HomeMy WebLinkAboutCOW 2025-12-08 Item 4B - Report - Quarterly Business & Occupancy (B&O) Tax ReportCOUNCIL AGENDA SYNOPSIS
Initialr
Meeting Date
Prepared by
Mayor's review
Council review
12/8/25
AJS
ITEM INFORMATION
IrEMNo.
4.B.
STAFF SPONSOR: ADAM SCHIERENBECK
ORIGINAL AGENDA DATE:
AGENDA ITEM TITLE Quarterly B&O Tax Report
CATEGORY Discussion
Mtg Date 12/8/25
❑ Motion
Mtg Date
❑ Resolution
Mtg Date
E Ordinance
Mtg Date
E Bid Award
Mtg Date
n Public Hearing
Mtg Date
❑ Other
Mtg Date
SPONSOR ❑ Council ❑ Mayor ❑ .Admin Svcs ❑ DCD ®.Finance ❑ Fire ❑ P&R ❑ Po/ice ❑ PW
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
❑ LTAC ❑ Arts Comm. ❑ Parks Comm.
DATE: COMMITTEE CHAIR:
Planning & Community Dev.
Planning Comm.
RECOMMENDATIONS:
SPONSOR/ADMIN. Finance Department
COMMITTEE
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED
AMOUNT BUDGETED
APPROPRIATION REQUIRED
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
12/08/25
MTG. DATE
ATTACHMENTS
12/08/25
Informational Memorandum dated 12/1/25
35
City of Tukwila
Thomas McLeod, Mayor
INFORMATIONAL MEMORANDUM
TO: Committee of the Whole
FROM: Aaron BeMiller, Finance Director
BY: Adam Schierenbeck, Acting Fiscal Manager
CC: Thomas McLeod, Mayor
DATE: December 1, 2025
SUBJECT: Quarterly Business and Occupation (B&O) Tax Report
ISSUE
The Finance Department is hereby providing the quarterly report to the city council on 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 revenues being allocated to the general fund.
B&O tax revenues have been budgeted at $2.4 million annually for both 2025 and 2026.
DISCUSSION
The total B&O tax revenue for fiscal year (FY) 2025 as of December 1, 2025 is $2,425,086.
Based on amounts reported year-to-date, it is reasonable to estimate that B&O tax revenues for
FY 2025 will reach $3 million.
The forecasted amount for FY 2025 includes one-time back tax payments that will not contribute
to ongoing revenue in FY 2026. Given the available data, it is reasonable to project B&O tax
revenue for FY 2026 at $2,750,000.
Tax Division staff maintain ongoing efforts toward collecting unfiled returns, verifying amounts
reported on returns filed, and issuing assessments and refunds where differences are owed.
FINANCIAL IMPACT
n/a
RECOMMENDATION
n/a
ATTACHMENTS
n/a
36