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Record No: CB 119377    Version: 1 Council Bill No: CB 119377
Type: Council Bill (CB) Status: Voted out of Commitee
Current Controlling Legislative Body Select Budget Committee
On agenda: 11/19/2018
Ordinance No:
Title: AN ORDINANCE relating to the business license tax and other taxes; allowing a deduction for grants, contracts, and sub-awards received as compensation for, or to support, life sciences research and development; and amending Section 5.45.100 of the Seattle Municipal Code.
Sponsors: Sally Bagshaw
Supporting documents: 1. Summary and Fiscal Note
CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
title
AN ORDINANCE relating to the business license tax and other taxes; allowing a deduction for grants, contracts, and sub-awards received as compensation for, or to support, life sciences research and development; and amending Section 5.45.100 of the Seattle Municipal Code.
body
WHEREAS, Seattle's life sciences community, including nonprofit and private sector research entities, is conducting work that serves the greater public good and producing research products that are made available to the broader academic and scientific community; and
WHEREAS, Seattle's life sciences community receives government grants, contracts and sub-awards to support their research and development activities; and
WHEREAS, in June 2012 Ordinance 123877 established a deduction from the measure of tax for funding provided to non-profit and private sector entities and their sub-recipients as compensation for research and development, or to support research and development, in the life sciences by the United States, State of Washington, local or municipal government or any instrumentality thereof; and
WHEREAS, in June 2017, the deduction authorized in Ordinance 123877 expired; and
WHEREAS, prior to the deduction authorized in Ordinance 123877, the contractual form of government grants and awards had been and continues to evolve, placing an additional emphasis on specific deliverable products and potentially, in the absence of this deduction, subjects some of this funding to the City's gross receipts tax; and
WHEREAS, evaluation of the effect of the deduction on grant applications and awards indicates that federal funding for life sciences research in Seattle increased by over 40 percent, or almost $200 million, over the period the deduction had been in place through 2015; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:
Section 1. Section 5.45.100 of the Seattle Municipal Code, last amen...

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