Laserfiche WebLink
City of Tukwila My WebLink |HelpSearch Tips |About |Sign Out
City of Tukwila <br />Allan Ekberg, Mayor <br />INFORMATIONAL MEMORANDUM <br />TO: Planning and Economic Development <br />FROM: Brandon Miles, Business Relations Manager <br />CC: Mayor Ekberg <br />DATE: August 10, 2020 <br />SUBJECT: 2020 Business License Fee Deferral <br />ISSUE <br />Planning and Economic Development (PED) requested a discussion on business license fee <br />deferral at its May 4, 2020 meeting. <br />BACKGROUND <br />At its May 4, 2020 meeting PED requested information regarding possibly deferring business <br />license fees due to COVID-19. <br />Starting in 2019 the City of Tukwila was required to have its business license issued by the <br />State of Washington. The State has mandated that all cities and towns use the State's system <br />to provide a one stop shop for both municipal business licenses and the required State of <br />Washington business license. When a business submits its business license to the State a fee <br />is paid for the City's portion of the business license and the State's portion. Since the State <br />needs uniformity in processing business license applications there are limits on what the City <br />can and cannot due under the State's system. <br />For 2020 the State of Washington issued just over 1,900 business licenses to businesses <br />conducting activities in the City of Tukwila. This number includes businesses located outside of <br />the City, but which do work within the city limits and non -profits that are required to obtain a <br />license yet are exempt from the City's business license fee. <br />Tukwila's business license fee is based on the total number of full time and part time employees <br />the business has. For full time, the 2020 fee is $112.00 per employee and for part time the fee is <br />$56 per employee. So far for 2020 the City has collected just over $2.2 million in business <br />license fees. All funds collected go into the general fund. The following chart outlines the fee <br />based on business size. <br />Business Size (based on fee <br />paid). <br />Total Number of Businesses in <br />Category <br />Total Fees Paid <br />$25,000 and up. <br />9 <br />$440,449 <br />$10,000 to $24,999 <br />22 <br />$319,960 <br />$5,000 to $9,999 <br />57 <br />$401,073 <br />$4,000 to $4,999 <br />31 <br />$141,712 <br />$3,000 to $3,999 <br />33 <br />$112,301 <br />$2,000 to $2,999 <br />87 <br />$214,598 <br />$1,000 to $1,999 <br />180 <br />$252,069 <br />$500 to $999 <br />237 <br />$165,789 <br />$150 to $499 <br />469 <br />$139,379 <br />$15 to $498 (companies with one <br />or fewer employee) <br />772 <br />$66,337 <br />