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Home My WebLink AboutORD 6071CITY OF RENTON, WASHINGTON ORDINANCE N0. 6071 AN ORDINANCE OF THE CITY OF RENTON, WASHINGTON, AMENDING SUBSECTION 5-25-4.A OF THE RENTON MUNICIPAL CODE BY ADJUSTING THE BUSINESS AND OCCUPATION TAX RATE, AUTHORIZING CORRECTIONS, PROVIDING FOR A REFERENDUM PROCEDURE, PROVIDING FOR SEVERABILITY, AND ESTABLISHING AN EFFECTIVE DATE. THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION I. All portions of the Renton Municipal Code in this ordinance not shown in strikethrough and underline edits remain in effect and unchanged. SECTION II. Subsection 5-25-4.A of the Renton Municipal Code is amended as shown below. All other provisions in 5-25-4 shall remain in effect and unchanged. 5-25-4 IMPOSITION OF THE TAX — TAX OR FEE LEVIED; BUSINESS LICENSE FEE EXEMPTION: A. Except as provided in RMC 5-25-4.13 (Tax Thresholds) and 5-25-4.0 ( Annual Tax Cap and Rate Reduction), effective January 1, 2016 at 12:01 a.m. there is levied upon and shall be collected from every person a tax for the act or privilege of engaging in business activities in the City of Renton, whether the person's office or place of business be within or without the City. The tax shall be in amounts to be determined by application of rates against gross proceeds of sale, gross income of business, or value of products, including by- products, as the case may be, as follows: 1. Upon every person engaging within the City in business as an extractor; as to such persons, the amount of the tax with respect to such business shall be 1 ORDINANCE NO. 6071 equal to the value of the products, including by-products, extracted within the City for sale or for commercial or industrial use, multiplied by the rate of .121 of one percent (.00121) . The measure of the tax is the value of the products, including by-products, so extracted, regardless of the place of sale or the fact that deliveries may be made to points outside the City. 2. Upon every person engaging within the City in business as a manufacturer; as to such persons, the amount of the tax with respect to such business shall be equal to the value of the products, including by-products, manufactured within the City, multiplied by the rate of .121 of one percent 00121 .^Qr ^f --e PeFeen* 099451. The measure of the tax is the value of the products, including by-products, so manufactured, regardless of the place of sale or the fact that deliveries may be made to points outside the City. 3. Upon every person engaging within the City in the business of making sales at wholesale; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of .121 of one percent (.00121) . 4. Upon every person engaging within the City in the business of making sales at retail; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of such sales of the business, without regard to the place of delivery of articles, commodities or merchandise sold, multiplied by the rate of .070 of one percent (.00070) 44)15^ ^f ^^^ peFeeR* 99950' 2 ORDINANCE NO. 6071 5. Upon every person engaging within the City in the business of (a) printing, (b) both printing and publishing newspapers, magazines, periodicals, books, music, and other printed items, (c) publishing newspapers, magazines and periodicals, (d) extracting for hire, and (e) processing for hire; as to such persons, the amount of tax on such business shall be equal to the gross income of the business multiplied by the rate of .121 of one percent (.00121) .985 of ene peFeent 6. Upon every person engaging within the City in the business of sales of retail services; as to such persons, the amount of tax with respect to such business shall be equal to the gross proceeds of sales multiplied by the rate of .121 of one percent (.00121) . 7. Upon every other person engaging within the City in any business activity other than or in addition to those enumerated in the above subsections; as to such persons, the amount of tax on account of such activities shall be equal to the gross income of the business multiplied by the rate of .121 of one percent 00121 . This subsection includes, among others, and without limitation whether or not title to material used in the performance of such business passes to another by accession, merger or other than by outright sale, persons engaged in the business of developing, or producing custom software or of customizing canned software, producing royalties or commissions, and persons engaged in the business of rendering any type of service which does not constitute a sale at retail, a sale at wholesale, or a retail service. 7 J ORDINANCE NO. 6071 B. Tax Thresholds: This chapter shall not apply to any person engaging in any one (1) or more business activities which are otherwise taxable pursuant to RMC 5-25-4.A, whose value of products, including by-products, gross proceeds of sales, and gross income of the business, less any deductions, as the case may be, from all activities conducted during any calendar year, is less than or equal to the threshold amount of five hundred thousand dollars ($500,000). C. Annual Tax Cap and Rate Reduction: For the calendar years 2022-2024, the tax imposed under this chapter for a single taxpayer shall not exceed the following maximum tax amounts for each respective year .according to the following schedule: 2022 — seven million dollars ($7,000,000); 2023 — nine million dollars ($9,000,000); 2024—eleven million dollars ($11,000,000). Starting in 2025 and for each subsequent year thereafter, once a taxpayer has paid twelve million dollars ($12,000,000) in taxes imposed under this chapter in the given year, the rates specified in RMC 5-25-4.A shall be discounted by seventy-five percent (75%) for remaining gross proceeds of sale, gross income of business, or value of products, including by-products, as the case may be. SECTION Ill. Upon approval of the City Attorney, the City Clerk is authorized to direct the codifier to make necessary corrections to this ordinance, including the corrections of scriveners or clerical errors; references to other local, state, or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering and references. SECTION IV. Pursuant to RCW 35.21.706, a request to circulate a referendum petition to repeal this ordinance may be filed with the City Clerk within seven (7) calendar days of passage 4 ORDINANCE N0. 6071 of this ordinance. The request to circulate a referendum petition shall include the proposed petition in a form that meets the requirements of RCW 35.21.005 and leave a space for insertion of a ballot title. Within ten (10) days of such filing, the City Clerk shall confer with the petitioner concerning form and style of the petition, issue the petition an identification number, and secure an accurate, concise, and positive ballot title from the designated local official. The petitioner shall have thirty (30) calendar days in which to secure the signatures of not less than fifteen percent (15%) of the registered voters of the City, as of the last municipal general election, upon petition forms that contain the ballot title and the full text of the measure to be referred. The City Clerk shall verify the sufficiency of the signatures on the petition and, if sufficient valid signatures are properly submitted, shall certify the referendum measure to the next election ballot within the City or at a special election ballot as provided pursuant to RCW 35.17.260(2). Except as otherwise provided, all provisions set forth in RCW 35.17.250 through RCW 35.17.360 that are applicable to the character and form for an initiative petition, to the examination and certification, and to the submission to the vote of the people of the ordinance proposed, shall apply to the referendum petition authorized and to this ordinance. SECTION V. If any section, subsection, sentence, clause, phrase, or word of this ordinance should be held to be invalid or unconstitutional by a court or competent jurisdiction, such invalidity or unconstitutionality thereof shall not affect the constitutionality of any other section, subsection, sentence, clause, phrase, or word of this ordinance. SECTION VI. This ordinance shall be in full force and effect on January 1, 2023. No later than five (5) days prior to such effective date, a summary of this ordinance consisting of its title shall be published in the City's official newspaper. ORDINANCE NO. 6071 PASSED BY THE CITY COUNCIL this 27th day of June 2022. Jas A. Seth, y Clerk APPROVED BY THE MAYOR this 27th day of June 2022. Approved as to form: ��WMWZNO Shane Moloney, City Attorney Date of Publication: 6/30/2022 Summary ORD-FI NANCE:2222:6/21/22 6 Of REN SEAL COR�'��n��aa`��