Title
Approval of an Ordinance Amending Chapters 5.04 and 5.05 of the Olympia Municipal Code and the City's B&O Tax Program
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve on second reading, an Ordinance amending Chapters 5.04 and 5.05 of the Olympia Municipal Code and the City's B&O tax program.
Report
Issue:
Whether to approve on second reading, an Ordinance amending Chapters 5.04 and 5.05 of the Olympia Municipal Code and the City's B&O tax program.
Staff Contact:
Mike Githens, Finance Director, 360.753.8465
Presenter(s):
None - Consent Calendar Item
Background and Analysis:
There were no changes between first and second reading. Throughout 2024, budget sustainability was a key topic of discussion. At the January 2025 City Council retreat, the discussion shifted towards priority-based budgeting and exploring various revenue options. The Finance Committee, as part of their 2025 Work Plan, requested additional research as it relates to budget sustainability.
In February 2025, the Finance Committee requested additional information related to B&O revenue options to enable Council to get a better understanding of who would be impacted. Staff provided the additional information requested during the March 17, 2025 Finance Committee Meeting. The Finance Committee recommended the City Council review the information.
At their May 2025 Study Session, the City Council reviewed B&O revenue options and held a robust discussion. Three options were considered: raising the retail tax rate from .001 to .002 (maximum allowed without a vote); raising the no-tax-due threshold from $20,000 to either $200,000 or $500,000; and introducing or eliminating B&O tax exemptions. On the topic of the rate and threshold changes, the Council deferred for further discussion during a summer Council meeting.
In an August 2025 Study Session, Council continued its discussion about the most appropriate changes to t...
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