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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