Title
Consideration of a Recommendation to Update Olympia Municipal Code Title 5 Related to Business Taxes, Licenses and Regulations
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve a recommendation to the City Council to consider an Ordinance amending Title 5 of the Olympia Municipal Code (OMC) relating to Business Taxes, Licenses and Regulations.
Report
Issue:
Whether to approve a recommendation to the City Council to consider an Ordinance amending Title 5 of the OMC relating to Business Taxes, Licenses and Regulations.
Staff Contact:
Shawn Ward, Interim Finance Director, 360.753.8465
Presenter(s):
Brandie Andrews, Tax and License Analyst and Audit Team Lead
Background and Analysis:
In April 2024, the City Council approved a new Tax Compliance 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.
The City’s business tax code requires those engaging in business in the City of Olympia to comply with licensing and tax obligations. Some of these rules may only be understood by reading several code chapters simultaneously. For example, right now a person wondering if they need a business license won’t find a definition of “engaging in business” in Chapter 5.02, the business license chapter. They must read Chapter 5.04, the B&O tax chapter to find the definition of “engaging in business”. As another example, a locksmith reading the OMC for relevant rules might only look in the chapter titled “Chapter 5.52 LOCKSMITHS”. This chapter doesn’t currently explain that locksmiths must also follow the rules in Chapters 5.04, the B&O tax chapter.
The updates being proposed to Title 5 are administrative in nature. Historical edits have either introduced or failed to eliminate ambiguity across chapters within Title 5. The City wishes to clarify existing licensing and tax requirements and improve compliance through administrative updates that improve language, ensure consistency, and remove ambiguity within the Code.
Climate Analysis:
This agenda item is expected to result in no impact to greenhouse gas emissions.
Equity Analysis:
With the Tax Compliance 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 a recommendation to the City Council to consider an Ordinance amending Title 5 of the Olympia Municipal Code (OMC) relating to Business Taxes, Licenses and Regulations.
2. Do not Move to approve a recommendation to the City Council to consider an Ordinance amending Title 5 of the Olympia Municipal Code (OMC) relating to Business Taxes, Licenses and Regulations.
3. Take other action.
Attachments:
Draft Ordinance