HomeMy WebLinkAbout11/07/2018 6KAGENDA BILL
CITY OF BREMERTON 6K
CITY COUNCIL
SUBJECT: Ordinance No. 5355 amending
Bremerton Municipal Code (BMC) Chapter
3.48 entitled "Business & Occupation
Taxes"; Chapter 3.50 entitled "Utility Taxes";
and Chapter 3.86 entitled "Administrative
Provisions for Taxes"
Study Session Date
COUNCIL MEETING Date
Department:
Presenter:
October 24, 2018
November 07, 2018
DCD
Jeanette Wischhoefer
Phone: (360) 473-5298
SUMMARY: In July 2017 the Washington State Legislature passed EHB 2005. The bill seeks to
improve the business climate in the state by simplifying the administration of municipal business
licenses and B&O taxes for services performed in multiple taxing jurisdictions. There are three parts
to the bill:
1) Cities must partner with either the State Licensing system or FileLocal (Bremerton has
completed this step and is currently in implementation with FileLocal),
2) Cities must adopt new Model Ordinance for Business Licenses which establishes a
minimum license threshold, and
3) Cities must adopt changes to their codes to follow RCW 35.102.130 in regards how
service B&O revenue is taxed for businesses operating in multiple jurisdictions.
The law requires that cities adopt these code changes by January 01, 2019 in order to maintain their
local licensing authority. The proposed ordinance completes steps 2 and 3.
ATTACHMENTS: 1) Ordinance No. 5355 amending Title 3 of Bremerton Municipal Code; and 2)
October 24, 2018 Study Session Power Point Presentation
FISCAL IMPACTS (Include Budgeted Amount): The 2019 budget has been developed with the
assumed revenue loss of business license fees from the $2,000 minimum threshold for out -of -city
business licenses. The service income apportionment change will also have an impact, but without
knowing the final formula it is hard to determine; the last estimate was a tax revenue loss of
approximately $60,000.
STUDY SESSION AGENDA: ❑ No Presentation ® Full Presentation
STUDY SESSION ACTION: ® Consent Agenda ❑ General Business ❑ Public Hearing
RECOMMENDED MOTION: Move to pass Ordinance No. 5355 amending BMC Titles 3, to adopt
the new Model Ordinance for Business Licenses, as well as changes to RCW 35.102.130, and
establish registration requirements for Utility tax filers.
COUNCIL ACTION: O1Approve ❑ Deny ❑ Table ❑ Continue ❑ No Action
Form Updated 01/07/15