415 B&O MODEL ORD INTENT
CITY OF YELM
RESOLUTION NO. 415
WHEREAS city gross receipts business and occupation taxes can be unduly complicated
and inconsistent from city to city, and
WHEREAS some cities have not updated their gross receipts business and occupation
tax ordinances in many years, and
WHEREAS cities must sometimes resolve potential instances of multiple taxation on a
case-by-case basis because not all cities have consistent apportionment provisions, and
WHEREAS cities have had, and should retain, the flexibility to tailor city tax structures to
meet unique local needs, and
WHEREAS a city's right to flexibility to determine its own tax structure must be balanced
against a taxpayer's right to a tax system that provides fairness, predictability, and ease of
compliance, and
WHEREAS the Association of Washington Cities and a task force of six cities, with the
concurrence of the majority of other Washington cities with B & 0 taxes, have developed a Model
Ordinance that:
· Creates greater uniformity and consistency among city gross receipts business and
occupation taxes;
· Includes uniform apportionment and credit provisions to ensure against multiple tax
burdens on businesses with activities in more that one B & 0 tax-imposing city;
· Makes city gross receipts business and occupation taxes simpler, more predictable,
and easier to administer;
· Provides a "bright line" test for determining "nexus, II or whether a given business is
subject to tax;
· Contains sufficient flexibility to provide local control over the city tax structure; and
· Avoids major revenue losses.
WHEREAS adoption of the Model Ordinance will demonstrate to the Washington State
Legislature that cities are sensitive to legitimate complaints over city gross receipts business and
occupation taxes, and that we are committed in our efforts to make them fairer, more consistent,
and more efficiently administered, and
WHEREAS adoption of the Model Ordinance may help avoid enactment of legislation proposed
by certain business interests that would usurp local control over city B & 0 taxes and create
substantial revenue losses.
NOW THEREFORE BE IT RESOLVED THAT the City Council of the City of Yelm
Washington declares its intent to adopt the Model Business and Occupation Tax Ordinance.
·~PP~OVED t . 22nd day of August, 2001.
I
ATTEST:
¡¿~ \ j} '('--UIJ¿'¡
4;<'; /VJ~.N~
s P, Bennick, City Clerk
/KJ ..- ..---~
AdalT RifJ.\ ayor