Title
An Ordinance of the City of Olympia, Washington Relating to the Business and Occupation Tax and Amending Olympia Municipal Code Section 5.04.110
Recommended Action
Committee Recommendation:
Finance Committee recommended approval and the additional funds should go to the Capital Facilities Budget to be used for major maintenance in 2015.
City Manager Recommendation:
Move to approve on Second Reading an Ordinance Amending Olympia Municipal Code Section 5.04.110 relating to Business and Occupation Tax (Attachment #1).
Report
Issue:
Should the City of Olympia remove the exemption for religious organizations and medical services non-profits (medical services as defined in RCW 70.41)?
Staff Contact:
Jane Kirkemo, Administrative Services Director, 360.753.8499
Presenter(s):
Jane Kirkemo, Administrative Services Director
Background and Analysis:
On October 14, 2014, Council approved on first reading and forwarded to second reading an ordinance distributed that that evening (attachment #1). The ordinance clarified Council's intent regarding closing the City's Business and Occupation Tax loophole for hospitals and medical services non-profits. During discussion, Councilmembers commented on the decline in charity care at local hospitals due to the Affordable Care Act and the regional nature of Olympia hospital / medical services facilities that depend on infrastructure and other services provided by the City.
[Same Background Information as October 14, 2014 staff report]
One of the Olympia City Council's major goals is to develop a sustainable budget. The City Council and more specifically, the Finance Committee evaluated the City's major revenues over the last two years. The Committee worked with the Economic Development Council (EDC), Chamber of Commerce and other groups to understand the impact that tax increases, changes, loopholes and scofflaws have on the business environment in Olympia. The Committee's goal is to develop an ...
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