City Hall, 600 Fourth Avenue, Seattle, Washington. Within ten days of filing the petition, the City Clerk shall confer with the petitioner concerning the form and style of the petition, issue the petition an identification number, and secure an accurate, concise, and positive ballot title from the City Attorney. The petitioner shall then have 30 days in which to secure the signatures of not less than 15 percent of the registered voters of the City, as of the last municipal general election, upon petition forms which contain the ballot title and the full text of the measure to be referred. Signed petition forms that are timely submitted to the City Clerk shall be transmitted to the King County Director of Records and Elections, who shall verify the sufficiency of the signatures on the petition and report to the City Clerk. If sufficient valid signatures are properly submitted, the City Clerk shall so inform the City Council, which shall submit the referendum measure to the voters at a special election to be held on the next City election date, as provided in RCW 29A.04.330, that occurs not less than 45 days after the county’s report of sufficiency is received by the City Clerk, unless a general election will occur within 90 days of receipt of that report, in which event the proposed ordinance will be submitted at the general election. State law, RCW 35.21.706, provides that the referendum procedure in this section is exclusive and that this ordinance is not subject to any other referendum or initiative process. Section 4. This ordinance shall take effect and be in force 30 days after its approval by the Mayor, but if not approved and returned by the Mayor within ten days after presentation, it shall take effect as provided by Seattle Municipal Code Section 1.04.020. Passed by the City Council the ________ day of _________________________, 2016, and signed by me in open session in authentication of its passage this _____ day of _________________________, 2016. ____________________________________ President ____________ of the City Council Approved by me this ________ day of _________________________, 2016. ____________________________________ Edward B. Murray, Mayor Filed by me this ________ day of _________________________, 2016. ____________________________________ Monica Martinez Simmons, City Clerk (Seal) |
Attachments | |
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