Loading...
HomeMy WebLinkAboutOrd 2297 - Revenue Generating Regulatory Licenses (Repealed by Ord 2356)C 1 ty of Tuk wi la Washington Cover page to Ordinance 2297 The full text of the ordinance follows this cover page. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHI TON, ESTABLISHING NEW RECULATIONS REG REVENUE GENERATING REGULATORY LICENSES TO BE CODIFIFO AT TUKWILA MUNICIPAL CODE CHA[YTER "REVENL. IF GENERATING REGULATORY LICENSES", PROVIDING FOR SF,VFRABILJTY; AND ESTABLISHING AN EFFECTIVF DATE. Ordinance 2297 was amended or repealed by the following ordinances. 2333 §1 (part) 2356 City of Tukwila Washington Ordinance No. 2297 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ESTABLISHING NEW REGULATIONS REGARDING REVENUE GENERATING REGULATORY LICENSES TO BE CODIFIED AT TUKWILA MUNICIPAL CODE CHAPTER 5.62, "REVENUE GENERATING REGULATORY LICENSES PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council recognizes the City of Tukwila is in need of additional revenue sources in order to address a dramatic decline in recent sales tax collections; and WHEREAS, the City Council and Mayor are in the process of implementing permanent reductions to the General Fund operating budget; and WHEREAS, such expenditure reductions are not sufficient to fully account for the recent decline in revenue, the City Council has determined it is in the best interest of Tukwila citizens and businesses to provide long -term financial stability, rather than continuing to use one -time cost savings measures, to address unplanned economic challenges the City might be faced with in the future; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Regulations Established. Tukwila Municipal Code Chapter 5.62, "Revenue Generating Regulatory Licenses," is hereby established to read as follows: CHAPTER 5.62 REVENUE GENERATING REGULATORY LICENSES Sections: 5.62.010 Regulatory Licenses 5.62.020 Revenue Generating Regulatory License Fee (RGRL) 5.62.030 Determination of number of employees for RGRL 5.62.040 Exemptions 5.62.050 Penalties 5.62.010 Regulatory licenses. A business that holds a current valid City of Tukwila regulatory license under another chapter of this code must also file the general business license application form, pay the general business license fee and pay the revenue generating regulatory license fee (RGRL) pursuant to this chapter. The fee levied in this chapter shall be additional to any license fee or tax imposed or levied under the law or any other ordinance of the City except as expressly provided herein. 5.62.020 Revenue generating regulatory license fee (RGRL). A. General. In addition to the business license fee, the highest applicable RGRL in this section shall be paid for the annual license issued under this chapter. W Word Processing Revenue Generating Regulatory License SH:mrh Page 1 of 5 1. A business with less than $12,000.00 of average annual gross receipts shall be exempt from any RGRL. 2. For the purposes of this section and in determining the applicable RGRL, the term "employee" means and includes each of the following persons who are not required by the City to have his/her/its own separate City of Tukwila business license: a. Any person who is on the business's payroll, and includes all full -time, part -time, and temporary employees or workers; and b. Self- employed persons, sole proprietors, owners, officers, managers, and partners; and c. Any other person who performs work, services or labor at the business, including an independent contractor who is not required to have a separate City of Tukwila business license. 3. An entity that is entirely exempt from paying the business license fee shall be exempt from any RGRL. 4. An entity with some activities or functions that are exempt from the business license fee and some that are not exempt shall pay an RGRL based on the number of its employees that are involved in the functions or activities that are not exempt. B. Amount of RGRL. 1. Revenue Generating Regulatory License (RGRL) Fee Method. Except as otherwise provided by this chapter, every person engaging in business within the City shall pay an RGRL based upon the number of employee hours worked in Tukwila during the previous year. Annual employee hours are calculated based on the sum of the 4 quarterly reports submitted to the Washington State Department of Labor and Industries (L &I) for the previous year. It will be the responsibility of the employer to determine the number of hours worked within the City from these reports. Businesses that did not file quarterly reports with the Washington State Department of Labor and Industries shall determine the number of hours worked within the City and demonstrate, if required, to the satisfaction of the Finance Director or his /her designee, that the number of employee hours worked is correct. 2. The annual RGRL fee shall be calculated by multiplying the minimum fee, as defined in subsection (F) of this section, by the number of full- time equivalent employees that worked in Tukwila. The approved fee per full -time employee is $0.028646 (which represents a RGRL multiplier of $0.028646 per employee hour worked), as may be adjusted herein. Employers without a full year history would need to estimate the number of employee hours that will be worked in the current calendar year. 3. If a business has more than one location in Tukwila, the annual business license fee calculation must include a minimum fee for each location and the RGRL for annual employee hours at all locations. C. Alternative FTE Method. A business may choose to calculate its annual RGRL fee by multiplying the minimum fee by the number of its employees. The number of employees shall be based on the sum of the employees in the 4 quarterly reports submitted to the Washington State Department of Labor and Industries (L &I) for the previous year divided by four. It will be the responsibility of the employer to determine the number of employees working within the City from these reports. Businesses that did not file quarterly reports with the Washington State Department of Labor and Industries shall determine the number of employees working in the City and demonstrate, if required, to the satisfaction of the Finance Director or his /her designee, that the number of employees is correct. Employers without a full year history would need to estimate the number of employees that will work in the City for the current calendar year. W. Word Processing Revenue Generating Regulatory License SH:mrh 07/15/2010 Page 2 of 5 D. Once the FTE methodology has been selected, it must be used for future renewals. 1. Businesses with more than one location in the City of Tukwila must use the same method of calculation for all locations. E. For businesses with employees who work less than 1,920 hours per year (the work hour figure used by the Washington Department of Labor and Industries) the total number of hours worked by all such employees during the 4 quarters of the previous year shall be added together and divided by 1,920 to determine the FTE equivalency. F. It will be the responsibility of the business to determine the total number of FTEs (or equivalency) and demonstrate if required, to the satisfaction of the Finance Director or his /her designee that the calculation is accurate. G. The RGRL fee for a business required to be licensed under this chapter and not located within the City's corporate limits shall be calculated by multiplying the minimum fee by the number of employee hours worked within the City, but in no event shall the license fee be less than the minimum fee set forth in this chapter. If the number of employee hours worked is not known at the time of renewal, the business shall estimate the maximum number of employee hours they anticipate using in Tukwila during the year. H. Businesses doing business in the City that have no employees physically working within the City shall pay the minimum fee required under this chapter. I. The minimum fee under this chapter shall be $55.00, and may be amended from time to time. J. Payment made by draft or check shall not be deemed a payment of the RGRL fee unless and until the same has been honored in the usual course of business, nor shall acceptance of any such check or draft operate as a quittance or discharge of the fee unless and until the check or draft is honored. Any person who submits a RGRL fee payment by check to the City pursuant to the provisions of this chapter shall be assessed an NSF fee set by the Finance Director if the check is returned unpaid by a bank or other financial institution for insufficient funds in the account or for any other reason. 5.62.030 Determination of number of employees for RGRL. For the purposes of this section, "employee" shall be defined as in Section 5.62.020. A. Standard Rule. In determining the amount of RGRL fee to be paid for the upcoming license year, the number of employees shall be the current number of employees or the number of employees on the last regular working day of each of the last twelve months divided by twelve, whichever is higher. Each person who comes under the definition of "employee" shall be counted as one employee, even if the person works part -time. B. Alternative Method "FTE A business may choose to calculate the number of employees for the purpose of the RGRL fee according to the following alternative method based on the number of employee hours worked for the business during the previous year: 1. The business must notify the City of its choice to use the FTE method. It will be the responsibility of the business to determine the number of hours worked for the business, taking into account the information submitted to L &I in the last 4 quarterly reports. The business must demonstrate, to the satisfaction of the Finance Director, that the alternative calculation is accurate. The director may require the business to submit copies of its L &I reports. 2. Each employee who worked more than 1,920 hours during the previous year (including paid time off) shall be counted as one employee. If a person such as an W: Word Processing Revenue Generating Regulatory License SH:mrh 07/15/2010 Page 3 of 5 owner or partner devotes more than 1,920 hours per year to the business, that person must be counted as one employee for RGRL purposes. 3. Where there are employees who work less than 1,920 hours per year, the total number of hours worked by all such employees during the previous year shall be added together and divided by 1,920. A fraction of one -half or over shall be rounded up. Hours worked by persons who are defined as employees for RGRL purposes must be included in the calculation even if the business is not required to report to L &I concerning such persons. 4. The results from subsection B.2 of this section plus subsection B.3 of this section shall be the total number of employees used to determine the amount of the RGRL. C. New Businesses. The RGRL fee for a business that did not submit reports for each of the last 4 quarters to L &I shall be based on the estimated number of employees of that business. The business shall provide its estimate of the average number of employees for the upcoming year. The City will determine the number of employees that will be used in calculating the amount of the RGRL. If, during the license year, the City determines the actual number of employees is significantly different than estimated, the amount of the RGRL fee will be recalculated for the new business. If the revised RGRL fee is higher, the business must pay the difference within thirty days after notification. D. Over Reporting Number of Employees. A business may request that the City refund RGRL overpaid on the basis that the business miscounted the number of employees by an error factor of more than 15 The request must be in writing and the City must receive the request and all supporting documentation no later than 60 days after the end of the licensee's fiscal year in which the error was made. If the City is satisfied the licensee paid an excess RGRL, the City will refund the excess RGRL paid by the licensee. E. Under Reporting of Employees. If the City determines the number of employees was under reported at the time of application or renewal by an error factor of more than 15%, the business shall pay the balance of the applicable RGRL fee together with a penalty of 20% of such balance due. The business shall also reimburse the City for any accounting, legal, or administrative expenses incurred by the City in determining the under reporting or in collecting the additional amounts. The Finance Director shall mail written notice of the amount to be paid and the business shall pay said amount to the City within 30 days. If the City does not receive timely payment, an additional penalty shall be added, applying the schedule for late payments in this chapter. 5.62.040 Exemptions. A. Exemptions. The following entities may claim an exemption from the license fee, but if exempt under this subsection such entities shall still register under this chapter: 1. Certain Organizations Exempt from Federal Income Tax. An organization that files with the city a copy of its current IRS 501(c)(3) exemption certificate issued by the Internal Revenue Service. 2. A governmental entity that engages solely in the exercise of governmental functions. Activities which are not exclusively governmental such as some of the activities of a hospital or medical clinic, are not exempt under this chapter. 3. A nonprofit business operated exclusively for a religious purpose, upon furnishing proof to the finance director of its nonprofit status. For the purposes of this chapter, the activities that are not part of the core religious functions are not exempt. W Word Processing Revenue Generating Regulatory License SH:mrh 07/15/2010 Page 4 of 5 4. Civic groups, service clubs, and social organizations that are not engaged in any profession, trade, or occupation, but are organized to provide civic, service, or social activities in the City. a. Examples of such organizations include but are not limited to: Soroptomists; Kiwanis; Lions' Rotary; American Legion; children's and adults athletic leagues and similar types of groups, clubs or organizations. 5.62.050 Penalties A. Monetary Penalty. Failure to pay the RGRL fee within 20 days after the day on which it is due and payable pursuant to TMC Section 5.62.020 shall render the business subject to a penalty of 5% of the amount of RGRL fee for the first month of the delinquency and an additional penalty of 5% for each succeeding month of delinquency, but not exceeding a total penalty of 25 of the amount of such RGRL fee, plus any accounting, legal or administrative expenses incurred by the City. No business license for the current period shall be granted until the delinquent fees, together with penalties, have been paid in full. The Finance Director or his /her designee is authorized, but not obligated, to waive all or any portion of the penalties and interest provided herein in the event the Director or his /her designee determines that the late payment was the result of excusable neglect or extreme hardship. B. Collection. Any RGRL fee due and unpaid under this chapter, and all penalties thereon, shall constitute a debt to the City and may be collected in court proceedings in the same manner as any other debt in like amount, which remedy shall be in addition to any and all other existing remedies. C. Revocation of License. The Finance Director may revoke any business license issued pursuant to this chapter to any business or other person who is in default in any payment of any RGRL fee hereunder, or who shall fail to comply with any of the provisions of this chapter. Notice of such revocation shall be mailed to the license holder by the Finance Director, and on and after the date thereof any such business who continues to engage in business shall be deemed to be operating without a license and shall be subject to any and all penalties herein provided. D. There shall be a penalty of not less than $50.00 to reinstate any business license revoked through nonpayment of the RGRL fee. Section 2. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 3. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force and effect five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this 19th day of July, 2010. ATTEST AUTHENTICATED: Christy O'Flaherty, CMC APPROVED FORM BY: W. Word Processing Revenue Generating Regulatory License SH:mrh 07/13/2010 Jim Haggerton Mayor Shlley Kerslake city Attorney Filed with the City Clerk: 9- /0 Passed by the City Council: 2 Published: /12 Effective Date: Ordinance Number: Page 5 of 5 SUMMARY OF Ordinance No. 2297 City of Tukwila, Washington On July 19, 2010 the City Council of the City of Tukwila, Washington, adopted Ordinance No. 2297, the main points of which are summarized by its title as follows: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ESTABLISHING NEW REGULATIONS REGARDING REVENUE GENERATING REGULATORY LICENSES TO BE CODIFIED AT TUKWILA MUNICIPAL CODE CHAPTER 5.62, "REVENUE GENERATING REGULATORY LICENSES PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. The full text of this ordinance will be mailed upon request. Approved by the City Council at a Regular Meeting thereof on July 19, 2010. Published Seattle Times: July 22, 2010 014 Christy O'Flahe`rrfy, CMC, City Clerk