The URL can be used to link to this page

Home My WebLink AboutORD 6071CITYOFRENTON,WASHINGTONORDINANCENO.6071ANORDINANCEOFTHECITYOFRENTON,WASHINGTON,AMENDINGSUBSECTION5-25-4.AOFTHERENTONMUNICIPALCODEBYADJUSTINGTHEBUSINESSANDOCCUPATIONTAXRATE,AUTHORIZINGCORRECTIONS,PROVIDINGFORAREFERENDUMPROCEDURE,PROVIDINGFORSEVERABILITY,ANDESTABLISHINGANEFFECTIVEDATE.THECITYCOUNCILOFTHECITYOFRENTON,WASHINGTON,DOORDAINASFOLLOWS:SECTIONI.AllportionsoftheRentonMunicipalCodeinthisordinancenotshowninstrikethroughandunderlineeditsremainineffectandunchanged.SECTIONII.Subsection5-25-4.AoftheRentonMunicipalCodeisamendedasshownbelow.Allotherprovisionsin5-25-4shallremainineffectandunchanged.5-25-4IMPOSITIONOFTHETAX—TAXORFEELEVIED;BUSINESSLICENSEFEEEXEMPTION:A.ExceptasprovidedinRMC5-25-4.B(TaxThresholds)and5-25-4.C(Amount5inExccofCapAnnualTaxCapandRateReduction),effectiveJanuary1,2016at12:01a.m.thereislevieduponandshallbecollectedfromeverypersonataxfortheactorprivilegeofengaginginbusinessactivitiesintheCityofRenton,whethertheperson’sofficeorplaceofbusinessbewithinorwithouttheCity.Thetaxshallbeinamountstobedeterminedbyapplicationofratesagainstgrossproceedsofsale,grossincomeofbusiness,orvalueofproducts,includingbyproducts,asthecasemaybe,asfollows:1.UponeverypersonengagingwithintheCityinbusinessasanextractor;astosuchpersons,theamountofthetaxwithrespecttosuchbusinessshallbe1 ORDINANCENO.6071equaltothevalueoftheproducts,includingby-products,extractedwithintheCityforsaleorforcommercialorindustrialuse,multipliedbytherateof.121ofonepercent(.00121).085ofonepercent(.00085).Themeasureofthetaxisthevalueoftheproducts,includingby-products,soextracted,regardlessoftheplaceofsaleorthefactthatdeliveriesmaybemadetopointsoutsidetheCity.2.UponeverypersonengagingwithintheCityinbusinessasamanufacturer;astosuchpersons,theamountofthetaxwithrespecttosuchbusinessshallbeequaltothevalueoftheproducts,includingby-products,manufacturedwithintheCity,multipliedbytherateof.121ofonepercent(.00121).085ofonepercent(.00085).Themeasureofthetaxisthevalueoftheproducts,includingby-products,somanufactured,regardlessoftheplaceofsaleorthefactthatdeliveriesmaybemadetopointsoutsidetheCity.3.UponeverypersonengagingwithintheCityinthebusinessofmakingsalesatwholesale;astosuchpersons,theamountoftaxwithrespecttosuchbusinessshallbeequaltothegrossproceedsofsuchsalesofthebusinesswithoutregardtotheplaceofdeliveryofarticles,commoditiesormerchandisesold,multipliedbytherateof.121ofonepercent(.00121).085ofonepercent(.00085).4.UponeverypersonengagingwithintheCityinthebusinessofmakingsalesatretail;astosuchpersons,theamountoftaxwithrespecttosuchbusinessshallbeequaltothegrossproceedsofsuchsalesofthebusiness,withoutregardtotheplaceofdeliveryofarticles,commoditiesormerchandisesold,multipliedbytherateof.070ofonepercent(.00070).050ofonepercent(.00050).2 ORDINANCENO.60715.UponeverypersonengagingwithintheCityinthebusinessof(a)printing,(b)bothprintingandpublishingnewspapers,magazines,periodicals,books,music,andotherprinteditems,(c)publishingnewspapers,magazinesandperiodicals,(d)extractingforhire,andfe)processingforhire;astosuchpersons,theamountoftaxonsuchbusinessshallbeequaltothegrossincomeofthebusinessmultipliedbytherateof.121ofonepercent(.00121).085ofonepercent(.00085).6.UponeverypersonengagingwithintheCityinthebusinessofsalesofretailservices;astosuchpersons,theamountoftaxwithrespecttosuchbusinessshallbeequaltothegrossproceedsofsalesmultipliedbytherateof.121ofonepercent(.00121).085ofoncpercent(.00085).7.UponeveryotherpersonengagingwithintheCityinanybusinessactivityotherthanorinadditiontothoseenumeratedintheabovesubsections;astosuchpersons,theamountoftaxonaccountofsuchactivitiesshallbeequaltothegrossincomeofthebusinessmultipliedbytherateof.121ofonepercent(.00121).085ofonepercent(.00085).Thissubsectionincludes,amongothers,andwithoutlimitationwhetherornottitletomaterialusedintheperformanceofsuchbusinesspassestoanotherbyaccession,mergerorotherthanbyoutrightsale,personsengagedinthebusinessofdeveloping,orproducingcustomsoftwareorofcustomizingcannedsoftware,producingroyaltiesorcommissions,andpersonsengagedinthebusinessofrenderinganytypeofservicewhichdoesnotconstituteasaleatretail,asaleatwholesale,oraretailservice.3 ORDINANCENO.6071B.TaxThresholds:Thischaptershallnotapplytoanypersonengaginginanyone(1)ormorebusinessactivitieswhichareotherwisetaxablepursuanttoRMC5-25-4.A,whosevalueofproducts,includingby-products,grossproceedsofsales,andgrossincomeofthebusiness,lessanydeductions,asthecasemaybe,fromallactivitiesconductedduringanycalendaryear,islessthanorequaltothethresholdamountoffivehundredthousanddollars($500,000).C.AnnualTaxCapandRateReduction:Forthecalendaryears2022-2024,thetaximposedunderthischapterforasingletaxpayershallnotexceedthefollowingmaximumtaxamountsforeachrespectiveyearaccordingtothefollowingschedule:2022—sevenmilliondollars($7,000,000);2023—ninemilliondollars($9,000,000);2024—elevenmilliondollars($11,000,000).Startingin2025andforeachsubsequentyearthereafter,onceataxpayerhaspaidtwelvemilliondollars($12,000,000)intaxesimposedunderthischapterinthegivenyear,theratesspecifiedinRMC5-25-4.Ashallbediscountedbyseventy-fivepercent(75%)forremaininggrossproceedsofsale,grossincomeofbusiness,orvalueofproducts,includingby-products,asthecasemaybe.SECTIONIII.UponapprovaloftheCityAttorney,theCityClerkisauthorizedtodirectthecodifiertomakenecessarycorrectionstothisordinance,includingthecorrectionsofscrivenersorclericalerrors;referencestootherlocal,state,orfederallaws,codes,rules,orregulations;orordinancenumberingandsection/subsectionnumberingandreferences.SECTIONIV.PursuanttoRCW35.21.706,arequesttocirculateareferendumpetitiontorepealthisordinancemaybefiledwiththeCityClerkwithinseven(7)calendardaysofpassage4 ORDINANCENO.6071ofthisordinance.TherequesttocirculateareferendumpetitionshallincludetheproposedpetitioninaformthatmeetstherequirementsofRCW35.21.005andleaveaspaceforinsertionofaballottitle.Withinten(10)daysofsuchfiling,theCityClerkshallconferwiththepetitionerconcerningformandstyleofthepetition,issuethepetitionanidentificationnumber,andsecureanaccurate,concise,andpositiveballottitlefromthedesignatedlocalofficial.Thepetitionershallhavethirty(30)calendardaysinwhichtosecurethesignaturesofnotlessthanfifteenpercent(15%)oftheregisteredvotersoftheCity,asofthelastmunicipalgeneralelection,uponpetitionformsthatcontaintheballottitleandthefulltextofthemeasuretobereferred.TheCityClerkshallverifythesufficiencyofthesignaturesonthepetitionand,ifsufficientvalidsignaturesareproperlysubmitted,shallcertifythereferendummeasuretothenextelectionballotwithintheCityorataspecialelectionballotasprovidedpursuanttoRCW35.17.260(2).Exceptasotherwiseprovided,allprovisionssetforthinRCW35.17.250throughRCW35.17.360thatareapplicabletothecharacterandformforaninitiativepetition,totheexaminationandcertification,andtothesubmissiontothevoteofthepeopleoftheordinanceproposed,shallapplytothereferendumpetitionauthorizedandtothisordinance.SECTIONV.Ifanysection,subsection,sentence,clause,phrase,orwordofthisordinanceshouldbeheldtobeinvalidorunconstitutionalbyacourtorcompetentjurisdiction,suchinvalidityorunconstitutionalitythereofshallnotaffecttheconstitutionalityofanyothersection,subsection,sentence,clause,phrase,orwordofthisordinance.SECTIONVI.ThisordinanceshallbeinfullforceandeffectonJanuary1,2023.Nolaterthanfive(5)dayspriortosucheffectivedate,asummaryofthisordinanceconsistingofitstitleshallbepublishedintheCity’sofficialnewspaper.5 ORDINANCENO.6071PASSEDBYTHECITYCOUNCILthis27thdayofJune,2022.JasfA.Seth,9yClerkAPPROVEDBYTHEMAYORthis27thdayofJune,2022.Approvedastoform:ShaneMoloney,CityAttorneyDateofPublication:6/30/2022SummaryORD-FINANCE:2222:6/21/226