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Record No: CB 119932    Version: 1 Council Bill No: CB 119932
Type: Ordinance (Ord) Status: Passed
Current Controlling Legislative Body City Clerk
On agenda: 11/23/2020
Ordinance No: Ord 126231
Title: AN ORDINANCE relating to taxation; amending the transportation network company tax threshold for number of trips under Section 5.39.050 of the Seattle Municipal Code.
Sponsors: Teresa Mosqueda
Supporting documents: 1. Summary and Fiscal Note, 2. Signed Ordinance 126231, 3. Affidavit of Publication
CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
title
AN ORDINANCE relating to taxation; amending the transportation network company tax threshold for number of trips under Section 5.39.050 of the Seattle Municipal Code.
body
WHEREAS, on November 29, 2019, the Seattle City Council passed Ordinance 125971 to add a new Chapter 5.39 to the Seattle Municipal Code to impose a tax on transportation network companies (TNCs) beginning July 1, 2020; and
WHEREAS, under Section 5.39.050 as it currently reads, no tax shall be due from a TNC that reports fewer than 1,000,000 trips that originate in Seattle in the prior calendar quarter; and
WHEREAS, on March 11, 2020, the World Health Organization announced that the novel coronavirus (COVID-19) is officially a global pandemic; and
WHEREAS, on February 29, 2020, the Washington Governor issued Proclamation 20-05, proclaiming a state of emergency for all counties throughout the state of Washington in response to new cases of COVID-19; and
WHEREAS, on March 3, 2020, Mayor Durkan issued a Proclamation of Civil Emergency declaring a civil emergency within the City of Seattle based on the confirmed spread of COVID-19 in King County and the resulting deaths and illness; and
WHEREAS, the COVID-19 crisis and the state of emergency continue and are causing severe harm to the economy and are significantly decreasing the number of TNC trips that originate in the City of Seattle; and
WHEREAS, as a result of the decrease in trips, it is likely that an unexpected number of TNCs will fall below the threshold in section 5.39.050 and not owe any tax, thereby causing a decrease in expected TNC tax revenues; and
WHEREAS, a reduction of TNC tax revenues will prevent the City from providing the programs and services described in Ordinance 125971 and other programs needed to help counteract the economic and health impacts caused by the COVID-19 emergency; and
WHEREAS, to reduce the loss of TNC tax revenues, the Seattl...

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