HomeMy WebLinkAboutCOW 2024-10-14 Item 4A - Report - Quarterly Business & Occupation (B&O) Tax ReportCOUNCIL AGENDA SYNOPSIS
Initials
Meeting Date
Prepared by
Mayor's review
Council review
10/14/24
AJS
ITEM INFORMATION
ITEM No.
4.A.
STAFF SPONSOR: ADAM SCHIERENBECK
ORIGINAL AGENDA DATE: 10/14/24
AGENDA ITEM TITLE Quarterly B&O Tax Report
CATEGORY ® Discussion
Mtg Date 10/14/24
❑ Motion
Mtg Date
❑ Resolution
Mtg Date
❑ Ordinance
Mtg Date
❑ Bid Award
Mtg Date
❑ Public Hearing
Mtg Date
❑ Other
Mtg Date
SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ® Finance ❑ Fire ❑ P&R ❑ Police ❑ PIV
SPONSOR'S
SUMMARY
A quarterly report is being provided to the city council in accordance with TMC 3.27.170(B)
on public safety funding associated with the Business and Occupation Tax.
REVIEWED BY
❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev.
❑ LTAC
DATE:
❑ Arts Comm.
❑ Parks Comm. ❑ Planning Comm.
COMMITTEE CHAIR:
RECOMMENDATIONS:
SPONSOR/ADMIN. Finance Department
COMMI 11 EE
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED
AMOUNT BUDGETED
$
APPROPRIATION REQUIRED
$
Fund Source:
Comments:
MTG. DATE RECORD OF COUNCIL ACTION
10/14/24
MTG. DATE
ATTACHMENTS
10/14/24
Informational Memorandum dated 10/8/24
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City of Tukwila
Thomas McLeod, Mayor
INFORMATIONAL MEMORANDUM
TO: Committee of the Whole
FROM: Aaron BeMiller, Finance Director
BY: Adam Schierenbeck, Senior Fiscal Coordinator
CC: Mayor McLeod
DATE: October 8, 2024
SUBJECT: Quarterly B&O Tax Report
ISSUE
The Finance Department is hereby providing a quarterly report to the city council on public
safety funding associated with the Business and Occupation (B&O) Tax.
BACKGROUND
Tukwila Municipal Code (TMC) 3.27.170(B) requires the Finance Director to provide a quarterly
report to City Council on public safety funding associated with the B&O tax levied under Chapter
3.26 TMC. The B&O tax was implemented beginning January 1, 2024, to fund public safety
positions with the Police Department, with revenues being allocated to the general fund.
B&O tax revenues were initially estimated at $3 million annually. This was revised to $2.434
million based on new information available (i.e. actual tax return filings compared to estimates).
$2 million is estimated to be received from quarterly filers and $434,000 is estimated to be
received from annual filers, with the first annual returns due by April 30, 2025.
DISCUSSION
As of October 8, 2024, total B&O tax revenues collected for the Quarter 1 and Quarter 2, 2024
reporting periods are $906,151. This amount was paid by 521 businesses in aggregate.
A total of 577 businesses were assigned to a quarterly filing frequency for the same periods.
The compliance rate for Quarter 1, 2024 is 85 percent. For this first quarter, the number of filed
returns has increased by 23 percent since June 12, 2024, and revenues have increased by 21
percent over the same period. The compliance rate for Quarter 2, 2024 is 81 percent.
Tax Division staff continue compliance efforts toward collecting unfiled returns, verifying the
accuracy of returns filed, and identifying unlicensed/unregistered businesses.
FINANCIAL IMPACT
n/a
RECOMMENDATION
n/a
ATTACHMENTS
n/a
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