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Record No: CB 119682    Version: 1 Council Bill No: CB 119682
Type: Ordinance (Ord) Status: Passed
Current Controlling Legislative Body City Clerk
On agenda: 11/25/2019
Ordinance No: Ord 125996
Title: AN ORDINANCE relating to the business license tax; repealing business license standards for periods prior to 2008; amending apportionment provisions to reflect amendments to the model business license tax ordinance and other state amendments; amending Sections 5.45.081, 5.45.082, and 5.45.090 of the Seattle Municipal Code; and repealing Section 5.45.080 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; repealing business license standards for periods prior to 2008; amending apportionment provisions to reflect amendments to the model business license tax ordinance and other state amendments; amending Sections 5.45.081, 5.45.082, and 5.45.090 of the Seattle Municipal Code; and repealing Section 5.45.080 of the Seattle Municipal Code.
body
WHEREAS, during the 2019 regular session, the Washington State Legislature enacted SHB 1403, now codified in RCW 35.102.130, that modifies the apportionment formula for local business and occupation tax by: (1) simplifying the service income factor by adopting a market-based sourcing hierarchy; (2) providing for income that is attributable to a jurisdiction where the taxpayer would not be subject to tax to be excluded from the denominator of the income factor; and (3) establishing guidelines for the application of an alternative apportionment method; and
WHEREAS, as required by RCW 35.102.040, a committee of city representatives has worked with the Association of Washington Cities to amend the model ordinance that allocates and apportions gross income and incorporate the legislative changes of SHB 1403, now reflected in RCW 35.102.130, a mandatory provision of the model ordinance; and
WHEREAS, under 35.102.040, cities that impose a business and occupation tax must adopt the changes to the mandatory provisions of the model ordinance by January 1, 2020;
WHEREAS, the City intends to repeal Seattle Municipal Code (SMC) 5.45.080, which assigned and allocated income for tax periods prior to January 1, 2008 and the adoption of the original model ordinance; and to make technical corrections in SMC Sections 5.45.090, SMC 5.45.081 and SMC 5.45.082; and
WHEREAS, the City intends to adopt the changes to the model ordinance as required by RCW 35.102.040 to simplify the administration of municipal business an...

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