ORD 99-48 CITY'S B & O TAXRevised October 7, 1999
ORDINANCE NO. 99-48
AN ORDNANCE of the City of Bainbridge Island, Washington,
relating to the City's bnsiness and occupation tax rate; and amending
Section 5.05.080 of the Bainbridge Island Municipal Code.
WHEREAS, RCW 35.21.710 provides that cities are authorized to require the
licensing of businesses and to levy and collect a tax not to exceed two-tenths of one
percent on their gross income; and
WHEREAS, the City of Bainbridge Island has imposed such licensing and tax
requirements continuously since at least 1982; and
WHEREAS, the likely passage of Initiative 695 is likely to put extreme pressure
on the City's ability to accomplish its mandated functions with the revenues allowed to it;
now, therefore
THE CiTY COUNCIL OF THE CITY OF BArNBRIDGE ISLAND, DOES
ORDAIN AS FOLLOWS:
Section 1. Section 5.05.080 of the Bainbridge Island Municipal Code is hereby
amended as follows:
5.05.080 Persons subject to tax - Amount.
In addition to the business license fee required by Chapter 5.04, on and after December
1, 1999, there is levied upon and shall be collected from every person, for the act or
privilege of engaging in business activities within the city, in addition to the business
license fee a business and occupation tax per calendar year, or any portion
thereof, except as otherwise provided in this title. The business and occupation tax shall be
in the amount ofeac tcatk two-tenths of one percent of the amount of gross income
subject to tax by the state of Washington pursuant to Chapter 82.04, as herealter
amended, RCW less an annual reduction to be determined each year by December 1
for the next calendar year only by resolution of the City Council for business activities
occurring within the city.
Section 2. If Initiative 695 is rejected by the voters of the State of Washington or
if Initiative 695 fails to become law for any other reason the amendment to BIMC
5.05.080 shown in Section 1 above as well as Section 3 of this Ordinance shall be null
and void and of no force or effi:ct, and the language of BIMC 5.05.080 in effect on
September 1, 1999, shall remain in full force. If Initiative 695 or any portion of Initiative
695 requiring voter approval of any tax increase is finally determined by a court to be
invalid or unenforceable, then the amendment to BIMC 5.05.080 shown in Section 1
above shall be null and void and of no force or effect as of the date on which the judi~iial
decision becomes final, and as of that date, the language of BIMC 5.05.080 in effect on
September 1, 1999 be revived and shall be in effect.
Section 3. In the event that the right or authority of the City to adjust by
resolution the tax rate in BIMC 5.05.080 or to reduce the tax on an annual basis for one
year only is legally challenged, there shall be no reduction in the tax and the full two-tenths
of one percent tax shall apply.
Section 4. REFERENDUM PROCEDURE. A referendum petition with respect
to this ordinance may be filed with the city clerk within seven days of the passage of this
ordinance. The referendum procedures set forth in RCW 35.17.240 through 35.17.360, as
hereafter amended, shall apply, with the following additions and amendments as required
by RCW 35.21.706:
A. Within ten days of the filing of the petition, the city clerk, will confer with the
petitioner concerning the form and style of the petition, issue an identification
number, and secure an accurate, concise and positive baliot title from the city
attorney;
B. The petitioner shall have thirty days in which to secure the signatures of not
less than 15% of the registered voters of the city, as of the last municipal
general election, upon petition forms which contain the ballot title and full text
of the measure to be referred; and
C. The city clerk shall verify the sufficiency of the signatures on the petition, and
if sufficient valid signatures are properly submitted, shall certify the referendum
measure to the next election ballot within the city or at a special election ballot
as provided pursuant to RCW 35.17.260(2).
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