Title
Agenda Item:
Amendment to the Model Business and Occupation (B&O) Ordinance - Title 5 of the Olympia Municipal Code
Body
Issue:
Olympia Municipal Code (OMC) Title 5 needs to be updated to comply with State mandated changes. Also, the OMC should be updated to make penalty language and tax return due dates consistent other taxes.
Committee Recommendation:
The Olympia City Council Finance Committee reviewed this item November 8, 2012.
City Manager's Recommendation:
Move to adopt on second reading the attached Ordinance amending the Business and Occupation Tax.
Staff Contacts:
Bill Sampson, Accounting Supervisor, Administrative Services Department, 360.753.8473
John T. Holmes, Tax and License Accountant, Administrative Services Department, 360.753.8448
Presenter(s):
Consent Calendar Item - no presentation scheduled.
Background and Analysis:
In 2003, the State Legislature enacted legislation requiring all cities with B & O taxes to use a State Model Ordinance as a standard to ensure consistency in tax collection and administration. The City of Olympia must update its Business and Occupation tax ordinances by December 31, 2012 to match changes to the State Model Ordinance to legally collect B & O taxes next year. The City has received the Model Ordinance changes for 2012, reviewed the current City ordinance (Title 5, OMC), and made provisional changes for City Council Finance Committee review. The 2012 changes to the Model Ordinance must be adopted no later than January 1, 2013 in order for the City to continue collecting a business and occupation tax in 2013. The required changes are in six areas, listed below.
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