HomeMy WebLinkAboutORD 5771 CITY OF RENTON, WASHINGTON
ORDINANCE NO. 5771
AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING
SECTIONS 5-25-2, 5-25-10, 5-25-11 AND 5-25-12 OF CHAPTER 25, BUSINESS AND
OCCUPATION TAX CODE, OF TITLE V (FINANCE AND BUSINESS REGULATIONS)
OF THE RENTON MUNICIPAL CODE, BY CORRECTING THE DEFINITION OF "NON-
PROFIT ORGANIZATION" AND CLARIFYING THE REGULATIONS RELATED TO
DEDUCTIONS AND CREDITS.
WHEREAS, state law authorizes municipalities to impose a business and occupation tax
on business activities within the City; and
WHEREAS,the Council adopted a Business and Occupation Tax Code in compliance with
RCW Chapter 35.102 and the model ordinance to take effect January 1, 2016; and
WHEREAS,the Council deems certain technical clarifications to sections 5-25-2, 5-25-10,
5-25-11, and 5-25-12 advisable for the consistent administration of the Business and
Occupation Tax Code;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DOES
ORDAIN AS FOLLOWS:
SECTION I. Subsection 5-25-2.S, "Non-profit Organization", of Chapter 25, Business
and Occupation Tax Code, of Title V (Finance and Business Regulations) of the Renton Municipal
Code, is hereby amended as follows:
S. "Non-profit organization" means a corporation or organization in which
no part of the income can be distributed to its members, directors, or officers
and that holds a current tax exempt status as provided under Internal Revenue
Code Sec. 501(c){3-, or is specifically exempted from the requirement to apply
for tax exempt status under Internal Revenue Code Sec. 501(c){ . Where the
1
ORDINANCE NO. 5771
term "non-profit organization" is used, it is meant to include a non-profit
corporation.
SECTION II. Subsections 5-25-10.AB, Health Maintenance Organization, Health Care
Service Contractor, Certified Health Plan, and 5-25-10.AC, Certain Commercial Airplane Parts, of
Chapter 25, Business and Occupation Tax Code, of Title V (Finance and Business Regulations) of
the Renton Municipal Code, are hereby relettered as follows:
ABB. Health Maintenance Organization, Health Care Service Contractor,
Certified Health Plan: This chapter does not apply to any health maintenance
organization, health care service contractor, or certified health plan with respect
to premiums or prepayments that are taxable under RCW 48.14.0201.
ACC. Certain Commercial Airplane Parts: This chapter does not apply to the
sale of certain parts to a manufacturer of a commercial airplane that are not
taxable under RCW 82.04.627(1). "Commercial airplane" has the same meaning
given in RCW 82.32.550.
SECTION III. Subsection 5-25-11.B, Fees, Dues, Charges, of Chapter 25, Business and
Occupation Tax Code, of Title V (Finance and Business Regulations) of the Renton Municipal
Code, is hereby amended as follows:
B. Bona-Fide Initiation Fees, Dues, and Certain Charges Received by Non-
Profit Organizations: In computing tax, a non-profit organization there may be
deducted from the measure of tax amounts derived from bona-fide:
1. Initiation fees;
2. Dues;
2
ORDINANCE NO. 5771
3. Contributions;
4. Donations;
5. Tuition fees or charges made for operation of non-profit
kindergartens;
6. Charges made by a non-profit trade or professional organization for
attending or occupying space at a trade show, convention, or educational
seminar sponsored by the non-profit trade or professional organization, which
trade show, convention, or educational seminar is not open to the general
public; and
K. Endowment funds.
Except as specified in subsection A above, Tthis subsection shall not be
construed to exempt any non-profit organization, person, association, or society
from tax liability upon selling tangible personal property or upon providing
facilities or services for which a special charge is made to members or others. If
dues are in exchange for any significant amount of goods or services rendered by
the recipient to members without any additional charge to the member, or if the
dues are graduated upon the amount of goods or services rendered, the value of
such goods or services shall not be considered as a deduction under this
subsection.
3
ORDINANCE NO, 5771
SECTION IV. Subsection 5-25-12.E, of section 5-25-12, New Business Tax Credit, of
Chapter 25, Business and Occupation Tax Code, of Title V (Finance and Business Regulations) of
the Renton Municipal Code, is hereby amended as follows:
E. This credit is not considered a payment of taxes for purposes of seeking a
refund of overpayment of tax pursuant to the provisions of 5 25 14 contained in
RMC Chapter 5-26, Tax Administrative Code, or any other purpose. As such,
unused credit amounts will not be refunded, carried over from reporting
period(s) to reporting period(s), and will not accrue interest.
SECTION V. This ordinance shall be effective on January 1, 2016.
PASSED BY THE CITY COUNCIL this 5th day of October , 2015.
4 Ai
Jason A Seth, Ci Cler
i
APPROVED BY THE MAYOR this 5th day of October , 2015.
Denis Law, Mayor
Approved as to form: POF REWPO•�i%�
2Gt
CjrtowkiN.414A,...ee?Wa.-vk"...,
* SEAL *4)
Lawrence J. Warren, City Attorney °7C 8
Date of Publication: 10/9/2015 (Summary) 'y/� 7EDs ``�������
��!!!!!!//,IIIpIIIINIIIII\\h
ORD:1880:9/10/15:scr
4