FIN 2019-01-28 Item 2A - Resolution - 2019-2020 Business License Fee Schedule with $2,000 Exemption for Outside Contractors

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City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Council Committee FROM: Peggy McCarthy, Finance Director BY: Vicky Carlsen, Deputy Finance Director CC: Mayor Ekberg DATE: January 23, 2019 SUBJECT: Update to Business License Fee Resolution ISSUE Approve update to Business License Fee Resolution. BACKGROUND At the October 15, 2018 Regular Meeting, Council approved Ordinance No. 2588 which adopted the "model ordinance" language required by the State. Included in this ordinance is language that exempts businesses operating within the City of Tukwila boundaries without a physical presence and with gross revenue less than $2,000 from paying a business license fee. At the November 19, 2018 Regular Meeting, Council approved Resolution No. 1952 that set the business license fees for 2019 and 2020. The resolution that was approved by Council included a business license fee of $100 for contractors operating within the City of Tukwila boundaries without a physical presence. The legislation was reviewed by the State prior to moving through the Committee and Council process. DISCUSSION The City is set to officially transition the business license function to the State effective March 28, 2019. Before the State will allow the transition to occur, we are required to update the fee resolution to include the exemption language for those businesses without a physical presence and where gross revenue does not exceed $2,000. The draft resolution, with changes tracked, now includes the required language. RECOMMENDATION Staff is asking that this resolution be considered at the February 11, 2019 Committee of the Whole and subsequent February 19, 2019 Regular Meeting. ATTACHMENTS Draft resolution with changes tracked.