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FIN 2018-08-21 Item 2A - Discussion - Business and Occupation (B&O) Tax Revenue
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FIN 2018-08-21 Item 2A - Discussion - Business and Occupation (B&O) Tax Revenue
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1/14/2021 12:12:57 PM
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8/16/2018 11:33:55 AM
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Council Committees
Committees Date (mm/dd/yy)
08/21/18
Committee Name
Finance 2017-2020
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Agenda Packet
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The City is only exploring a B&O on large businesses with gross receipts in excess of $250,000. <br />o Small businesses would not be affected by the B&O. <br />o The City has the flexibility to set different rates for different classifications, which may <br />be explored. <br />o Tukwila is learning from the great work done by cities who have implemented — some <br />of which very recently— B&O taxes focused on larger businesses, such as Kent, Renton <br />and Shoreline. <br />56% of the City's general fund goes to public safety and infrastructure, which support our <br />business community. <br />• The City spends nearly $19 million a year in police services; xx% of calls for services are <br />in the City's commercial areas. <br />• The Tukwila Fire Department has earned a Washington State Surveying and Rating <br />Bureau rating of 3, which allows Tukwila property owners a better insurance record; of <br />600 fire departments in Washington State, only 35 rate as a3 or above. <br />• Tukwila has a long history of funding critical infrastructure to support the City's <br />commercial core; visible — such as roads — and hidden — such as water and sewers — are <br />regularly maintained in order to support the business and residential community. <br />• Investing in ongoing public works maintenance has been shown to reduce overall cost <br />by extending life of roads and critical infrastructure. <br />The Administration and Council are genuinely committed to a cooperative approach for this <br />effort, which includes input and ideas from the community, staff and other stakeholders. <br />• The City will be transparent in all of its decision -making, and steadfast in providing <br />ongoing, comprehensive communications regarding the budget as it is developed and <br />deliberated. <br />• City staff are actively outreaching to the business community to discuss potential service <br />reductions, revenue options and to better understand what a proposed B&O on large <br />businesses would mean to the business community. <br />External Communications Strategy <br />Goals: <br />• Undergo outreach to a variety of stakeholders that may be affected by a potential B&O <br />tax. <br />• Use this opportunity as a way to educate Tukwila's business community on the City's <br />budget, revenue limitations and provision of City services. <br />• Solicit ideas for other revenue sources, how a B&O could be structured and what any <br />implementation would look like. <br />• Utilize critical influencers to assist in disseminating outreach. <br />DRAFT B&O Implementation Communications PlanEl <br />6 <br />
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