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HomeMy WebLinkAboutReg 2014-12-01 Item 6H - Ordinance - Utility Tax Sunset Provision ExtensionCOUNCIL AGENDA SYNOPSIS Initia/5 Mee/in g 1) ale Prepared 12y Mayor ;■• review Giulia' 1 rettiew 11/24/14 JFS zWoion AND ate 12/01/14 JFS Ptiblet I leartirg ANDate Other A1 tg D au c \ i i ( ,( no 111p Date Si )( )1,,,,oR [ Council — Mayor — HR IX,D U I 'mance • 1 /re IT 7 P&R ___ Po/he PW spoNm)R':-, The City currently assesses a 10% tax rate on the revenues of City operated facilities. The Si '11N1 \ RY tax is set to end Dec. 31, 2015. Staff is recommending a 6-year extension to the existing utility tax on City operated utilities. RI \II \x i i ' COW Mtg CA&P Crnre 1 Utilities Cmtc _ Art,, Comm 1)A, 117. 11/18/2014 l'&S &me I 1Transportation Crnte Comm 1 1 Planning Comm (21 LAIR: SEAL Parks commyrriT: ITEM INFORMATION ITEM No. 6.H. 153 SI \I I, SPON;,()R PEGGY MCCARTHY ORR;IN, \I J\ GI Ni) \ D \ II- 11/24/14 Acd Ni) \ inii Tii'iil Interfund Utility Tax Extension 11/24/14 zWoion AND ate _ Re■oliilton Altgl)ate Z Oreillhilltr' AN Date 12/01/14 13id /12Pard AND ate Ptiblet I leartirg ANDate Other A1 tg D au c \ i i ( ,( no 111p Date Si )( )1,,,,oR [ Council — Mayor — HR IX,D U I 'mance • 1 /re IT 7 P&R ___ Po/he PW spoNm)R':-, The City currently assesses a 10% tax rate on the revenues of City operated facilities. The Si '11N1 \ RY tax is set to end Dec. 31, 2015. Staff is recommending a 6-year extension to the existing utility tax on City operated utilities. RI \II \x i i ' COW Mtg CA&P Crnre 1 Utilities Cmtc _ Art,, Comm 1)A, 117. 11/18/2014 l'&S &me I 1Transportation Crnte Comm 1 1 Planning Comm (21 LAIR: SEAL Parks commyrriT: RECOMMENDATIONS: SpoNN)R/ADNIIN. Com \111'111 Finance Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE 1-.11 NDI 1 1 Ril Ri/L no i) AMOUNE Buix,i II D AIRoIR1ArioN REQUIRED $ $ Fund Source: ('eninierib MTG. DATE RECORD OF COUNCIL ACTION 11/24/14 Forward to next Regular Meeting MTG. DATE ATTACHMENTS 11/24/14 Informational Memorandum dated 11/4/2014 Ordinance in Draft Form Minutes from the Finance and Safety Committee meeting of 11/18/14 12/01/14 Final ordinance 153 154 City of Tukwila Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON; AMENDING ORDINANCE NOS. 2298 §1 (PART) AND 2258 §3, AS CODIFIED AT TUKWILA MUNICIPAL CODE SECTION 3.54.030, EXTENDING THE CITY UTILITY TAX SUNSET PROVISION; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, at the time Ordinance No. 2298 was passed, the City Council wished to extend the sunset provision for the collection of City utility taxes to December 31, 2015; and WHEREAS, the City Council and Mayor have reviewed the current General Fund status and operating budget and determined that it is in the best interest of the citizens of Tukwila to extend the current sunset provision to 2021; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. TMC Section 3.54.030 Amended. Ordinance Nos. 2298 §1 (part) and 2258 §3, as codified at Tukwila Municipal Code Section 3.54.030, are hereby amended as follows: 3.54.030 Tax Rate A. There is levied upon water, sewer and surface water utilities, taxes in the amount to be determined by the application of rates given against gross earnings as follows: 1. Upon the City water, sewer and surface water funds, a tax equal to 15% of the total gross revenue from such business from all customers in the City during the period for which the tax is due. Such tax shall be effective from December 31, 2008 through April 30, 2010. W: Word Processing \Ordinances \Utility tax sunset extension 11 -25 -14 :bjs Page 1 of 2 155 156 2. Upon the City water, sewer and surface water funds, a tax equal to 10% of the total gross revenue from such business from all customers in the City during the period for which the tax is due. Such tax shall be effective from May 1, 2010 through December 31, 2021. Section 2. 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 3. 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 4. 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 , 2014. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel Turpin, City Attorney W: Word Processing \Ordin :bjs Jim Haggerton, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: noes \Utility tax sunset extension 11-25-14 Page 2 of 2