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Ci <br />of Tukwila <br />Washington <br />Ordinance No. V7 ‘6 <br />AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF <br />TUKWILA, WASHINGTON; ESTABLISHING A NEW CHAPTER <br />3.26 OF THE TUKWILA MUNICIPAL CODE (TMC) ENTITLED, <br />"BUSINESS AND OCCUPATION TAX"; ESTABLISHING TMC <br />CHAPTER 3.27 ENTITLED "BUSINESS AND OCCUPATION <br />TAX ADMINISTRATIVE PROVISIONS"; PROVIDING FOR A <br />REFERENDUM PROCESS; PROVIDING FOR SEVERABILITY; <br />AND ESTABLISHING AN EFFECTIVE DATE. <br />WHEREAS, in 2022, during the creation of the City's 2023-2024 Biennial Budget, the <br />City's Tong -range forecast identified a structural deficit on the General Fund financial <br />condition resulting from several factors, including the 1% limitation on regular property <br />tax, the sunset of streamlined sales tax mitigation revenue, and the City's increased cost <br />of services that outpace the increase in property and sales tax; and <br />WHEREAS, pursuant to RCW 35A.82.020, the City of Tukwila is authorized to impose <br />a business and occupation tax on business activities within the City; and <br />WHEREAS, RCW 35.102.040 requires the City utilize the mandatory provisions of <br />the model ordinances developed by Washington cities when imposing a business and <br />occupation tax and adopting administrative provisions related to the imposition and <br />collection of such a tax, but also allow for flexibility to customize the ordinances based on <br />local goals and policies; and <br />WHEREAS, the model ordinance provides mandatory and standard exemptions for <br />potential inclusion but also gives the City the ability to create certain exemptions from <br />business and occupation tax including an annual gross receipts exemption threshold for <br />small businesses to meet the City's own objectives, exemptions to set economic policy, <br />and exemptions to maintain local control; and <br />WHEREAS, the City Council has determined that imposition of a business and <br />occupation tax as provided herein and providing for uniform administration of the City's <br />tax codes will be in the best interest of the public health, safety, and welfare; <br />CC: Legislative Development\B&O Tax Levy 11-23-22 <br />TC:AY Review and analysis by Andy Youn Page 1 of 35 <br />