ORD 2000-45 BUSINESS & OCCUPATION TAXORDINANCE NO. 2000-45
AN ORDINANCE of the City of Bainbridge Island, Washington,
relating to the City's business and occupation tax; and amending
Sections 5.05.090 and 5.05.100 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, a public hearing was held to discuss this and other changes to the
City's tax and fee structure on October 7, 1999; and
WHEREAS, voter approval Initiative 722 has brought into question the validity
of the City's tax and fee structure; now} therefore
THE CITY COUNCIL OF THE CITY OF BAINBRIDGE ISLAND, DOES
ORDAIN AS FOLLOWS:
Section 1. As of January 1, 2001, Section 5.05.090 of the Bainbridge Island
Municipal Code is hereby amended as follows:
5.05.090 Exemptions - Type of income.
The following types and sources of income shall not be included in the gross income
subject to the tax imposed by this chapter:
A. Gross income derived from the operation of a commercial parking lot business and
which is subject to the commercial parking lot tax imposed in this title;
B. Gross income or proceeds derived from liquor, as defined by RCW 66.04.010(15),
motor vehicle fuels, and any other business or item which is not subject to taxation by
the city pursuant to state law;
C. Gross income of any telephone business;
D. Gross income of a temporary stationary business as defined in Chapter 5.40 BIMC;
and
E. Gross income, revenue, proceeds or receipts which are subject to taxation by any
other city.
Section 2. Section 5.05.100 of the Bainbridge Island Municipal Code is hereby
amended as follows:
5.05.100 Amount of income taxed.
A. The business and occupation tax shall only be imposed if the gross income of the
person exceeds an amount to be determined annually by resolution of the City
Council but not less than $100,000 per year. Persons with gross income exceeding
the amount so determined per year shall be taxed only on the amount of gross income
exceeding that amount. Only one such exemption shall be allowed to any group of
businesses under common ownership. For the purposes of this chapter, businesses
shall be considered to be under common ownership if 10 percent or more of the
ownership of the business is held or controlled by the same person or persons.
B. If a person operates a business for less than a full year, the amount of gross income
exempted from the business and occupation tax shall be reduced proportionately.
Section 3 This ordinance shall take effect and be in force on and after
five days from and after its passage, approval, and publication as required by law.
PASSED by the City Council this 21st day of November, 2000.
APPROVED by the Mayor the 291h day of November, 2000.
DWI~ SUTTO~Z Mayor
ATTE S T/AUTHENTICATE:
&KA~S'P E~rk
APPROVED AS TO FORM:
ROD P. KASEGUMA, City Attorney
FILED WITH THE CITY CLERK
PASSED BY THE CITY COUNCIL
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE 99 - 45
Novemberl6,2000
November21,2000
November 29, 2000
December 4, 2000