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6038CITYOFRENTON,WASHINGTONORDINANCENO.6038ANORDINANCEOFTHECITYOFRENTON,WASHINGTON,AMENDINGSECTION5-25-4OFTHERENTONMUNICIPALCODETOUPDATEANDPHASEOUTTHEBUSINESSANDOCCUPATIONTAXANNUALCAPWITHFIXEDCAPSTHROUGH2024ANDREPLACINGTHECAPSTARTINGIN2025WITHARATEREDUCTIONFORTAXESPAIDBYANINDIVIDUALTAXPAYERABOVETWELVEMILLIONDOLLARSINAGIVENTAXYEAR;REPEALINGDEFINITIONSFORINFLATIONADJUSTMENTFROMRMC5-25-2.PAND5-26-3.D;PROVIDINGFORSEVERABILITY;ANDESTABLISHINGANEFFECTIVEDATE.THECITYCOUNCILOFTHECITYOFRENTON,WASHINGTON,DOORDAINASFOLLOWS:SECTIONI.AllportionsoftheRentonMunicipalCodeinthisordinancenotshowninstrikethroughandunderlineeditsremainineffectandunchanged.SECTIONII.Subsection5-25-2.PoftheRentonMunicipalCodeisrepealedinitsentiretyandmarked“Reserved,”asshownbelow.Allotherprovisionsin5-25-2remainineffectandunchanged.P.Reserved.“InflationAdjustment”shallbeanamountequaltotheamountanddirectionofchangedeterminedbytheSettleTacomaBremertonUrbanWageEarnersandClericalWorkersConsumerPriceIndex(CPIW)foreachtwelve(12)monthperiodendingonAugust31staspublishedbytheUnitedStatesDepartmentofLabor.Tocalculatethisadjustment,thecurrentratewillbemultipliedbyone(1)pIusorminus,asthecasemaybe,theannualchangeintheCPIW.SECTIONIII.Section5-25-4oftheRentonMunicipalCodeisamendedasfollows:5-25-4IMPOSITIONOFTHETAX—TAXORFEELEVIED;BUSINESSLICENSEFEEEXEMPTION:1 ORDINANCENO.6038A.ExceptasprovidedinRMC5-25-4.B(TaxThresholds)and5-25-4.C(AmountsinExcessofCap),effectiveJanuary1,2016at12:01a.m.thereislevieduponandshallbecollectedfromeverypersonataxfortheactorprivilegeofengaginginbusinessactivitiesintheCityofRenton,whethertheperson’sofficeorplaceofbusinessbewithinorwithouttheCity.Thetaxshallbeinamountstobedeterminedbyapplicationofratesagainstgrossproceedsofsale,grossincomeofbusiness,orvalueofproducts,includingby-products,asthecasemaybe,asfollows:1.UponeverypersonengagingwithintheCityinbusinessasanextractor;astosuchpersons,theamountofthetaxwithrespecttosuchbusinessshallbeequaltothevalueoftheproducts,includingby-products,extractedwithintheCityforsaleorforcommercialorindustrialuse,multipliedbytherateof.085ofonepercent(.00085).Themeasureofthetaxisthevalueoftheproducts,includingby-products,soextracted,regardlessoftheplaceofsaleorthefactthatdeliveriesmaybemadetopointsoutsidetheCity.2.UponeverypersonengagingwithintheCityinbusinessasamanufacturer;astosuchpersons,theamountofthetaxwithrespecttosuchbusinessshallbeequaltothevalueoftheproducts,includingby-products,manufacturedwithintheCity,multipliedbytherateof.085ofonepercent(.00085).Themeasureofthetaxisthevalueoftheproducts,includingbyproducts,somanufactured,regardlessoftheplaceofsaleorthefactthatdeliveriesmaybemadetopointsoutsidetheCity.2 ORDINANCENO.60383.UponeverypersonengagingwithintheCityinthebusinessofmakingsalesatwholesale;astosuchpersons,theamountoftaxwithrespecttosuchbusinessshallbeequaltothegrossproceedsofsuchsalesofthebusinesswithoutregardtotheplaceofdeliveryofarticles,commoditiesormerchandisesold,multipliedbytherateof.085ofonepercent(.00085).4.UponeverypersonengagingwithintheCityinthebusinessofmakingsalesatretail;astosuchpersons,theamountoftaxwithrespecttosuchbusinessshallbeequaltothegrossproceedsofsuchsalesofthebusiness,withoutregardtotheplaceofdeliveryofarticles,commoditiesormerchandisesold,multipliedbytherateof.050ofonepercent(.00050).5.UponeverypersonengagingwithintheCityinthebusinessof(a)printing,(b)bothprintingandpublishingnewspapers,magazines,periodicals,books,music,andotherprinteditems,(c)publishingnewspapers,magazinesandperiodicals,fd)extractingforhire,and(e)processingforhire;astosuchpersons,theamountoftaxonsuchbusinessshallbeequaltothegrossincomeofthebusinessmultipliedbytherateof.085ofonepercent(.00085).6.UponeverypersonengagingwithintheCityinthebusinessofsalesofretailservices;astosuchpersons,theamountoftaxwithrespecttosuchbusinessshallbeequaltothegrossproceedsofsalesmultipliedbytherateof.085ofonepercent(.00085).7.UponeveryotherpersonengagingwithintheCityinanybusinessactivityotherthanorinadditiontothoseenumeratedintheabovesubsections;3 ORDINANCENO.6038astosuchpersons,theamountoftaxonaccountofsuchactivitiesshallbeequaltothegrossincomeofthebusinessmultipliedbytherateof.085ofonepercent(.00085).Thissubsectionincludes,amongothers,andwithoutlimitationwhetherornottitletomaterialusedintheperformanceofsuchbusinesspassestoanotherbyaccession,mergerorotherthanbyoutrightsale,personsengagedinthebusinessofdeveloping,orproducingcustomsoftwareorofcustomizingcannedsoftware,producingroyaltiesorcommissions,andpersonsengagedinthebusinessofrenderinganytypeofservicewhichdoesnotconstituteasaleatretail,asaleatwholesale,oraretailservice.B.LimitationoftheTaxRateMkitmcnt:TheratesinsubsectionAaboveshallnotbeincreasedbymorethantheInflationAdjustmentinanygivenyear.8.TaxThresholds:Thischaptershallnotapplytoanypersonengaginginanyone(1)ormotebusinessactivitieswhichareotherwisetaxablepursuanttoRMC5-25-4.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($11,000,000).Startingin20254 ORDINANCENO.603$andforeachsubsequentyearthereafter,onceataxpayerhaspaidtwelvemilliondollars($12,000,000)intaxesimposedunderthischapterinthegivenyear,theratesspecifiedinRMC5-25-4.Ashallbediscountedbyseventy-fivepercent(75%)forremaininggrossproceedsofsale,grossincomeofbusiness,orvalueofproducts,includingby-products,asthecasemaybe.Thetaximposedunderthischaptershallnotexceedfourmilliontwohundredfiftythousanddollars($4,250,000)duringanycalendaryear.ThccapsetforthinthissubsectionshallbeadministrativelyadjustedbytheAdministratoronJanuary1stofeachyear,beginningonJanuary1,2017,toreflecttheinflationadjustment,asdefinedandcalculatedpursuanttoRMC5252.P.Theamountofthecapsocalculatedshallberoundedtothenearesttendollars($10).SECTIONIV.Subsection5-26-3.DoftheRentonMunicipalCodeisrepealedinitsentiretyandmarked“Reserved,”asshownbelow.Allotherprovisionsin5-26-3remainineffectandunchanged.D.Reserved.“InflationAdjustment.”Wheneveran“inflationadjustment”isrequiredorpermittedpursuanttoanysectionofRMCTitleV,suchadjustmentshallbeanamountequaltotheamountanddirectionofchangedeterminedbyreferencetotheSeattleTacomaBremertonUrbanWageEarnersandClericalWorkersConsumerPriceIndex(CPIW)foreachtwelve(12)monthperiodendingonAugust31staspublishedbytheUnitedStatesDepartmentofLabor.Tocalculateannualorbiennialadjustments,theAdministratorshallusethecurrent5 ORDINANCENO.6038ratemultipliedbyone(1)plusorminus,asthecasemaybe,theannualorbiennialchangeintheCPIW.SECTIONV.Ifanysection,subsection,sentence,clause,phraseorworkofthisordinanceshouldbeheldtobeinvalidorunconstitutionalbyacourtorcompetentjurisdiction,suchinvalidityorunconstitutionalitythereofshallnotaffecttheconstitutionalityofanyothersection,subsection,sentence,clause,phraseorwordofthisordinance.SECTIONVI.ThisordinanceshalltakefullforceandeffectonJanuary1,2022.Nolaterthanfive(5)dayspriortosucheffectivedate,asummaryofthisordinanceconsistingofitstitleshallbepublishedintheCity’sofficialnewspaper.PASSEDBYTHECITYCOUNCILthis22nddayofNovember,2021.JasA.SethCityClerkAPPROVEDBYTHEMAYORthis22nddayofNovemb,2021.(ArrrnJ1oPavone,MayorApprovedastoform:ShaneMoloney,CityAttorneyDateofPublication:11/25/2021(Summary)ORD:2197:11/2/216