ORD 2010-46 BUSINESS AND OCCUPATION TAX~~~~~ l~lJ~ ~~~V-~~
Ali O~I~INAN~~ of the qty of Bainbridge Island, Washington, relating
to business and occupation tax end anl~nding Section ~,D~~~50 of the
Bainbridge Island l~iunicipal ode
w~RE~, ~ 3 x,21,? 1 ~ authorises cities to levy and collect a tax not to
exceed two-tenths of one percent ~.2~Io} on the gross income of persons doing business
wlthln the c1ty;
~1A, at a Special 1ty Council ll~eetin on October 19, 201 ~, the pity
council passed a motion to lowe~~ the threshold for the imposition of business and
occupation tax for 2~~ 1 and main for X012 and thereafter;
N~w~ T~1F~R~, T~~ YTS ~UNIL ~~' THE ITS ~~'
8~~1~~RYI) ISLAND, wAI~IN~T~I, I~~~ ~AYI~ ~'OI1~w~
eet~an ~. Section ,~,~~ of the Bainbridge Island. ll~unicipal Code is hereby amended
to read as follows
.~.~a Irn~osit~an of the tax ~ Tax ar fee levied
~, In addition to the business license fee requi~'ed by Chapter x,04 Blll~,
and except as provided ~n su~bectlon B of this section or elsewhe~'e in this
chapter, there is hereby ~evie upon and sha.11 be collected from even
person a tax for the act ~ or p~'~v~lee of engaging ~n business actl~ltles
withln the clty, whether the person's office or place of business be within
or without the city, The tax shall be in amounts to be deterrriined by the
application of rates against gross proceeds of sale, gross incorrze of
business, or value of products including byproducts, as the case may be,
as follows:
1. [Jpon every person engaging within the city in business as an extractor,
a to such persons the amount of the tax with respect to such business shall
be equal to the value of the products, including byproducts, extracted for
sale or for commercial or industrial use, multiplied by the rate of one-tenth
of one percent. The measure of the tax is the value of the products,
including byproducts, sa extracted, regardless of the place of sale or the
fact that del~verles m~.y ~ rrlade ~~ polnts outslde the Gity.
~. upon every person engaging within the city in bv~sines as a
manufacturer, as to such persons the amount of the tax with respect to
such business shall be equal to the value of the products, including
byproducts, rrlanufactured, multiplied by the rate of one~tenth of orie
percent. The measure of the tax i the value of the products, including
1
byproducts, so rr~anufactured, regardless of the place of sale or the fact that
deliveries ~~ be made to points outside the city,
3 ,Upon eery person engaging within the city in the business of inal~ing
sales at wholesale, ~e~e~t~~'--ur ~~~~~~
as to such persans, the amount of taxwith respect to ..such
business shall be equal to~ the gross proceeds of such sales of the business
without regard to the place of delivery of articles, con~n~odities ar
merchandise Bald, rriultiplied by the rate of one~tenth of one percent,
4, Upan eery person engaging within the city In the business of mal~~ng
sales at retail, as to such persons, the amount of tax with respect to such
business shall be equal to the gi"oss proceeds ~f ~ueh sales of the business,
without regard to the place of delivery of articles, corrimadities or
merchandise sold, multiplied by the rate of an.e-tenth of one percent.
5, Upon eery person engaging within the city in the business of ~a~
printing; fib} both printing and publishing newspapers, magazines,
periodicals, baol~s, music and other printed items; ~c} publishing
newspapers, rnaa~ines and periodicals; ~~} extracting far hire; and fie}
processing far hire, as to such person, the arrxaunt of tax an such business
shall b equal to the rate of one^tenth of one percent,
~, Upon every person engaging within the city ~n the business of n~al~ing
sales of retail services, as to such persans, the amount of tax with respect
to such business shall be equal to the gross proceeds of gales multiplied by
the rats of one-tenth of one percent,
7, Upon eery other person engaging within the city in any business
activity other than or in addition to those enurrterated in this section, as to
~UCh p~rs~ns, the amount ~~ ~~~ on ~.CCaunt ~f such aCtl~ltl~ Shall be
equal to the gross income of the business multiplied by the rate of one-
tenth of one percentF This subsect~an ~ncludeS but ~s not limited to
regardless of whether title to material used in the pe~~formance of such
business passes to another by accession, merger or other than by outright
sale} pei"sans engaged in the business of developing or producing custarri
software or of cutoirii~ing canned software, producing royalties ar
cai~rraissions, and persans engaged in the business of rendering any type
of service which does nat~ constitute a sale at retail, a sale at wholesale, or
a retail service.
B, Far ~~ 11, the gross receipts tax imposed ii] this section shall not apply
to any person whose gross proceeds of sales, grass income of the business,
and ~a~ue of products, including byproducts, as the case i~ay be, from all
act~vit~es conducted within the city during " ~~ 1 ~ is equal
to ar less than ~a~,~~~~~, persans with gross incorrie exceeding
aa~~~~ for ~~ 11 ~ shall by taxed only an the amount of
2
gross income exceeding ~00~~00 For X01 and
~~ thereafter the ross recei is tax ins aced in this section shall not a l to
an erson whose rosy raceds of sales rocs lnoao of the ~ulnes
aid value of raducts incl~din ~ roducts as the case rna h from all
1
aCt!'~1t1ES conducted lth~n the ~lt;~ d~ring any calendar year .1.. equal ~~ Qr
leis than 150 ODO, Persons with rosy Yncome exceedin $150 000 er
ear for 20I ~ and thereafter shall h taxed onl on the ama~nt of rocs
income exceedin $150 000 er ear, .
ec~i~~ ~. 'his ordinance shall take effect and be in farce on January l , 2a 1 I after its
passage, a~~ro~al, ar~d p~bllcatlon as required by lam.
PASSED BY TIDE CITY ~C~I~I~ this 1 ~t day of ~ece.ber, X010.
APPROVED BY TIDE ~~~~ this ~ ~~ day of December, ~D 1 a,
fob cales,l~layor
ATTE STIAL~TH~TrATE;
Rosalind I). l~ssoff, pity ler~
FILED ITS T~~E IT EER.I~: ~o'vernher 1 a, ~a 10
PASSED B~ THE IT OIIf.: Decel~her l , ~~ 1 a
P~~LIS~ED; December , X010
EF~'ETI'~E DATE: January 1, X011
~R~ar~AE ~~~I~ER: ~a 1 ~-~~