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Home My WebLink AboutCOW 2020-04-13 Item 3B - COVID-19 - Delay of Collection of Certain Taxes: Gambling, Admissions and Entertainment and Commercial ParkingCOUNCIL AGENDA SYNOPSIS ---------------------------------- Initials Meefinga Date Prepared by Mayor's review Council review 04/13/20 BJM 04/20/20 BJM ITEM INFORMATION ITEMNO. STAFF SPONSOR: V. CARLSEN AND B. MILES ORIGINAL AGENDA DATE: 04/13/20 AGENDA ITEM TITLE COVID-19, Community Assistance: Delay of Collection of Certain Taxes CATEGORY ® Discussion Mtg Date 4113120 ® Motion Mtg Date 04120120 ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Otber Mtg Date SPONSOR ❑Council ®Mayor ❑HR ❑DCD ®Finance ❑Fire ❑TS ❑P&R ❑Police ❑Pik ❑Court SPONSOR's In response to the COVID-19 pandemic, the City's Finance adopted interim polices to SUMNLARY provide more time to file gambling, admission, and parking taxes to the City. Staff is requesting that the City Council affirm Administration's emergency policy. The State of Washington, City of Seattle, and King County have enacted similar policies. REVIE','ED BY ❑ Trans&Infrastructure ❑ CommunitySvs/Safety ❑ Finance Comm. ❑ Planning/Economic Dev. ❑ LTAC ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. DATE: N/A COMMITTEE CHAIR: N/A RECOMMENDATIONS: SPONSOR/ADMIN. Mayor's Office and Finance COMMITTEE No Committee; Straight to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $N/A $N/A $N/A Fund Source: GENERAL FUNDS Comments: No tax payments are being waived. Late payments would not be charged. MTG. DATE RECORD OF COUNCIL ACTION 04/13/20 Forward to next Regular meeting 4/20/20 MTG. DATE ATTACHMENTS 04/13/20 Informational Memorandum dated 04/07/2020 Emergency policy regarding gambling tax Emergency policy regarding admission and entertainment tax Emergency policy regarding commercial and parking Tax 4/20/20 21 22 TO: FROM BY: CC: DATE: City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM Committee of the Whole Vicky Carlsen, Finance Director Brandon Miles, Business Relations Manager Mayor Ekberg April 7, 2020 SUBJECT: COVID-19 Community Assistance, Delay of Collection of Certain Taxes ISSUE Affirm interim emergency policy regarding the remittance and collection of the City's gambling, admission and entertainment, and commercial parking taxes. BACKGROUND On February 29, 2020 Governor Jay Inslee declared a state of emergency regarding the COVID-19 Pandemic, directing state agencies to use resources necessary to prepare for and respond to the outbreak. The Mayor issued a Proclamation declaring an emergency on March 9, 2020. The City Council affirmed the emergency declaration at its March 16, 2020 meeting. As result of the Pandemic, the City has closed all City buildings to the public and moved most City functions to a virtual city hall model. In addition, the Pandemic has resulted in the temporary closures of businesses throughout the City as well as furloughs, and layoffs throughout the nation. Most businesses in Tukwila are closed or are working remotely. As result of these impacts, the Finance Department has allowed certain taxes to be remitted late to the City. This is a reflection that some businesses may not have the ability to file timely due to disruptions in business operations. This is also in line with Washington State and King County, both of which are allowing certain taxes to be remitted late due to the Pandemic. The following outlines the temporary policies Finance has implemented regarding the remittance of gambling, admission and entertainment, and commercial parking taxes in the City: 1. Individuals and businesses are provided additional time to remit and report the gambling, admission and entertainment, and commercial parking taxes. Delay in collecting the taxes does not relieve a business from the burden of remitting the taxes when the reopen. Businesses and other entities will need to provide the City information in writing stating that they desire additional time to submit. 2. Late payments for non-payment after April 1, 2020 are waived through the state of emergency. 23 INFORMATIONAL MEMO Page 2 3. Businesses and individuals can establish payment plans by calling the City's Finance Department. DISCUSSION TMC 2.57.040 (3) requires the City Council to affirm any rules or regulations related to the protection of life, environment, and property that are affected by the emergency. Administration believes that these temporary policies changes are needed in order to respond the COVID-19 pandemic to help reduce impacts for businesses. FINANCIAL IMPACT This would result in delayed collection of these taxes and could affect the City's cash flow. It should be noted that in many cases the businesses collecting the tax are not operating thus there may be minimal, if any taxes, to report and remit to the City for the most impacted months. RECOMMENDATION Affirm the emergency policies provided by City Administration. Staff is requesting that this be placed on the April 20 regular council meeting for final action. ATTACHMENTS • Emergency policy regarding gambling tax • Emergency policy regarding admission and entertainment tax • Emergency policy regarding commercial and parking Tax 24 Z:\Council Agenda Items\Mayor's Office\COVID19\Assistance Program\Tax Extension\Taxes Memo, 2020.04.06, FINAL.doc City of Tukwila Gambling Tax Remittance Policy in Response to COVID-19 SUBJECT: Temporary Policy to Extend the Remittance and Collection of the Gambling Activities Tax set forth in TMC 3.08. PURPOSE: The purpose of this policy is to temporarily extend the remittance and collection of taxes set forth in TMC 3.08, Gambling Activities Tax (hereafter "Gambling Tax"). This Policy will take effect on April 1, 2020 and will expire on September 30, 2020 unless otherwise terminated or extended. SCOPE: This policy temporarily extends the remittance and collection of the first quarter of 2020 Gambling Tax forth in TMC 3.48. DEFINITIONS: 1. "Public Health Emergency" shall mean any such emergency declared by the Governor of the State of Washington pursuant to his or her powers under 38.08, 38.52 and 43.06 RCW, any such emergency declared by the King County Executive pursuant to RCW 38.52, or the Mayor of the City of Tukwila pursuant to RCW 38.52. 2. "Gambling Tax" and "Gambling Activities Tax" shall mean the tax set forth in TMC 3.08. POLICY: Under TMC 3.08.080 (A), requires remittance of the gambling tax to the City on a quarterly basis, with the tax for the first quarter (January through March) being due by April 30, 2020. As a result of the Public Health Emergency, the City of Tukwila shall extend the time for remittance of the first quarter tax. A person or entity shall submit an email or letter to the City requesting the additional time and stating the reason for the need. The first quarter gambling tax to the City shall be due no later than June 1, 2020. EFFECTIVE DATE: April 1, 2020 APPROVAL: Mayor Allan Ekberg Vicky Carlsen, Finance Director De'Sean Quinn, Council President Michael R. Kenyon (initials) Page 1 of 1 25 26 City of Tukwila Admission and Entertainment Tax Remittance Policy in Response to COVID-19 SUBJECT: Temporary Policy to Extend the Remittance and Collection of Admissions and Entertainment Tax set forth in TMC 3.20 PURPOSE: The purpose of this policy is to temporarily extend the remittance and collection of taxes set forth in TMC 3.20, Admissions and Entertainment Tax (hereafter "Admission Tax). This Policy will take effect on April 1, 2020 and will expire on September 30, 2020 unless otherwise terminated or extended. SCOPE: This policy temporarily extends the remittance and collection of the Admissions and Entertainment Tax set forth in TMC 3.20. DEFINITIONS: 1. "Public Health Emergency" shall mean any such emergency declared by the Governor of the State of Washington pursuant to his or her powers under 38.08, 38.52 and 43.06 RCW, any such emergency declared by the King County Executive pursuant to RCW 38.52, or the Mayor of the City of Tukwila pursuant to RCW 38.52. 2. "Admission Tax" and "Admissions and Entertainment Tax" shall mean the tax set forth in TMC 3.20. POLICY: UnderTMC 3.20.040 (C), a person or entity collecting the City's Admission and Entertainment tax must remit the tax to the City by the last day of the succeeding month when the tax was collected. For example, Admission and Entertainment tax collected in March would be due to the City no later than April 30. During a Public Health Emergency, the City of Tukwila shall extend the time for remittance to the City of the required Admissions and Entertainment Tax by two months from when the tax was collected. A person or entity shall submit an email or letter to the City requesting the additional time and stating the reason for the need. The temporary schedule shall be as follows: Month Admission and Entertainment Tax Collected Temporary Due Date for Remittance to the City March May 31 April June 30 May July 31 June August 31 July September 30 August October 31 September November 30 Page 1 of 2 27 EFFECTIVE DATE: April 1, 2020 APPROVAL: Mayor Allan Ekberg Vicky Carlsen, Finance Director De'Sean Quinn, Council President Michael R. Kenyon (initials) Page 2 of 2 W. City of Tukwila Commercial Parking Tax Remittance Policy in Response to COVID-19 SUBJECT: Temporary Policy to Extend the Remittance and Collection of Commercial Parking Tax set forth in TMC 3.48. PURPOSE: The purpose of this policy is to temporarily extend the remittance and collection of taxes set forth in TMC 3.48, Commercial Parking Tax (hereafter "Parking Tax"). This Policy will take effect on April 1, 2020 and will expire on September 30, 2020 unless otherwise terminated or extended. SCOPE: This policy temporarily extends the remittance and collection of the Commercial Parking Tax set forth in TMC 3.48. DEFINITIONS: 1. "Public Health Emergency" shall mean any such emergency declared by the Governor of the State of Washington pursuant to his or her powers under 38.08, 38.52 and 43.06 RCW, any such emergency declared by the King County Executive pursuant to RCW 38.52, or the Mayor of the City of Tukwila pursuant to RCW 38.52. 2. "Parking Tax" and "Commercial Parking Tax" shall mean the tax set forth in TMC 3.48. POLICY: Under TMC 3.48.060, operators of commercial parking businesses must remit the parking tax to the City by the last day of the succeeding month when the tax was collected. For example, parking tax collected in March would be due to the City no later than April 30. During a Public Health Emergency, the City of Tukwila shall extend the time for remittance to the City of the required Parking Tax by two months, from when the tax was collected. A person or entity shall submit an email or letter to the City requesting the additional time and stating the reason for the need. The temporary schedule shall be as follows: Month Parking Tax Collected Temporary Due Date for Remittance to the City March May 31 April June 30 May July 31 June August 31 July September 30 August October 31 September November 30 Page 1 of 2 29 EFFECTIVE DATE: April 1, 2020 APPROVAL: Mayor Allan Ekberg Vicky Carlsen, Finance Director De'Sean Quinn, Council President Michael R. Kenyon (initials) Page 2 of 2 30