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Home My WebLink AboutFS 2011-10-18 Item 2A.2 - Ordinance - Combine Business License and Revenue Generating Regulatory License (RGRL) FeesCity of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Jennifer Ferrer -Santa Ines, Senior Fiscal Coordinator DATE: October 12, 2011 SUBJECT: Changing Business License and Revenue Generating Regulatory License (RGRL) fee into a combined rate of $67 per full -time equivalent employee and adding language to exempt qualified court interpreters from both the license fee and the RGRL fee ISSUE Many customers as well as staff in Finance and other departments have given feedback that the current business license and Revenue Generating Regulatory License (RGRL) fee structures are overly complex and difficult to understand. In addition, it has been past practice to exempt qualified court interpreters making less than $12,000 in gross annual revenue from obtaining a business license, however, the current language in the Code does not include this group in the exemptions section of Title 5, Chapter 5.04. ITT o111 i! 1n7 At the September 7, 2011 Finance Safety Committee meeting, Staff provided information regarding the benefits of a combined business license fee of $67 per full time equivalent employee. The committee requested outreach efforts to inform the business community of this potential change in licensing fees to provide organizations the opportunity to give feedback and comments to the City. Additionally, court interpreters have been exempt from obtaining a Tukwila business license, but this practice has been absent from the Code. DISCUSSION To increase awareness in the business community and encourage member input, Staff has completed the following: Present overview of new rate structure at the October 4, 2011 Southwest King County Chamber of Commerce Direct mail to all active Tukwila licensed businesses sent out on 9 -23 -2011 Utility billing inserts sent out on 9 -28 -2011 City of Tukwila website, Tukwila News and Notes Section Finance home page 25 INFORMATIONAL MEMO Page 2 Although approximately 71% of Tukwila businesses will benefit in paying less for their business license from transitioning to a combined business license fee of $67 per full time equivalent employee, the City received both favorable and unfavorable comments from business owners and managers regarding the new proposed fee. A summary of the responses is attached. Also, consistent with past practice, language clarifying the exemption of court interpreters making less than $12,000 in gross annual revenue needs to be included in the Code. RECOMMENDATION The Council is being asked to adopt a combined business license and RGRL fee of $67 per full -time equivalent employee and approve the added language for exempting qualified court interpreters in TMC Chapter 5.04. The Council is being asked to consider this issue at the October 24, 2011 Committee of the Whole Meeting and the November 7, 2011 Regular Meeting. ATTACHMENTS -Info Memo dated September 1, 2011 to Finance Safety Business License and RGRL Fee Analysis spreadsheet Summary of Community Responses -Draft Ordinance M2011 Info Memos Councilll BusinessLicenseFeeChanges10- 18- 11Revised.docx 26 City of Tukwila Jim Haggerton, Mayor INFORMATIONAL MEMORANDUM TO: Mayor Haggerton Finance and Safety Committee FROM: Jennifer Ferrer -Santa Ines, Sr. Fiscal Coordinator DATE: September 1, 2011 SUBJECT: Business License and RGRL Fees ISSUE Many customers as well as staff in Finance and other departments have given feedback that the current business license and Revenue Generating Regulatory License (RGRL) fee structures are overly complex and difficult to understand. BACKGROUND The following business license fees were adopted by Council on November 15, 2010 with Ordinance No. 2315: of Emplovees Fee 0 to 10 $100.00 11 to 20 $150.00 21 to 50 $300.00 51 to 100 $400.00 101 and up $600.00 Home Occupation $50.00 On July 19, 2010 Council adopted Ordinance No. 2297 which implemented an RGRL fee of $55 per full time equivalent employee. Staff has attempted to resolve some differences between the two ordinances that have caused unforeseen issues since implementing both fees. One of the concerns expressed by customers is that because the two fees are calculated differently, completion of the renewal or application form is unduly burdensome. Finance staff has noted that businesses frequently pay one fee or the other, whichever is lower. Well over half the renewal and application forms that have come in since December 2010 have been completed incorrectly. The number of renewals or applications completed online that are incorrect is at least as high. DISCUSSION In an attempt to simplify the business license and RGRL fee calculation process, staff looked at ways to change the fee structure of one or both. Some cities in Western 27 INFORMATIONAL MEMO Page 2 Washington that have an RGRL fee charge one combined fee per full time equivalent employee. The fee is split by the Finance department, after being receipted in, into the business license and RGRL components. This split is a relatively easy process given modern automated cash receipting systems. Below is a comparison of what a business with 10 full -time employees (FTE) would pay for a business license in the cities below. Base License Fee -flat amount Base License Fee- head count RGRL Fee -per FTE Combination Rate Fee Total Business License Fees Kirkland Lynnwood Redmond Renton 100.00 122.50 1,000.00 850.00 910.00 550.00 $1,100.00 972.50 910.00 550.00 650.00 Tukwila 100.00 550.00 From the information above, cities are either charging a combined rate or a flat amount for the base fee plus RGRL for business licenses. Only Tukwila has a base license fee based on head count and an RGRL fee based on a separate method, by full -time equivalent (FTE). An analysis of Tukwila's current fee structure, as compared to what a combined fee might look like, reveals the City could charge a combined fee of $67 per full time equivalent employee. This combined fee of $67 would replace the current separate business license and RGRL fees, and the overall revenue collected would be revenue neutral in comparison to the revenue that is currently coming in for business licenses and RGRL fees. A combined fee of $67 would result in a lowering of fees for many small businesses. This is because a business with one employee currently pays a business license fee of $100, equivalent to $100 per employee plus an RGRL fee of $55. A business of 10 employees also pays $100, or $10 per employee, plus an RGRL fee of $550. The overall average business license fee per employee is just under $5. However, smaller businesses are paying a proportionately higher fee per employee. For instance, a business with 100 employees pays a business license fee of $400, or $4 per employee. Below is a chart showing what the current fee structure costs for employers of 1 -10 employees, what the new fee structure would cost those businesses, and the proportion of businesses in each category: C:1Temp\ Content. OutlooklCBK0060U1 InfoMemo _BusinessLicenseFeeChanges.docx 28 INFORMATIONAL MEMO Page 3 As you can see, the new fee structure would result in lower total fees for employers with 1 -8 employees. This group represents 65.72% of the businesses in Tukwila. Total fees would be lower for some other larger employers too. In total, fees would go down for 71.08% of employers in the City. These lower fees would be supplemented by somewhat higher fees for the City's largest employers. We have 25 businesses in the City with 100 or more employees. Under the current fee structure, these businesses pay about $588,000 in business license and RGRL fees. Under the new fee structure, these 25 businesses would pay $698,000 in total fees. The average increase for this group would be 15.61 Following are the advantages of implementing a combined business license and RGRL fee: A combined fee is much easier for businesses to understand, and makes the renewal and application forms easier to complete. There would be one fee calculation. The business would just enter their number of full time equivalent employees, and the combined fee would be calculated based on that number. The business would not have to calculate two separate fees and add them together, as they are doing now. The fee is more equitable for smaller businesses. Now the fees paid by the City's smallest businesses, those with 1 -8 employees (66% of businesses in Tukwila), are proportionately higher per employee than the fees paid by larger employers. In total, approximately 71% of businesses in Tukwila would pay lower fees with the new fee structure. A simplified fee structure would result in fewer businesses paying incorrect amounts and therefore being subject to late penalties and multiple handling of accounts by Finance staff. Business licenses would be issued much faster if we had a higher percentage of businesses that calculate and pay the correct amount due the first time they send something in to Finance. C:ITemp\Content.OutlooklCB K0060U\I nfoMemo_B usinessLicenseFeeCh ang es. docx 29 Current Fee Structure Proposed Bus. Current Bus License License Business Fee Per 55.00 Total Fee 67.00 #of EE License Fee Employee RGRL Now Combined Fee Difference #of Businesses 1 100 100.00 55.00 155.00 67.00 88.00) 431 24.59% 2 100 50.00 110.00 210.00 134.00 (76.00) 195 11.12% 3 100 33.33 165.00 265.00 201.00 (64.00) 120 6.85% 4 100 25.00 220.00 320.00 268.00 (52.00) 106 6.05% 5 100 20.00 275.00 375.00 335.00 (40.00) 101 5.76% 6 100 16.67 330.00 430.00 402.00 (28.00) 85 4.85% 7 100 14.29 385.00 485.00 469.00 (16.00) 56 3.19% 8 100 12.50 440.00 540.00 536.00 (4.00) 58 3.31% 9 100 11.11 495.00 595.00 603.00 8.00 36 2.05% 10 100 10.00 550.00 650.00 670.00 20.00 45 2.57% As you can see, the new fee structure would result in lower total fees for employers with 1 -8 employees. This group represents 65.72% of the businesses in Tukwila. Total fees would be lower for some other larger employers too. In total, fees would go down for 71.08% of employers in the City. These lower fees would be supplemented by somewhat higher fees for the City's largest employers. We have 25 businesses in the City with 100 or more employees. Under the current fee structure, these businesses pay about $588,000 in business license and RGRL fees. Under the new fee structure, these 25 businesses would pay $698,000 in total fees. The average increase for this group would be 15.61 Following are the advantages of implementing a combined business license and RGRL fee: A combined fee is much easier for businesses to understand, and makes the renewal and application forms easier to complete. There would be one fee calculation. The business would just enter their number of full time equivalent employees, and the combined fee would be calculated based on that number. The business would not have to calculate two separate fees and add them together, as they are doing now. The fee is more equitable for smaller businesses. Now the fees paid by the City's smallest businesses, those with 1 -8 employees (66% of businesses in Tukwila), are proportionately higher per employee than the fees paid by larger employers. In total, approximately 71% of businesses in Tukwila would pay lower fees with the new fee structure. A simplified fee structure would result in fewer businesses paying incorrect amounts and therefore being subject to late penalties and multiple handling of accounts by Finance staff. Business licenses would be issued much faster if we had a higher percentage of businesses that calculate and pay the correct amount due the first time they send something in to Finance. C:ITemp\Content.OutlooklCB K0060U\I nfoMemo_B usinessLicenseFeeCh ang es. docx 29 INFORMATIONAL MEMO Page 4 A simplified fee would mean less time that it takes for staff to answer questions about how to calculate the fee, less staff time for following up with businesses in writing or over the phone if they have paid incorrect amounts, and faster depositing of payments received. Staff will continue to investigate other ways to improve and simplify the business license and RGRL fee processes. We have encountered many technical issues since implementing the new fees, and these issues continue to this day but remain a high priority for resolution. We also have a number of much needed improvements in the works for the forms that are used for renewals and applications. These changes will be made regardless of whether the fee structure is changed or not. Options There are a few options to consider in how we can restructure the calculation of business license fees. The alternatives are: 1) adoption of a combined business license and RGRL fee of $67 per full -time equivalent employee, and or 2) modify calculation of the base license fee from number of employees to full -time equivalent (FTE) similar to that of calculating RGRL, or 3) Do nothing -leave fee structure and calculation as is. RECOMMENDATION Select an option from above. If option 1 and or 2 is selected, Staff will return with a draft Ordinance for Finance Safety Committee to review on the 9/20 F &S meeting. ATTACHMENT Business License and RGRL Fee Analysis spreadsheet Cffemp\ Content. Outlook\ CBK0060U1 1nfoMemo _BusinessLicenseFeeChang es. docx 30 City of Tukwila Business License and Revenue Generating Regulatory License (RGRL) Fees * Assumes # of employees for business license base fee is the same as RGRL FTE Current Fee Structure Proposed Current Bus License # of Business Fee Per $ 55.00 Total Fee $ 67.00 Employees License Fee Employee RGRL Now Combined Fee Difference # of Businesses 1 100 100.00 55.00 155.00 67.00 (88.00) 431 24.59% 2 100 50.00 110.00 210.00 134.00 (76.00) 195 11.12% 3 100 33.33 165.00 265.00 201.00 (64.00) 120 6.85% 4 100 25.00 220.00 320.00 268.00 (52.00) 106 6.05% 5 100 20.00 275.00 375.00 335.00 (40.00) 101 5.76% 6 100 16.67 330.00 430.00 402.00 (28.00) 85 4.85% 7 100 14.29 385.00 485.00 469.00 (16.00) 56 3.19% 8 100 12.50 440.00 540.00 536.00 (4.00) 58 3.31% 65.72% 65.72% 9 100 11.11 495.00 595.00 603.00 8.00 36 2.05% 10 100 10.00 550.00 650.00 670.00 20.00 45 2.57% 11 150 13.64 605.00 755.00 737.00 (18.00) 29 1.65% 12 150 12.50 660.00 810.00 804.00 (6.00) 34 1.94% 3.59% 13 150 11.54 715.00 865.00 871.00 6.00 25 1.43% 14 150 10.71 770.00 920.00 938.00 18.00 22 1.25% 15 150 10.00 825.00 975.00 1,005.00 30.00 23 1.31% 16 150 9.38 880.00 1,030.00 1,072.00 42.00 17 0.97% 17 150 8.82 935.00 1,085.00 1,139.00 54.00 29 1.65% 18 150 8.33 990.00 1,140.00 1,206.00 66.00 18 1.03% 19 150 7.89 1,045.00 1,195.00 1,273.00 78.00 17 0.97% 20 150 7.50 1,100.00 1,250.00 1,340.00 90.00 30 1.71% 21 300 14.29 1,155.00 1,455.00 1,407.00 (48.00) 4 0.23% 22 300 13.64 1,210.00 1,510.00 1,474.00 (36.00) 12 0.68% 23 300 13.04 1,265.00 1,565.00 1,541.00 (24.00) 5 0.29% 24 300 12.50 1,320.00 1,620.00 1,608.00 (12.00) 10 0.57% 1.77% 25 300 12.00 1,375.00 1,675.00 1,675.00 - 14 0.80% 71.08% 26 300 11.54 1,430.00 1,730.00 1,742.00 12.00 7 0.40% W City of Tukwila Business License and Revenue Generating Regulatory License (RGRL) Fees * Assumes # of employees for business license base fee is the same as RGRL FTE Current Fee Structure Proposed * Current Bus License # of Business Fee Per $ 55.00 Total Fee $ 67.00 Employees License Fee Employee RGRL Now Combined Fee Difference # of Businesses 27 300 11.11 1,485.00 1,785.00 1,809.00 24.00 8 0.46% 28 300 10.71 1,540.00 1,840.00 1,876.00 36.00 5 0.29% 29 300 10.34 1,595.00 1,895.00 1,943.00 48.00 6 0.34% 30 300 10.00 1,650.00 1,950.00 2,010.00 60.00 9 0.51% 31 300 9.68 1,705.00 2,005.00 2,077.00 72.00 2 0.11% 32 300 9.38 1,760.00 2,060.00 2,144.00 84.00 8 0.46% 33 300 9.09 1,815.00 2,115.00 2,211.00 96.00 6 0.34% 34 300 8.82 1,870.00 2,170.00 2,278.00 108.00 5 0.29% 35 300 8.57 1,925.00 2,225.00 2,345.00 120.00 5 0.29% 36 300 8.33 1,980.00 2,280.00 2,412.00 132.00 3 0.17% 37 300 8.11 2,035.00 2,335.00 2,479.00 144.00 8 0.46% 38 300 7.89 2,090.00 2,390.00 2,546.00 156.00 0.00% 39 300 7.69 2,145.00 2,445.00 2,613.00 168.00 5 0.29% 40 300 7.50 2,200.00 2,500.00 2,680.00 180.00 11 0.63% 41 300 7.32 2,255.00 2,555.00 2,747.00 192.00 4 0.23% 42 300 7.14 2,310.00 2,610.00 2,814.00 204.00 6 0.34% 43 300 6.98 2,365.00 2,665.00 2,881.00 216.00 4 0.23% 44 300 6.82 2,420.00 2,720.00 2,948.00 228.00 3 0.17% 45 300 6.67 2,475.00 2,775.00 3,015.00 240.00 2 0.11% 46 300 6.52 2,530.00 2,830.00 3,082.00 252.00 0.00% 47 300 6.38 2,585.00 2,885.00 3,149.00 264.00 4 0.23% 48 300 6.25 2,640.00 2,940.00 3,216.00 276.00 4 0.23% 49 300 6.12 2,695.00 2,995.00 3,283.00 288.00 4 0.23% 50 300 6.00 2,750.00 3,050.00 3,350.00 300.00 4 0.23% 51 400 7.84 2,805.00 3,205.00 3,417.00 212.00 2 0.11% 52 400 7.69 2,860.00 3,260.00 3,484.00 224.00 2 0.11% City of Tukwila Business License and Revenue Generating Regulatory License (RGRL) Fees * Assumes # of employees for business license base fee is the same as RGRL FTE Current Fee Structure Proposed Current Bus License # of Business Fee Per $ 55.00 Total Fee $ 67.00 Employees License Fee Employee RGRL Now Combined Fee Difference 53 400 7.55 2,915.00 3,315.00 3,551.00 236.00 54 400 7.41 2,970.00 3,370.00 3,618.00 248.00 55 400 7.27 3,025.00 3,425.00 3,685.00 260.00 56 400 7.14 3,080.00 3,480.00 3,752.00 272.00 57 400 7.02 3,135.00 3,535.00 3,819.00 284.00 58 400 6.90 3,190.00 3,590.00 3,886.00 296.00 59 400 6.78 3,245.00 3,645.00 3,953.00 308.00 60 400 6.67 3,300.00 3,700.00 4,020.00 320.00 61 400 6.56 3,355.00 3,755.00 4,087.00 332.00 62 400 6.45 3,410.00 3,810.00 4,154.00 344.00 63 400 6.35 3,465.00 3,865.00 4,221.00 356.00 64 400 6.25 3,520.00 3,920.00 4,288.00 368.00 65 400 6.15 3,575.00 3,975.00 4,355.00 380.00 66 400 6.06 3,630.00 4,030.00 4,422.00 392.00 67 400 5.97 3,685.00 4,085.00 4,489.00 404.00 68 400 5.88 3,740.00 4,140.00 4,556.00 416.00 69 400 5.80 3,795.00 4,195.00 4,623.00 428.00 70 400 5.71 3,850.00 4,250.00 4,690.00 440.00 71 400 5.63 3,905.00 4,305.00 4,757.00 452.00 72 400 5.56 3,960.00 4,360.00 4,824.00 464.00 73 400 5.48 4,015.00 4,415.00 4,891.00 476.00 74 400 5.41 4,070.00 4,470.00 4,958.00 488.00 75 400 5.33 4,125.00 4,525.00 5,025.00 500.00 76 400 5.26 4,180.00 4,580.00 5,092.00 512.00 77 400 5.19 4,235.00 4,635.00 5,159.00 524.00 78 400 5.13 4,290.00 4,690.00 5,226.00 536.00 # of Businesses 1 0.06% 3 0.17% 3 0.17% 1 0.06% 0.00% 1 0.06% 2 0.11% 5 0.29% 1 0.06% 3 0.17% 2 0.11% 3 0.17% 4 0.23% 1 0.06% 0.00% 1 0.06% 1 0.06% 0.00% 1 0.06% 0.00% 0.00% 1 0.06% 3 0.17% 1 0.06% 3 0.17% 0.00% W City of Tukwila Business License and Revenue Generating Regulatory License (RGRL) Fees * Assumes # of employees for business license base fee is the same as RGRL FTE Current Fee Structure Proposed Current Bus License # of Business Fee Per $ 55.00 Total Fee $ 67.00 Employees License Fee Employee RGRL Now Combined Fee Difference 79 400 5.06 4,345.00 4,745.00 5,293.00 548.00 80 400 5.00 4,400.00 4,800.00 5,360.00 560.00 81 400 4.94 4,455.00 4,855.00 5,427.00 572.00 82 400 4.88 4,510.00 4,910.00 5,494.00 584.00 83 400 4.82 4,565.00 4,965.00 5,561.00 596.00 84 400 4.76 4,620.00 5,020.00 5,628.00 608.00 85 400 4.71 4,675.00 5,075.00 5,695.00 620.00 86 400 4.65 4,730.00 5,130.00 5,762.00 632.00 87 400 4.60 4,785.00 5,185.00 5,829.00 644.00 88 400 4.55 4,840.00 5,240.00 5,896.00 656.00 89 400 4.49 4,895.00 5,295.00 5,963.00 668.00 90 400 4.44 4,950.00 5,350.00 6,030.00 680.00 91 400 4.40 5,005.00 5,405.00 6,097.00 692.00 92 400 4.35 5,060.00 5,460.00 6,164.00 704.00 93 400 4.30 5,115.00 5,515.00 6,231.00 716.00 94 400 4.26 5,170.00 5,570.00 6,298.00 728.00 95 400 4.21 5,225.00 5,625.00 6,365.00 740.00 96 400 4.17 5,280.00 5,680.00 6,432.00 752.00 97 400 4.12 5,335.00 5,735.00 6,499.00 764.00 98 400 4.08 5,390.00 5,790.00 6,566.00 776.00 99 400 4.04 5,445.00 5,845.00 6,633.00 788.00 100 400 4.00 5,500.00 5,900.00 6,700.00 800.00 101 600 5.94 5,555.00 6,155.00 6,767.00 612.00 102 600 5.88 5,610.00 6,210.00 6,834.00 624.00 103 600 5.83 5,665.00 6,265.00 6,901.00 636.00 104 600 5.77 5,720.00 6,320.00 6,968.00 648.00 # of Businesses 0.00% 2 0.11% 3 0.17% 0.00% 1 0.06% 1 0.06% 0.00% 1 0.06% 2 0.11% 0.00% 1 0.06% 0.00% 2 0.11% 0.00% 0.00% 1 0.06% 1 0.06% 1 0.06% 0.00% 0.00% 1 0.06% 0.00% 1 0.06% 0.00% 0.00% 2 0.11% City of Tukwila Business License and Revenue Generating Regulatory License (RGRL) Fees * Assumes # of employees for business license base fee is the same as RGRL FTE Current Fee Structure Proposed Current Bus License # of Business Fee Per $ 55.00 Total Fee $ 67.00 Employees License Fee Employee RGRL Now Combined Fee Difference 105 600 5.71 5,775.00 6,375.00 7,035.00 660.00 106 600 5.66 5,830.00 6,430.00 7,102.00 672.00 107 600 5.61 5,885.00 6,485.00 7,169.00 684.00 108 600 5.56 5,940.00 6,540.00 7,236.00 696.00 109 600 5.50 5,995.00 6,595.00 7,303.00 708.00 110 600 5.45 6,050.00 6,650.00 7,370.00 720.00 111 600 5.41 6,105.00 6,705.00 7,437.00 732.00 112 600 5.36 6,160.00 6,760.00 7,504.00 744.00 113 600 5.31 6,215.00 6,815.00 7,571.00 756.00 114 600 5.26 6,270.00 6,870.00 7,638.00 768.00 115 600 5.22 6,325.00 6,925.00 7,705.00 780.00 116 600 5.17 6,380.00 6,980.00 7,772.00 792.00 117 600 5.13 6,435.00 7,035.00 7,839.00 804.00 118 600 5.08 6,490.00 7,090.00 7,906.00 816.00 119 600 5.04 6,545.00 7,145.00 7,973.00 828.00 120 600 5.00 6,600.00 7,200.00 8,040.00 840.00 121 600 4.96 6,655.00 7,255.00 8,107.00 852.00 122 600 4.92 6,710.00 7,310.00 8,174.00 864.00 123 600 4.88 6,765.00 7,365.00 8,241.00 876.00 124 600 4.84 6,820.00 7,420.00 8,308.00 888.00 125 600 4.80 6,875.00 7,475.00 8,375.00 900.00 126 600 4.76 6,930.00 7,530.00 8,442.00 912.00 127 600 4.72 6,985.00 7,585.00 8,509.00 924.00 128 600 4.69 7,040.00 7,640.00 8,576.00 936.00 129 600 4.65 7,095.00 7,695.00 8,643.00 948.00 130 600 4.62 7,150.00 7,750.00 8,710.00 960.00 # of Businesses 1 0.06% 0.00% 0.00% 1 0.06% 2 0.11% 1 0.06% 0.00% 1 0.06% 0.00% 0.00% 0.00% 1 0.06% 0.00% 2 0.11% 0.00% 1 0.06% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1 0.06% 0.00% 0.00% 0.00% W 6) City of Tukwila Business License and Revenue Generating Regulatory License (RGRL) Fees * Assumes # of employees for business license base fee is the same as RGRL FTE Current Fee Structure Proposed * Current Bus License # of Business Fee Per $ 55.00 Total Fee $ 67.00 Employees License Fee Employee RGRL Now Combined Fee Difference 131 600 4.58 7,205.00 7,805.00 8,777.00 972.00 132 600 4.55 7,260.00 7,860.00 8,844.00 984.00 133 600 4.51 7,315.00 7,915.00 8,911.00 996.00 134 600 4.48 7,370.00 7,970.00 8,978.00 1,008.00 135 600 4.44 7,425.00 8,025.00 9,045.00 1,020.00 136 600 4.41 7,480.00 8,080.00 9,112.00 1,032.00 137 600 4.38 7,535.00 8,135.00 9,179.00 1,044.00 138 600 4.35 7,590.00 8,190.00 9,246.00 1,056.00 139 600 4.32 7,645.00 8,245.00 9,313.00 1,068.00 140 600 4.29 7,700.00 8,300.00 9,380.00 1,080.00 141 600 4.26 7,755.00 8,355.00 9,447.00 1,092.00 142 600 4.23 7,810.00 8,410.00 9,514.00 1,104.00 143 600 4.20 7,865.00 8,465.00 9,581.00 1,116.00 144 600 4.17 7,920.00 8,520.00 9,648.00 1,128.00 145 600 4.14 7,975.00 8,575.00 9,715.00 1,140.00 146 600 4.11 8,030.00 8,630.00 9,782.00 1,152.00 147 600 4.08 8,085.00 8,685.00 9,849.00 1,164.00 148 600 4.05 8,140.00 8,740.00 9,916.00 1,176.00 149 600 4.03 8,195.00 8,795.00 9,983.00 1,188.00 150 600 4.00 8,250.00 8,850.00 10,050.00 1,200.00 151 600 3.97 8,305.00 8,905.00 10,117.00 1,212.00 152 600 3.95 8,360.00 8,960.00 10,184.00 1,224.00 153 600 3.92 8,415.00 9,015.00 10,251.00 1,236.00 154 600 3.90 8,470.00 9,070.00 10,318.00 1,248.00 155 600 3.87 8,525.00 9,125.00 10,385.00 1,260.00 156 600 3.85 8,580.00 9,180.00 10,452.00 1,272.00 # of Businesses 0.00% 2 0.11% 0.00% 0.00% 2 0.11% 0.00% 0.00% 0.00% 0.00% 0.00% 1 0.06% 0.00% 0.00% 0.00% 0.00% 1 0.06% 0.00% 0.00% 0.00% 0.00% 1 0.06% 0.00% 0.00% 0.00% 0.00% 0.00% City of Tukwila Business License and Revenue Generating Regulatory License (RGRL) Fees * Assumes # of employees for business license base fee is the same as RGRL FTE Current Fee Structure Proposed * Current Bus License # of Business Fee Per $ 55.00 Total Fee $ 67.00 Employees License Fee Employee RGRL Now Combined Fee Difference 157 600 3.82 8,635.00 9,235.00 10,519.00 1,284.00 158 600 3.80 8,690.00 9,290.00 10,586.00 1,296.00 159 600 3.77 8,745.00 9,345.00 10,653.00 1,308.00 160 600 3.75 8,800.00 9,400.00 10,720.00 1,320.00 161 600 3.73 8,855.00 9,455.00 10,787.00 1,332.00 162 600 3.70 8,910.00 9,510.00 10,854.00 1,344.00 163 600 3.68 8,965.00 9,565.00 10,921.00 1,356.00 164 600 3.66 9,020.00 9,620.00 10,988.00 1,368.00 165 600 3.64 9,075.00 9,675.00 11,055.00 1,380.00 166 600 3.61 9,130.00 9,730.00 11,122.00 1,392.00 167 600 3.59 9,185.00 9,785.00 11,189.00 1,404.00 168 600 3.57 9,240.00 9,840.00 11,256.00 1,416.00 169 600 3.55 9,295.00 9,895.00 11,323.00 1,428.00 170 600 3.53 9,350.00 9,950.00 11,390.00 1,440.00 171 600 3.51 9,405.00 10,005.00 11,457.00 1,452.00 172 600 3.49 9,460.00 10,060.00 11,524.00 1,464.00 173 600 3.47 9,515.00 10,115.00 11,591.00 1,476.00 174 600 3.45 9,570.00 10,170.00 11,658.00 1,488.00 175 600 3.43 9,625.00 10,225.00 11,725.00 1,500.00 176 600 3.41 9,680.00 10,280.00 11,792.00 1,512.00 177 600 3.39 9,735.00 10,335.00 11,859.00 1,524.00 178 600 3.37 9,790.00 10,390.00 11,926.00 1,536.00 179 600 3.35 9,845.00 10,445.00 11,993.00 1,548.00 180 600 3.33 9,900.00 10,500.00 12,060.00 1,560.00 181 600 3.31 9,955.00 10,555.00 12,127.00 1,572.00 182 600 3.30 10,010.00 10,610.00 12,194.00 1,584.00 # of Businesses 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1 0.06% 0.00% 0.00% 1 0.06% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1 0.06% 0.00% 0.00% W CO City of Tukwila Business License and Revenue Generating Regulatory License (RGRL) Fees * Assumes # of employees for business license base fee is the same as RGRL FTE Current Fee Structure Proposed Current Bus License # of Business Fee Per $ 55.00 Total Fee $ 67.00 Employees License Fee Employee RGRL Now Combined Fee Difference 183 600 3.28 10,065.00 10,665.00 12,261.00 1,596.00 184 600 3.26 10,120.00 10,720.00 12,328.00 1,608.00 185 600 3.24 10,175.00 10,775.00 12,395.00 1,620.00 186 600 3.23 10,230.00 10,830.00 12,462.00 1,632.00 187 600 3.21 10,285.00 10,885.00 12,529.00 1,644.00 188 600 3.19 10,340.00 10,940.00 12,596.00 1,656.00 189 600 3.17 10,395.00 10,995.00 12,663.00 1,668.00 190 600 3.16 10,450.00 11,050.00 12,730.00 1,680.00 191 600 3.14 10,505.00 11,105.00 12,797.00 1,692.00 192 600 3.13 10,560.00 11,160.00 12,864.00 1,704.00 193 600 3.11 10,615.00 11,215.00 12,931.00 1,716.00 194 600 3.09 10,670.00 11,270.00 12,998.00 1,728.00 195 600 3.08 10,725.00 11,325.00 13,065.00 1,740.00 196 600 3.06 10,780.00 11,380.00 13,132.00 1,752.00 197 600 3.05 10,835.00 11,435.00 13,199.00 1,764.00 198 600 3.03 10,890.00 11,490.00 13,266.00 1,776.00 199 600 3.02 10,945.00 11,545.00 13,333.00 1,788.00 200 600 3.00 11,000.00 11,600.00 13,400.00 1,800.00 # of Businesses 0.00% 0.00% 1 0.06% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 21 1.20% 1 2 3 4 5 6 7 8 9 10 11 Community Responses- Combined Business License Fee @ $67 per full -time equivalent employee Date Business # of Employees Response Comments 9/26/2011 Muzak 13 Likes Want to express their support for the Streamlined Business License fee 9/26/2011 Farwest Paint 17 Dislikes being down 2 employees this year, they would have to pay more for 2012, $67 /fte is too much 9/27/2011 Olive Garden Bahama Breeze 72 f /t, 37 p/t 54 f /t, 26 p/t Dislikes " Would rather have fee based on # of employees. FTE too time consuming to calculate, must coordinate with payroll to get numbers for all employees. 9/27/2011 Husky Trucks 40 Dislikes Would cost both their companies over $1200 more each year. Already familiar with how to do last year's calculations. (2011 - $2500, 2012 $2680) 9/27/2011 True Blue Ink (Third Party Preparer) N/A Likes Last year's was too confusing, likes fees based on hrs worked. They have temp workers. They process over 700 business licenses a year for US & Canada. 9/27/2011 National Entertainment Network (Third Party Preparer) N/A Likes Last year was very confusing, compared to all the other ones she processes. 9/29/2011 Jharper contractors 20 Dislikes Suggests a flat fee, worried about B &O being charged at some point. Can't expect businesses to fund budgetary needs /shortfalls. 10/3/2011 Seattle Chocolates 56.87 FTE Dislikes RGRL unfair, paying for employees who don't receive City services. 10/4/2011 David Elle 4.74 FTE Likes Likes one calculation to complete fee process 10/4/2011 Ashley Furniture 35 Dislikes Not beneficial to them. 10/3/2011 American Medical Response 254 Dislikes Overly burdensome to a company who has been here over 10 years x i AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AMENDING ORDINANCE NOS. 2333 AND 2315, AS CODIFIED IN TUKWILA MUNICIPAL CODE (TMC) CHAPTER 5.04, "LICENSES GENERALLY," TO REVISE AND MOVE PARTS OF TMC CHAPTER 5.62 INTO CHAPTER 5.04 TO CREATE A SIMPLIFIED COMBINED BUSINESS LICENSE FEE STRUCTURE, AND TO EXEMPT QUALIFIED COURT INTERPRETERS FROM THE COMBINED BUSINESS LICENSE FEE; REPEALING ORDINANCE NO. 2297 AND ORDINANCE NO. 2333 §10, §11 AND §12, THEREBY ELIMINATING TMC CHAPTER 5.62; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, the City Council desires to simplify the business license fee structure to eliminate the need to calculate two different fees; and WHEREAS, the City Council supports a combined business license fee to facilitate the completion and processing of business license applications and renewals; and WHEREAS, the current business license ordinances separate the business license section and the Revenue Generating Regulatory License section into two different chapters and they should now be combined within TMC Chapter 5.04; and WHEREAS, the City Council desires to exempt qualified court interpreters from both the business! license fee and the Revenue Generating Regulatory License (RGRL) fee; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 5.04.020, "Application and Fees Required," Amended. Ordinance Nos. 2333 §3 and 2315 §1 (part), as codified at TMC Section 5.04.020, are hereby amended to read as follows: W: Word Processing \Ordinances \Business lic -RGRL Combined Rate Fee Structure strike -thru 10 -12 -11 JF:bjs Page 1 of 9 41 A. Application Required. Any person desiring to establish or conduct any business enterprise or undertaking within the corporate limits of the City shall first apply to the Finance Department for a license to conduct such business. The application shall be upon a form furnished by the Finance Department on which the applicant shall state the company name and address; the nature of the business activity or activities in which he desires to engage; the place where the business will be conducted; the number of employees, whether full or part-time, on the payroll as of January 1, or, if a new business, the number to be employed on the opening date, the Washinaton State Unified Business Identifier (UBI) number; and other information pertaining to the business as required by the City. B. Fee General. The application must be accompanied by payment for the amount of the license fee. The total business license fee for the annual license issued under this chapter shall be determined using the combined rate of $67.00 per full -time equivalent (FTE) emplovee. This fee consists of a $12.00 per FTE base license fee plus a $55.00 per FTE Revenue Generatina Reaulatory License (RGRL) fee. All ll f, fe s Will vime based on the Rurn of employees, wh.etho��er full o o as follow 1l l� C. Minimum Fee. There shall be a minimum fee of $67.00 for an annual business license unless the business aualifies for a temporary business license in accordance with TMC Section 5.04.010 or is an entitv defined in TMC Section 5.04.090. 1. A business with less than $12,000.00 of average annual gross receipts shall b exempt from aRy RGR p a v the minimum license fee of $67.00. 2. For the purposes of this section and in determining the applicable RGRL combined business license fee, 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 includinq 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 may be exempt frorn requirements to have a separate City of Tukwila business license. W: Word Processing \Ordinances \Business lic -RGRL Combined Rate Fee Structure strike -thru 10 -12 -11 JF:bjs Page 2 of 9 42 3 do entity that is entirely n n_Trrn SCS iGense fee shall he exempt from aRy RGRL 3. An entity with engaging in some activities or functions that are exempt from the combined business license fee and some that are not exempt shall pay a RGRL combined business license fee based on the number of full -time eauivalent employees that are involved in the functions or activities that are not exempt. 4. An individual person operating more than one business as sole proprietorships within the corporate limits of the City, including leasing of non- owner- occupied housing, shall pay only one RGRL combined business license fee, at an amount equal to the highest RGRL combined business license fee for any one of the multiple businesses, if not otherwise exempt from paying the RGRL combined business license fee pursuant to this chapter. TMC Section i 6 2 C )2 0 A .5-5.04.020.C.4 shall not be appliGable apply if any one of the businesses owned by the sole proprietor has three or more full -time equivalent employees. 5. Residential rental property owners shall pay applicable fees as set by the Citv's fee schedule specified in TMC Section 5.06.040 in addition to the $55.00 RGRL fee per full -time eauivalent emplovee per TMC Section 5.04.020(B). D. Fee Calculation. 1 Revenue Generating Regulatory 1 iGense (RGRL) Combined Business License Fee Method. Except as otherwise provided by this chapter, every person engaging in business within the City shall pay a RGRL combined business license fee based upon the number of full -time eauivalent 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 o ^ctirnfQ if required, shall demonstrate to the satisfaction of the Finance Director or his /her designee that the number of employee hours worked is correct. 2. The annual RGRL combined business license fee shall be calculated by multiplying the minims im fee -combined business license fee multiplier, as defined in subsection (H) of this section, by the number of full time equivalent employee hours that worked in Tukwila. The approved fee per full -time employee is $5:026646$0.034896 (which represents a RGRL combined business license multiplier of $0.028646$0.034896 per employee hour worked), as may be adjusted herein. Employers without a full year history weuld need to shall estimate the number of employee hours that will be worked in the GU rrent GaIeRdar yea 12 -month period. W: Word Processing \Ordinances \Business lic -RGRL Combined Rate Fee Structure strike -thru 10 -12 -11 JF:bjs Page 3 of 9 43 3. If a business has more than one location in Tukwila, the annual combined business license fee calculation must include a minimum fee for each location and the RGRL applicable combined business license fee for annual employee hours at all locations. E. Alternative FTE Method. A business may choose to calculate its annual RGRL combined business license fee by multiplying the minimum fee by the number of its full time equivalent 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 deronstrate if required, shall demonstrate 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 Ree shall estimate the number of employees who will work in the City for the GUFFent Galonda F dear in a 12 -month period. 1. 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. 2. It will be the responsibility of the business to determine the total number of FTEs (or equivalency) and, den,aRstrate if required, demonstrate to the satisfaction of the Finance Director or his /her designee that the calculation is accurate. The RGRL combined business license 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 RGRL combined business license fee multiplier of $0. 028646$0.034896 per employee hour worked by the number of employee hours worked within the City, but in no event shall the RGRL combined business 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 working_in Tukwila duFiRg the yearfor a 12 -month period. f Businesses doing business in the City that have no employees physically working within the City shall pay the minimum fee required under this chapter. J The minimum fee under this chapter shall be $55- 00$67.00, and may be amended from time to time. W: Word Processing \Ordinances \Business lic -RGRL Combined Rate Fee Structure strike -thru 10 -12 -11 JF:bjs Page 4 of 9 ii 41. Payment made by draft or check shall not be deemed a payment of the RGRL combined business license 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 combined business license 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. j. Businesses emplovinq fewer than 10 emplovees and that are eligible for a temporary business license, pursuant to TMC Section 5.04.010, shall be exempt from payment of a RGRL combined business license fe f ee b sir, with fewer than 10 empfeyees. Section 2. TMC Section 5.04.025, "Determination of number of employees for Combined Business License Fee," Created. Ordinance Nos. 2333 and 2315 §1 (part) are hereby amended to establish a new Section 5.04.025 to read as follows: 5.04.025 Determination of number of employees for RGRL combined business license fee. For the purposes of this section, "employee" shall be as defined in Section 5 .o o''020- 5.04.020.C.2. A. Standard Rule. In determining the amount of a RGRL combined business license 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 R-GR� combined business license fee according to the following alternative method based on the total number of full time equivalent employees hours worked foF emploved by the business for a 12 -month period: 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 FTEs emploved by wo rked fer 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 full -time equivalent employee. If a person such as an owner or partner devotes more than 1,920 hours per year to the business, that person must be counted as one full -time equivalent employee for RGRL the combined business license fee purposes. W: Word Processing \Ordinances \Business lic -RGRL Combined Rate Fee Structure strike -thru 10 -12 -11 JF:bjs Page 5 of 9 45 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 fFaGtieR Of ORe half or ever shall be FOUR up-. Hours worked by persons who are defined as employees f o r 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 13.2 of this section plus subsection 13.3 of this section shall be the total number of employees used to determine the amount of the RGRL combined business license fee. C. New Businesses. The FRIL combined business license 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 a 12 -month period. The City will determine the number of employees that will be used in calculating the amount of the RGRL combined business license fee. If, during the license year, the City determines the actual number of employees is significantly different than estimated, the amount of the RGRL combined business license fee will be recalculated for the new business. If the revised RGRL combined business license fee is higher, the business must pay the difference within thirty days after notification is sent by the Citv. D. Over Reporting Number of Employees. A business may request that the City refund RGRL— business license fee 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 business license fee, the City will refund the excess RGRL business license fee 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 RGRIL combined business license 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 of the date written notice is mailed by the Citv. If the City does not receive timely payment, an additional penalty shall be added, applying the schedule for late payments in this chapter. Section 3. TMC Section 5.04.040, "Prorating fee," Amended. Ordinance Nos. 2333 §4 and 2315 §1 (part), as codified at TMC Section 5.04.040, are hereby amended to read as follows: W: Word Processing \Ordinances \Business lic -RGRL Combined Rate Fee Structure strike -thru 10 -12 -11 JF:bjs Page 6 of 9 M The license fee set forth in this chapter shall be for the calendar year, and each person engaged in business must pay the full combined business license fee for the current year. Business license fees are non refundable, regardless of whether the business operates for the entire calendar year, or whether the business license is denied, revoked or suspended with cause. Section 4. TMC Section 5.04.050, "Fee for late acquisition or renewal," Amended. Ordinance Nos. 2333 §5 and 2315 §1 (part), as codified at TMC Section 5.04.050, are hereby amended to read as follows: A. Monetary Penalty. Failure to pay the combined business license fee within 30 days after the day on which it is due and payable pursuant to TMC Section 5.04.020 shall render the business subject to a penalty of 5% of the amount of business license 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 business license 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 business license 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 business license 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 business license fee. Section 5. TMC Section 5.04.070, "Change in nature of business," Amended. Ordinance Nos. 2333 §6 and 2315 §1 (part), as codified at TMC Section 5.04.070, are hereby amended to read as follows: The license granted in pursuance hereof shall be used to conduct the business or type of business at the designated address for which such license is issued. Any change in the nature of the business, a change in the Unified Business Identifier issued by the Washington State Department of Licensing, a change in the physical location of the business, or a change in ownership of the business shall necessitate a renewed W: Word Processing \Ordinances \Business lic -RGRL Combined Rate Fee Structure strike -thru 10 -12 -11 JF:bjs Page 7 of 9 47 application to the Finance Department. A change in the nature of business or a change in ownership will also require payment of the applicable combined business license fee. Section 6. TMC Section 5.04.090, "Exemption," Amended. Ordinance Nos. 2333 §7 and 2315 §1 (part), as codified at TMC Section 5.04.090, are hereby amended to read as follows: A. Exemptions. The following entities may claim an exemption from the combined business 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 that 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. 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. Court interpreters who provide an oral translation between speakers who speak different lanquaqes, and who are either a certified interpreter, qualified interpreter, or reqistered interpreter, and who make less than $12.000 in gross annual revenue in Tukwila, Washinqton. Certified, qualified and reqistered interpreters are defined as follows: a. "Certified interpreter" means an interpreter who is certified by the administrative office of the courts. b. "Qualified interpreter" means a person who is readily able to interpret or translate spoken and written Enqlish for non Enqlish speaking persons and to interpret or translate oral or written statements of non Enqlish speaking persons into spoken Enqlish. c. "Registered interpreter" means an interpreter who is reqistered by the administrative office of the courts. W: Word Processing \Ordinances \Business lic -RGRL Combined Rate Fee Structure strike -thru 10 -12 -11 JF:bjs Page 8 of 9 M A Nothing in this chapter shall be construed to require a license for any farmer, gardener, or other p erson to sell, deliver or peddle any fruits, vegetables, berries, butter, eggs, fish, milk, poultry, meats or any farm produce or edibles raised, caught, produced or manufactured by such person in any place within the State. Section 7. Repealer. Ordinance Nos. 2297 and 2333 §10, §11 and §12, as codified in TMC Chapter 5.62, are hereby repealed, thereby eliminating TMC Chapter 5.62. Section 8. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section /subsection numbering. Section 9. 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 10. 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 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 day of 1 2011. ATTEST /AUTHENTICATED: Christy O'Flaherty, CMC, City Clerk APPROVED AS TO FORM BY: Shelley M. Kerslake, City Attorney Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: W: Word Processing \Ordinances \Business lic -RGRL Combined Rate Fee Structure strike -thru 10 -12 -11 JF:bjs Page 9 of 9 i