Title
Approval of an Ordinance Amending Title 3 of the Olympia Municipal Code Relating to Revenue and Finance
Recommended Action
Committee Recommendation:
The Finance Committee recommends moving to approve on second reading, an ordinance amending Title 3 of the Olympia Municipal Code relating to revenue and finance.
City Manager Recommendation:
Move to approve on second reading, an ordinance amending Title 3 of the Olympia Municipal Code relating to revenue and finance.
Report
Issue:
Whether to approve proposed changes to OMC Title 3.
Staff Contact:
Shawn Ward, Interim Finance Director, 360.753.8465
Presenter(s):
None. Consent calendar item only.
Background and Analysis:
Background and analysis did not change from first to second reading.
In April 2024, the City Council approved a new Tax Review team focused on education and compliance outreach to people engaging in business here. To help in these efforts, we propose administrative updates to Title 3, Title 4 and Title 5. This staff report focuses on Title 3, and there are two other staff reports covering Titles 4 and 5. On November 18, 2024, staff presented these changes to the Finance Committee, who recommended that the City Council approve the changes as proposed.
Title 3 contains chapters related to the City’s revenue and finances, including tax revenue remitted to the City by the State or County while Title 5 contains chapters related to business licensing and taxes which the City collects directly from people engaging in business in Olympia.
The updates being proposed to Title 3 are administrative in nature and involve moving one chapter out and one chapter in.
1. OMC Chapter 3.32 Admissions Tax: This chapter should be moved from Title 3 to Title 5 OMC to properly align this tax collected from people engaging in business in Olympia as provided within Title 5 OMC.
2. Previously designated OMC Chapter 5.86 Multi-Family Dwelling Tax Exemptions: This chapter should properly be moved from Title 5 into Title 3 OMC and redesignated as OMC Chapter 3.57.
Climate Analysis:
This agenda item is expected to result in no impact to greenhouse gas emissions.
Equity Analysis:
With the Tax Review program, we aim to ensure more equal access to Olympia’s existing business tax regulations. The code clean-up will improve understanding of the City’s existing licensing and tax obligations by making them clearer and more evident to all.
A second goal of the new program is to improve compliance with the City’s existing license and tax requirements. Many businesses currently comply, and many do not. All taxpayers should meet obligations equitably, and the code clean-up will provide a consistent set of enforcement provisions across business taxes.
Neighborhood/Community Interests (if known):
Members of the community may have an interest in this agenda item as it deals with City requirements for business activity.
Financial Impact:
There is no financial impact associated with this agenda item.
Options:
1. Move to approve on second reading, an ordinance amending Title 3 of the Olympia Municipal Code relating to revenue and finance.
2. Direct staff to modify the ordinance updating OMC Title 3.
3. Take other action.
Attachments:
Ordinance