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ORD 92-04 BUSINESS LICENSESORDINANCE No. 92 - O~ AN ORDINANCE OF THE CITY OF BAINBRIDGE ISLAND TO AMEND SECTION 5.04 OF THE CITY'S CODE REGARDING BUSINESS LICENSES IN ORDER TO ESTABLISH A NEW CLASS FOR SMALL BUSINESSES AND TO DEFER THE 1992 DEADLINE UNTIL MARCH 31, 1992. WHEREAS, the City has long set a fee for business licenses in the amount of $20.00 per year for businesses within the City; and WHEREAS, on December 19, 1991, the City Council resolved in Resolution 91-32 to increase the fees for business licenses from $20.00 to $40.00 for businesses within the City and from $40.00 to $75.00 for businesses outside the City; and WHEREAS, this increase may create a hardship for very small or part-time businesses it that the license fee represents a large portion of their total gross receipts; now, therefore, THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. Section 5.04.030 of the Bainbridge Island Municipal Code (BIMC) shall be amended to read as follows: On or after the effective date of the ordinance codified in this chapter, there is levied upon and shall be collected from and paid, as provided in this chapter, by every person, on account and for the privilege of engaging in business activities within the city, an annual license fee and occupation per calendar year, or portion thereof, in a sum equal to the amounts set forth as follows: A. Class I. Privately owned parking lots within the city which charge a fee for parking: the annual license fee shall be an amount as established by resolution of the city council. In addition to the annual license fee, a business and occupation tax shall be imposed and paid equal to a percent of the gross income, as established by resolution of the city council; received by each business during the previous calendar year. Of this total sum, a percent of the gross income, as established by the resolution of the city council, received during the previous calendar year shall be deposited in the current expense fund of the city in accordance with the provisions of Section 5.04,150A. The balance of such sums shall be deposited in the street fund of the city in accordance with the provisions of Section 5.04,150B. From and after January 1, 1989, in addition to the annual license fee a business and occupation tax shall be imposed on Class 3 businesses, Section 5.04,030C and shall be deposited in the current expense fund of the city. B. Class 2. Publicly owned parking lots within the city which charge a fee for parking: a business and occupation tax shall be imposed upon and paid equal to a percent of the gross income, as established by resolution of the city council, received by such businesses during the previous calendar year. These funds shall be deposited in the street fund of the city in accordance with the provisions of Section 5.04,105B. C. Class 3. Businesses located within the city which do not certify that their gross receipts are less than $10,000 annually: the annual license fee shall be an amount as established by resolution of the city council. In addition to the annual license fee, a business and occupation tax shall be imposed and paid equal to a percent of the gross income over an amount as established by resolution of the city council received by each business during the previous calendar year, provided that businesses which receive this amount as established by resolution of the city council or less gross income during the previous calendar year shall be exempt from the business and occupation tax. These funds shall be deposited in the current expense fund of the city in accordance with the provisions of Sections 5.04.150A. D. Class 4. Businesses which have either a business address or a mailing address located outside the corporate limits of the city, which do not certify that their gross receipts are less than $10,000 annually, and which make regular retail sales and deliveries or engage in the sale of consumer services within the city shall pay an annual license fee as established by resolution of the city council. These funds shall be deposited in the current expense fund of the city in accordance with the provisions of Section 5.04,150A. E. Class 5. Businesses located either within or outside the city which certify that they can reasonably expect to have gross income of less than ten thousand dollars ($10,000) annually shall pay an annual license fee as established by resolution of the city council. The Director of Finance & Administrative Services shall have the authority to require evidence supporting the certified gross income. These funds shall be deposited in the current expense fund of the city in accordance with the provisions of Section 5.04,150A. SECTION 2. Business licenses required by Section 5.04 of the BIMC for the year 1992 must be obtained on or before March 31, 1992. Business license fees required by the BIMC for the year 1992 shall be considered delinquent if not paid on or before March 31, 1992. For all years other than 1992, business licenses must be obtained and business license fees shall be considered delinquent pursuent to Section 5.04.060 of the BIMC. SECTION 3. This ordinance shall take effect and be in force five days from and after its passage, approval, publication, and posting as required by law. PASSED by the City Council this 13 th day of February, 1992. APPROVED by the Mayor this 13 th day of February, 1992. ATTEST/AUTHENTICATE: RALPH W. EELLS, Finance Director APPROVED AS TO FORM: ROD P. KASEGUMA, City Attorney FILED WITH THE CITY CLERK: PASSED BY THE CITY COUNCIL: PUBLISHED: 2 - 18 - 9 2 POSTED: 2-18-92 EFFECTIVE DATE: 2-2-23-92 ORDINANCE 92 - 04 2-6-92 2-13-92