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Home My WebLink AboutORD 5735 CITY OF RENTON, WASHINGTON ORDINANCE NO. 5735 AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SECTION 5-5-3 OF CHAPTER 5, BUSINESS LICENSES, OF TITLE V (FINANCE AND BUSINESS REGULATIONS) OF THE RENTON MUNICIPAL CODE, BY CLARIFYING THE METHODS OF CALCULATION OF BUSINESS LICENSE FEES AND RESTATING THE SECTION ENTITLED "EXEMPTION". THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES ORDAIN AS FOLLOWS: SECTION I. Subsection 5-5-3.C, License Fee, of Chapter 5, Business Licenses, of Title V (Finance and Business Regulations) of the Renton Municipal Code, is hereby amended as follows: C. License Fee: The general business license fee shall consist of two (2) parts a fixed registration fee and a variable per employee fee, which shall be determined by the number of eeyees worker-hours in the City of Renton during the reporting period. as follows- 1. New License Applieatiee Registration Feeo: The n^�•r.cw license Business License Registration fee Shall h ' '^+ d by .-+;.nati^^+"^ RUFRbeF Of 148LIFSW twenty (1,920) 9F-lesrrt$taIhewswerRed-Peryea. th- '.^^^s^ fee of one hundred ten dollars ($110.00) shall ably be due and payable when filing a completed registration form as prescribed by the Administrator. WeFI(ed emeeeding-eee-the-usa d- " d- d + (1,920) n the -ru—r.:,=r�r,ii,=rcr;-ec,�c^-�;c�-T --pci�c a�, crrc 1 ORDINANCE NO. 5735 of employee he-UrS in theupEeming yeaF, the fee may be based on the PFie� ^^F'S hGUFs. The Registration Fee may be adiusted from time to time, as published in the city's current Fee Schedule brochure. 2. Renewal Per Employee Fees: The annual Effective January 1, 2015, in addition to the Registration Fee described in subsection C.1 above, a per employee license Fenewfal fee shall be calculated by multiplying the actual number of hours worked during the reporting period. FeF one +heusand nine hUndFed twenty (1,920) OF less tetal—;E)UFS WE)FRed pedearah I+Eense—fee e—wed ten ^' ($110.00) tetal h„ ,FS W9FI(ed exeeedingeee-thousandnine hUAdFed—twenty (,ter—r��;eF YeaF, the i0eense fee shall be the tetal ef a feFty five dellaF ($45.00) base lieense fee plus a peF heWF fee ealeulate d by multiplying tetal hOUFS .. eFl(e l by $0.03452 per hour. Businesses vVith fe&.ver than 1500 weFI(eF hOUFS peF yeaF shall be exeffipt fFE)Fn n^.,;n^the ^ nl^.,^^ f^^ d.,qr.ih^d .n +h,< <„ham^,.+; Businesses with fewer than one thousand two hundred (1,200) worker-hours in a year or three hundred (300) hours in a quarter shall be exempt from paving the per employee fee described in this subsection. The reporting period for new businesses shall be quarterly on or before the quarterly reporting due dates. 3. RenumbeFed by 04 567T The per hour rate shall be administratively adjusted every other year by the percentage rise or fall of the Seattle-Tacoma- 2 ORDINANCE NO. 5735 Bremerton Consumer Price Index, All Items, Urban Wage Earners and Clerical Workers (also known as CPI-W) ending August 31, for the same two (2) year period and published in the City's current Fee Schedule brochure. 4.t any time dHFiHg the - that 7+ appeaFS that the .ti.b .+f c,-rrp i vyccs-ncrrbeen ana er--rep^vrzec, a n additional lieense fee shall Additional 1*eense fees aFe ealeulated using the methed shown in subseetien G1 ef this Ser--tien and based on the net diffeFenee between estimated fees paid at additional 1*eense fee shall be paid te the City at the time ef annual Fene C Id at any time, it appeaFS that the n mI.,eF of n nl.,.,ees fGF the eaF h h d Ft .d h twenty l2not 1 ntrs-v ccrry i�c+c i 1 Cp vrcccTu� j�er Ge n�-�zv�OTPr rA A re, th a reshall be ? penalty applied te any fee ewed, equal te twenty peFeent 0 annum ef the additienal i plus any aeceunting, legal OF adMiRiStFative o. .d by the Cit in .d.,teff,inin,. the , n.d..._.npeFtingi the amount of the d ting nr in „fleeting+he tax and any penalty. 6---Each business license holder may be required, by the AdffiiRiStFative rices Administrator OF his�heF designee, to file with the City of Renton, copies of its quarterly reports to the State Department of Labor and Industries reporting employee hours worked. The businesses that did not file the report may be required to file an affidavit with the City reporting hours worked or the equivalent number of employees. 3 ORDINANCE N0. 5735 -74. Due Dates: Annual business 1iEense registration and per employee fees are due by the last day of the month of the I 3F expiFati9A of the c-e r r e R t lk-ense. QuwteFly i0eense fees aFe due by the last day of January for businesses with anniversary dates which fall within the forth calendar quarter of the year, April for businesses with anniversary dates which fall within the first calendar quarter of the year, July for businesses with anniversary dates which fall within the second calendar quarter of the year, and October for businesses with anniversary dates which fall within the third calendar quarter of the year. For those businesses required to report quarterly, in additional to the annual registration fee due as described above, the per employee fees are due by the last day of January,April,July, and October. 95. Reporting Periods: Per Employee 4business license fees are calculated for the reporting period. The ^ Rstr-atiaeSeFV;ees Administrator may set-shall have the discretion to designate a business' reporting periods as annually or quarterly based on various factors, among others, the number of employees and/or seasonal nature of the business paymeprse#�ed �'�� and due d-a+eS fR-. - keen-se fees en an exceptional besmi- S. a. The Rreporting period for those required to file annuals mess eenses shall be the four (4) complete calendar quarters preceding the due date. b. The reporting period for those required to file quarterly lieeFses shall be the calendar quarter preceding each quarterly due date. 4 ORDINANCE NO. 5735 36. Expiration: Unless otherwise established by the Administrator, an annual business license registration is valid for a period of one (1) year and shall expire on the same date as the due date as described in subsection C.4 above. ee the last da of the Fnenth ..f theanniveFsaFy date .-f the initial business licorice lieense with an appFeved quaFtedy FePOFting plan shall expire en the la-st day of .;aRUaF •, Affil, july and OetebeF if the—gaFteFly FePGFt and payments—a Few Feceived by these dates. 197. Location of Business and Employees: a. Presumption: For purposes of this section, any business operating within the City limits of the City of Renton shall be deemed to have all of its employees working within the City limits of the City of Renton. b. Working Outside City: For any employees whose nominal place of business is within the City limits of the City of Renton, all hours will be presumed to be worked within the City and subject to this fee. Any employee regularly reporting to work within the City limits shall have all of that employee's time subject to this fee, even if portions of the employee's time are spent outside the City of Renton (for example, a realtor or outside salesperson). F,&F When an employee normally employed within the City of Renton who, for extended periods of time, reports to work outside the City of Renton, for example, a contractor's employees reporting directly to job sites, then the employer may by affidavit report the number of hours actually worked within the City or the 5 ORDINANCE NO. 5735 percentage of time within the City based upon one thousand nine hundred twenty (1,920) hours annually and pay the annual license fee based upon those figures. C. Short Term or Temporary License: A temporary ninety (90) calendar day license may be purchased for fifty dollars ($50.00) for each full-time equivalent employee ("FTED or for each four hundred and eighty (480) worker- hours during the ninety (90) calendar day period, or as prescribed in the City's Fee Schedule. The expiration date of the license shall be ninety (90) calendar days from date of issuance. The temporary business license may only be purchased by businesses with fifty (50) or fewer FTE. The license may be renewed at the applicable FTE rate for successive ninety (90) calendar day periods not to exceed two hundred seventy (270) consecutive days. Renewal forms will not be sent to short term business licensees. Renewals must be at the request of licensee. All late fees and penalties apply. 348. Any payment not made within one (1) month following the due date shall be cause for the automatic revocation of the business license. 449. The Administrator shall have the authority to inspect business premises, and review or audit business records with reasonable prior notice. 10. Non-Profit Exemption: A bona fide non-profit organization organized under Section 501(c)(3) of the Internal Revenue Code whose income is Primarily from compensation from public entities for health or social welfare services, grants, and/or donations, shall register and file employment information 6 ORDINANCE NO. 5735 at least annually but shall be exempt from paying the registration and the per employee fee. Primarily shall mean more than fifty percent (50%). SECTION II. This ordinance shall be effective upon its passage, approval, and thirty (30) calendar days after publication. PASSED BY THE CITY COUNCIL this 3rd day of November , 2014. 1 JasonSeth, Acting City Clerk APPROVED BY THE MAYOR this 3rd day of Novem er , 2014. 114 Denis Law, Mayor Approved as to form: %k L Lawrence J. Warren, City Attorney SEA Date of Publication: 11/7/2014 (summary) ORD:1838:10/22/14:scr 7