HomeMy WebLinkAbout06-13-2022 Study Session AgendaCity Council Study Session Community
Wellness Special Focus Area
June 13, 2022 - 5:30 PM
City Hall Council Chambers and Virtual
AGENDA
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I.CALL TO ORDER
II.PUBLIC PARTICIPATION
A.Public Participation
The Auburn City Council Study Session Meeting scheduled for Monday, June 13,
2022 at 5:30 p.m. will be held in person and virtually.
Virtual Participation Link:
To view the meeting virtually please click the below link, or call into the meeting at the
phone number listed below. The link to the Virtual Meeting is:
https://www.youtube.com/user/watchauburn/live/?nomobile=1
To listen to the meeting by phone or Zoom, please call the below number or click the
link:
Telephone: 253 215 8782
Toll Free: 888 475 4499
Zoom: https://us06web.zoom.us/j/81636662218
B.Roll Call
III.ANNOUNCEMENTS REPORTS AND PRESENTATIONS
IV.AGENDA ITEMS FOR COUNCIL DISCUSSION
A.Ordinance No. 6854 (Gaub) (10 Minutes)
An Ordinance Vacating Right-of-Way of a portion of M Street NW, north of 15th Street
NW, together with a portion of 29th Street NW, east of M Street NW
B.Ordinance No. 6862 (Gaub) (10 Minutes)
An Ordinance authorizing a payback agreement for half-street improvements between
the City of Auburn and Inland Washington, LLC
C.Ordinance No. 6863 (Gaub) (10 Minutes)
An Ordinance authorizing a payback agreement for a traffic signal between the City of
Auburn and Inland Washington, LLC
Page 1 of 213
D.Ordinance No. 6860 (Thomas) (20 Minutes)
An Ordinance amending sections within Chapter 3.53 of the Auburn City Code, related
to City Business and Occupation (B&O) Tax, clarifying definitions, taxpayer
classifications, and tax exemptions
E.Ordinance No. 6861 (Thomas) (20 Minutes)
An Ordinance amending Chapter 3.54 of the Auburn City Code, related to City
Business and Occupation (B&O) Tax Administration: (1) Amending certain sections to
clarify terms, definitions, and the calculation of tax overpayment interest; and (2) Adding
a new section related to administrative tax assessments and penalties for unregistered
City businesses
F.Ordinance No. 6870 (Thomas) (10 Minutes)
An Ordinance amending Chapter 3.88 of the Auburn City Code, related to utility service
tax administration, deductions and filing requirements, and adding a new section
defining chapter terms
G.Ordinance No. 6872 (Thomas) (5 Minutes)
An Ordinance amending Chapter 3.41 of the Auburn City Code, related to Garbage
Utility Tax and adding new sections defining chapter terms, tax filing frequencies,
eligible deductions, and provisions for overpayment of tax
H.Ordinance No. 6873 (Thomas) (5 Minutes)
An Ordinance amending Chapter 3.42 of the Auburn City Code, related to cable
television utility tax and adding a new section related to tax filing frequencies
I.Ordinance No. 6874 (Thomas) (5 Minutes)
An Ordinance amending Chapter 3.80 of the Auburn City Code, related to gambling
activities, tax filing frequencies, and adding a new section defining chapter terms
J.Ordinance No. 6875 (Thomas) (5 Minutes)
An Ordinance amending Chapter 3.84 of the Auburn City Code, related to telephone
business chapter terms, tax filing frequencies, and deductions from tax
V.COMMUNITY WELLNESS DISCUSSION ITEMS
A.Human Services Program Update and Panel Presentation (Tate) (50 Minutes)
Staff will provide an overview of progress made towards 2022 Human Services
program goals, followed by a panel presentation of staff representatives from currently
funded programs serving Auburn residents
B.Human Services Funding Overview (Tate) (20 Minutes)
C.National Night Out Overview (Tate) (10 Minutes)
VI.ADJOURNMENT
Agendas and minutes are available to the public at the City Clerk's Office, on the City website
(http://www.auburnwa.gov), and via e-mail. Complete agenda packets are available for review
at the City Clerk's Office.
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AGENDA BILL APPROVAL FORM
Agenda Subject:
Ordinance No. 6854 (Gaub) (10 Minutes)
Date:
May 19, 2022
Department:
Public Works
Attachments:
Draft Ordinance No. 6854
Exhibit A
Exhibit B
Staff Report
Vicinity Map
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrative Recommendation:
For discussion only.
Background for Motion:
Background Summary:
The City of Auburn has determined that a portion of right-of-way of M Street NW, north of 15th
Street NW and a portion of right-of-way of 29th Street NW, east of M Street NW (ROW
Vacation Area) are no longer required to meet the needs of the City. In addition, the rights-of-
way have been used for illegal parking, litter dumping and vandalism which the City is
continually responsible for addressing.
On January 18, 2022, City Council adopted Ordinance No. 6847 that modified Chapter 10.28
of the Auburn City Code to restrict the proposed ROW Vacation Area to all vehicular and non-
vehicular traffic except for the purpose of accessing utilities and properties by their owners
and authorized guests in order to address illegal dumping issues. Subsequently, a locked
gate was installed across M Street NW to limit access to the proposed ROW Vacation Area.
The proposed ROW Vacation Area of M Street NW became ROW when it was acquired by
the State for the construction of SR-167 in 1969. This area was subsequently conveyed to
the City of Auburn from the State through Governor’s Deed in 1974. The north 30 feet of the
proposed ROW Vacation area of 29th Street NW was dedicated as a public street by the Plat
of Christopher Garden Tracts in 1919. The south 20 feet of the proposed ROW Vacation
Area of 29th Street NW was acquired by King County as right-of-way sometime between
1889 and 1919.
City staff, utility providers, and abutting property owners who have an interest in this right-of-
way have reviewed the proposed right-of-way vacation. Through this review, City staff has
determined that the right-of-way is no longer necessary to meet the needs of the City and
could be vacated with conditions outlined in draft Ordinance No. 6854.
A public hearing for Right-of-Way Vacation No. VAC21-0003 is set June 21, 2022.
Page 3 of 213
Reviewed by Council Committees:
Councilmember:Stearns Staff:Gaub
Meeting Date:June 13, 2022 Item Number:
Page 4 of 213
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Draft Ordinance No. 6854
ROW Vacation VAC21-0003
May 18, 2022
Page 1 of 6
ORDINANCE NO. 6854
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN WASHINGTON, VACATING RIGHT-OF-WAY OF A
PORTION OF M STREET NW, NORTH OF 15TH STREET NW,
TOGETHER WITH A PORTION OF 29TH STREET NW, EAST
OF M STREET NW, WITHIN THE CITY OF AUBURN,
WASHINGTON.
WHEREAS, the City of Auburn, Washington (“City”), has determined through an
evaluation of its needs for streets and rights-of-ways located in the vicinity of a portion of M
Street NW, north of 15th Street NW, together with a portion of 29th Street NW, east of M
Street NW may no longer be needed to meet the needs of the City and that a public hearing
should be set to determine if said right-of-way should be vacated; and,
WHEREAS, a request for vacation of said right-of-way was circulated to Puget Sound
Energy, CenturyLink, Comcast, WSDOT, all adjacent property owners and City
Departments and comments were received; and
WHEREAS, the City Council approved Resolution No. 5655 on May 2, 2022 calling
for a public hearing; and
WHEREAS, as required by Chapter 12.48 of the Auburn City Code and RCW
35.79.020, a public hearing was held in connection with the possible vacation, with notice
having been provided pursuant to statute; and,
WHEREAS, the City Council has considered all matters presented at the public
hearing on the proposed vacation, held on the 21st day of June, 2022, at the Auburn City
Council Chambers in Auburn, Washington.
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Draft Ordinance No. 6854
ROW Vacation VAC21-0003
May 18, 2022
Page 2 of 6
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON DO ORDAIN as a non-codified ordinance as follows:
Section 1. Vacation. That the right of way located at a portion of M Street NW,
north of 15th Street NW, together with a portion of 29th Street NW, east of M Street NW,
located within the City of Auburn, Washington, legally described on Exhibit “A”, a copy of
which is attached, and as shown on the survey marked Exhibit “B”, a copy of which is
attached, is vacated and the property lying in the right-of-way described, shall inure and
belong to those persons entitled to receive the property in accordance with RCW 35.79.040,
conditioned upon the following:
A. Reservation in favor of the City of a perpetual Nonexclusive Easement
under, over, through and across the vacated right-of-way as described above for the
purpose of laying, maintaining, and installing future and existing water, sanitary sewer,
storm water facilities, and street lights, including street light conduits and power cabinets,
and including a reservation in favor of the City of the right to grant easements for utilities
over, under and on all portions of the vacated right-of-way as described above.
The City shall have the absolute right, at times as may be necessary for immediate
entry upon said Easement Area for the purpose of maintenance, inspection, construction,
repair or reconstruction of the above improvements without incurring any legal obligation
or liability.
The owners of the adjacent properties agree and shall not in any way block, restrict
or impede access and egress to or from said Easement Area, and /or in any way block,
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Draft Ordinance No. 6854
ROW Vacation VAC21-0003
May 18, 2022
Page 3 of 6
restrict or impede full use of the real property within the Easement Area by the City for
the above described purposes. No building, wall, rockery, fence, trees, or structure of
any kind shall be erected or planted, nor shall any fill material be placed within the
boundaries of said Easement Area, without the express written consent of the City.
Except as required or approved by the City, no excavation shall be made within three feet
of said facilities. The surface level of the ground within the Easement Area shall be
maintained at the elevation as currently existing.
This easement shall be a covenant running with the adjacent property parcels and
burden said real estate, and shall be binding on the successors, heirs and assigns of all
parties.
B. In accordance with RCW 35.79.030, the City grants a private utility
easement to CenturyLink over, under and upon the vacated right-of-way as described
above for the construction, operation, maintenance, repair, replacement, improvement
and removal of wireline telecommunications facilities. The owners of the adjacent
properties shall not erect any structures on the easement and shall not place trees or
other obstructions on the easement that would interfere with the exercise of Grantee’s
rights.
This easement shall be a covenant running with the adjacent property parcels and
burden said real estate, and shall be binding on the successors, heirs and assigns of all
parties.
C. In accordance with RCW 35.79.030, the City grants a private utility
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Draft Ordinance No. 6854
ROW Vacation VAC21-0003
May 18, 2022
Page 4 of 6
easement to Tacoma Water over, under and upon the vacated right-of-way as described
above for the construction, operation, maintenance, repair, replacement, improvement
and removal of cable facilities. The owners of the adjacent properties shall not erect any
structures on the easement and shall not place trees or other obstructions on the
easement that would interfere with the exercise of Grantee’s rights.
This easement shall be a covenant running with the adjacent property parcels and
burden said real estate, and shall be binding on the successors, heirs and assigns of all
parties.
D. In accordance with RCW 35.79.030, the City hereby reserves in favor of
Parcel Nos. 1580600090, 1580600091, 0121049034, 0121049014, 1221049005, and
1221049041 abutting the vacated right-of-way as described above a perpetual
nonexclusive access easement under, over, through and across the vacated right-of-way
as described above for the purposes of pedestrian, vehicular, individual adjacent parcel
access, and adjacent private property access. The owners of the adjacent property agree
not to erect any structures on said easement and shall not place trees or other
obstructions on the easement that would interfere with the exercise of Grantee’s rights
herein.
This easement shall be a covenant running with the adjacent property parcels and
burden said real estate, and shall be binding on the successors, heirs and assigns of all
parties.
E. It is provided, however that such reserved or granted utility and access
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Draft Ordinance No. 6854
ROW Vacation VAC21-0003
May 18, 2022
Page 5 of 6
easements as set out in Paragraphs A, B, C, and D above may be modified to
accommodate a removal, relocation and sitting of the affected utility lines if the Utility and
the property owners on whose property the utility lines are located agree to the removal
relocations and sitting being paid by said property owners and with the removal relocation
and sitting being done in conformity with applicable standards.
F. The existing roadway surface within the vacated right-of-way shall inure and be
jointly owned and maintained by those persons entitled to receive the property lying within
the vacated right-of-way in accordance with RCW 35.79.040.
Section 2. Constitutionality or Invalidity. If any portion of this Ordinance or
its application to any person or circumstances is held invalid, the remainder of the Ordinance
or the application of the provisions to other persons or circumstances shall not be affected.
Section 3. Implementation. The Mayor is authorized to implement such
administrative procedures as may be necessary to carry out the directives of this location.
Section 4. Effective Date. This Ordinance shall take effect and be in force
five (5) days from and after passage, approval, and publication as provided by law.
Page 9 of 213
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Draft Ordinance No. 6854
ROW Vacation VAC21-0003
May 18, 2022
Page 6 of 6
Section 5. Recordation. The City Clerk is directed to record this Ordinance with
the office of the King County Auditor, at which time the vacation pursuant to this Ordinance
shall be effective under Auburn City Code 12.48.080.
INTRODUCED: _________________
PASSED: ________________________
APPROVED: _____________________
________________________________
NANCY BACKUS, MAYOR
ATTEST: APPROVED AS TO FORM:
__________________________ _________________________________
Shawn Campbell, MMC, City Clerk Kendra Comeau, City Attorney
PUBLISHED: _______________
Page 10 of 213
EXHIBIT A
RIGHT OF WAY VACATION LEGAL DESCRIPTION
FRONTAGE ROAD (M STREET NW) AND
29TH STREET NW
THAT PORTION OF FRONTAGE ROAD, ALSO KNOWN AS ‘M’ STREET NORTHWEST, ADJOINING STATE
HIGHWAY SR-167 ON THE EAST AS CONVEYED TO THE CITY OF AUBURN ACCORDING TO GOVERNOR’S
DEED RECORDED UNDER KING COUNTY RECORDING NUMBER 7402270280 SITUATED IN THE
SOUTHWEST QUARTER OF SECTION 1 AND IN THE NORTHWEST QUARTER OF SECTION 12, TOWNSHIP 21
NORTH, RANGE 4 EAST, WILLAMETTE MERIDIAN, CITY OF AUBURN, KING COUNTY, WASHINGTON,
DESCRIBED AS FOLLOWS:
BEGINNING AT THE SOUTHWEST CORNER OF PARCEL 1, CITY OF AUBURN SHORT PLAT NUMBER
SPL0015-90 RECORDED UNDER KING COUNTY RECORDING NUMBER 9111040979, ALSO BEING A POINT
ON THE EAST RIGHT OF WAY MARGIN OF SAID FRONTAGE ROAD; THENCE SOUTH 85⁰55’51” WEST A
DISTANCE OF 60.00 FEET TO THE WEST RIGHT OF WAY MARGIN OF SAID FRONTAGE ROAD;
THENCE ALONG SAID WEST MARGIN NORTH 04⁰04’09” WEST A DISTANCE OF 556.46 FEET;
THENCE CONTINUING ALONG SAID WEST MARGIN PARALLEL WITH THE CENTERLINE OF STATE
HIGHWAY SR-167 NORTH 01⁰21’28” EAST A DISTANCE OF 3027.77 FEET TO THE NORTH RIGHT OF WAY
MARGIN OF SAID FRONTAGE ROAD ALSO BEING THE SOUTHERLY RIGHT OF WAY LINE OF THE
BONNEVILLE POWER ADMINISTRATION’S EXISITNG 262.5-FOOT WIDE COVINGTON-TACOMA
TRANSMISSION LINE EASEMENT AS CONVEYED IN INSTRUMENTS RECORDED UNDER KING COUNTY
RECORDING NUMBERS 3137078, 3246546 AND 549805 AND AS SHOWN IN THAT RECORD OF SURVEY
RECORDED UNDER KING COUNTY RECORDING NUMBER 8007099001;
THENCE ALONG SAID NORTH MARGIN NORTH 61⁰06’12” EAST A DISTANCE OF 69.46 FEET TO THE EAST
RIGHT OF WAY MARGIN OF SAID FRONTAGE ROAD;
THENCE ALONG SAID EAST MARGIN PARALLEL WITH THE CENTERLINE OF STATE HIGHWAY SR-167
SOUTH 01⁰21’28” WEST A DISTANCE OF 612.31 FEET;
THENCE CONTINUING ALONG SAID EAST MARGIN THE FOLLOWING 3 COURSES:
SOUTH 86⁰28’00” EAST A DISTANCE OF 41.52 FEET;
SOUTH 03⁰32’00” WEST A DISTANCE OF 90.00 FEET;
NORTH 86⁰28’00” WEST A DISTANCE OF 38.10 FEET;
THENCE CONTINUING ALONG SAID EAST MARGIN PARALLEL WITH THE CENTERLINE OF STATE HIGHWAY
SR-167 SOUTH 01⁰21’28” WEST A DISTANCE OF 2357.55 FEET
THENCE CONTINUING ALONG SAID EAST MARGIN SOUTH 04⁰04’09” EAST A DISTANCE OF 553.61 FEET
TO THE POINT OF BEGINNING;
CONTAINING AN AREA OF 219,516 SQUARE FEET (5.04 ACRES), MORE OR LESS
Page 1 of 2
Page 11 of 213
TOGETHER WITH
THAT PORTION OF 29TH STREET NORTHWEST, BEING A RIGHT OF WAY 50.00 FEET IN WIDTH, SITUATED
IN THE NORTHEAST QUARTER OF THE SOUTHWEST QUARTER AND IN THE SOUTHEAST QUARTER OF THE
SOUTHWEST QUARTER OF SECTION 1, TOWNSHIP 21 NORTH, RANGE 4 EAST, WILLAMETTE MERIDIAN,
KING COUNTY, WASHINGTON, DESCRIBED AS FOLLOWS:
BEGINNING AT THE NORTHEAST CORNER OF LOT D, CITY OF AUBURN SHORT PLAT NUMBER SP-2-79
RECORDED UNDER KING COUNTY RECORDING NUMBER 7902141432 ALSO BEING A POINT ON THE
SOUTH RIGHT OF WAY MARGIN OF 29TH STREET NORTHWEST BEING THE SOUTH LINE OF THE NORTH
20.00 FEET OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SAID SECTION 1; THENCE
ALONG SAID SOUTH MARGIN SOUTH 86⁰28’00” EAST A DISTANCE OF 40.50 FEET;
THENCE NORTH 03⁰32’00” EAST A DISTANCE OF 50.00 FEET TO THE NORTH RIGHT OF WAY MARGIN OF
29TH STREET NORTHWEST ACCORDING TO THE PLAT OF CHRISTOPHER GARDEN TRACTS, VOLUME 23 OF
PLATS, PAGE 6, RECORDS OF KING COUNTY;
THENCE ALONG SAID NORTH MARGIN NORTH 86⁰28’00” WEST A DISTANCE OF 709.43 FEET TO THE
EAST RIGHT OF WAY MARGIN OF FRONTAGE ROAD ACCORDING TO GOVERNOR’S DEED RECORDED
UNDER RECORDING NUMBER 7402270280;
THENCE ALONG SAID EAST MARGIN OF FRONTAGE ROAD SOUTH 03⁰32’00” EAST A DISTANCE OF 50.00
FEET TO SAID SOUTH MARGIN OF 29TH STREET NORTHWEST;
THENCE ALONG SAID SOUTH MARGIN SOUTH 86⁰28’00” EAST A DISTANCE OF 668.938 FEET TO THE
POINT OF BEGINNING;
CONTAINING AN AREA OF 35,472 SQUARE FEET (0.81 ACRES), MORE OR LESS.
THE BASIS OF BEARINGS FOR THE ABOVE DESCRIPTIONS IS NORTH 01⁰21’28” EAST BEING THE
CALCULATED CENTERLINE OF SR-167 AS DETERMINED FROM ENGINEER’S STATION 598+60.63 TO
STATION 651+24.39 ACCORDING TO WSDOT PLANS SR-167 MP 13.66 to MP 17.42 AUBURN 17TH ST.
SW TO S. 285TH ST. SHEETS 7 AND 8 OF 14.
Page 2 of 2
03/17/2022
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03/08/2022Exhibit BPage 13 of 213
03/08/2022Page 14 of 213
03/08/2022Page 15 of 213
03/08/2022Page 16 of 213
03/08/2022
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May 18, 2022
VAC21-0003 Staff Report
RIGHT-OF-WAY VACATION
STAFF REPORT
Right-of-Way (ROW) Vacation Number VAC21-0003
Applicant: City Initiated
Property Location: Right-of-Way located M Street NW and 29th St NW, north of 15th
Street NW and east of SR-167.
Description of right-of-way:
This rights-of-way (ROW) proposed for vacation consists of M Street NW (Frontage
Road) being 60 feet in width, north of 15th Street NW to the south line of the BPA
Transmission Line easements, and 29th Street NW, being 50 feet in width, east of M St
NW to the approximate west bank of Mill Creek.
The M Street NW ROW proposed for vacation is bound by SR-167 adjacent on the west
side, Parcel No. 1580600090 adjacent on the north side, and Parcel Nos. 1580600090,
1580600091, 0121049034, 0121049014, 1221049005, and 1221049041 adjacent on
the east side. The total proposed vacation area of the M Street NW ROW is
approximately 219,516 square feet (5.04 acres).
The proposed vacation Area of M St NW became ROW when it was acquired by the
State for the construction of SR-167 through King County Superior Cause Nos. 718093
and 718254 and as depicted on WSDOT SR-167 Plans MP 13.66 to MP 17.42
AUBURN 17TH ST. SW to S. 285TH ST, Sheets 7 and 8 of 14, dated January 28, 1971.
This ROW area was subsequently conveyed to the City of Auburn from the State
through Governor’s Deed under King County Recording No. 7402270280, dated
February 6, 1974.
The 29th Street NW ROW proposed for vacation is bound by M Street NW on the west,
Parcel Nos.1580600090 and 1580600091 on the north, Parcel No. 0121049034 on the
south and the approximate west bank of Mill Creek on the east (15 feet west of the
existing bridge joint). The total proposed vacation area of the 29th Street NW ROW is
approximately 35,472 square feet (0.81 acres).
The north 30 feet of the proposed Vacation Area of 29th Street NW was dedicated for
public street and for public highway purposes by the Plat of Christopher Garden Tracts
Page 18 of 213
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May 18, 2022
VAC21-0003 Staff Report
on April 9, 1919, recorded in Vol. 23 of Plats at Page 6, Records of King County,
Washington.
The South 20 feet of the proposed Vacation Area of 29th Street NW appears to have
been acquired by King County as right-of-way sometime between the November 13,
1889, establishment of D. Shanker Road, County Road No. 254 and the April 9, 1919,
recording of the aforementioned Christopher Garden Tracts, which depicts the south 20
feet as existing ROW. Extensive Survey archival research and title company support
have yet to locate or acquire a recorded conveyance document for the south 20 feet as
ROW; however, in addition to the Christopher Garden Tracts plat, COA Short Plat 2-79
under KC Rec. No. 7902141432 and Records of Survey under KC Rec. Nos.
7903169012, 8007099001 and 20170110900009 depict the subject area as such. The
full ROW area, 50 feet in width, was subsequently acquired by the City of Auburn
through Annexation Ordinance 1913, passed June 6, 1966, and effective June 20,
1966.
See Exhibit “A” for legal description and survey.
Proposal:
The City is proposing that the ROW be vacated so that the road can be permanently
closed. The ROW provides access to properties and utilities that do not currently
require, or benefit from, general public access. Additionally, the ROW crossing Mill
Creek at the east boundary of the proposed vacation of 29th St NW is closed due to its
condition and provides no connectivity to the City street network for public access
benefit. The proposed ROW vacation area has been used to illegally dump inoperable
vehicles, trash and other waste material in, and adjacent to, the public right-of-way. The
illegal dumping has presented an on-going potential threat to the sensitive
environmental areas along the ROW as well as significant financial burden to the City
and adjacent property owners.
On January 18, 2022, City Council adopted Ordinance No. 6847 that modified Chapter
10.28 of the Auburn City Code to restrict the ROW to all vehicular and non-vehicular
traffic except for the purpose of accessing utilities and properties by their owners and
authorized guests in order to address illegal dumping issues. Subsequently, a locked
gate was installed across M Street NW to limit access to the ROW Vacation Area.
The proposed vacation of M St NW and 29th St NW, if approved, would turn the right-of-
way back into private property and it would attach to those adjacent parcels that are
entitled to receive it. This would allow property owners to better secure their properties
from unwanted trespassing, illegal dumping, and vandalism. After vacation, the roadway
surface within the vacated right of way area would be owned and maintained by the
property owners.
Page 19 of 213
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May 18, 2022
VAC21-0003 Staff Report
Applicable Policies & Regulations:
RCW’s applicable to this situation - meets requirements of RCW 35.79.
MUTCD standards - not affected by this proposal.
City Code or Ordinances - meets requirements of ACC 12.48.
Comprehensive Plan Policy - not affected.
City Zoning Code - not affected.
Public Benefit:
Adjacent property owners can secure their property from unwanted trespassing
and vandalism.
The street vacation decreases the right-of-way maintenance obligation of the
City, including cleanup and removal of abandoned vehicles and litter.
Vacated Right-of-Way areas typically have a financial benefit to the general
public because the vacated areas are subject to property taxes
Discussion:
The City initiated vacation proposal was circulated to Puget Sound Energy (PSE),
Tacoma Water, Comcast, CenturyLink, adjacent property owners, and City staff.
1. Puget Sound Energy (PSE) – Comments from PSE were received and PSE does
not have any existing facilities in the proposed vacation area and does not
require easements for such purposes. However, PSE does require an access
easement to serve their adjacent property through the proposed vacation area for
secondary emergency access to their substation.
2. Tacoma Water – Comments from Tacoma Water were received requesting an
easement be reserved for facilities currently located in the proposed vacation
area. Tacoma Water also requires an access easement to serve their adjacent
property through the proposed vacation area.
3. Comcast – Comments from Comcast were received and Comcast has no cable
system facilities in either the M St NW or the 29th St NW right-of-way vacation
areas. Comcast does not need an easement within the vacation areas for future
use.
4. CenturyLink – Comments from CenturyLink were received requesting an
easement be reserved for facilities currently located in the right-of-way.
5. WSDOT – No comments from WSDOT were received.
6. Engineering – Engineering supports the proposed vacation as the vacation area
provides no current or future connectivity to the City’s transportation network and
vacating the area may support protection of environmentally sensitive areas
adjacent to the vacation area (Mill Creek).
7. Transportation – An easement will need to be retained across the proposed
vacation area for two existing street lights, including street light conduits and
power cabinet.
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May 18, 2022
VAC21-0003 Staff Report
8. Planning – Planning has no comments and supports the proposed vacation.
9. Water – An easement will need to be retained across the proposed vacation area
for existing water facilities.
10. Sewer – An easement will need to be retained across the proposed vacation
area for existing sewer facilities.
11. Storm – An easement will need to be retained across the proposed vacation area
for existing storm facilities.
12. Fire – No comments.
13. Solid Waste – Solid Waste has no comments and supports the proposed
vacation.
14. Police – No comments.
15. Streets – No comments.
16. Construction – Construction has no comments and supports the proposed
vacation.
17. Innovation and Technology – No comments
Assessed Value:
ACC 12.48 states: “The city council may require as a condition of the ordinance that the
city be compensated for the vacated right-of-way in an amount which does not exceed
one-half the value of the right-of-way so vacated, except in the event the subject
property or portions thereof were acquired at public expense or have been part of a
dedicated public right-of-way for 25 years or more, compensation may be required in an
amount equal to the full value of the right-of-way being vacated. The city engineer shall
estimate the value of the right-of-way to be vacated based on the assessed values of
comparable properties in the vicinity. If the value of the right-of-way is determined by
the city engineer to be greater than $2,000, the applicant will be required to provide the
city with an appraisal by an MAI appraiser approved by the city engineer, at the
expense of the applicant. The city reserves the right to have a second appraisal
performed at the city’s expense.”
RCW 35.79.030 states the vacation “shall not become effective until the owners of
property abutting upon the street or alley, or part thereof so vacated, shall compensate
such city or town in an amount which does not exceed one-half the appraised value of
the area so vacated. If the street or alley has been part of a dedicated public right-of-
way for twenty-five years or more, or if the subject property or portions thereof were
acquired at public expense, the city or town may require the owners of the property
abutting the street or alley to compensate the city or town in an amount that does not
exceed the full appraised value of the area vacated.”
An appraisal of the proposed vacation area was not required as the ROW Vacation is
City initiated.
Recommendation:
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5 of 5
May 18, 2022
VAC21-0003 Staff Report
Staff recommends that the street vacation be granted subject to the following
conditions:
1. An easement shall be reserved for City Water, Sewer, Stormwater and Street
Lighting facilities, including street light conduits and power cabinets.
2. An easement shall be reserved for Tacoma Water facilities.
3. An easement shall be reserved for CenturyLink telecommunications facilities.
4. An access easement shall be reserved for all parcels abutting the right-of-way.
5. That the existing roadway surface in the vacated right-of-way area be jointly
owned and maintained by those persons entitled to receive the property lying
within the vacated right-of-way, in accordance with RCW 35.79.040.
6. That compensation for the right-of-way not be required as the City is initiating the
vacation.
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AGENDA BILL APPROVAL FORM
Agenda Subject:
Ordinance No. 6862 (Gaub) (10 Minutes)
Date:
June 8, 2022
Department:
Public Works
Attachments:
Ordinance No. 6862
Exhibit A
Presentation Slides
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrative Recommendation:
For discussion only.
Background for Motion:
Background Summary:
Ordinance No. 6862 authorizes the Mayor to execute a Street Payback Agreement for half-
street improvements between the City of Auburn and Inland Washington, LLC. Inland
Washington, LLC has constructed half-street improvements along D Street NE between 49th
Street NE and Auburn Way N, which benefit three properties. The improvements include
pavement, curb and gutter, sidewalk, street lighting, and storm drainage. If these properties
were to undertake certain development activity, as defined by Auburn City Code 12.64A, they
would trigger the requirement to construct these half-street improvements built by Inland
Washington, LLC along their frontages.
Inland Washington, LLC has requested a Payback Agreement from the City. The Payback
agreement would allow the developer to recover partial costs related to the design and
construction of the half-street improvements if, and when, the benefited properties undertake
development activity that would have triggered the requirement to construction half-street
improvements. The proposed agreement will be reviewed by Council at the June 13, 2022
Council Study Session.
City staff has notified the owners of the benefited properties of the payback agreement and
the public hearing on June 21, 2022.
Reviewed by Council Committees:
Councilmember:Stearns Staff:Gaub
Meeting Date:June 13, 2022 Item Number:
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--------------------------------
Ordinance No. 6862
June 8, 2022
Page 1 of 3 Rev. 2019
ORDINANCE NO. 6862
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO
EXECUTE A PAYBACK AGREEMENT FOR HALF-STREET
IMPROVEMENTS BETWEEN THE CITY OF AUBURN AND
INLAND WASHINGTON, LLC
WHEREAS, Chapter 13.40 of the Auburn City Code (ACC) authorizes the City
Engineer to develop, implement, and administer facility extension agreements for
transportation improvements; and
WHEREAS, Chapter 3.25 of the ACC authorizes the City Engineer to review and
approve applications for public street improvement payback agreements, subject to
Council approval; and
WHEREAS, pursuant to ACC 13.40, the City received and approved plans from
Inland Washington, LLC (Inland) for the construction of certain public street transportation
improvements. Inland constructed the improvements and has agreed to deed them to
the City; and
WHEREAS, Inland applied to the City for a payback agreement in connection with
the constructed improvements. The City Engineer reviewed Inland’s application and
determined that Inland’s constructed improvements are eligible for a payback agreement.
A proposed payback agreement for the constructed improvements is attached as Exhibit
A to this Ordinance; and
WHEREAS, among other terms and conditions, Exhibit A establishes the
assessment reimbursement area, determines the amount of the reimbursement
assessment to be charged to each lot, tract or parcel, and provides for the payment and
collection of assessments; and
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--------------------------------
Ordinance No. 6862
June 8, 2022
Page 2 of 3 Rev. 2019
WHEREAS, following required notice to each owner of record within the proposed
payback agreement’s reimbursement area, the City Council conducted a public hearing
to consider approving this ordinance and the payback agreement in Exhibit A; and
WHEREAS, the City Council finds that entering the payback agreement is in the
best interest of the City.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as a non-codified ordinance as follows:
Section 1. The Mayor is authorized to execute a Payback Agreement with
Inland Washington, LLC. The agreement shall substantially conform to Exhibit A.
Section 2. Implementation. The Mayor is authorized to implement those
administrative procedures necessary to carry out the directives of this legislation.
Section 3. Severability. The provisions of this ordinance are declared to be
separate and severable. The invalidity of any clause, sentence, paragraph, subdivision,
section, or portion of this ordinance, or the invalidity of the application of it to any person
or circumstance, will not affect the validity of the remainder of this ordinance, or the validity
of its application to other persons or circumstances.
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--------------------------------
Ordinance No. 6862
June 8, 2022
Page 3 of 3 Rev. 2019
Section 4. Effective date. This Ordinance will take effect and be in force five
days from and after its passage, approval, and publication as provided by law.
INTRODUCED: _______________
PASSED: ____________________
APPROVED: _________________
____________________________
NANCY BACKUS, MAYOR
ATTEST:
____________________________
Shawn Campbell, MMC, City Clerk
APPROVED AS TO FORM:
____________________________
Kendra Comeau, City Attorney
Published: ____________________
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Exhibit A
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AGENDA BILL APPROVAL FORM
Agenda Subject:
Ordinance No. 6863 (Gaub) (10 Minutes)
Date:
June 8, 2022
Department:
Public Works
Attachments:
Ordinance No. 6863
Exhibit A
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrative Recommendation:
For discussion only.
Background for Motion:
Background Summary:
Ordinance No. 6863 authorizes the Mayor to execute a Street Payback Agreement for a
Traffic Signal between the City of Auburn and Inland Washington, LLC.
Inland Washington, LLC has constructed a traffic signal at the intersection of 49th Street NE
and Auburn Way N. This traffic signal improves access to other properties which, when
developed or re-developed, will benefit from this improvement.
Inland Washington, LLC has requested a Payback Agreement from the City. The Payback
agreement would allow the developer to recover partial costs related to the design and
construction of the traffic signal when the benefited properties undertake development activity
that generates vehicular traffic or “trips” at the traffic signal. The proposed agreement will be
reviewed at the June 13, 2022 Council Study Session.
City staff has notified the owners of the benefited properties of the payback agreement and
the public hearing on June 21, 2022.
See Ordinance No. 6862 to view the presentation file.
Reviewed by Council Committees:
Councilmember:Stearns Staff:Gaub
Meeting Date:June 13, 2022 Item Number:
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--------------------------------
Ordinance No. 6863
June 8, 2022
Page 1 of 3 Rev. 2019
ORDINANCE NO. 6863
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AUTHORIZING THE MAYOR TO
EXECUTE A PAYBACK AGREEMENT FOR A TRAFFIC
SIGNAL BETWEEN THE CITY OF AUBURN AND INLAND
WASHINGTON, LLC
WHEREAS, Chapter 13.40 of the Auburn City Code (ACC) authorizes the City
Engineer to develop, implement, and administer facility extension agreements for
transportation improvements; and
WHEREAS, Chapter 3.25 of the ACC authorizes the City Engineer to review and
approve applications for public street improvement payback agreements, subject to
Council approval; and
WHEREAS, pursuant to ACC 13.40, the City received and approved plans from
Inland Washington, LLC (Inland) for the construction of certain public street transportation
improvements. Inland constructed the improvements and has agreed to deed them to
the City; and
WHEREAS, Inland applied to the City for a payback agreement in connection with
the constructed improvements. The City Engineer reviewed Inland’s application and
determined that Inland’s constructed improvements are eligible for a payback agreement.
A proposed payback agreement for the constructed improvements is attached as Exhibit
A to this Ordinance; and
WHEREAS, among other terms and conditions, Exhibit A establishes the
assessment reimbursement area, determines the amount of the reimbursement
assessment to be charged to each lot, tract or parcel, and provides for the payment and
collection of assessments; and
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--------------------------------
Ordinance No. 6863
June 8, 2022
Page 2 of 3 Rev. 2019
WHEREAS, following required notice to each owner of record within the proposed
payback agreement’s reimbursement area, the City Council conducted a public hearing
to consider approving this ordinance and the payback agreement in Exhibit A; and
WHEREAS, the City Council finds that entering the payback agreement is in the
best interest of the City.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as a non-codified ordinance as follows:
Section 1. The Mayor is authorized to execute a Payback Agreement with
Inland Washington, LLC. The agreement shall substantially conform to Exhibit A.
Section 2. Implementation. The Mayor is authorized to implement those
administrative procedures necessary to carry out the directives of this legislation.
Section 3. Severability. The provisions of this ordinance are declared to be
separate and severable. The invalidity of any clause, sentence, paragraph, subdivision,
section, or portion of this ordinance, or the invalidity of the application of it to any person
or circumstance, will not affect the validity of the remainder of this ordinance, or the validity
of its application to other persons or circumstances.
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--------------------------------
Ordinance No. 6863
June 8, 2022
Page 3 of 3 Rev. 2019
Section 4. Effective date. This Ordinance will take effect and be in force five
days from and after its passage, approval, and publication as provided by law.
INTRODUCED: _______________
PASSED: ____________________
APPROVED: _________________
____________________________
NANCY BACKUS, MAYOR
ATTEST:
____________________________
Shawn Campbell, MMC, City Clerk
APPROVED AS TO FORM:
____________________________
Kendra Comeau, City Attorney
Published: ____________________
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Exhibit A
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AGENDA BILL APPROVAL FORM
Agenda Subject:
Ordinance No. 6860 (Thomas) (20 Minutes)
Date:
June 8, 2022
Department:
Finance
Attachments:
Ordinance No. 6860
Ordinance No. 6860 Exhibit
Budget Impact:
Administrative Recommendation:
For discussion only.
Background for Motion:
Background Summary:
In May 2021 the Auburn City Council adopted ACC 3.53 Business and Occupation Tax, which
first became effective in January 1, 2022. In the time between initial adoption, business
community outreach, and the first tax returns which were due April 30, 2022, there have been
several clarifying questions. This amendment provides clarity for several sections within ACC
3.53, including more definitions (such as "adult family homes", "consumer", "gross receipts", and
"hospital" and "warehouse"); tax reporting guidelines for operations in multiple locations; clarity
over tax due for gross receipts versus square footage; and clarifications on certain exemptions
(hospitals, school districts, and fire district activities).
Reviewed by Council Committees:
Councilmember:Baggett Staff:Thomas
Meeting Date:June 13, 2022 Item Number:
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Ordinance No. 6860
June 9, 2022
Page 1 of 2
ORDINANCE NO. 6860
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AMENDING SECTIONS WITHIN
CHAPTER 3.53 RELATED TO CITY BUSINESS AND
OCCUPATION (B&O) TAX, CLARIFYING DEFINITIONS,
TAXPAYER CLASSIFICATIONS, AND TAX EXEMPTIONS
WHEREAS, in 2021 the City enacted its business and occupations (B&O) tax code
(ACC 3.53);
WHEREAS, prior to and since the enactment of ACC 3.53, the City has engaged in
outreach efforts with the business community and potential City business taxpayers in preparing
to implement the taxation requirements of ACC 3.53;
WHEREAS, the City has determined based on this outreach that certain sections within
ACC 3.53 should be amended in the following ways:
• To define additional terms in the code (such as “adult family homes,” “consumer,”
“gross receipts,” “hospital,” and “warehouse”) that will assist taxpayers in determining
and calculating their City B&O tax liability;
• To clarify the appropriate City B&O tax classifications for City businesses that
operate in multiple locations;
• To clarify when businesses will be subject to City B&O tax based on operating space
square footage instead of on gross receipts;
• To further specify organizations or activities that are exempt from the City’s B&O tax
(such as nonprofit hospitals, or certain school district or fire district activities);
• To address the City B&O tax liability of persons or businesses entering the City’s
jurisdiction through annexation; and
• To make additional needed technical revisions and corrections to the code;
WHEREAS, these revisions to ACC 3.53 will enable greater clarity and precision in the
administration and implementation of the City’s B&O tax code, and they are in the best interest
of the City, its business community and its B&O taxpayers.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON,
DO ORDAIN as follows:
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--------------------------------
Ordinance No. 6860
June 9, 2022
Page 2 of 2
Section 1. Amendment to City Code. Chapter 3.53 of the Auburn City Code is
amended to read as set forth on Exhibit A to this Ordinance.
Section 2. Implementation. The Mayor is authorized to implement those
administrative procedures necessary to carry out the directives of this legislation.
Section 3. Severability. The provisions of this ordinance are declared to be separate
and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion
of this ordinance, or the invalidity of the application of it to any person or circumstance, will not
affect the validity of the remainder of this ordinance, or the validity of its application to other
persons or circumstances.
Section 4. Effective date. This Ordinance will take effect and be in force five days
from and after its passage, approval, and publication as provided by law.
INTRODUCED: _______________
PASSED: ____________________
APPROVED: _________________
____________________________
NANCY BACKUS, MAYOR
ATTEST:
____________________________
Shawn Campbell, MMC, City Clerk
APPROVED AS TO FORM:
____________________________
Kendra Comeau, City Attorney
Published: ____________________
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EXHIBIT A – ORDINANCE NO. 6860
ACC 3.53.020 Definitions.
In construing the provisions of this chapter, the following definitions shall be applied.
Words in the singular number shall include the plural, and the plural shall include the
singular.
A. Adult Family Home.
“Adult family home” means a residential home licensed by the Washington State
Department of Social and Heath Services pursuant to RCW 70.128 in which a person or
persons provides personal care, special care, room and board to more than 1 but not
more than 6 adults who are not related by blood or marriage to the person or persons
providing the services.
B. “Advance,” “reimbursement.”
1. “Advance” means money or credits a taxpayer receives from a customer or client for
the purpose of paying costs or fees on behalf of the customer or client.
2. “Reimbursement” means money or credits a taxpayer receives from a customer or
client to repay the taxpayer for money or credits expended by the taxpayer in payment
of costs or fees of the customer or client.
C. Agricultural Product, Farmer.
1. “Agricultural product” means any product of plant cultivation or animal husbandry
including, but not limited to: a product of horticulture, grain cultivation, vermiculture,
viticulture, or aquaculture as defined in RCW 15.85.020; plantation Christmas trees; turf;
or any animal including but not limited to an animal that is a private sector cultured
aquatic product as defined in RCW 15.85.020, or a bird, or insect, or the substances
obtained from such animal. “Agricultural product” does not include animals intended to
be pets, marijuana, or marijuana-infused products as defined by RCW 69.50.101(y) and
(ff).
2. “Farmer” means any person engaged in the business of growing or producing, upon
the person’s own lands or upon lands in which the person has a present right of
possession, any agricultural product whatsoever for sale. “Farmer” does not include a
person using such products as ingredients in a manufacturing process, or a person
growing or producing such products for the person’s own consumption. “Farmer” does
not include a person selling any animal or substance obtained therefrom in connection
with the person’s business of operating a stockyard or a slaughter or packing house.
“Farmer” does not include any person in respect to the business of taking, cultivating, or
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raising timber. “Farmer” does not include any person engaged in the business of
growing, producing, processing, selling or distributing marijuana.
BD. Artistic or Cultural Organization.
1. The term “artistic or cultural organization” means an organization which is organized
and operated exclusively for the purpose of providing artistic or cultural exhibitions,
presentations, or performances or cultural or art education programs, as defined in
paragraph subsection (BD)(10) of this subsection, for viewing or attendance by the
general public.
2. The organization must be a not-for-profit corporation under Chapter 24.03 RCW.
3. The organization must be managed by a governing board of not less than eight
individuals none of whom is a paid employee of the organization or by a corporation
sole under Chapter 24.12 RCW.
4. No part of its income may be paid directly or indirectly to its members, stockholders,
officers, directors, or trustees except in the form of services rendered by the corporation
in accordance with its purposes and bylaws.
5. Salary or compensation paid to its officers and executives must be only for actual
services rendered, and at levels comparable to the salary or compensation of like
positions within the state.
6. Assets of the organization corporation must be irrevocably dedicated to the activities
for which the exemption is granted and, on the liquidation, dissolution, or abandonment
by the organization corporation, may not inure directly or indirectly to the benefit of any
member or individual except a nonprofit organization, association, or corporation which
also would be entitled to the exemption.
7. The organization corporation must be duly licensed or certified when licensing or
certification is required by law or regulation.
8. The amounts received that qualify for exemption must be used for the activities for
which the exemption is granted.
9. Services must be available regardless of race, color, national origin, ancestry,
religion, age, sex, marital status, Vietnam or disabled veteran status, sexual orientation,
or the presence of any mental or physical disability.
10. The term “artistic or cultural exhibitions, presentations, or performances or cultural
or art education programs” is limited to:
a. An exhibition or presentation of works of art or objects of cultural or historical
significance, such as those commonly displayed in art or history museums;
b. A musical or dramatic performance or series of performances; or
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c. An educational seminar or program, or series of such programs, offered by the
organization to the general public on an artistic, cultural, or historical subject.
E. "Assisted living facility" means any home or other institution, however named, which
is advertised, announced, or maintained for the express or implied purpose of providing
housing, basic services, and assuming general responsibility for the safety and well-
being of the residents, and may also provide domiciliary care. Assisted living facility"
shall not include facilities certified as group training homes pursuant to RCW
71A.22.040, nor any home, institution or section thereof which is otherwise licensed and
regulated under the provisions of state law providing specifically for the licensing and
regulation of such home, institution or section thereof. Nor shall it include any
independent senior housing, independent living units in continuing care retirement
communities, or other similar living situations including those subsidized by the
department of housing and urban development.
CF. “Business” includes all activities engaged in with the object of gain, benefit, or
advantage to the taxpayer or to another person or class, directly or indirectly.
DG. “Business and occupation tax” or “gross receipts tax” means a tax imposed on or
measured by the value of products, the gross income of the business, or the gross
proceeds of sales, as the case may be, and that is the legal liability of the business.
H. “City” means the City of Auburn, Washington.
EI. “Commercial or industrial use” means the following uses of products, including by-
products, by the extractor or manufacturer thereof:
1. Any use as a consumer; and
2. The manufacturing of articles, substances or commodities.
J. “Competitive telephone service” means the providing by any person of
telecommunications equipment or apparatus, or service related to that equipment or
apparatus such as repair or maintenance service, if the equipment or apparatus is of a
type which can be provided by persons that are not subject to regulation as telephone
companies under Title 80 RCW and for which a separate charge is made.
K. “Consumer” means the following:
1. Any person who purchases, acquires, owns, holds, or uses any tangible or
intangible personal property irrespective of the nature of the person’s business.
“Consumer” includes, among others and without limiting its scope, persons who
install, repair, clean, alter, improve, construct, or decorate real or personal property
of or for a consumer other than for the purpose of:
a. Resale as tangible or intangible personal property in the regular course of
business;
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b. Incorporating such property as an ingredient or component of real or personal
property when installing, repairing, cleaning, altering, imprinting, improving,
constructing, or decorating such real or personal property of or for consumers;
c. Incorporating such property as an ingredient or component of a new product or as
a chemical used in processing a new product when the primary purpose of such
chemical is to create a chemical reaction directly through contact with an ingredient
of a new product; or
d. Consuming the property in producing ferrosilicon which is subsequently used in
producing magnesium for sale, if the primary purpose of such property is to create a
chemical reaction directly through contact with an ingredient of ferrosilicon;
2. Any person engaged in any business activity that is taxable under ACC 3.53.040;
3. Any person who purchases, acquires, or uses any competitive telephone service
as herein defined, other than for resale in the regular course of business;
4. Any person who purchases, acquires, or uses any personal, business, or
professional service defined as a retail sale or retail service in Section 3.53.020,
other than for resale in the regular course of business;
5. Any person who is an end user of software;
6. Any person engaged in the business of “public road construction” with respect to
tangible personal property when that person incorporates the tangible personal
property as an ingredient or component of a publicly-owned street, place, road,
highway, easement, right-of-way, mass public transportation terminal or parking
facility, bridge, tunnel, or trestle by installing, placing, or spreading the property in or
upon the right-of-way of a publicly-owned street, place, road, highway, easement,
bridge, tunnel, or trestle, or in or upon the site of a publicly-owned mass public
transportation terminal or parking facility;
7. Any person who is an owner, lessee, or has the right of possession to or an
easement in real property which is being constructed, repaired, decorated,
improved, or otherwise altered by a person engaged in business;
8. Any person who is an owner, lessee, or has the right of possession to personal
property which is being constructed, repaired, improved, cleaned, imprinted, or
otherwise altered by a person engaged in business; or
9. Any person engaged in “government contracting.” Any such person shall be a
consumer within the meaning of this subsection with respect to tangible personal
property incorporated into, installed in, or attached to such building or other
structure by such person. Nothing contained in this or any other subsection of this
section shall be construed to modify any other definition of “consumer.”
FL. “Delivery” means the transfer of possession of tangible personal property between
the seller and the buyer or the buyer’s representative. Delivery to an employee of a
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buyer is considered delivery to the buyer. Transfer of possession of tangible personal
property occurs when the buyer or the buyer’s representative first takes physical control
of the property or exercises dominion and control over the property. “Dominion and
control” means the buyer has the ability to put the property to the buyer’s own purposes.
It means the buyer or the buyer’s representative has made the final decision to accept
or reject the property, and the seller has no further right to possession of the property
and the buyer has no right to return the property to the seller, other than under a
warranty contract. A buyer does not exercise dominion and control over tangible
personal property merely by arranging for shipment of the property from the seller to
itself. A buyer’s representative is a person, other than an employee of the buyer, who is
authorized in writing by the buyer to receive tangible personal property and take
dominion and control by making the final decision to accept or reject the property.
Neither a shipping company nor a seller can serve as a buyer’s representative. It is
immaterial where the contract of sale is negotiated or where the buyer obtains title to
the property. Delivery terms and other provisions of the Uniform Commercial Code
(RCW Title 62A) do not determine when or where delivery of tangible personal property
occurs for purposes of taxation.
GM. “Director” means the finance director of the city or any officer, agent or employee
of the city designated to act on the director’s behalf.
HN. “Digital automated service,” “digital code” and “digital goods” have the same
meaning as in RCW 82.04.192.
IO. “Digital products” means digital goods, digital codes, digital automated services,
and the services described in RCW 82.04.050(2)(q) and (6)(b).
JP. Eligible Gross Receipts Tax. The term “eligible gross receipts tax” means a tax
which:
1. Is imposed on the act or privilege of engaging in business activities within section
ACC 3.53.040; and
2. Is measured by the gross volume of business, in terms of gross receipts, and is not
an income tax or value added tax; and
3. Is not, pursuant to law or custom, separately stated from the sales price; and
4. Is not a sales or use tax, business license fee, franchise fee, royalty or severance tax
measured by volume or weight, or concession charge, or payment for the use and
enjoyment of property, property right or a privilege; and
5. Is a tax imposed by a local jurisdiction, whether within or without the state of
Washington, and not by a country, state, province, or any other nonlocal jurisdiction
above the county level.
KQ. Engaging in Business.
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1. The term “engaging in business” means commencing, conducting, or continuing in
business, and also the exercise of corporate or franchise powers, as well as liquidating
a business when the liquidators thereof hold themselves out to the public as conducting
such business.
2. This subsection sets forth examples of activities that constitute engaging in business
in the city, and establishes safe harbors for certain of those activities so that a person
who meets the criteria may engage in de minimis business activities in the city without
having to register and obtain a business license or pay city business and occupation
taxes. The activities listed in this section are illustrative only and are not intended to
narrow the definition of “engaging in business” in subsection (KQ)(1) of this section. If
an activity is not listed, whether it constitutes engaging in business in the city shall be
determined by considering all the facts and circumstances and applicable law.
3. Without being all inclusive, any one of the following activities conducted within the
city by a person, or its employee, agent, representative, independent contractor, broker
or another acting on its behalf constitutes engaging in business and requires a person
to register and obtain a business license:
a. Owning, renting, leasing, maintaining, or having the right to use, or using, tangible
personal property, intangible personal property, or real property permanently or
temporarily located in the city.
b. Owning, renting, leasing, using, or maintaining an office, place of business, or other
establishment in the city.
c. Soliciting sales.
d. Making repairs or providing maintenance or service to real or tangible personal
property, including warranty work and property maintenance.
e. Providing technical assistance or service, including quality control, product
inspections, warranty work, or similar services on or in connection with tangible
personal property sold by the person or on its behalf.
f. Installing, constructing, or supervising installation or construction of, real or tangible
personal property.
g. Soliciting, negotiating, or approving franchise, license, or other similar agreements.
h. Collecting current or delinquent accounts.
i. Picking up and transporting tangible personal property, solid waste, construction
debris, or excavated materials.
j. Providing disinfecting and pest control services, employment and labor pool services,
home nursing care, janitorial services, appraising, landscape architectural services,
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security system services, surveying, and real estate services including the listing of
homes and managing real property.
k. Rendering professional services such as those provided by accountants, architects,
attorneys, auctioneers, consultants, engineers, professional athletes, barbers, baseball
clubs and other sports organizations, chemists, psychologists, court reporters, dentists,
doctors, detectives, laboratory operators, teachers, veterinarians.
l. Meeting with customers or potential customers, even when no sales or orders are
solicited at the meetings.
m. Training or recruiting agents, representatives, independent contractors, brokers or
others, domiciled or operating on a job in the city, acting on its behalf, or for customers
or potential customers.
n. Investigating, resolving, or otherwise assisting in resolving customer complaints.
o. In-store stocking or manipulating products or goods, sold to and owned by a
customer, regardless of where sale and delivery of the goods took place.
p. Delivering goods in vehicles owned, rented, leased, used, or maintained by the
person or another person acting on its behalf.
4. If a person, or theirits employee, agent, representative, independent contractor,
broker or another acting on the person’s behalf, engages in no other activities in or with
the city but the following, it need not register and obtain a business license and pay tax:
a. Meeting with suppliers of goods and services as a customer.
b. Meeting with government representatives in their official capacity, other than those
performing contracting or purchasing functions.
c. Attending meetings, such as board meetings, retreats, seminars, and conferences,
or other meetings wherein the person does not provide training in connection with
tangible personal property sold by the person or on its behalf. This provision does not
apply to any board of directors member or attendee engaging in business such as a
member of a board of directors who attends a board meeting.
d. Renting tangible or intangible property as a customer when the property is not used
in the city.
e. Attending, but not participating in a “trade show” or “multiple vendor events.” Persons
participating at a trade show shall review Chapter 2.23 ACC, Special Event Permits.
f. Conducting advertising through the mail.
g. Soliciting sales by phone from a location outside the city.
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5. A seller located outside the city merely delivering goods into the city by means of
common carrier is not required to register and obtain a business license; provided, that
it engages in no other business activities in the city. Such activities do not include those
in subsection (KQ)(4) of this section.
6. The city expressly intends that engaging in business include any activity sufficient to
establish nexus for purposes of applying the tax under the law and the constitutions of
the United States and the state of Washington. Nexus is presumed to continue as long
as the taxpayer benefits from the activity that constituted the original nexus-generating
contact or subsequent contacts.
LR. “Extracting” is the activity engaged in by an extractor and is reportable under the
extracting classification.
MS. “Extractor” means every person who from the person’s own land or from the land
of another under a right or license granted by lease or contract, either directly or by
contracting with others for the necessary labor or mechanical services, for sale or for
commercial or industrial use, mines, quarries, takes or produces coal, oil, natural gas,
ore, stone, sand, gravel, clay, mineral or other natural resource product; or fells, cuts or
takes timber, Christmas trees, other than plantation Christmas trees, or other natural
products; or takes fish, shellfish, or other sea or inland water foods or products.
“Extractor” does not include persons performing under contract the necessary labor or
mechanical services for others; or persons meeting the definition of farmer.
NT. “Extractor for hire” means a person who performs under contract necessary labor
or mechanical services for an extractor.
OU. “Gross income of the business” means the value proceeding or accruing by reason
of the transaction of the business engaged in and includes gross proceeds of sales,
compensation for the rendition of services, gains realized from trading in stocks, bonds,
or other evidences of indebtedness, interest, discount, rents, royalties, fees,
commissions, dividends, and other emoluments however designated, all without any
deduction on account of the cost of tangible property sold, the cost of materials used,
labor costs, interest, discount, delivery costs, taxes, or any other expense whatsoever
paid or accrued and without any deduction on account of losses.
PV. “Gross proceeds of sales” means the value proceeding or accruing from the sale of
tangible personal property, digital goods, digital codes, digital automated services or for
other services rendered, without any deduction on account of the cost of property sold,
the cost of materials used, labor costs, interest, discount paid, delivery costs, taxes, or
any other expense whatsoever paid or accrued and without any deduction on account of
losses.
W. “Gross receipts” has the same meaning as gross income.
X. "Hospital" means any institution, place, building, or agency which provides
accommodations, facilities and services over a continuous period of 24 hours or more,
for observation, diagnosis, or care, of two or more individuals not related to the operator
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who are suffering from illness, injury, deformity, or abnormality, or from any other
condition for which obstetrical, medical, or surgical services would be appropriate for
care or diagnosis. "Hospital" as used in this chapter does not include hotels, or similar
places furnishing only food and lodging, or simply domiciliary care; nor does it include
clinics, or physician's offices where patients are not regularly kept as bed patients for
twenty-four hours or more; nor does it include nursing homes, as defined and which
come within the scope of chapter 18.51 RCW; nor does it include birthing centers, which
come within the scope of chapter 18.46 RCW; nor does it include psychiatric hospitals,
which come within the scope of chapter 71.12 RCW; nor any other hospital, or
institution specifically intended for use in the diagnosis and care of those suffering from
mental illness, intellectual disability, convulsive disorders, or other abnormal mental
condition. Furthermore, nothing in this chapter or the rules adopted pursuant thereto
shall be construed as authorizing the supervision, regulation, or control of the remedial
care or treatment of residents or patients in any hospital conducted for those who rely
primarily upon treatment by prayer or spiritual means in accordance with the creed or
tenets of any well recognized church or religious denominations.
Y. “International Investment management services.”
1. “International investment management services” includes investment research,
investment consulting, fund administration, fund distribution, investment transactions, or
related investment services provided to persons for or on behalf of a collective
investment fund. A person is considered to be engaged in providing international
investment management services if such person is providing investment management
services and/or is a member of an affiliated group (as defined by RCW 82.04.293(2)(b))
primarily in the business of providing investment management services to collective
investment funds, and at least 15% of the gross income of the person and/or affiliated
group is derived from providing investment management services to any of the
following:
a. Persons or collective investment funds residing outside the United States; or
b. Collective investment funds with at least 50% of their investment assets located
or issued outside the United States.
2. For the purpose of this section, “collective investment fund” includes:
a. A mutual fund or other regulated investment company as defined in 26 U.S.C.
§851(a), as now enacted or hereafter amended;
b. An investment company, as defined in 15 U.S.C. §80a-3 (as now enacted or
hereafter amended), as well as any entity that would be an investment company for
this purpose but for the exemptions contained in 15 U.S.C. §80a-3;
c. An employee benefit plan, which includes any plan, trust, commingled employee
benefit trust, or custodial arrangement that is subject to 29 U.S.C. §§1001 et. seq.,
or that is described in 26 U.S.C. §§125, 401, 403, 408, 457, 501(c)(9), and 501(17)-
(23), or a similar plan maintained by a state or local government, or a plan trust, or
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custodial arrangement established to self-insure benefits required by federal, state,
or local law;
d. A fund maintained by a tax-exempt organization, as defined in 26 U.S.C.
§501(c)(3) for operating, quasi-endowment, or endowment purposes;
e. Funds that are established for the benefit of such tax exempt organizations, such
as charitable remainder trusts, charitable lead trusts, charitable annuity trusts, or
other similar trusts; or
f. Collective investment funds similar to those described in paragraphs (2)(a)-(e) of
this subsection created under the laws of a foreign jurisdiction.
Z. “Liquor” shall have the same meaning as RCW 66.04.010.
QAA. “Manufacturing” means the activity conducted by a manufacturer and is reported
under the manufacturing classification.
RBB. Manufacturer, To Manufacture.
1. “Manufacturer” means every person who, either directly or by contracting with others
for the necessary labor or mechanical services, manufactures for sale or for commercial
or industrial use from the person’s own materials or ingredients any products. When the
owner of equipment or facilities furnishes, or sells to the customer prior to manufacture,
materials or ingredients equal to less than 20% percent of the total value of all materials
or ingredients that become a part of the finished product, the owner of the equipment or
facilities will be deemed to be a processor for hire, and not a manufacturer. A business
not located in this city that is the owner of materials or ingredients processed for it in this
city by a processor for hire shall be deemed to be engaged in business as a
manufacturer in this city.
2. “To manufacture” means all activities of a commercial or industrial nature wherein
labor or skill is applied, by hand or machinery, to materials or ingredients so that as a
result thereof a new, different or useful product is produced for sale or commercial or
industrial use, and shall include:
a. The production of special made or custom made articles;
b. The production of dental appliances, devices, restorations, substitutes, or other
dental laboratory products by a dental laboratory or dental technician;
c. Crushing and/or blending of rock, sand, stone, gravel, or ore; and
d. The producing of articles for sale, or for commercial or industrial use from raw
materials or prepared materials by giving such materials, articles, and substances of
trade or commerce new forms, qualities, properties or combinations including, but not
limited to, such activities as making, fabricating, processing, refining, mixing,
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slaughtering, packing, aging, curing, mild curing, preserving, canning, and the preparing
and freezing of fresh fruits and vegetables.
“To manufacture” shall not include the production of digital goods or the production of
computer software if the computer software is delivered from the seller to the purchaser
by means other than tangible storage media, including the delivery by use of a tangible
storage media where the tangible storage media is not physically transferred to the
purchaser.
CC. “Newspaper,” “magazine,” “periodical.”
1. “Newspaper” means a publication offered for sale regularly at stated intervals at
least once per week and printed on newsprint in tabloid or broadsheet format folded
loosely together without stapling, glue, or any other binding of any kind.
2. “Magazine” or “periodical” means any printed publication, other than a
newspaper, issued and offered for sale regularly at stated intervals at least once
every three months, including any supplement or special edition of the publication.
Any publication meeting this definition qualifies regardless of its content.
DD. “Office” or “place of business” means a fixed location or permanent facility where
the regular business of the person is conducted and which is either owned by the
person or over which the person exercises legal dominion and control. The regular
business of the person is presumed conducted at a location:
1. Whose address the person uses as their business mailing address; and
2. Where the place of primary use is shown on a telephone billing or a location
containing a telephone line, listed in a public telephone directory or other similar
publication, under the business name; and
3. Where the person holds themselves out to the general public as conducting
regular business through signage or other means; and
4. Where the person is required to obtain any appropriate state and local business
license or registration unless the person is exempted by law from such requirement.
A vehicle such as a pick-up, van, truck, boat or other motor vehicle is not an office
or place of business. A post office box is not an office or place of business.
If a person has an office or place of business, the person’s home is not an office or
place of business unless it meets the criteria for office or place of business above. If
a person has no office or place of business, the person’s home or apartment within
the City will be deemed the place of business.
EE. “Option to purchase” shall mean a continuing offer or contract by which owner
stipulates with another that the latter shall have the right to buy property at a fixed dollar
price within a certain time. An agreement is only an option when no obligation rests on
the potential buyer to make any payment except such as may be agreed upon by the
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parties as consideration to support the option until the potential buyer has made up their
mind within a time specified to complete the purchase. The use of the term “fair market
value” or any other like term shall not be substituted for a fixed dollar price in
determining if an “option to purchase” exists.
SFF. “Person” means any individual, receiver, administrator, executor, assignee,
trustee in bankruptcy, trust, estate, firm, co-partnership, joint venture, club, company,
joint stock company, business trust, municipal corporation, political subdivision of the
state of Washington, corporation, limited liability company, association, society, or any
group of individuals acting as a unit, whether mutual, cooperative, fraternal, nonprofit, or
otherwise and the United States or any instrumentality thereof.
TGG. “Processing for hire” means the performance of labor and mechanical services
upon materials or ingredients belonging to others so that as a result a new, different or
useful product is produced for sale, or commercial or industrial use. A processor for hire
is any person who would be a manufacturer if that person were performing the labor
and mechanical services upon that person’s own materials or ingredients. If a person
furnishes, or sells to the customer prior to manufacture, materials or ingredients equal to
20% percent or more of the total value of all materials or ingredients that become a part
of the finished product the person will be deemed to be a manufacturer and not a
processor for hire.
UHH. “Product” means tangible personal property, including articles, substances, or
commodities created, brought forth, extracted, or manufactured by human or
mechanical effort. “By-product” means any additional product, other than the principal or
intended product, which results from extracting or manufacturing activities and which
has a market value, without regard to whether or not such additional product was an
expected or intended result of the extracting or manufacturing activities.
VII. “Retailing” means the activity of engaging in making sales at retail and is reported
under the retailing classification.
JJW. “Retail service” shall include the sale of or charge made for personal, business, or
professional services including amounts designated as interest, rents, fees, admission,
and other service emoluments however designated, received by persons engaging in
the following business activities:
1. Amusement and recreation services including but not limited to golf, pool, billiards,
skating, bowling, swimming, bungee jumping, ski lifts and tows, basketball, racquet ball,
handball, squash, tennis, batting cages, day trips for sightseeing purposes, and others,
when provided to consumers. “Amusement and recreation services” also include the
provision of related facilities such as basketball courts, tennis courts, handball courts,
swimming pools, and charges made for providing the opportunity to dance. The term
“amusement and recreation services” does not include instructional lessons to learn a
particular activity such as tennis lessons, swimming lessons, or archery lessons.
2. Abstract, title insurance, and escrow services;
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3. Credit bureau services;
4. Automobile parking and storage garage services;
5. Landscape maintenance and horticultural services but excluding (a) horticultural
services provided to farmers and (b) pruning, trimming, repairing, removing, and
clearing of trees and brush near electric transmission or distribution lines or equipment,
if performed by or at the direction of an electric utility;
6. Service charges associated with tickets to professional sporting events; and
7. The following personal services: physical fitness services, tanning salon services,
tattoo parlor services, steam bath services, Turkish bath services, escort services, and
dating services.
8. The term shall also include the renting or leasing of tangible personal property to
consumers and the rental of equipment with an operator.
KK. “Royalties” means compensation for the use of intangible property, such as
copyrights, patents, licenses, franchises, trademarks, trade names, and similar items.
XLL. Sale, Casual or Isolated Sale.
1. “Sale” means any transfer of the ownership of, title to, or possession of, property for
a valuable consideration and includes any activity classified as a “sale at retail,” “retail
sale,” or “retail service.” It includes renting or leasing, conditional sale contracts, leases
with option to purchase, and any contract under which possession of the property is
given to the purchaser but title is retained by the vendor as security for the payment of
the purchase price. It also includes the furnishing of food, drink, or meals for
compensation whether consumed upon the premises or not.
2. “Casual or isolated sale” means a sale made by a person who is not engaged in the
business of selling the type of property involved on a routine or continuous basis.
YMM. Sale at Retail, Retail Sale.
1. “Sale at retail” or “retail sale” means every sale of tangible personal property
(including articles produced, fabricated, or imprinted) to all persons irrespective of the
nature of their business and including, among others, without limiting the scope hereof,
persons who install, repair, clean, alter, improve, construct, or decorate real or personal
property of or for consumers, other than a sale to a person who presents a resale
certificate under RCW 82.04.470, and who:
a. Purchases for the purpose of resale as tangible personal property in the regular
course of business without intervening use by such person; or
b. Installs, repairs, cleans, alters, imprints, improves, constructs, or decorates real or
personal property of or for consumers, if such tangible personal property becomes an
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ingredient or component of such real or personal property without intervening use by
such person; or
c. Purchases for the purpose of consuming the property purchased in producing for
sale a new article of tangible personal property or substance, of which such property
becomes an ingredient or component or is a chemical used in processing, when the
primary purpose of such chemical is to create a chemical reaction directly through
contact with an ingredient of a new article being produced for sale; or
d. Purchases for the purpose of consuming the property purchased in producing
ferrosilicon which is subsequently used in producing magnesium for sale, if the primary
purpose of such property is to create a chemical reaction directly through contact with
an ingredient of ferrosilicon; or
e. Purchases for the purpose of providing the property to consumers as part of
competitive telephone service, as defined in RCW 82.04.065. The term shall include
every sale of tangible personal property which is used or consumed or to be used or
consumed in the performance of any activity classified as a “sale at retail” or “retail sale”
even though such property is resold or utilized as provided in subsections (MMY)(1)(a)
through (e) of this section following such use.
f. Purchases for the purpose of satisfying the person’s obligations under an extended
warranty as defined in subsection (MMY)(7) of this section, if such tangible personal
property replaces or becomes an ingredient or component of property covered by the
extended warranty without intervening use by such person.
2. “Sale at retail” or “retail sale” also means every sale of tangible personal property to
persons engaged in any business activity which is taxable under ACC 3.53.040(A)(7).
3. “Sale at retail” or “retail sale” shall include the sale of or charge made for tangible
personal property consumed and/or for labor and services rendered in respect to the
following:
a. The installing, repairing, cleaning, altering, imprinting, or improving of tangible
personal property of or for consumers, including charges made for the mere use of
facilities in respect thereto, but excluding charges made for the use of coin-operated
laundry facilities when such facilities are situated in an apartment house, rooming
house, or mobile home park for the exclusive use of tenants thereof, and also excluding
sales of laundry service to nonprofit health care facilities, and excluding services
rendered in respect to live animals, birds and insects;
b. The constructing, repairing, decorating, or improving of new or existing buildings or
other structures under, upon, or above real property of or for consumers, including the
installing or attaching of any article of tangible personal property therein or thereto,
whether or not such personal property becomes a part of the realty by virtue of
installation, and shall also include the sale of services or charges made for the clearing
of land and the moving of earth excepting the mere leveling of land used in commercial
farming or agriculture;
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c. The charge for labor and services rendered in respect to constructing, repairing, or
improving any structure upon, above, or under any real property owned by an owner
who conveys the property by title, possession, or any other means to the person
performing such construction, repair, or improvement for the purpose of performing
such construction, repair, or improvement and the property is then reconveyed by title,
possession, or any other means to the original owner;
d. The sale of or charge made for labor and services rendered in respect to the
cleaning, fumigating, razing or moving of existing buildings or structures, but shall not
include the charge made for janitorial services; and for purposes of this section the term
“janitorial services” shall mean those cleaning and caretaking services ordinarily
performed by commercial janitor service businesses including, but not limited to, wall
and window washing, floor cleaning and waxing, and the cleaning in place of rugs,
drapes and upholstery. The term “janitorial services” does not include painting,
papering, repairing, furnace or septic tank cleaning, snow removal or sandblasting;
e. The sale of or charge made for labor and services rendered in respect to automobile
towing and similar automotive transportation services, but not in respect to those
required to report and pay taxes under Chapter 82.16 RCW;
f. The sale of and charge made for the furnishing of lodging and all other services,
except telephone business and cable service, by a hotel, rooming house, tourist court,
motel, trailer camp, and the granting of any similar license to use real property, as
distinguished from the renting or leasing of real property, and it shall be presumed that
the occupancy of real property for a continuous period of one month or more constitutes
a rental or lease of real property and not a mere license to use or enjoy the same. For
the purposes of this subsection, it shall be presumed that the sale of and charge made
for the furnishing of lodging for a continuous period of one month or more to a person is
a rental or lease of real property and not a mere license to enjoy the same;
g. The installing, repairing, altering, or improving of digital goods for consumers;
h. The sale of or charge made for tangible personal property, labor and services to
persons taxable under subsections (MMY)(3)(a) through (g) of this section when such
sales or charges are for property, labor and services which are used or consumed in
whole or in part by such persons in the performance of any activity defined as a “sale at
retail” or “retail sale” even though such property, labor and services may be resold after
such use or consumption. Nothing contained in this subsection shall be construed to
modify subsection (MMY)(1) of this section and nothing contained in
subsection (MMY)(1) of this section shall be construed to modify this subsection.
4. “Sale at retail” or “retail sale” shall also include the providing of competitive
telephone service to consumers.
5. Sale at Retail or Retail Sale.
a. “Sale at retail” or “retail sale” shall also include the sale of prewritten software other
than a sale to a person who presents a resale certificate under RCW 82.04.470,
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regardless of the method of delivery to the end user. For purposes of this subsection
(MMY)(5), a the sale of prewritten computer software includes the sale of or charge
made for a key or an enabling or activation code, where the key or code is required to
activate prewritten computer software and put the software into use. There is no
separate sale of the key or code from the prewritten computer software, regardless of
how the sale may be characterized by the vendor or by the purchaser. The term “sale at
retail” or “retail sale” does not include the sale of or charge made for:
i. Custom software; or
ii. The customization of prewritten software.
b. The term also includes the charge made to consumers for the right to access and
use prewritten computer software, where possession of the software is maintained by
the seller or a third party, regardless of whether the charge for the service is on a per
use, per user, per license, subscription, or some other basis.
i. The service described in this subsection (MMY)(5)(b) includes the right to access and
use prewritten software to perform data processing.
ii. For purposes of subsection (MMY)(5)(b)(i) of this section “data processing” means
the systematic performance of operations on data to extract the required information in
an appropriate form or to convert the data to usable information. Data processing
includes check processing, image processing, form processing, survey processing,
payroll processing, claim processing, and similar activities.
6. “Sale at retail” or “retail sale” shall also include the sale of or charge made for labor
and services rendered in respect to the building, repairing, or improving of any street,
place, road, highway, easement, right-of-way, mass public transportation terminal or
parking facility, bridge, tunnel, or trestle which is owned by a municipal corporation or
political subdivision of the state, the state of Washington, or by the United States and
which is used or to be used primarily for foot or vehicular traffic including mass
transportation vehicles of any kind (public road construction).
7. “Sale at retail” or “retail sale” shall also include the sale of or charge made for an
extended warranty to a consumer. For purposes of this subsection, “extended warranty”
means an agreement for a specified duration to perform the replacement or repair of
tangible personal property at no additional charge or a reduced charge for tangible
personal property, labor, or both, or to provide indemnification for the replacement or
repair of tangible personal property, based on the occurrence of specified events. The
term “extended warranty” does not include an agreement, otherwise meeting the
definition of extended warranty in this subsection, if no separate charge is made for the
agreement and the value of the agreement is included in the sales price of the tangible
personal property covered by the agreement.
8. “Sale at retail” or“ retail sale” shall also include the sale of or charge made for labor
and services rendered in respect to the constructing, repairing, decorating, or improving
of new or existing buildings or other structures under, upon, or above real property of or
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for the United States, any instrumentality thereof, or a county or city housing authority
created pursuant to Chapter 35.82 RCW, including the installing, or attaching of any
article of tangible personal property therein or thereto, whether or not such personal
property becomes a part of the realty by virtue of installation (government contracting).
9. “Sale at retail” or “retail sale” shall not include the sale of services or charges made
for the clearing of land and the moving of earth of or for the United States, any
instrumentality thereof, or a county or city housing authority. Nor shall the term include
the sale of services or charges made for cleaning up for the United States, or its
instrumentalities, radioactive waste and other by-products of weapons production and
nuclear research and development. (This should be reported under the service and
other classification as defined under ACC 3.53.040(A)(7).).
10. “Sale at retail” or “retail sale” shall not include the sale of or charge made for labor
and services rendered for environmental remedial action. (This should be reported
under the service and other classification as defined under ACC 3.53.040(A)(7).).
11. “Sale at retail” or “retail sale” shall also include the following sales to consumers of
digital goods, digital codes, and digital automated services:
a. Sales in which the seller has granted the purchaser the right of permanent use;
b. Sales in which the seller has granted the purchaser a right of use that is less than
permanent;
c. Sales in which the purchaser is not obligated to make continued payment as a
condition of the sale; and
d. Sales in which the purchaser is obligated to make continued payment as a condition
of the sale.
A retail sale of digital goods, digital codes, or digital automated services under this
subsection (MMY)(11) includes any services provided by the seller exclusively in
connection with the digital goods, digital codes, or digital automated services, whether
or not a separate charge is made for such services.
For purposes of this subsection, “permanent” means perpetual or for an indefinite or
unspecified length of time. A right of permanent use is presumed to have been granted
unless the agreement between the seller and the purchaser specifies or the
circumstances surrounding the transaction suggest or indicate that the right to use
terminates on the occurrence of a condition subsequent.
12. “Sale at retail” or “retail sale” shall also include the installing, repairing, altering, or
improving of digital goods for consumers.
NNZ. “Sale at wholesale” or “wholesale sale” means any sale of tangible personal
property, digital goods, digital codes, digital automated services, prewritten computer
software, or services described in subsection (MMY)(5)(b) of this section, which is not a
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retail sale, and any charge made for labor and services rendered for persons who are
not consumers, in respect to real or personal property and retail services, if such charge
is expressly defined as a retail sale or retail service when rendered to or for consumers.
Sale at wholesale also includes the sale of telephone business to another
telecommunications company as defined in RCW 80.04.010 for the purpose of resale,
as contemplated by RCW 35.21.715.
OOAA. “Service” means any sale or charge made for personal, business or
professional service, including amounts designated as rents, fees, or admissions, not
otherwise included within any other tax classification defined herein; provided, that the
term “service” excludes retail or wholesale services.
PPBB. Software, Prewritten Software, Custom Software, Customization of Canned
Software, Master Copies, Retained Rights.
1. “Prewritten software” or “canned software” means computer software, including
prewritten upgrades, that is not designed and developed by the author or other creator
to the specifications of a specific purchaser. The combining of two or more prewritten
computer software programs or prewritten portions thereof does not cause the
combination to be other than prewritten computer software. Prewritten computer
software includes software designed and developed by the author or other creator to the
specifications of a specific purchaser when it is sold to a person other than such
purchaser. Where a person modifies or enhances computer software of which such
person is not the author or creator, the person shall be deemed to be the author or
creator only of the person’s modifications or enhancements. Prewritten computer
software or a prewritten portion thereof that is modified or enhanced to any degree,
where such modification or enhancement is designed and developed to the
specifications of a specific purchaser, remains prewritten computer software; however,
where there is a reasonable, separately stated charge or an invoice or other statement
of the price given to the purchaser for the modification or enhancement, the modification
or enhancement shall not constitute prewritten computer software.
2. “Custom software” means software created for a single person.
3. “Customization of canned software” means any alteration, modification, or
development of applications using or incorporating canned software to specific
individualized requirements of a single person. Customization of canned software
includes individualized configuration of software to work with other software and
computer hardware but does not include routine installation. Customization of canned
software does not change the underlying character or taxability of the original canned
software.
4. “Master copies” of software means copies of software from which a software
developer, author, inventor, publisher, licensor, sublicensor, or distributor makes copies
for sale or license. The software encoded on a master copy and the media upon which
the software resides are both ingredients of the master copy.
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5. “Retained rights” means any and all rights, including intellectual property rights such
as those rights arising from copyrights, patents, and trade secret laws, that are owned
or are held under contract or license by a software developer, author, inventor,
publisher, licensor, sublicensor, or distributor.
6. “Software” means any information, program, or routine, or any set of one or more
programs, routines, or collections of information, used, or intended for use, to convey
information that causes one or more computers or pieces of computer-related peripheral
equipment, or any combination thereof, to perform a task or set of tasks. “Software”
includes the associated documentation, materials, or ingredients, regardless of the
media upon which that documentation is provided, that describe the code and its use,
operation, and maintenance and that typically are delivered with the code to the
consumer. All software is classified as either canned or custom.
QQCC. “Taxpayer” means any “person,” as herein defined, required to have a business
license under this chapter or liable for the collection of any tax or fee under this chapter,
or who engages in any business or who performs any act for which a tax or fee is
imposed by this chapter.
RRDD. “Tuition fee” includes library, laboratory, health service, and other special fees,
and amounts charged for room and board by an educational institution when the
property or service for which such charges are made is furnished exclusively to the
students or faculty of such institution. “Educational institution,” as used in this section,
means only those institutions created or generally accredited as such by the state and
includes educational programs that such educational institution cosponsors with a
nonprofit organization, as defined by the 26 U.S.C. §Internal Revenue Code
Section 501(c)(3), as hereafter amended, if such educational institution grants college
credit for coursework successfully completed through the educational program, or an
approved branch campus of a foreign degree-granting institution in compliance with
Chapter 28B.90 RCW, and in accordance with RCW 82.04.4332 or defined as a
degree-granting institution under RCW 28B.85.010(3) and accredited by an accrediting
association recognized by the United States Secretary of Education, and offering to
students an educational program of a general academic nature or those institutions
which are not operated for profit and which are privately endowed under a deed of trust
to offer instruction in trade, industry, and agriculture, but not including specialty schools,
business colleges, other trade schools, or similar institutions.
SSEE. “Value proceeding or accruing” means the consideration, whether money,
credits, rights, or other property expressed in terms of money, a person is entitled to
receive or which is actually received or accrued. The term shall be applied, in each
case, on a cash receipts or accrual basis according to which method of accounting is
regularly employed in keeping the books of the taxpayer.
TTFF. Value of Products.
1. The value of products, including by-products, extracted or manufactured, shall be
determined by the gross proceeds derived from the sale thereof whether such sale is at
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wholesale or at retail, to which shall be added all subsidies and bonuses received from
the purchaser or from any other person with respect to the extraction, manufacture, or
sale of such products or by-products by the seller.
2. Where such products, including by-products, are extracted or manufactured for
commercial or industrial use; and where such products, including by-products, are
shipped, transported or transferred out of the city, or to another person, without prior
sale or are sold under circumstances such that the gross proceeds from the sale are not
indicative of the true value of the subject matter of the sale; the value shall correspond
as nearly as possible to the gross proceeds from sales in this state of similar products of
like quality and character, and in similar quantities by other taxpayers, plus the amount
of subsidies or bonuses ordinarily payable by the purchaser or by any third person with
respect to the extraction, manufacture, or sale of such products. In the absence of sales
of similar products as a guide to value, such value may be determined upon a cost
basis. In such cases, there shall be included every item of cost attributable to the
particular article or article extracted or manufactured, including direct and indirect
overhead costs. The director may prescribe rules for the purpose of ascertaining such
values.
3. Notwithstanding subsection (TTFF)(2) of this section, the value of a product
manufactured or produced for purposes of serving as a prototype for the development
of a new or improved product shall correspond to (a) the retail selling price of such new
or improved product when first offered for sale; or (b) the value of materials incorporated
into the prototype in cases in which the new or improved product is not offered for sale.
UUTT. Warehouse" means every structure wherein facilities are offered for the storage
of tangible personal property. It includes the following:
“Storage warehouse” means a building or structure, or any part thereof, in which goods,
wares, or merchandise are received for storage for compensation, except field
warehouses, fruit warehouses, fruit packing plants, unroasted coffee bean warehouses,
warehouses licensed under chapter 22.09 RCW (which are agricultural commodities
warehouses), public garages storing automobiles, railroad freight sheds, docks and
wharves, and “self-storage” or “mini-storage” facilities whereby customers have direct
access to individual storage areas by separate access.
“Cold storage warehouse” means a storage warehouse used to store fresh and/or
frozen perishable fruits or vegetables, meat, seafood, dairy products, or fowl, or any
combination thereof, at a desired temperature to maintain the quality of the product for
orderly marketing. This term does not include freezer space or frozen food lockers.
“Automobile storage garage” means any off-street building, structure, or area where
vehicles are parked or stored, for any period of time, for a charge.
VVUU. “Warehouse outdoor” means an area that is outdoors and is primarily used for
the storage of merchandise, goods, inventory, materials or equipment or other items,
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which are not intended for immediate sale, whether or not for compensation, in
furtherance of engaging in business.
WWVVTTGG. “Wholesaling” means engaging in the activity of making sales at
wholesale, and is reported under the wholesaling classification.
ACC 3.53.040 Imposition of the tax – Tax or fee levied.
Except as provided in subsection C of this section, effective January 1, 2022, at 12:01
a.m. there is hereby levied upon and shall be collected from every person a tax for the
act or privilege of engaging in business activities within the city of Auburn, whether the
person’s office or place of business be within or without the city. The tax shall be in
amounts to be determined by application of rates against gross proceeds of sale, gross
income of business, or value of products, including by-products, as the case may be, as
follows:
A. Gross Receipts Tax.
1. Upon every person engaging within the city in business as an extractor; as to such
persons, the amount of the tax with respect to such business shall be equal to the value
of the products, including by-products, extracted within the city for sale or for
commercial or industrial use, multiplied by the rate of 0.100 of 1% one percent (0.001).
The measure of the tax is the value of the products, including by-products, so extracted,
regardless of the place of sale or the fact that deliveries may be made to points outside
the city.
2. Upon every person engaging within the city in business 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 by-products, manufactured within the city, multiplied by
the rate of 0.100 of 1% one percent (0.001). The measure of the tax is the value of the
products, including by-products, so manufactured, regardless of the place of sale or the
fact that deliveries may be made to points outside the city.
3. Upon every person engaging within the city in the business of making sales at
wholesale; as to such persons, the amount of tax with 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, commodities or merchandise sold, multiplied by the rate of 0.180 of
1% one percent (0.0018).
4. Upon every person engaging within the city in the business of making sales at retail;
as to such persons, the amount of tax with respect to such business shall be equal to
the gross proceeds of such sales of the business, without regard to the place of delivery
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of articles, commodities or merchandise sold, multiplied by the rate of 0.050 of 1% one
percent (0.0005).
5. Upon every person engaging within the city in the business of (a) printing, (b) both
printing and publishing newspapers, magazines, periodicals, books, music, and other
printed items, (c) publishing newspapers, magazines and periodicals, (d) extracting for
hire, and (e) processing for hire; as to such persons, the amount of tax on such
business shall be equal to the gross income of the business multiplied by the rate of
0.100 of 1% one percent (0.001).
6. Upon every person engaging within the city in the business of making sales of retail
services; as to such persons, the amount of tax with respect to such business shall be
equal to the gross proceeds of sales multiplied by the rate of 0.150 of 1% one percent
(0.0015).
7. Upon every other person engaging within the city in any business activity other than
or in addition to those enumerated in the above subsections;; as to ssuch persons shall
report gross receipts under the “service and other tax” classification, and, the amount of
tax on account of such activities shall be equal to the gross income of the business
multiplied by the rate of 0.100 of 1% one percent (0.001). This classification subsection
includes , (among others, and without limiting its the scope, hereof (and whether or not
title to material used in the performance of such business passes to another by
accession, merger or other than by outright sale):, persons engaged in the business of
developing, or producing custom software or of customizing canned software, persons
producing royalties or commissions, and persons engaged in the business of rendering
any type of service which does not constitute a sale at retail, a sale at wholesale, or a
retail service.
8. Persons otherwise subject to the “service and other tax” classification who engage in
business in multiple jurisdictions shall report their service income under the “service and
other apportionment” tax classification, and shall allocate their gross receipts in
accordance with ACC 3.53.080 by using the city’s Service Income Apportionment
Supplemental form.
B. Square Footage Tax.
1. Upon every person who leases, owns, occupies, or otherwise maintains a
warehouse or outdoor warehouse within the city for purposes of engaging in business
activities in the city there shall be a tax measured by the number of square feet of
business warehouse floor space or outdoor warehouse space. The amount of the tax
shall be equal to $0.10 for each quarterly period of a calendar year for each square foot
of warehouse or outdoor warehouse floor space that is leased, owned, occupied, or
otherwise maintained within the city during the reporting period, calculated to the
nearest square foot.
2. For purposes of this section, “warehouse” means every structure wherein facilities
are offered for the storage of tangible personal property. It includes “storage
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warehouses”, “cold storage warehouses” and “automobile storage garage” as defined in
ACC 3.53.020 subsection UU.
a building or structure, or any part thereof, in which goods, wares, merchandise, or
commodities are received or stored, whether or not for compensation, in furtherance of
engaging in business.
3. For purposes of this section, “outdoor warehouse” means an area that is outdoors
and is primarily used for the storage of merchandise , goods, inventory, materials or
equipment or other items, which are not intended for immediate sale, whether or not for
compensation, in furtherance of engaging in business.
4. For purposes of this section, the square footage of a business warehouse shall be
computed by measuring to the inside finish of permanent outer building walls and shall
include space used by columns and projections necessary to the building. Square
footage shall not include stairs, elevator shafts, flues, pipe shafts, vertical ducts, heating
or ventilation shafts, janitor closets, and electrical or utility closets. Outdoor warehouse
space is measured based on the entire space used for outdoor warehousing and is not
measured solely based on the size of the goods, wares, merchandise, or commodities
that are being stored.
5. For purposes of this section, the square footage of an outdoor warehouse shall only
include those areas used for the receipt or storage of goods, wares, merchandise, or
commodities that are being received and temporarily stored for transloading, whether or
not for compensation, in furtherance of engaging in business. Such areas will typically
include those areas where goods, wares, merchandise, and commodities, in transit to
their ultimate destination, are parked, packaged, or stored after transloading, waylaying,
or crossdocking. Square footage shall not include areas used only for employee,
customer, or visitor parking, dock high loading areas used primarily for a business
warehouse, buildings, areas used only for direct sales or rentals to consumers,
landscaped areas, storm water facilities, maneuvering areas and drive aisles, areas
used only for garbage or recycling pickup, rights-of-way, or other areas clearly not used
for the temporary storage of goods, wares, merchandise, and commodities in transit.
Outdoor areas used for storage of agricultural products or for ancillary storage of
materials utilized in, or products resulting from, onsite manufacturing operations are not
considered outdoor warehouses.
6. Persons with more than one business warehouse or outdoor warehouse within the
city must include all business warehouse floor space and outdoor warehouse space for
all locations within the city. When a person rents space to another person, the person
occupying the rental space is responsible for the square footage business tax on that
rental space only if the renter has exclusive right of possession in the space as against
the landlord. Space rented for the storage of goods in a warehouse or outdoor
warehouse where no walls or other barriers separate the goods, and where the
exclusive right of possession in the space is not held by the person to whom the space
is rented, shall be included in the business warehouse floor space of the person that
operates the business warehouse, and not by the person renting the warehouse space.
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7. If the square footage tax imposed in this subsection B is equal to or less than or
equal to the gross receipts tax imposed in subsection A of this section, no square
footage tax will be due.; iIf the square footage tax imposed in this subsection B exceeds
the gross receipts tax imposed in subsection A of this section, the square footage tax
will be due, but no gross receipts tax will be due. tThe taxpayer shall also remit the tax
due on the higher of the two categories, but not both, excess over the gross receipts tax
payable under subsection A and B of this section.
C. Gross Receipt and Square Footage Tax Thresholds.
1. Gross Receipts Threshold. The gross receipts tax imposed in this section shall not
apply to any person whose companywide gross proceeds of sales, gross income of the
business, and value of products, including by-products, as the case may be, from all
activities conducted within the city during any calendar year is equal to or less than
$500,000, or is equal to or less than $125,000 during any quarter if on a quarterly
reporting basis. nor shall it apply to any person who does not maintain a place of
business in the City whose annual value of products, gross proceeds of sales, or gross
income of the business in the city is equal to or less than $2,000. city.
2. Square Footage Threshold. The square footage tax imposed in subsection B of this
section shall not apply to any person unless that person’s total area of business space
within the city exceeds one of the following thresholds:
a. Four thousand (4,000) taxable square feet of business warehouse space; or
b. Two hundred sixty-one thousand three hundred sixty (261,360) taxable square feet
(six acres) of outdoor warehouse space;
If the square footage tax applies, it applies to all business space leased, owned,
occupied, or otherwise maintained by the taxpayer during the applicable reporting
period.
[New Section] ACC 3.53.075 Ancillary activities of motor carriers and freight
brokers.
A. “Ancillary activities of motor carriers” includes, but is not limited to stevedoring,
separately billed charges for loading, unloading, sorting, storage, consolidation charges,
and other charges not representing an actual transportation charge. Charges for
ancillary activities shall be recorded separately from transportation charges and
reported as activity subject to ACC 3.53.040.A.7.
B. Freight brokers shall report brokering activity revenue as activity subject to ACC
3.53.040.A.7.
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C. Gross receipts from the activities contained in subsections 3.53.082.A and
3.53.082.B are subject to the apportionment provisions contained in (Subsection
3.53.080).
ACC 3.53.100 Exemptions.
This section applies only to the gross receipts tax imposed in ACC 3.53.040.A.
A. Adult Family Homes. This chapter does not apply to adult family homes as defined in
ACC 3.53.020.A that which are licensed or as such, or which are specifically exempt
from licensing, under DSHS rules of the Washington State Department of Social and
Health Services.
B. Daycare Provided by Churches. This chapter shall not apply to amounts derived by
a church that is exempt from property tax under RCW 84.36.020 from the provision of
care for children for periods of less than 24 hours.
C. Child Care Resource and Referral Services by Nonprofit Organizations. This chapter
does not apply to nonprofit organizations in respect to amounts derived from the
provision of child care resource and referral services.
D. Nonprofit Organizations That Are Guarantee Agencies, Issue Debt, or Provide
Guarantees for Student Loans. This chapter does not apply to gross income received by
nonprofit organizations exempt from federal income tax under 26 U.S.C. §Internal
Revenue Code Section 501(c)(3), as hereafter amended, that:
1. Are guarantee agencies under the federal guaranteed student loan program or that
issue debt to provide or acquire student loans; or
2. Provide guarantees for student loans made through programs other than the federal
guaranteed student loan program.
E. Nonprofit Organizations – Credit and Debt Services. This chapter does not apply to
nonprofit organizations in respect to amounts derived from provision of the following
services:
1. Presenting individual and community credit education programs including credit and
debt counseling;
2. Obtaining creditor cooperation allowing a debtor to repay debt in an orderly manner;
3. Establishing and administering negotiated repayment programs for debtors; or
4. Providing advice or assistance to a debtor with regard to subsection (E)(1), (2), or (3)
of this subsection.
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F. Certain Fraternal and Beneficiary Organizations. This chapter shall not apply to
fraternal benefit societies or fraternal fire insurance associations, as described in RCW
Title 48; nor to beneficiary corporations or societies organized under and existing by
virtue of RCW Title 24, if such beneficiary corporations or societies provide in their
bylaws for the payment of death benefits. This exemption is limited, however, to gross
income from premiums, fees, assessments, dues or other charges directly attributable
to the insurance or death benefits provided by such societies, associations, or
corporations.
G. Certain Corporations Furnishing Aid and Relief. This chapter shall not apply to the
gross sales or the gross income received by corporations which have been incorporated
under any act of the Congress of the United States and whose principal purposes are to
furnish volunteer aid to members of the armed forces of the United States and also to
carry on a system of national and international relief and to apply the same in mitigating
the sufferings caused by pestilence, famine, fire, floods, and other national calamities
and to devise and carry on measures for preventing the same.
H. Operation of Sheltered Workshops. Community services provided by DSHS. This
chapter shall not apply to income received from the DSHS Department of Social and
Health Services for the cost of care, maintenance, support and training of persons with
developmental disabilities at nonprofit group training homes as defined by
Chapter 71A.22 RCW or to the business activities of nonprofit organizations from the
operation of sheltered workshopscommunity services up to first $1,000,000 of the
companywide gross receipts from all activities. For the purposes of this subsection, “the
operation of sheltered workshopscommunity services” means performance of business
activities of any kind on or off the premises of such nonprofit organizations which are
performed for the primary purpose of:
1. Providing gainful employment or rehabilitation services to the handicapped as an
interim step in the rehabilitation process for those who cannot be readily absorbed in the
competitive labor market or during such time as employment opportunities for them in
the competitive labor market do not exist; or
2. Providing evaluation and work adjustment services for handicapped individuals.
I. Investments – Dividends from Subsidiary Corporations. This chapter shall not apply
to amounts derived by persons, other than those engaging in banking, loan, security or
other financial businesses, from investments or the use of money as such, and also
amounts derived as dividends by a parent from its subsidiary corporations.
J. The city of Auburn is exempt from the tax levied by this chapter.
K. Gross Receipts Taxed under Other Auburn City Code (ACC) Sections. This chapter
shall not apply to:
1. Any person in respect to a business activity with respect to which tax liability is
specifically imposed under the provisions of Chapter 3.88 ACC (Utility Tax); or
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2. Any person in respect to a business activity with respect to which tax liability is
specifically imposed under the provisions of Chapter 3.80 ACC (Gambling Tax).
L. Credit Unions. This chapter shall not apply to the gross income of credit unions
organized under the laws of this state, any other state, or the United States.
M. International Banking Facilities. This chapter shall not apply to the gross receipts of
an international banking facility. As used in this subsection, an “international banking
facility” means:
1. a facility represented by a set of asset and liability accounts segregated on the books
and records of a commercial bank whose the principal office of which is located in this
state, and which is incorporated and doing business under the laws of the United States
or of this state;,
2. a United States branch or agency of a foreign bank;,
3. an Edge corporation organized under Section 25(A) of the Federal Reserve Act, 12
U.S.C. §§611- through 631;, or
4. an Agreement corporation having an agreement or undertaking with the Board of
Governors of the Federal Reserve System under Section 25 of the Federal Reserve
Act, 12 U.S.C. §§601- through 604a, that includes only international banking facility time
deposits (as defined in 12 C.F.R. §204.8(a)(2)subsection (a)(2) of Section 204.8 of
Regulation D (12 CFR Part 204), as promulgated by the Board of Governors of the
Federal Reserve System), and international banking facility extensions of credit (as
defined in 12 C.F.R. §204.8subsection (a)(3) of Section 204.8 of Regulation D).
N. Insurance Business. This chapter shall not apply to amounts received by any person
who is an insurer or their appointed insurance producer upon which a tax based on
gross premiums is paid to the state pursuant to RCW 48.14.020; and provided further,
that the provisions of this subsection shall not exempt any bonding company from tax
with respect to gross income derived from the completion of any contract as to which it
is a surety, or as to any liability as successor to the liability of the defaulting contractor.
O. Farmers – Agriculture. This chapter shall not apply to any farmer in respect to
amounts received from selling fruits, vegetables, berries, butter, eggs, fish, milk, poultry,
meats or any other agricultural product that is raised, caught, produced or manufactured
by such persons.
P. Athletic Exhibitions. This chapter shall not apply to any person in respect to the
business of conducting boxing contests and sparring or wrestling matches and
exhibitions for the conduct of which a license must be secured from the State Boxing
Commission.
Q. Racing. This chapter shall not apply to any person in respect to the business of
conducting race meets for the conduct of which a license must be secured from the
Washington State Horse Racing Commission.
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R. Ride Sharing. This chapter does not apply to any funds received in the course of
commuter ride sharing or ride sharing for persons with special transportation needs in
accordance with RCW 46.74.010.
S. Employees. This chapter shall not apply to any person in respect to the person’s
employment in the capacity as an employee or servant as distinguished from that of an
independent contractor. For the purposes of this subsection, the definition of employee
shall include those persons that are defined as employees in 26 U.S.C. §3121(d), the
Internal Revenue Code, as now enacted or hereafter amended. A booth renter as
defined in RCW 82.04.360(3) is an independent contractor for purposes of this chapter.
T. Amounts Derived from Sale of Real Estate. This chapter shall not apply to gross
proceeds derived from the sale of real estate. This, however, shall not be construed to
allow an exemption of amounts received as commissions from the sale of real estate,
nor as fees, handling charges, discounts, interest or similar financial charges resulting
from, or relating to, real estate transactions. This chapter shall also not apply to
amounts received for the rental of real estate if the rental income is derived from a
contract to rent for a continuous period of 30 days or longer.
U. Mortgage Brokers’ Third-Party Provider Services Trust Accounts. This chapter shall
not apply to amounts received from trust accounts to mortgage brokers for the payment
of third-party costs if the accounts are operated in a manner consistent with
RCW 19.146.050 and any rules adopted by the Director of Financial Institutions.
V. Amounts Derived from Manufacturing, Selling or Distributing Motor Vehicle
Fuel. This chapter shall not apply to the manufacturing, selling or distributing motor
vehicle fuel, as the term “motor vehicle fuel” is defined in RCW 82.38.020 and exempt
under RCW 82.38.280; provided, that any fuel not subjected to the state fuel excise tax,
or any other applicable deduction or exemption, will be taxable under this chapter.
W. Amounts Derived from Liquor, and the Sale or Distribution of Liquor. This chapter
shall not apply to liquor as defined in RCW 66.04.010 and exempt in RCW 66.08.120.
X. Casual and Isolated Sales. This chapter shall not apply to the gross proceeds
derived from casual or isolated sales.
Y. Accommodation Sales. This chapter shall not apply to sales for resale by persons
regularly engaged in the business of making retail sales of the type of property so sold
to other persons similarly engaged in the business of selling such property where:
1. The amount paid by the buyer does not exceed the amount paid by the seller to the
vendor in the acquisition of the article; and
2. The sale is made as an accommodation to the buyer to enable the buyer to fill a
bona fide existing order of a customer or is made within 14 days to reimburse in kind a
previous accommodation sale by the buyer to the seller.
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Z. Real Estate Brokers and Associated Brokers, Agents, or Salesmen. This chapter
does not apply to that portion of a real estate commission assigned to another
brokerage office pursuant to the division of revenue between the originating brokerage
office and a cooperating brokerage office on a particular transaction. Each brokerage
office shall pay the tax upon its respective revenue share of the transaction.
Furthermore, where a brokerage office has paid the business and occupation tax on the
gross commission earned by that brokerage office, associate brokers, salesmen or
agents within the same office shall not be required to pay the tax upon their share of the
commission from the same transaction.
AA. Taxes Collected as Trust Funds. This chapter shall not apply to amounts collected
by the taxpayer from third parties to satisfy third party obligations to pay taxes such as
the retail sales tax, use tax, and admission tax.
BB. Health Maintenance Organization, Health Care Service Contractor, Certified Health
Plan. This chapter does not apply to any health maintenance organization, health care
service contractor, or certified health plan with respect to premiums or prepayments that
are taxable under RCW 48.14.0201. However, per RCW 48.14.0201(7), this exemption
is not intended to, and shall not, impair the city’s ability to impose a tax hereunder upon
the health care services directly delivered by the employees of a health maintenance
organization under Chapter 48.46 RCW.
CC. Nonprofit Health Care Organization FeesHospital.
1. This chapter shall not apply to nonprofit hospitals, as defined in ACC 3.53.020(X),
provided that a nonprofit hospital’s annual net operating income is less than
$10,000,000.
1. This chapter shall not apply to amounts that a nonprofit health care organization
derives from charges or fees for medical, nursing, ambulance, hospital, or outpatient
care services for the benefit of subscribers, where none of the derived amounts inure to
the benefit of the organization or any of its employees.
2. The exemption in this subsection CC shall not apply if the nonprofit health care
organization’s annual net operating income exceeds $10,000,000.00 for the reporting
period in which the exemption is claimed. For purposes of this subsection, “net
operating income” shall mean income in an amount equal to:
a. the organization’s aggregate gross revenue generated from operating activities and
services, less—
b. uncollectable debts and uncompensated services, and less—
c. total expenses related to operating activities.
Capital expenditures, debt service and non-cash charges, such as depreciation of
assets or amortization of financing costs, shall not be included in the calculation of net
operating income.
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2.3. Nonprofit health care organizationshospitals exceeding $10,000,000.00 in gross
income in a reporting period may take the deductions allowed in ACC 3.53.110(S). net
operating income are not subject to the exemptions within this subsection.
DD. County, city, town, school district, or fire district activity. This chapter shall not
apply to any county, city, town, school district, or fire district activity, regardless of how
financed, other than a utility or enterprise activity as defined by the state auditor
pursuant to RCW 35.33.111 and RCW 36.40.220 and upon which the tax imposed
pursuant to this chapter had previously applied. Nothing contained in this section shall
limit the authority of the City to authorize the imposition of such tax prospectively upon
such activities as the City shall specifically designate.
EE. This chapter shall not apply to the gross income received by the United States or
any instrumentality thereof, or by the state of Washington or any municipal subdivision
thereof; provided, however, that the exemption contained in this subsection shall only
apply to gross income which the City is prohibited from taxing pursuant to the terms of
any federal or state law.
FF. This chapter shall not apply to any person conducting business in an area that
becomes a part of the City by annexation in accordance with RCW 35.10 or RCW 35.13
after the chapter’s effective date. The exemption provided in this subsection shall
expire at the end of the calendar quarter 3 years after the date of such annexation.
ACC 3.53.110 Deductions.
This section applies only to the gross receipt tax imposed by ACC 3.53.040.A: In
computing the gross receipts B&O tax, there In computing the license fee or tax, there
may be deducted from the measure of tax the following items:
A. Membership Fees and Certain Service Fees by Nonprofit Youth Organization. For
purposes of this subsection, “nonprofit youth organization” means a nonprofit
organization engaged in character building of youth which is exempt from property tax
under RCW 84.36.030. In computing tax due under this chapter, there may be deducted
from the measure of tax all amounts received by a nonprofit youth organization:
1. As membership fees or dues, irrespective of the fact that the payment of the
membership fees or dues to the organization may entitle its members, in addition to
other rights or privileges, to receive services from the organization or to use the
organization’s facilities; or
2. From members of the organization for camping and recreational services provided
by the organization or for the use of the organization’s camping and recreational
facilities.
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B. Fees, Dues, and Charges Received by Nonprofit Organizations or Nonprofit
Corporations. In computing tax, a nonprofit organization may deduct from the measure
of tax amounts derived from bona fide:
1. Initiation fees;
2. Dues;
3. Contributions;
4. Donations;
5. Tuition fees;
6. Charges made for operation of privately operated kindergartens;
7. Charges made by a nonprofit trade or professional organization for attending or
occupying space at a trade show, convention, or educational seminar sponsored by the
nonprofit trade or professional organization, which trade show, convention, or
educational seminar is not open to the general public; and
8. Endowment funds.
C. Artistic and Cultural Organizations – Income from Business Activities. In computing
tax, there may be deducted from the measure of tax those amounts received by artistic
or cultural organizations, as defined in this chapter, which represent:
1. Income derived from business activities conducted by the organization; provided,
that this deduction does not apply to retail sales made by artistic and cultural
organizations;
2. Amounts received from the United States or any instrumentality thereof or from the
state of Washington or any municipal corporation or subdivision thereof as
compensation for; or to support, artistic or cultural exhibitions, performances, or
programs provided by an artistic or cultural organization for attendance or viewing by
the general public; or
3. Amounts received as tuition charges collected for the privilege of attending artistic or
cultural education programs.
D. Artistic or Cultural Organization – Deduction for Tax under the Manufacturing
Classification – Value of Articles for Use In Displaying Art Objects or Presenting Artistic
or Cultural Exhibitions, Performances, or Programs. In computing tax, there may be
deducted from the measure of tax by persons subject to payment of the tax under the
manufacturing classification, the value of articles to the extent manufacturing activities
are undertaken by an artistic or cultural organization, as defined in this chapter, solely
for the purpose of manufacturing articles for use by the organization in displaying art
Page 115 of 213
objects or presenting artistic or cultural exhibitions, performances, or programs for
attendance or viewing by the general public.
E. Amounts representing rental of real estate for assisted living facilities. In computing
tax, there may be deducted from the measure of tax amounts representing the value of
the rental of real estate for “assisted living facilities.” To qualify for the deduction, the
facility must meet the definition in RCW 18.20 for “assisted living facility” and be
licensed by the state of Washington as required in RCW 18.20. The deduction shall be
in the amount of 26 percent of the gross monthly billing when the resident has resided
within the facility for longer than 30 days.
EF. Daycare Activities. In computing tax, there may be deducted from the measure of
tax amounts derived from daycare activities by any organization organized and
operated for charitable, educational, or other purposes which is exempt from taxation
pursuant to 26 U.S.C. §Internal Revenue Code Section 501(c)(3), as now enacted or
hereafter amended; provided, however, that amounts derived from selling, altering or
repairing tangible personal property shall not be deductible.
FG. Compensation from Public Entities for Health or Social Welfare Services –
Exception. In computing tax, there may be deducted from the measure of tax amounts
received from the United States or any instrumentality thereof or from the state of
Washington or any municipal corporation or political subdivision thereof as
compensation for, or to support, health or social welfare services rendered by a health
or social welfare organization (as defined in RCW 82.04.431) or by a municipal
corporation or political subdivision, except deductions are not allowed under this
subsection for amounts that are received under an employee benefit plan. For purposes
of this subsection, “employee benefit plan” includes the military benefits program
authorized in 10 U.S.C. § 1071 et seq., as amended, or amounts payable pursuant
thereto.
GH. Interest on Investments or Loans Secured by Mortgages or Deeds of Trust. In
computing tax, to the extent permitted by Chapter 82.14A RCW, there may be deducted
from the measure of tax by those engaged in banking, loan, security or other financial
businesses, amounts derived from interest received on investments or loans primarily
secured by first mortgages or trust deeds on nontransient residential properties.
HI. Interest on Obligations of the State, Its Political Subdivisions, and Municipal
Corporations. In computing tax, there may be deducted from the measure of tax by
those engaged in banking, loan, security or other financial businesses, amounts derived
from interest paid on all obligations of the state of Washington, its political subdivisions,
and municipal corporations organized pursuant to the laws thereof.
IJ. Interest on Loans to Farmers and Ranchers, Producers or Harvesters of Aquatic
Products, or Their Cooperatives. In computing tax, there may be deducted from the
measure of tax amounts derived as interest on loans to bona fide farmers and ranchers,
producers or harvesters of aquatic products, or their cooperatives by a lending
institution which is owned exclusively by its borrowers or members and which is
Page 116 of 213
engaged solely in the business of making loans and providing finance-related services
to bona fide farmers and ranchers, producers or harvesters of aquatic products, their
cooperatives, rural residents for housing, or persons engaged in furnishing farm-related
or aquatic related services to these individuals or entities.
K. “Interstate Trucking”. The tax imposed on motor carriers under subsection 3.53.040
shall not apply to gross income from freight picked up in the City and transported by the
taxpayer to a location outside the State of Washington. A motor carrier that does not
transport freight across the state boundary is not entitled to a deduction, even though
the freight is destined for and is ultimately transported to a location outside Washington.
JLK. Receipts from the Sales of Tangible Personal Property Delivered Outside the
State. In computing tax, there may be deducted from the measure of tax under retailing
or wholesaling amounts derived from the sale of tangible personal property that is
delivered by the seller to the buyer or the buyer’s representative at a location outside
the state of Washington.
KML. Cash Discount Taken by Purchaser. In computing tax, there may be deducted
from the measure of tax the cash discount amounts actually taken by the purchaser.
This deduction is not allowed in arriving at the taxable amount under the extracting or
manufacturing classifications with respect to articles produced or manufactured, the
reported values of which, for the purposes of this tax, have been computed according to
the “value of product” provisions.
LNM. Credit Losses of Accrual Basis Taxpayers. In computing tax, there may be
deducted from the measure of tax the amount of credit losses actually sustained by
taxpayers whose regular books of account are kept upon an accrual basis.
MON. Repair, Maintenance, Replacement, Etc., of Residential Structures and
Commonly Held Property – Eligible Organizations.
1. In computing tax, there may be deducted from the measure of tax amounts used
solely for repair, maintenance, replacement, management, or improvement of the
residential structures and commonly held property, but excluding property where fees or
charges are made for use by the public who are not guests accompanied by a member,
which are derived by:
a. A cooperative housing association, corporation, or partnership from a person who
resides in a structure owned by the cooperative housing association, corporation, or
partnership;
b. An association of owners of property as defined in RCW 64.32.010, as now or
hereafter amended, from a person who is an apartment owner as defined in
RCW 64.32.010; or
c. An association of owners of residential property from a person who is a member of
the association. “Association of owners of residential property” means any organization
Page 117 of 213
of all the owners of residential property in a defined area who all hold the same property
in common within the area.
2. For the purposes of this subsection “commonly held property” includes areas
required for common access such as reception areas, halls, stairways, parking, etc.,
and may include recreation rooms, swimming pools and small parks or recreation areas;
but is not intended to include more grounds than are normally required in a residential
area, or to include such extensive areas as required for golf courses, campgrounds,
hiking and riding areas, boating areas, etc.
3. To qualify for the deductions under this subsection:
a. The salary or compensation paid to officers, managers, or employees must be only
for actual services rendered and at levels comparable to the salary or compensation of
like positions within the county wherein the property is located;
b. Dues, fees, or assessments in excess of amounts needed for the purposes for which
the deduction is allowed must be rebated to the members of the association;
c. Assets of the association or organization must be distributable to all members and
must not inure to the benefit of any single member or group of members.
NPO. Radio and Television Broadcasting – Advertising Agency Fees – National,
Regional, and Network Advertising – Interstate Allocations. In computing tax, there may
be deducted from the measure of tax by radio and television broadcasters amounts
representing the following:
1. Advertising agencies’ fees when such fees or allowances are shown as a discount or
price reduction in the billing or that the billing is on a net basis, i.e., less the discount;
2. Actual gross receipts from national network, and regional advertising or a “standard
deduction” as provided by RCW 82.04.280; and
3. Local advertising revenue that represent advertising which is intended to reach
potential customers of the advertiser who are located outside the state of Washington.
The director may issue a rule that provides detailed guidance as to how these
deductions are to be calculated.
Q. “Sales at Wholesale or Retail of Precious Metal Bullion and Monetized Bullion” In
computing tax, there may be deducted from the measure of the tax amounts derived
from the sale at wholesale or retail of precious metal bullion and monetized bullion.
However, no deduction is allowed of amounts received as commissions upon
transactions for the accounts of customers over and above the amount paid to other
dealers associated in such transactions, and no deduction or offset is allowed against
such commissions on account of salaries or commissions paid to salesmen or other
employees.
Page 118 of 213
OR.P. Constitutional Prohibitions. In computing tax, there may be deducted from the
measure of the tax amounts derived from business which the city is prohibited from
taxing under the Constitution of the state of Washington or the Constitution of the United
States.
PSQ. Receipts from the Sale of Tangible Personal Property and Retail Services
Delivered Outside the City but Within Washington. Effective January 1, 2008, amounts
included in the gross receipts reported on the tax return derived from the sale of
tangible personal property delivered to the buyer or the buyer’s representative outside
the city but within the state of Washington may be deducted from the measure of tax
under the retailing, retail services, or wholesaling classification.
QTR. Professional Employer Services. In computing the tax, a professional employer
organization may deduct from the calculation of gross income the gross income of the
business derived from performing professional employer services that is equal to the
portion of the fee charged to a client that represents the actual cost of wages and
salaries, benefits, workers’ compensation, payroll taxes, withholding, or other
assessments paid to or on behalf of a covered employee by the professional employer
organization under a professional employer agreement.
RUS. Amounts Derived from the Sale or Lease of Clean Alternative Fuel and Plug-In
Hybrid Vehicle Sales. The deduction applies as follows:
1. This chapter shall not include the proceeds collected on the sale or lease of new or
used passenger cars, light duty trucks, or medium duty passenger vehicles that are
either exclusively powered by clean alternative fuel; or is a plug-in hybrid vehicle that
can travel at least 30 miles on battery power alone.
2. Up to $45,000 per new vehicle or up to $30,000 per used vehicle may be deducted
from taxable revenue.
3. The sale of accessories purchased as part of the qualifying vehicle may be included
in the deduction, provided the total deduction does not exceed the total amounts listed
in subsection (RS)(2) of this section.
4. Extended warranties and maintenance agreements cannot be included in the
amount to be deducted.
5. This deduction is available eligible beginning January 1, 2022, and will expire
December 31, 2025.
S. Nonprofit Health Care Organization Fees. In computing the tax, nonprofit health care
organizations may deduct up to $30,000,000 in revenue derived from medical, nursing,
ambulance, hospital, and other appropriate outpatient care as charges and service fees
by the nonprofit health care organization.
Page 119 of 213
AGENDA BILL APPROVAL FORM
Agenda Subject:
Ordinance No. 6861 (Thomas) (20 Minutes)
Date:
June 8, 2022
Department:
Finance
Attachments:
Ordinance No. 6861
Ordinance No. 6861 Exhibit
Budget Impact:
Administrative Recommendation:
For discussion only.
Background for Motion:
Background Summary:
In May 2021 the Auburn City Council adopted ACC 3.54 Business and Occupation Tax
Administrative Provisions. The Administrative Provisions outlines all of the administrative
details for B&O tax filing due dates, late payments, overpayments, appeals, etc. for the tax
that first became effective in January 1, 2022. In the time between initial adoption, business
community outreach, and the first tax returns which were due April 30, 2022, there have been
several clarifying questions. This amendment provides clarity for several sections within ACC
3.54, including more definitions (such as "cash basis", "generally accepted accounting
principals", and "records"); clarify how interest on overpayments is calculated, and replace
terminology for ease of understanding and clarity.
Reviewed by Council Committees:
Councilmember:Baggett Staff:Thomas
Meeting Date:June 13, 2022 Item Number:
Page 120 of 213
--------------------------------
Ordinance No. 6861
June 9, 2022
Page 1 of 3
ORDINANCE NO. 6861
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AMENDING CHAPTER 3.54
RELATED TO CITY BUSINESS AND OCCUPATION (B&O)
TAX ADMINISTRATION: (1) AMENDING CERTAIN
SECTIONS TO CLARIFY TERMS, DEFINITIONS AND THE
CALCULATION OF TAX OVERPAYMENT INTEREST; AND
(2) ADDING A NEW SECTION RELATED TO
ADMINISTRATIVE TAX ASSESSMENTS AND PENALTIES
FOR UNREGISTERED CITY BUSINESSES
WHEREAS, in 2021 the City enacted its business and occupations (B&O) tax
administrative code (ACC 3.54);
WHEREAS, prior to and since the enactment of ACC 3.54, the City has engaged
in outreach efforts with the business community and potential City business taxpayers in
preparing to implement the taxation administrative requirements of ACC 3.54;
WHEREAS, the City has determined based on this outreach that certain sections
within ACC 3.54 should be amended in the following ways:
• To define additional terms in the administrative code (such as “cash basis,”
“generally accepted accounting principles,” and “records”) that will assist
taxpayers and the City in determining and calculating City B&O tax liability;
• To clarify how the City will calculate interest on City B&O tax overpayments;
• To replace certain terms within the administrative code to those more familiar
to the City’s business community and B&O taxpayers; and
• To make additional needed technical revisions and corrections to the code;
WHEREAS, the City has also determined that a new section should be added to
ACC 3.54 to address how the City will assess unpaid taxes and penalties for
unregistered City businesses subject to the City’s B&O tax that voluntarily register for
City taxation before receiving City contact about the issue; and
Page 121 of 213
--------------------------------
Ordinance No. 6861
June 9, 2022
Page 2 of 3
WHEREAS, these revisions and new section within ACC 3.54 will enable greater
clarity and precision in the administration and implementation of the City’s B&O tax
code, and they are in the best interest of the City, its business community and its B&O
taxpayers.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
Section 1. Amendment to City Code. Chapter 3.54 of the Auburn City Code
is amended to read as set forth on Exhibit A attached to this Ordinance.
Section 2. New Section added to City Code. A new section ACC 3.54.155
entitled “Voluntary registration prior to Director contact” is added to ACC 3.54, to read as
set forth in Exhibit A to this Ordinance.
Section 3. Implementation. The Mayor is authorized to implement those
administrative procedures necessary to carry out the directives of this legislation.
Section 4. Severability. The provisions of this ordinance are declared to be
separate and severable. The invalidity of any clause, sentence, paragraph, subdivision,
section, or portion of this ordinance, or the invalidity of the application of it to any person
or circumstance, will not affect the validity of the remainder of this ordinance, or the validity
of its application to other persons or circumstances.
Page 122 of 213
--------------------------------
Ordinance No. 6861
June 9, 2022
Page 3 of 3
Section 5. Effective date. This Ordinance will take effect and be in force five
days from and after its passage, approval, and publication as provided by law.
INTRODUCED: _______________
PASSED: ____________________
APPROVED: _________________
____________________________
NANCY BACKUS, MAYOR
ATTEST:
____________________________
Shawn Campbell, MMC, City Clerk
APPROVED AS TO FORM:
____________________________
Kendra Comeau, City Attorney
Published: ____________________
Page 123 of 213
EXHIBIT A – ORDINANCE NO. 6861
ACC 3.54.030 Definitions.
For purposes of this chapter:
The definitions contained in Chapter 3.53 ACC shall apply equally to the provisions of
this chapter unless the term is defined otherwise in this chapter. In addition, the
following definitions will apply:
A. “Cash basis” means a basis of accounting which recognizes revenues and
expenses as occurring in the reporting period when they were actually either received or
paid.
B. “Generally accepted accounting principles” means those national accounting
standards promulgated by the Financial Accounting Standards Board for businesses
and nonprofit associations or by the Governmental Accounting Standards Board for
state agencies or local governments.
C. “Records” means the books of accounts and other business-related records of a
taxpayer subject to the City’s Tax Code or License Code. Such records include ledgers,
subsidiary ledgers, invoices, receipts, registration and incorporation documents, federal,
state and local tax returns, and any other records necessary to establish the amounts
due under the provisions of the City’s Code.
D. “Reporting period” means:
1. A one-month period beginning the first day of each calendar month (monthly); or
2. A three-month period beginning the first day of January, April, July or October of
each year (quarterly); or
3. A twelve-month period beginning the first day of January of each year (annual).
BE. “Return” means any document a person is required by the city to file to satisfy or
establish a tax or fee obligation that is administered or collected by the city and that has
a statutorily defined due date.
CF. “Successor” means any person to whom a taxpayer quitting, selling out,
exchanging, or disposing of a business sells or otherwise conveys, directly or indirectly,
in bulk and not in the ordinary course of the taxpayer’s business, any part of the
materials, supplies, merchandise, inventory, fixtures, or equipment of the taxpayer. Any
person obligated to fulfill the terms of a contract shall be deemed a successor to any
contractor defaulting in the performance of any contract as to which such person is a
surety or guarantor.
Page 124 of 213
G. “Tax” means the amount, usually based upon gross income, assessed upon a
person doing business under the provisions of Chapter 3.53 ACC.
DH. “Tax year” or “taxable year” means the calendar year.
ACC 3.54.060 When due and payable – Reporting periods – Monthly,
quarterly, and annual returns – Threshold provisions or relief
from filing requirements – Computing time periods – Failure to
file returns.
A. Other than any annual license fee or registration fee assessed under this chapter,
the tax imposed by this chapter shall be due and payable in quarterly installments. At
the director’s discretion, businesses may be assigned to a monthly or annual reporting
period depending on the tax amount owing or type of tax. Until December 31, 2020, tax
payments are due on or before the last day of the next month following the end of the
assigned reporting period covered by the return. Effective January 1, 2021, tax
payments are due on or before the time as provided in RCW 82.32.045(1), (2) and (3).
B. Taxes shall be paid as provided in this chapter and accompanied by a return on
forms as prescribed by the director. The return shall be signed by the taxpayer
personally or by a responsible officer or agent of the taxpayer. The individual signing the
return shall swear or affirm that the information in the return is complete and true.
C. Tax returns must be filed and returned by the due date whether or not any tax is
owed.
D. For purposes of the tax imposed by Chapter 3.53 ACC, any person whose value of
products, gross proceeds of sales, or gross income of the business, subject to tax after
all allowable deductions, is equal to or less than $500,000 in the current calendar year,
and/or whose combined taxable business warehouse square footage within the city is
4,000 square feet or less, shall file a return, declaringe no tax due on their return, and
submit the return to the director. The gross receipts and deduction amounts shall be
entered on the tax return even though no tax may be due.
E. A taxpayer that commences to engage in business activity shall file a return and pay
the tax or fee for the portion of the reporting period during which the taxpayer is
engaged in business activity.
F. Except as otherwise specifically provided by any other provision of this chapter, in
computing any period of days prescribed by this chapter the day of the act or event from
which the designated period of time runs shall not be included. The last day of the
period shall be included unless it is a Saturday, Sunday, or city or federal legal holiday,
in which case the last day of such period shall be the next succeeding day which is
neither a Saturday, Sunday, or city or federal legal holiday.
Page 125 of 213
G. Unless otherwise provided in this chapter, Iif any taxpayer fails, neglects or refuses
to make a return as and when required in this chapter, the director is authorized to
determine the amount of the tax or fees payable by obtaining facts and information upon
which to base the director’s estimate of the tax or fees due. Such assessment shall be
deemed prima facie correct and shall be the amount of tax owed to the city by the
taxpayer. The director shall notify the taxpayer by mail of the amount of tax so
determined, together with any penalty, interest, and fees due; the total of such amounts
shall thereupon become immediately due and payable.
ACC 3.54.130 Overpayment of tax, penalty or interest - Credit or refund –
Interest rate – Statute of limitations.
A. If, upon receipt of an application for a refund, or during an audit or examination of
the taxpayer’s records and tax returns, the director determines that the amount of tax,
penalty, or interest paid is in excess of that properly due, the excess amount shall be
credited to the taxpayer’s account or shall be refunded to the taxpayer. Except as
provided in subsection B of this section, no refund or credit shall be made for taxes,
penalties, or interest paid more than four years prior to the beginning of the calendar
year in which the refund application is made or examination of records is completed.
B. The execution of a written waiver shall extend the time for applying for, or making a
refund or credit of any taxes paid during, or attributable to, the years covered by the
waiver if, prior to the expiration of the waiver period, an application for refund of such
taxes is made by the taxpayer or the director discovers that a refund or credit is due.
C. Refunds shall be made by means of vouchers approved by the director and by the
issuance of a city check or warrants drawn upon and payable from such funds as the
city may provide.
D. Any final judgment for which a recovery is granted by any court of competent
jurisdiction for tax, penalties, interest, or costs paid by any person shall be paid in the
same manner, as provided in subsection C of this section, upon the filing with the
director a certified copy of the order or judgment of the court.
E. Interest on overpayments of taxes for reporting periods beginning on or after
January 1, 2005, shall be computed in accordance with RCW 82.32.060, as now
enacted or hereafter amended.
[NEW SECTION] ACC 3.54.155 Voluntary registration prior to Director
contact.
Page 126 of 213
If an unregistered taxpayer doing business in the City voluntarily registers with the
Director pursuant to ACC 3.54.050 prior to being contacted by the Director:
1. The Director’s assessment of taxes and/or interest pursuant to ACC 3.54.060.G shall
be limited to 4 calendar years before the year of registration; and
2. The taxpayer’s payments for the registration year and prior assessed years shall not
be subject to the late penalty in ACC 3.54.130.
ACC 3.54.270 Closing Settlement agreement provisions.
The director may enter into an agreement in writing with any person relating to the
liability of such person in respect of any tax imposed by any of the chapters within this
title and administered by this chapter for any taxable period(s). Upon approval of such
agreement, evidenced by execution thereof by the director and the person so agreeing,
the agreement shall be final and conclusive as to the tax liability or tax immunity
covered thereby, and, except upon a showing of fraud or malfeasance, or
misrepresentation of a material fact:
A. The case shall not be reopened as to the matters agreed upon, or the agreement
modified, by the director or the taxpayer; and
B. In any suit, action or proceeding, such agreement, or any determination,
assessment, collection, payment, abatement, refund, or credit made in accordance
therewith, shall not be annulled, modified, set aside, or disregarded.
Page 127 of 213
AGENDA BILL APPROVAL FORM
Agenda Subject:
Ordinance No. 6870 (Thomas) (10 Minutes)
Date:
June 8, 2022
Department:
Finance
Attachments:
Ordinance No. 6870
Ordinance No. 6870 Exhibit
Budget Impact:
Administrative Recommendation:
For discussion only.
Background for Motion:
Background Summary:
In May 2021 the Auburn City Council adopted ACC 3.53 Business and Occupation Tax, which
first became effective in January 1, 2022. In this time the City has been working to
consolidate processes and tax forms that businesses use for reporting all taxes to the City.
Amendments to ACC 3.88 will ensure tax definitions and reporting requirements are
consistent and harmonious with the Business and Occupation Tax ACC 3.53.
Specifically amendments to this section will: add definitions for clarity ("electricity business"
and "gross income"); clarify the Finance Director as the "Director" responsible for utility tax
administration and regulation, add allowable deductions from taxable income; and specify the
reporting and filing frequencies for utility tax payers earning different levels of gross income.
Reviewed by Council Committees:
Councilmember:Baggett Staff:Thomas
Meeting Date:June 13, 2022 Item Number:
Page 128 of 213
--------------------------------
Ordinance No. 6870
June 9, 2022
Page 1 of 2 Rev. 2019
ORDINANCE NO. 6870
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AMENDING CHAPTER 3.88 OF THE
AUBURN CITY CODE RELATED TO UTILITY SERVICE TAX
ADMINISTRATION, DEDUCTIONS AND FILING
REQUIREMENTS, AND ADDING A NEW SECTION DEFINING
CHAPTER TERMS
WHEREAS, in 2021 the City enacted a B&O tax and corresponding administrative
provisions in Auburn City Code (ACC) Chapters 3.53 and 3.54; and
WHEREAS, with the B&O tax enactment, ACC Chapter 3.88 pertaining to City taxation of
utility services should be revised and updated to ensure its consistency and harmony with ACC
3.53 and 3.54 in the following ways:
• The City’s Finance Director should be designated as the Chapter enforcement
officer, as the Director is in the best position to determine appropriate City utility
tax administration and regulation;
• State sales and use taxes collected by utilities and certain natural gas utility
derived income should be added as a deduction from utility City taxes;
• City utility tax return filing frequencies and payment requirements should be
specified for utility taxpayers earning different levels of gross income; and
WHEREAS, certain terms used within ACC 3.88 should be defined for clarity and
precision, and a new section containing those applicable definitions should also be added to the
chapter for this purpose; and
WHEREAS, these revisions and additions to ACC 3.88 will enable greater clarity and
precision in the administration and implementation of City taxation, and they are in the best
interest of the City, its business community and its taxpayers.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON,
DO ORDAIN as follows:
Section 1. Amendment to City Code. Chapter 3.88 of the Auburn City Code is
amended to read as set forth in Exhibit A to this Ordinance.
Page 129 of 213
--------------------------------
Ordinance No. 6870
June 9, 2022
Page 2 of 2 Rev. 2019
Section 2. New section to City Code. A new section ACC 3.88.035 defining
applicable terms within ACC 3.88 is added to the chapter, to read as set forth in Exhibit A to this
Ordinance.
Section 3. Implementation. The Mayor is authorized to implement those
administrative procedures necessary to carry out the directives of this legislation.
Section 4. Severability. The provisions of this ordinance are declared to be separate
and severable. The invalidity of any clause, sentence, paragraph, subdivision, section, or portion
of this ordinance, or the invalidity of the application of it to any person or circumstance, will not
affect the validity of the remainder of this ordinance, or the validity of its application to other
persons or circumstances.
Section 5. Effective date. This Ordinance will take effect and be in force five days
from and after its passage, approval, and publication as provided by law.
INTRODUCED: _______________
PASSED: ____________________
APPROVED: _________________
____________________________
NANCY BACKUS, MAYOR
ATTEST:
____________________________
Shawn Campbell, MMC, City Clerk
APPROVED AS TO FORM:
____________________________
Kendra Comeau, City Attorney
Published: ____________________
Page 130 of 213
EXHIBIT A—ORD. 6870
ACC 3.88.020 Administration rules and regulations.
The cCity Finance Director clerk is authorized to adopt, publish and enforce, from time
to time, rules and regulations for the proper administration of this chapter, and it is
unlawful to violate or to fail to comply with any such rule or regulation lawfully
promulgated under this section.
[New Section] ACC 3.88.035 Definitions.
In construing the provisions of this chapter, except when otherwise plainly declared or
clearly apparent from the context, the following definitions shall be applied:
“Electricity business” means the business of producing, transmitting, distributing, or
selling electricity; provided, however, a division or department of the City that is subject
to the City’s Utilities Gross Earnings Tax as provided in Chapter 6A.100 is not included
in this definition or chapter.
“Gross income” means the value proceeding or accruing from the sale of tangible
property or service, and receipts (including all sums earned or charged, whether
received or not) by reason of the investment of capital in the business engaged in,
including rentals, royalties, fees, or other emoluments, however designated (excluding
receipts or proceeds from the use or sale of real property or any interest therein, and
proceeds from the sale of notes, bonds, mortgages, or other evidences of indebtedness,
or stocks and the like) and without any deduction on account of the cost of the property
sold, the cost of materials used, labor costs, interest or discount paid, or any expense
whatsoever, and without any deduction on account of losses.
Page 131 of 213
ACC 3.88.050 Tax Deductible – Exempt revenues.
In computing the annual tax there shall be deducted from the gross revenues the
following items:
A. The amount of credit losses and uncollectibles actually sustained by the taxpayer;
B. Amounts derived from transactions in interstate or foreign commerce or from any
business which the city is prohibited from taxing under the Constitution of the United
States or the state.
C. Any retail sales or use taxes collected by the taxpayer from consumers to be
remitted to the Washington State Department of Revenue.
D. Income derived from the activities of selling tangible personal property or providing
services of a type that can be sold or provided by persons not in the business of
transmitting, distributing, or selling natural gas for which a separate charge is made;
provided, that income derived from activity incidental to transmitting, distributing, or
selling natural gas may not be deducted from gross income subject to the tax under this
chapter.
Page 132 of 213
ACC 3.88.060 Tax Return Filing and – Payment Requirements– Returns.
Taxpayers subject to the tax imposed by this chapter shall record and report tax due on
a City tax return form, and shall file the return and pay the corresponding tax due to the
City finance director, as follows:
A. Taxpayers with gross income of less than $2,000 per calendar year that do not
maintain a permanent operating location within the City are exempt from the tax and
return requirements imposed by this chapter.
B. Taxpayers with gross income of $20,000 per month or less: unless subsection A of
this section applies, the taxes imposed by this chapter shall be reported annually, and
paid on or before January 31st of the year following the year in which the income was
received.
C. Taxpayers with gross income between $20,000 per month and $100,000 per month:
the taxes imposed by this chapter shall be reported quarterly, and paid on or before the
30th day of the month after the end of the quarterly period in which the income was
received.
Such quarterly periods are as follows:
1st quarter – January, February, March
2nd quarter – April, May, June
3rd quarter – July, August, September
4th quarter – October, November, December
D. Taxpayers with gross income exceeding $100,000 per month: the taxes imposed by
this chapter shall be reported monthly, and paid on or before the 30th day of the month
after the month in which the income was received.
E. Finance director reservation of rights. The City Finance Director reserves the right
to assign individual taxpayer tax return filing frequency on a case by case basis.
The tax imposed by ACC 3.88.040 shall be due and payable quarterly on or before the
last day of the month following the end of each quarterly period in each year, with the
first quarterly payment payable on the last day in October, 1976. On or before the due
date the taxpayer shall file with the city clerk a written return, upon such form and
setting forth such information as the clerk shall reasonably require, together with the
payment of the amount of the tax.
Page 133 of 213
AGENDA BILL APPROVAL FORM
Agenda Subject:
Ordinance No. 6872 (Thomas) (5 Minutes)
Date:
June 8, 2022
Department:
Finance
Attachments:
Ordinance No. 6872
Ordinance No. 6872 Exhibit
Budget Impact:
Administrative Recommendation:
For discussion only.
Background for Motion:
Background Summary:
In May 2021 the Auburn City Council adopted ACC 3.53 Business and Occupation Tax, which
first became effective in January 1, 2022. In this time the City has been working to
consolidate processes and tax forms that businesses use for reporting all taxes to the City.
Amendments to ACC 3.41 will ensure tax definitions and reporting requirements are
consistent and harmonious with the Business and Occupation Tax ACC 3.53. Specifically,
amendments to ACC 3.41 Garbage Utility Tax will: add definitions for clarity ("gross income",
"solid waste" and "solid waste collection services"); identify allowable deductions from
taxable income; identify method for refunding overpayments; and and specify the reporting
and filing frequencies for solid waste garbage utility tax payers earning different levels of
gross income.
Reviewed by Council Committees:
Councilmember:Baggett Staff:Thomas
Meeting Date:June 13, 2022 Item Number:
Page 134 of 213
--------------------------------
Ordinance No. 6872
June 9, 2022
Page 1 of 3 Rev. 2019
ORDINANCE NO. 6872
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AMENDING CHAPTER 3.41 OF
THE AUBURN CITY CODE RELATED TO GARBAGE
UTILITY TAX AND ADDING NEW SECTIONS DEFINING
CHAPTER TERMS, TAX FILING FREQUENCIES, ELIGIBLE
DEDCUTIONS, AND PROVISIONS FOR OVERPAYMENT
OF TAX
WHEREAS, in 2021 the City enacted a B&O tax and corresponding administrative
provisions in Auburn City Code (ACC) Chapters 3.53 and 3.54; and
WHEREAS, with the B&O tax enactment, ACC Chapter 3.41 pertaining to City
taxation of garbage services should be revised and updated to ensure its consistency and
harmony with ACC 3.53 and 3.54 in the following ways:
• To define terms in the code (such as “gross income”, “solid waste”, and
“solid waste collection service”);
• State sales and use taxes collected by a solid waste collection business
directly from customers and remitted to the State, should be added as a
deduction from taxable income;
• Outline the method for refunding overpayment of solid waste garbage utility
taxes;
• City solid waste garbage tax return filing frequencies and payment
requirements should be specified for taxpayers earning different levels of
gross income; and
WHEREAS, certain terms used within ACC 3.41 should be defined for clarity and
precision, and a new section containing those applicable definitions should also be added
to the chapter for this purpose; and
WHEREAS, these revisions and additions to ACC 3.41 will enable greater clarity
and precision in the administration and implementation of City taxation, and they are in
the best interest of the City, its business community and its taxpayers.
Page 135 of 213
--------------------------------
Ordinance No. 6872
June 9, 2022
Page 2 of 3 Rev. 2019
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
Section 1. Amendment to City Code. Chapter 3.41 of the Auburn City Code
is amended to read as set forth in Exhibit A to this Ordinance.
Section 2. New section to City Code. A new section ACC 3.41.011 defining
applicable terms, a new section ACC 3.41.012 defining tax return filing frequencies, a
new section ACC 3.41.013 defining qualifying deductions, and new section ACC 3.41.014
outlining the method for refunding tax overpayments, within ACC 3.41 is added to the
chapter, to read as set forth in Exhibit A to this Ordinance.
Section 3. Implementation. The Mayor is authorized to implement those
administrative procedures necessary to carry out the directives of this legislation.
Section 4. Severability. The provisions of this ordinance are declared to be
separate and severable. The invalidity of any clause, sentence, paragraph, subdivision,
section, or portion of this ordinance, or the invalidity of the application of it to any person
or circumstance, will not affect the validity of the remainder of this ordinance, or the validity
of its application to other persons or circumstances.
Page 136 of 213
--------------------------------
Ordinance No. 6872
June 9, 2022
Page 3 of 3 Rev. 2019
Section 5. Effective date. This Ordinance will take effect and be in force five
days from and after its passage, approval, and publication as provided by law.
INTRODUCED: _______________
PASSED: ____________________
APPROVED: _________________
____________________________
NANCY BACKUS, MAYOR
ATTEST:
____________________________
Shawn Campbell, MMC, City Clerk
APPROVED AS TO FORM:
____________________________
Kendra Comeau, City Attorney
Published: ____________________
Page 137 of 213
EXHIBIT A – ORD. 6872
Chapter 3.41
SOLID WASTE GARBAGE UTILITY TAX
ACC 3.41.010 Tax created.
A. There is created a 10% percent tax to be levied on and after January 1, 2021,
against and upon the gross receipts and total annual revenues of:
1. The city’s garbage fund; and
2. All solid waste utilities and every business enterprise or other entity engaged in
handling solid waste.
B. For the purposes of this section “solid waste” means garbage, recyclables and yard
debris.
CB. The finance director is directed to collect this tax and to pay the collected funds
into the city’s general expense fund, subject to subsection CD of this section.
DC. On and after January 1, 2021, the finance director shall allocate 1% one percent of
the tax revenue received under this section to the city’s arterial street preservation fund.
ED. The tax rate in subsection A of this section shall automatically revert to 9% nine
percent if the state of Washington provides the city’s arterial street preservation fund
with a long-term sustainable funding source that is sufficient to maintain the city’s
arterial street system’s pavement condition index (PCI) at an average of 70 PCI out of a
score of 100 PCI for the foreseeable future.
FE. Pursuant to RCW 35.68.560, nothing in this section shall be intended or construed
to impose a tax on any county owned or operated solid waste facility.
Page 138 of 213
[New Section] ACC 3.41.011 Definitions.
A. “Gross income” means the value proceeding or accruing from the sale of tangible
property or service, and receipts (including all sums earned or charged, whether
received or not) by reason of the investment of capital in the business engaged in,
including rentals, royalties, fees, or other emoluments, however designated (excluding
receipts or proceeds from the use or sale of real property or any interest therein, and
proceeds from the sale of notes, bonds, mortgages, or other evidences of indebtedness,
or stocks and the like) and without any deduction on account of the cost of the property
sold, the cost of materials used, labor costs, interest or discount paid, or any expense
whatsoever, and without any deduction on account of losses.
B. “Solid waste” means garbage, trash, rubbish, or other material discarded as
worthless or not economically viable for further use, infectious, hazardous, or toxic
wastes, and recyclable or reusable materials collected, in whole or part, for recycling or
salvage.
C. “Solid waste collection service” means receiving solid waste for transfer, processing,
treatment, storage, or disposal including, but not limited to, all collection services, public
or private dumps, transfer stations, and similar operations.
Page 139 of 213
[New Section] ACC 3.41.012 Tax – Payment – Returns.
A. Exemption from tax and return requirement. Taxpayers with gross income of less
than $2,000 per calendar year that do not maintain a permanent operating location
within the City are exempt from the tax and return requirements imposed by this
chapter.
B. Tax return filing and payment requirements. Taxpayers subject to the tax imposed
by this chapter shall record and report tax due on a City tax return form, and shall file
the return and pay the corresponding tax due to the City finance director, as follows:
1. Taxpayers with gross income exceeding $20,000 per month: the taxes imposed by
this chapter shall be due in quarterly installments, and paid on or before the 30th day of
the month after the end of the quarterly period in which the income was received.
Such quarterly periods are as follows:
1st quarter – January, February, March
2nd quarter – April, May, June
3rd quarter – July, August, September
4th quarter – October, November, December
2. Taxpayers with gross income of $20,000 per month or less: unless subsection A of
this section applies, the taxes imposed by this chapter shall be due annually, and paid
on or before January 31st of the year following the year in which the income was
received.
3. Finance director reservation of rights. The Finance Director reserves the right
to”gross review and reassign tax filing frequency on a case by case basis, as warranted
by administrative requirements.
Page 140 of 213
[New Section] ACC 3.41.013 Deductions.
A. There may be deducted from the total gross income upon which the tax is computed
revenues derived from business which the City is prohibited from taxing under the
constitution or laws of the state of Washington or the United States or the Charter of the
City.
B. There may be deducted from the total gross income upon which the tax is computed
the amount of state excise taxes, pursuant to RCW 82.18, imposed directly upon
persons using the service of a solid waste collection business and collected for payment
to the state by the solid waste collection business.
[New Section] ACC 3.41.014 Overpayment of tax.
A. If a taxpayer refund request or an audit or examination of the taxpayer’s records
reveals that the taxpayer has paid tax exceeding that properly due within the 2 years
immediately preceding the request, audit or examination, the City shall (at the
taxpayer’s option) credit the excess amount paid to the taxpayer’s account or refund the
excess amount to the taxpayer.
B. No refund or credit will be allowed for any payment made more than 2 years before
the date that such request, audit or examination is commenced.
C. Where a refund or credit is disallowed by the lapse of the 2 year period in this
section, the Director may use the credit or refund amount otherwise allowable to offset
any tax deficiency determined by the Director to be due for the tax assessment period
preceding the 2 year period.
Page 141 of 213
AGENDA BILL APPROVAL FORM
Agenda Subject:
Ordinance No. 6873 (Thomas) (5 Minutes)
Date:
June 8, 2022
Department:
Finance
Attachments:
Ordinance No. 6873
Ordinance No. 6873 Exhibit
Budget Impact:
Administrative Recommendation:
For discussion only.
Background for Motion:
Background Summary:
In May 2021 the Auburn City Council adopted ACC 3.53 Business and Occupation Tax, which
first became effective in January 1, 2022. During this time the City has been working to
consolidate and improve the tax forms and processes businesses use to report and file utility
tax to the City. This amendment provides clarity for tax filing and reporting frequencies for
businesses paying and reporting cable television utility tax.
Reviewed by Council Committees:
Councilmember:Baggett Staff:Thomas
Meeting Date:June 13, 2022 Item Number:
Page 142 of 213
--------------------------------
Ordinance No. 6873
June 9, 2022
Page 1 of 2 Rev. 2019
ORDINANCE NO. 6873
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AMENDING CHAPTER 3.42 OF
THE AUBURN CITY CODE RELATED TO CABLE
TELEVISION UTILITY TAX ADDING A NEW SECTION
RELATED TO TAX FILING FREQUENCIES.
WHEREAS, in 2021 the City enacted a B&O tax and corresponding administrative
provisions in Auburn City Code (ACC) Chapters 3.53 and 3.54; and
WHEREAS, with the B&O tax enactment, ACC Chapter 3.42 pertaining to City
taxation of cable television services should be revised and updated to ensure its
consistency and harmony with ACC 3.53 and 3.54 in the following ways:
• City cable television utility tax return filing frequencies and payment
requirements should be specified for taxpayers earning different levels of
gross income; and
WHEREAS, these additions to ACC 3.42 will enable greater clarity and precision
in the administration and implementation of City taxation, and they are in the best
interest of the City, its business community and its taxpayers.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
Section 1. New section to City Code. A new section ACC 3.42.030 defining
tax return filing frequencies, within ACC 3.42 is added to the chapter, to read as set forth
in Exhibit A to this Ordinance.
Section 2. Implementation. The Mayor is authorized to implement those
administrative procedures necessary to carry out the directives of this legislation.
Section 3. Severability. The provisions of this ordinance are declared to be
separate and severable. The invalidity of any clause, sentence, paragraph, subdivision,
Page 143 of 213
--------------------------------
Ordinance No. 6873
June 9, 2022
Page 2 of 2 Rev. 2019
section, or portion of this ordinance, or the invalidity of the application of it to any person
or circumstance, will not affect the validity of the remainder of this ordinance, or the validity
of its application to other persons or circumstances.
Section 4. Effective date. This Ordinance will take effect and be in force five
days from and after its passage, approval, and publication as provided by law.
INTRODUCED: _______________
PASSED: ____________________
APPROVED: _________________
____________________________
NANCY BACKUS, MAYOR
ATTEST:
____________________________
Shawn Campbell, MMC, City Clerk
APPROVED AS TO FORM:
____________________________
Kendra Comeau, City Attorney
Published: ____________________
Page 144 of 213
EXHIBIT A – ORD. 6873
[New Section] ACC 3.42.030 Tax – Payment – Returns.
A. Exemption from tax and return requirement. Taxpayers with gross income of less
than $2,000 per calendar year that do not maintain a permanent operating location
within the City are exempt from the tax and return requirements imposed by this
chapter.
B. Tax return filing and payment requirements. Taxpayers subject to the tax imposed
by this chapter shall record and report tax due on a City tax return form, and shall file
the return and pay the corresponding tax due to the City finance director, as follows:
1. Taxpayers with gross income exceeding $20,000 per month: the taxes imposed by
this chapter shall be due in quarterly installments, and paid on or before the 30th day of
the month after the end of the quarterly period in which the income was received.
Such quarterly periods are as follows:
1st quarter – January, February, March
2nd quarter – April, May, June
3rd quarter – July, August, September
4th quarter – October, November, December
2. Taxpayers with gross income of $20,000 per month or less: unless subsection A of
this section applies, the taxes imposed by this chapter shall be due annually, and paid
on or before January 31st of the year following the year in which the income was
received.
3. Finance director reservation of rights. The City Finance Director reserves the right to
review and reassign tax return filing frequency on a case by case basis, as warranted
by administrative requirements.
Page 145 of 213
AGENDA BILL APPROVAL FORM
Agenda Subject:
Ordinance No. 6874 (Thomas) (5 Minutes)
Date:
June 8, 2022
Department:
Finance
Attachments:
Ordinance No. 6874
Ordinance No. 6874 Exhibit
Budget Impact:
Administrative Recommendation:
For discussion only.
Background for Motion:
Background Summary:
In May 2021 the Auburn City Council adopted ACC 3.53 Business and Occupation Tax, which
first became effective in January 1, 2022. During this time the City has been working to
consolidate and improve the tax forms and processes businesses use to report and file utility
tax to the City. This amendment defines additional terms (“amusement games”, “bingo”, “bona
fide charitable or nonprofit organization”, “pull-tabs”, “public card room”, “punchboard”, and
“raffle”); and provides clarity for tax filing and reporting frequencies for businesses paying and
reporting gambling activity taxes.
Reviewed by Council Committees:
Councilmember:Baggett Staff:Thomas
Meeting Date:June 13, 2022 Item Number:
Page 146 of 213
--------------------------------
Ordinance No. 6874
June 9, 2022
Page 1 of 2 Rev. 2019
ORDINANCE NO. 6874
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AMENDING CHAPTER 3.80 OF
THE AUBURN CITY CODE RELATED TO GAMBLING
ACTIVITES TAX FILING FREQUENCIES AND ADDING A
NEW SECTION DEFINING CHAPTER TERMS
WHEREAS, in 2021 the City enacted a B&O tax and corresponding administrative
provisions in Auburn City Code (ACC) Chapters 3.53 and 3.54; and
WHEREAS, with the B&O tax enactment, ACC Chapter 3.80 pertaining to City
taxation of gambling activities should be revised and updated to ensure its consistency
and harmony with ACC 3.53 and 3.54 in the following ways:
• To define additional terms in the code (such as “amusement games”,
“bingo”, “bona fide charitable or nonprofit organization”, “pull-tabs”, “public
card room”, “punchboard”, and “raffle”);
• City gambling activity tax return filing frequencies and payment
requirements should be specified for taxpayers earning different levels of
gross income; and
WHEREAS, certain terms used within ACC 3.80 should be defined for clarity and
precision, and a new section containing those applicable definitions should also be added
to the chapter for this purpose; and
WHEREAS, these revisions and additions to ACC 3.80 will enable greater clarity
and precision in the administration and implementation of City taxation, and they are in
the best interest of the City, its business community and its taxpayers.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
Section 1. Amendment to City Code. Chapter 3.80 of the Auburn City Code
is amended to read as set forth in Exhibit A to this Ordinance.
Page 147 of 213
--------------------------------
Ordinance No. 6874
June 9, 2022
Page 2 of 2 Rev. 2019
Section 2. New section to City Code. A new section ACC 3.80.015 defining
applicable terms within ACC 3.80 is added to the chapter, to read as set forth in Exhibit
A to this Ordinance.
Section 3. Implementation. The Mayor is authorized to implement those
administrative procedures necessary to carry out the directives of this legislation.
Section 4. Severability. The provisions of this ordinance are declared to be
separate and severable. The invalidity of any clause, sentence, paragraph, subdivision,
section, or portion of this ordinance, or the invalidity of the application of it to any person
or circumstance, will not affect the validity of the remainder of this ordinance, or the validity
of its application to other persons or circumstances.
Section 5. Effective date. This Ordinance will take effect and be in force five
days from and after its passage, approval, and publication as provided by law.
INTRODUCED: _______________
PASSED: ____________________
APPROVED: _________________
____________________________
NANCY BACKUS, MAYOR
ATTEST:
____________________________
Shawn Campbell, MMC, City Clerk
APPROVED AS TO FORM:
____________________________
Kendra Comeau, City Attorney
Published: ____________________
Page 148 of 213
EXHIBIT A—ORD. 6874
[NEW SECTION] ACC 3.80.015 – Definitions.
For purposes of this chapter, the following definitions shall be applied:
A. “Amusement game” means a game played for entertainment in which the contestant
actively participates, the outcome depends in a material degree upon the skill of the
contestant or which meets the requirements of RCW 9.46.0201, as now enacted or
hereafter amended.
B. “Bingo” means a game in which prizes are awarded on the basis of designated
numbers or symbols on a card conforming to numbers or symbols selected at random
or which meets the requirements of RCW 9.46.0205, as now enacted or hereafter
amended.
C. “Bona fide charitable or nonprofit organization” shall have the meaning set forth in
RCW 9.46.0209, as now enacted or hereafter amended.
D. “Pull-tabs” means a game in which the participant, on payment of a nominal sum,
receives a paper tab from a dispenser which is pulled apart to reveal a designated prize
or meets the requirements of RCW 9.46.0273, as now enacted or hereafter amended.
E. “Public card room” means that area of the business being commercially stimulated
set aside for the playing of card games.
F. “Punchboard” means a board with many holes filled with rolled-up printed slips to be
punched out on payment of a nominal sum in an effort to obtain a slip that entitles the
player to a designated prize or that meets the requirements of RCW 9.46.0273, as now
enacted or hereafter amended.
G. “Raffle” means a game in which tickets bearing an individual number are sold for not
more than $25 each and in which a prize or prizes are awarded on the basis of a
drawing from the tickets sold or which meets the requirements of RCW 9.46.0277, as
now enacted or hereafter amended.
Page 149 of 213
ACC 3.80.070 Tax – Exemption - Payment – Returnsports.
A. Exemption from tax and return requirement. Taxpayers with gross income of less
than $2,000 per calendar year that do not maintain a permanent operating location
within the City are exempt from the tax and return requirements imposed by this
chapter.
B. Payment of tax upon filing Washington State Gambling Commission report. The
taxes called for as set forth in ACC 3.80.040 and 3.80.060 shall be paid to the city
finance director uUpon the filing of any report to the Washington State Gambling
Commission of gambling moneys received, a taxpayer shall pay the taxes imposed by
this chapter and file by a license holder to the Washington State Gambling
Commission, and a duplicate copy of any such reports shall be filed simultaneously with
the city finance director along with the tax payment of the tax thereon.
C. Tax return filing and payment requirements. Taxpayers subject to the tax imposed
by this chapter shall record and report tax due on a City tax return form, and shall file
the return and pay the corresponding tax due to the City finance director, as follows:
1. Taxpayers with gross income exceeding $20,000 per month: the taxes imposed by
this chapter shall be due in quarterly installments, and paid on or before the 30th day of
the month after the end of the quarterly period in which the income was received.
Such quarterly periods are as follows:
1st quarter – January, February, March
2nd quarter – April, May, June
3rd quarter – July, August, September
4th quarter – October, November, December
2. Taxpayers with gross income of $20,000 per month or less: unless subsection A of
this section applies, the taxes imposed by this chapter shall be due annually, and paid
on or before January 31st of the year following the year in which the income was
received.
3. Finance director reservation of rights. The City Finance Director reserves the right to
review and reassign tax return filing frequency on a case by case basis, as warranted
by administrative requirements.
Page 150 of 213
AGENDA BILL APPROVAL FORM
Agenda Subject:
Ordinance No. 6875 (Thomas) (5 Minutes)
Date:
June 8, 2022
Department:
Finance
Attachments:
Ordinance No. 6875
Ordinance No. 6875 Exhibit
Budget Impact:
Administrative Recommendation:
For discussion only.
Background for Motion:
Background Summary:
In May 2021 the Auburn City Council adopted ACC 3.53 Business and Occupation Tax, which
first became effective in January 1, 2022. During this time the City has been working to
consolidate and improve the tax forms and processes businesses use to report and file utility
tax to the City. This amendment defines additional terms (“competitive telephone service”,
“gross income”, “network telephone service”, “pager service”, and “place of primary
use”); and provides clarity for tax filing and reporting frequencies for businesses paying and
reporting telephone taxes.
Reviewed by Council Committees:
Councilmember:Baggett Staff:Thomas
Meeting Date:June 13, 2022 Item Number:
Page 151 of 213
--------------------------------
Ordinance No. 6875
June 9, 2022
Page 1 of 2 Rev. 2019
ORDINANCE NO. 6875
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON, AMENDING CHAPTER 3.84 OF
THE AUBURN CITY CODE RELATED TO TELEPHONE
BUSINESS CHAPTER TERMS, TAX FILING
FREQUENCIES, AND DEDCUTIONS FROM TAX.
WHEREAS, in 2021 the City enacted a B&O tax and corresponding administrative
provisions in Auburn City Code (ACC) Chapters 3.53 and 3.54; and
WHEREAS, with the B&O tax enactment, ACC Chapter 3.84 pertaining to City
taxation of telephone businesses should be revised and updated to ensure its consistency
and harmony with ACC 3.53 and 3.54 in the following ways:
• To define additional terms in the code (such as “competitive telephone
service”, “gross income”, “network telephone service”, “pager service”, and
“place of primary use”);
• To clarify income earned directly from the City of Auburn, shall be deducted
from taxable income;
• Tax return filing frequencies and payment requirements should be specified
for telephone businesses earning different levels of gross income; and
WHEREAS, certain terms used within ACC 3.84 should be defined for clarity and
precision; and
WHEREAS, these revisions and additions to ACC 3.84 will enable greater clarity
and precision in the administration and implementation of City taxation, and they are in
the best interest of the City, its business community and its taxpayers.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
Section 1. Amendment to City Code. Chapter 3.84 of the Auburn City Code
is amended to read as set forth in Exhibit A to this Ordinance.
Page 152 of 213
--------------------------------
Ordinance No. 6875
June 9, 2022
Page 2 of 2 Rev. 2019
Section 2. Implementation. The Mayor is authorized to implement those
administrative procedures necessary to carry out the directives of this legislation.
Section 3. Severability. The provisions of this ordinance are declared to be
separate and severable. The invalidity of any clause, sentence, paragraph, subdivision,
section, or portion of this ordinance, or the invalidity of the application of it to any person
or circumstance, will not affect the validity of the remainder of this ordinance, or the validity
of its application to other persons or circumstances.
Section 4. Effective date. This Ordinance will take effect and be in force five
days from and after its passage, approval, and publication as provided by law.
INTRODUCED: _______________
PASSED: ____________________
APPROVED: _________________
____________________________
NANCY BACKUS, MAYOR
ATTEST:
____________________________
Shawn Campbell, MMC, City Clerk
APPROVED AS TO FORM:
____________________________
Kendra Comeau, City Attorney
Published: ____________________
Page 153 of 213
EXHIBIT A—ORD. 6875
ACC 3.84.010 Definitionsed.
A. “Telephone business” means the business of providing access to a local telephone
network, local telephone network switching service, toll service, cellular telephone
service, or coin telephone services, or providing telephonic, video, data, or similar
communication or transmission for hire, via a local telephone network, toll line or
channel, or similar communication or transmission system, and as more fully defined in
RCW 82.04.065. It includes cooperative or farmer line telephone companies or
associations operating an exchange. “Telephone business” does not include the
providing of competitive telephone service, nor the providing of cable television service,
nor the providing of broadcast services by radio or television stations.
B. “Cellular telephone service” is a two-way voice and data
telephone/telecommunications system based in whole or substantially in part on
wireless radio communications and which is not subject to regulation by the Washington
Utilities and Transportation Commission (WUTC). This includes cellular mobile service.
The definition of cellular mobile service includes other wireless radio communications
services such as specialized mobile radio (SMR), personal communications services
(PCS), and any other evolving wireless radio communications technology which
accomplishes a purpose similar to cellular mobile service.
C. “Competitive telephone service” means the providing by any person of
telecommunications equipment, apparatus, or service related to that equipment or
apparatus, such as repair or maintenance services, if the equipment or apparatus is of a
type which can be provided by persons that are not subject to regulation as telephone
companies under RCW Title 80, and for which a separate charge is made.
Transmission of communication through cellular telephones is defined as a “telephone
business” in subsection A of this section rather than as a “competitive telephone
service.”
D. “Gross income” means the value proceeding or accruing from the sale of tangible
property or service, and receipts (including all sums earned or charged, whether
received or not) by reason of the investment of capital in the business engaged in,
including rentals, royalties, fees, or other emoluments, however designated (excluding
receipts or proceeds from the use or sale of real property or any interest therein, and
proceeds from the sale of notes, bonds, mortgages, or other evidences of indebtedness,
or stocks and the like) and without any deduction on account of the cost of the property
sold, the cost of materials used, labor costs, interest or discount paid, or any expense
whatsoever, and without any deduction on account of losses.
E. “Network telephone service” means the providing by any person of access to a
telephone network, telephone network switching service, toll service, or coin telephone
service, or providing of telephonic, video, voice, data, or similar communication or
Page 154 of 213
transmission for hire, via a telephone network, toll line or channel, cable, microwave, or
similar communication or transmission system. Network telephone service includes the
provision of electronic transmitting to and from the site of an internet service provider via
a telephone network, toll line or channel, cable, microwave, or similar communication or
transmitting system, without regard to whether such service is referred to as voice over
internet protocol services. It also encompasses interstate service, including toll service,
originating from or received on telecommunications equipment or apparatus in this state
if the charge for the service is billed to a person in this state. Network telephone service
does not include the providing of competitive telephone service, the providing of cable
television service, or the providing of broadcast services by radio or television stations,
nor the provision of internet service as defined in RCW 82.04.297, including the
reception of dial-in connection provided at the site of the internet service provider.
F. “Pager service” means service provided by means of an electronic device which has
the ability to send or receive voice or digital messages transmitted through the local
telephone network via satellite or any other form of voice or data transmission.
G. “Place of primary use” means the residential street address or the primary business
street address of the customer and in both cases must be located within the licensed
service area of the home service provider.
ACC 3.84.020 Competitive telephone service defined.
“Competitive telephone service” means the providing by any person of
telecommunications equipment, apparatus, or service related to that equipment or
apparatus, such as repair or maintenance services, if the equipment or apparatus is of a
type which can be provided by persons that are not subject to regulation as telephone
companies under RCW Title 80, and for which a separate charge is made.
Transmission of communication through cellular telephones is classified as “telephone
business” in ACC 3.84.010 rather than “competitive telephone service.”
Page 155 of 213
ACC 3.84.050 Tax – Payment – Returnsschedule.
A. Exemption from tax and return requirement. Taxpayers with gross income of less
than $2,000 per calendar year that do not maintain a permanent operating location
within the City are exempt from the tax and return requirements imposed by this
chapter.
B. Tax return filing and payment requirements. Taxpayers subject to the tax imposed
by this chapter shall record and report tax due on a City tax return form, and shall file
the return and pay the corresponding tax due to the City finance director, as follows:
1. Taxpayers with gross income exceeding $20,000 per month: the taxes imposed by
this chapter shall be due in quarterly installments, and paid on or before the 30th day of
the month after the end of the quarterly period in which the income was received.
Such quarterly periods are as follows:
1st First quarter – January, February, March
2nd Second quarter – April, May, June
3rd Third quarter – July, August, September
4th Fourth quarter – October, November, December
2. Taxpayers with gross income of $20,000 per month or less: unless subsection A of
this section applies, the taxes imposed by this chapter shall be due annually, and paid
on or before January 31st of the year following the year in which the income was
received.
3. Finance director reservation of rights. The City Finance Director reserves the right to
review and reassign tax return filing frequency on a case by case basis, as warranted
by administrative requirements.The tax imposed by this chapter shall be due and
payable in quarterly installments and remittance shall be made on or before the thirtieth
day of the month next succeeding the end of the quarterly period in which the tax
accrued. Such quarterly periods are as follows:
First quarter – January, February, March
Second quarter – April, May, June
Third quarter – July, August, September
Fourth quarter – October, November, December
Page 156 of 213
D. The first payment made hereunder shall be made by April 30, 1982, for the three-
month period ending March 31, 1982. On or before the due date the taxpayer shall file
with the city clerk a written return, upon such form and setting forth such information as
the clerk shall reasonably require, together with the payment of the amount of the tax.
ACC 3.84.060 Tax – Deductions.
In computing the tax there shall be deducted from the gross revenues the following
items:
A. The amount of credit losses and uncollectibles actually sustained by the taxpayer;
B. A deduction from gross revenues shall be allowed, only to cellular telephone service
companies which keep their regular books of account on an accrual basis, for the total
amount of cash discounts and credit losses actually sustained by a taxpayer as a result
of cellular telephone service business;
C. Amounts derived from transactions in interstate or foreign commerce or from any
business which the city of Auburn, Washington, is prohibited from taxing under the
Constitution of the United States or the state of Washington;
D. Amounts that the City pays to derived by the taxpayer from the city of Auburn,
Washington;
E. That portion of the gross revenues derived from charges to another
telecommunications company, as defined in RCW 80.04.010, for connecting fees,
switching charges, or carrier access charges relating to intrastate toll telephone
services, or for access to, or charges for, interstate services;
F. Charges by a taxpayer engaging in a telephone business to a telecommunications
company, as defined in RCW 80.04.010, for telephone service that the purchaser buys
for the purpose of resale.
Page 157 of 213
AGENDA BILL APPROVAL FORM
Agenda Subject:
Human Services Program Update and Panel Presentation
(Tate) (50 Minutes)
Date:
June 6, 2022
Department:
Community Development
Attachments:
Human Services Program Update Powerpoint
St. Stephens Housing Association Powerpoint
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrative Recommendation:
For information only.
Background for Motion:
Background Summary:
Every two years, the City Council allocates General Fund dollars to make competitive funding
available for nonprofit agencies providing services to Auburn residents. In the Fall of 2019,
Cloudburst Consulting completed a Community Needs Assessment for Auburn to help guide
Human Services funding priorities over the following five years. This Needs Assessment
included recommendations for both priority funding areas and proportionate allocation to each
one based on a targeted increase in Human Services funding, based on the community data
they compiled.
These priority areas are:
Basic Needs
Homelessness Interventions
Housing and Associated Services
Housing Related Supportive Services
Job Training and Education
The total allocation of Human Services grant funding awarded in the 2021-2022 budget is
$680,000. This is a $190,000 increase from the prior year funding, and represents 0.92% of
the 2019 General Fund expenditures. With this funding, 39 programs across 32 agencies are
contracted with the Human Services program, providing services to thousands of Auburn
residents.
During this presentation, staff will provide an overview of 2022 YTD Human Services Program
accomplishment data. Following the presentation, agencies representing each of Auburn’s
funded priority areas will provide a short presentation on their program, followed by
an opportunity for questions and answers. Agencies represented on the panel are:
Page 158 of 213
Aerospace Joint Apprenticeship Committee, African Community Housing and Development,
St. Stephen Housing Association, and Ukrainian Community Center of Washington
Reviewed by Council Committees:
Councilmember:Mulenga Staff:Tate
Meeting Date:June 13, 2022 Item Number:
Page 159 of 213
AUBURNVALUESSERVICEENVIRONMENTECONOMYCHARACTERSUSTAINABILITYWELLNESSCELEBRATIONCITY COUNCIL STUDY SESSIONHUMAN SERVICES PROGRAM UPDATE PRESENTED BY DEPARTMENT OF COMMUNITY DEVELOPMENT JUNE 13, 2022Department of Community DevelopmentPlanning Building Development Engineering Permit Center Economic Development Community Services Code EnforcementPage 160 of 213
Allocates funding through a competitive application process to nonprofit agencies to provide direct services to community members.Currently manages contracts for 43 programs (General Fund and CDBG)Contract management includes:Oversight of agency reports and invoicingRegular monitoring of contracted agenciesSupport for agencies to identify and overcome barriers to service provisionCITY OF AUBURN HUMAN SERVICES PROGRAMSERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATIONPage 161 of 213
In order to be considered for funding, agencies must: Meet one or more of the City of Auburn’s funding prioritiesHave 501(c)(3) status, or have a 501(c)(3) fiscal sponsor in place by the time the application period closesHave a nondiscrimination policy in placeMeet minimum insurance requirementsBe willing and able to accept reimbursement for funds based on service unit completionIf funded, regularly track and submit required reports regarding services and demographics, and undergo regular monitoringHUMAN SERVICES ELIGIBILITYPage 162 of 213
General Fund Human Services dollars$680,000Competitive funding for direct service nonprofit agenciesGuided by Human Services Funding Priorities set by CouncilApproved by City Council every other year during budget processCDBG dollars$598,383*Funds support city’s Housing Repair program, public facility ADA improvements, public services (limited)Guided by Consolidated Plan and Annual Action PlansApproved by City Council every yearGENERAL FUND VS CDBGPage 163 of 213
Supports coordination, collaboration, and capacity building for nonprofit agenciesFacilitates monthly SKC Forum on Homelessness meetingFacilitates monthly rental assistance providers roundtableStaff work closely with regional partners to better assess need and advocate for the Auburn and South King County communityAuburn participates in Share1App, a common Human Services application process shared by 16 King County citiesAgencies have the opportunity to submit funding applications every two years for programs that meet the City’s priority service areas.CITY OF AUBURN HUMAN SERVICES PROGRAMSERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATIONPage 164 of 213
1.Housing and Associated ServicesPrograms that provide ongoing housing or rental assistance and supportive services for individuals and families experiencing homelessness utilizing the Progressive Engagement model. Programs are characterized by ongoing case management and wraparound services as needed in addition to rental or other housing supports. 2.Homelessness Interventions Programs that engage individuals and families experiencing homelessness in housing problem solving, including shorter-term, “light touch” models such as diversion and rapid exit from shelter.3.Housing-related Supportive Services Programs that meet housing related basic needs, including eviction prevention, utility assistance, shelter, storage, laundry, showers, and other homelessness prevention supports.4.Basic Needs Programs that meet a diverse array of non-housing related basic needs, including food access, youth programming, domestic violence advocacy, physical and behavioral health, childcare resources, immigration supports, legal assistance, etc. 5.Job Training and Education Programs that provide education, job training and placement, or apprenticeship opportunities with the aim of increasing economic opportunities for participants. 2021-2022 PRIORITY AREASPage 165 of 213
2022 PROGRAM SNAPSHOTPage 166 of 213
2021 – 2022 EXPENDITURES BY PROGRAM TYPE012345Youth ServicesSupportive HousingShelterSenior ServicesResource NavigationRe-Entry ServicesMental Health ServicesMedical and Dental ServicesLegal AssistanceJob TrainingHomelessness PreventionHomelessness InterventionHomeless HousingFood AccessFamily Support ServicesDomestic Violence ServicesChildcare SupportsTypes of ProgramsPage 167 of 213
39 Programs Funded through General Funds7383Auburn Residents served across all programs2211Bed nights provided443Case management sessions247 Auburn Residents received eviction prevention financial resources22Auburn Residents enrolled in job training servicesJANUARY – MARCH, 2022Page 168 of 213
JANUARY – MARCH 20220500100015002000250030003500Number of Bed NightsAnnual GoalYTDQ1 Target020040060080010001200Case Management SessionsAnnual GoalYTDQ1 TargetPage 169 of 213
JANUARY – MARCH 2022050100150200250300350400450Ind. Receiving Rental AssistanceAnnual GoalYTDQ1 Target0510152025Ind. Enrolled in Job TrainingAnnual GoalYTDQ1 TargetPage 170 of 213
AGENCY PANEL PRESENTATIONPage 171 of 213
Priority Area: Basic NeedsUKRAINIAN COMMUNITY CENTER OF WASHINGTON: REFUGEE ASSISTANCE PROGRAMPage 172 of 213
Priority Area:Housing and Associated ServicesAFRICAN COMMUNITY HOUSING & DEVELOPMENT: SOCIAL SERVICES PROGRAMPage 173 of 213
Priority Area:Housing and Associated ServicesST. STEPHEN HOUSING ASSOCIATION:TRANSITIONAL HOUSINGPage 174 of 213
Priority Area:Job Training and EducationAEROSPACE JOINT APPRENTICESHIP COMMITTEE:ADVANCED MANUFACTURING PREP (APM) TRAINING CENTERPage 175 of 213
QUESTIONS?Page 176 of 213
ST. STEPHEN HOUSING ASSOCIATIONRising to the ChallengePage 177 of 213
OUR FAMILIESThis is why we do what we do. We are honored to be a part of these families’ lives. Despite the challenges of the last year, 10 families exited to stable housing in 2021. Those families made great strides in their lives, paying off debts, saving money, staying clean and sober, sending kids to school, finding work and ultimately moving to permanent housing. Page 178 of 213
BEING IN COMMUNITYTaking time to be together in community and celebration helps families heal from trauma. Page 179 of 213
VOLUNTEERS AT WORKWe couldn’t do what we do without our volunteers. From Day of Caring, to MLK Day of Service, to coat and supply drives, to fundraisers, generous volunteers bring our mission alive. Page 180 of 213
KING COUNTY EVICTION PREVENTION AND RENTAL ASSISTANCESt. Stephen Housing partnered with King County to help provide rental assistance to the thousands of households facing eviction due to economic struggles caused by the pandemic. Since 2021 we have distributed over $8.5 million in rental assistance to 660households. Page 181 of 213
LOOKING AHEADLooking ahead in 2022•The Department of Commerce Housing Preservation Program awarded SSHA $175,000 for renovations to the City Park Facility. •Continuation of rental assistance program through a partnership with the United Way.•Working on grant funding and with a local realtor to purchase additional units to house families experiencing homelessness. Page 182 of 213
INTERESTED IN VOLUNTEERING OR WANT TO KNOW MORE?CONTACT US AT253-638-9798aallen@ststephenhousing.orgHow can you help?*Become a Board Member*Landscaping/yard work*Unit turn over and repair*Furniture moving*House welcoming set up*Social media volunteer*Special eventswww.ststepenhousing.orgPage 183 of 213
AGENDA BILL APPROVAL FORM
Agenda Subject:
Human Services Funding Overview (Tate) (20 Minutes)
Date:
June 6, 2022
Department:
Community Development
Attachments:
Human Services Funding Overview Powerpoint
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrative Recommendation:
For information only.
Background for Motion:
Background Summary:
Community Services staff will share an update on the 2023-2024 Human Services Grant
application cycle, including initial data about applications received and the timeline for Human
Services Committee review and recommendations
In the Spring of every even year, the City of Auburn in partnership with 15 other cities in the
Human Services Funders Collaborative accept requests for Human Services funding using one
common application. The application process for the 2023-2024 funding cycle opened on March
14, 2022 and closed on April 29, 2022. This competitive funding process is open to nonprofit
agencies providing services to Auburn residents.
Staff will provide an overview of the application cycle, including outreach, technical assistance,
initial data on applications received, feedback from applicant agencies, and planned timeline for
Human Services Committee review and recommendation.
Reviewed by Council Committees:
Councilmember:Mulenga Staff:Tate
Meeting Date:June 13, 2022 Item Number:
Page 184 of 213
AUBURNVALUESSERVICEENVIRONMENTECONOMYCHARACTERSUSTAINABILITYWELLNESSCELEBRATIONCITY COUNCIL STUDY SESSION2023-2024 HUMAN SERVICES FUNDING CYCLE UPDATEPRESENTED BY DEPARTMENT OF COMMUNITY DEVELOPMENT JUNE 13, 2022Department of Community DevelopmentPlanning Building Development Engineering Permit Center Economic Development Community Services Code EnforcementPage 185 of 213
General Fund Human Services dollars$600,000Competitive funding for direct service nonprofit agenciesGuided by Human Services Funding Priorities set by CouncilApproved by City Council every other year during budget processCDBG dollars$598,383*The City can allocate up to 15%of the annual funding award to public servicesGuided by Consolidated Plan and Annual Action PlansApproved by City Council every yearThe City attempts to allocate the maximum to public services each yearGENERAL FUND VS CDBGARPA Funds for Human Services $500,000Competitive funding for direct service nonprofit agenciesGuided by Human Services Funding Priorities, Council-directed use, and Federal guidelines for allowable useOne time inflow for 2023-2024Page 186 of 213
Auburn participates in Share1App, a common Human Services application process shared by 16 King County citiesIn order to be considered for funding, agencies must: Meet one or more of the City of Auburn’s funding prioritiesComplete and upload the City’s supplemental questionnaireHave 501(c)(3) status, or have a 501(c)(3) fiscal sponsor in place by the time the application period closesHave a nondiscrimination policy in placeMeet minimum insurance requirementsBe willing and able to accept reimbursement for funds based on service unit completionIf funded, regularly track and submit required reports regarding services and demographics, and undergo regular monitoringApplications are reviewed and scored by the Human Services Committee, with funding recommendations finalized in the fallAPPLICATION BASICSSERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATIONPage 187 of 213
March 14 –April 28*•Application openMay 23 –August 22•Application scoring and review by HSCSeptember 26•Recommendations finalized by HSCOctober 10•Presentation to City Council 2021-2022 APPLICATION REVIEW TIMELINESERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATIONPage 188 of 213
Email outreach to all prior applicants, interested agency lists, and community groupsDecember 2021 – April 2022February 2022: Auburn supplemental information for applicant agencies emailed out and posted on the application website, detailing info on Technical Assistance, scoring, Auburn-specific priorities and requirements, and contact info for city staffWeekly outreach and reminders once application openedInformation on City websitePresentations and outreach to community groupsSouth King County Forum on HomelessnessAuburn Community RoundtableSouth King County Mobility CoalitionOUTREACHSERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATIONPage 189 of 213
Consortium-wide application workshops with a question-by-question walkthroughMarch 14th– 150 AttendeesMarch 15th– 50 AttendeesRecording available on application websiteAll questions asked posted with answers on the application websiteHelp guides and FAQ documentsHow to complete each sectionVideo going through the full applicationShort videos on the most commonly asked application questions“Help Desk” email account staffed 5 days per week by rotating City staffREGIONAL TECHNICAL ASSISTANCE AND SUPPORTSERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATIONPage 190 of 213
Auburn virtual TA sessions:March 17, Basic Needs: 11 attendeesMarch 18, Job Training and Education: 2 attendeesMarch 21, Homelessness Interventions: 6 attendeesMarch 22, Housing Stability: 9 attendeesMarch 28, CDBG: 19 attendeesApril 5, General: 2 attendeesApril 7, General: 0 attendeesApril 13, General: 5 attendeesOne-on-one TA provided over phone and email as needed, through 5pm on April 26 (32 unduplicated agencies)Full guide to navigating the application on City websiteAnswers to any TA questions updated on Auburn websiteOur advice: If in doubt, please reach out!TECHNICAL ASSISTANCE AND SUPPORTSERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATIONPage 191 of 213
0500000010000000150000002000000025000000300000003500000040000000Funding Requests Received Funding AvailableHuman Services Funders Collaborative012345678Share of Population Share of FundingAuburn Proportionate DataINITIAL DATA Page 192 of 213
INITIAL DATA - APPLICATIONS RECEIVEDMet Minimum RequirementsDid Not Meet Minimum Requirements050000010000001500000200000025000003000000Funding Requests Received Funding AvailablePage 193 of 213
Currently Funded ProgramsNot Currently Funded ProgramsAgency Trends:Increase of new applicantsCulturally-specific programsAgency budget increasesStaffing cost increasesINITIAL DATAPage 194 of 213
020000040000060000080000010000001200000Basic Needs Homelessness Interventions Housing Stability Job Training and EducationFunding Requests by Priority AreaFunding RequestedFunding AvailableINITIAL DATAPage 195 of 213
23%37%0%40%How did this cycle's process compare to last cycle?BetterAbout the sameWorseThis was my first time applyingFEEDBACK FROM AGENCIESPage 196 of 213
14%17%3%0%63%3%The training videos wereVery helpfulSomewhat helpfulNot very helpfulReally confusingI didn't watch the training videosWhat training videos?88%6%6%0%I was able to find what I needed to complete my application with the resources and information available on the websiteYesNoI didn't need any other resources and informationThere were resources and information available on the website?FEEDBACK FROM AGENCIESPage 197 of 213
“Like that we can reopen a request till deadline. Came in handy when received some last minute info.”“Pretty straight forward”“Very simple to complete”“Better questions this time with examples”“I appreciate the thoughtfulness that has gone into this process. I feel organizations were allowed enough time to create thorough applications and gather any documents while also being supported. There were clear avenues to ask questions and get assistance as needed.”“I like that you can work offline and than cut and paste into the document”“Its hard to anticipate what questions you will have until you start filling it out. So I appreciated that there was rapid response support available right up until the application deadline.”“At times throughout the application process I was able to go back to previously recorded videos to get my questions quickly answered.”“Website was laid out very efficiently with additional information provided in a way that was easy to access and understand.”FEEDBACK FROM AGENCIESWHAT’S GOING WELLPage 198 of 213
“I ended up needing the help of your help desk. I think it is essential to continue providing this service because it doesn't seem possible to cover everything in print and video. There is always something that someone misses or that isn't apparent to everyone no matter how hard you have worked to make it clear.”“Converting a school year budget to a Jan-Dec budget was actually more difficult than we thought. Service unit names and measurements were difficult for us to align with. Hopefully our budget worksheet makes sense.”“I felt this years questions didn't leave enough room to explain our program as much as other years did.”“The resources and information are not very intuitive. At least they weren't for me. So I still had questions.”“It would be helpful to know the character limits for each narrative question.”“I emailed and asked many questions. Thank you for making time to answer them!”FEEDBACK FROM AGENCIESOPPORTUNITIES TO IMPROVEPage 199 of 213
March 14 –April 28*•Application openMay 23 –August 22•Application scoring and review by HSCSeptember 26•Recommendations finalized by HSCOctober 10•Presentation to City Council 2021-2022 APPLICATION REVIEW TIMELINESERVICE ENVIRONMENT ECONOMY CHARACTER SUSTAINABILITY WELLNESS CELEBRATIONPage 200 of 213
THANK YOU!Page 201 of 213
AGENDA BILL APPROVAL FORM
Agenda Subject:
National Night Out Overview (Tate) (10 Minutes)
Date:
June 6, 2022
Department:
Community Development
Attachments:
National Night Out Overview Powerpoint
Budget Impact:
Current Budget: $0
Proposed Revision: $0
Revised Budget: $0
Administrative Recommendation:
For information only.
Background for Motion:
Background Summary:
National Night Out is an annual community-building campaign that promotes City-community
partnerships and neighborhood camaraderie to make our neighborhoods a safer, better place
to live. Neighborhood Programs staff will share an update on this year's National Night Out
event and how to get involved.
National Night Out (NNO) is a unique crime/drug prevention event sponsored by the National
Association of Town Watch (NATW). On the first Tuesday of August, residents in neighborhoods
throughout the city of Auburn and across the nation are asked to turn on their outside lights, lock
their doors, and spend the evening outside with their neighbors.
Over 38 million people in more than 17,000 communities around the country are expected to
participate in NNO this year. Auburn's 2019 NNO had 52 registered events coordinated by
residents within the City limits, including events in single-family neighborhoods, apartment
complexes, condos, faith communities, supported housing and mobile home parks. Over 60 staff
members representing City of Auburn, Auburn Police Department, and Valley Regional Fire
Authority participated by visiting the events.
After an extended break due to COVID, the City of Auburn is excited to once again support
National Night Out in person this year. Neighborhood Programs staff will share an update on this
year's National Night Out event and how to get involved.
Reviewed by Council Committees:
Councilmember:Mulenga Staff:Tate
Meeting Date:June 13, 2022 Item Number:
Page 202 of 213
Page 203 of 213
AUBURNVALUESSERVICEENVIRONMENTECONOMYCHARACTERSUSTAINABILITYWELLNESSCELEBRATIONCOMMUNITY SERVICES DIVISIONNATIONAL NIGHT OUT OVERVIEWJUNE 13, 2022CITY COUNCIL STUDY SESSIONDepartment of Community DevelopmentPlanning Building Development Engineering Permit Center Economic Development Community Services Code EnforcementPage 204 of 213
Community Services DivisionHuman ServicesHousing RepairNeighborhood ProgramsCOMMUNITY SERVICES DIVISIONPage 205 of 213
NEIGHBORHOOD PROGRAMSThe City of Auburn’s Neighborhood Program is about residents, neighborhoods, community connections, and development.•National Night Out•Civics Academy•Community Matching Grants•Community Fund•Community Outreach•Future Programming?Page 206 of 213
•Vision: Auburn is a healthy, inclusive and engaged community where all residents have a love of place, a sense of belonging, and an ability to influence the future of the community.•Mission: NP will build community by providing investments and programming that promote inclusive engagement, increase accessibility of local gov’t, and enhance community wellness.•3-pronged approach focused on connecting:•Community <-> Community (NNO)•Community <-> City (Civics Academy, Community Outreach)•City <-> Community (Matching Grant, Community Fund, Community Outreach)WHAT DOES NEIGHBORHOOD PROGRAMS (NP) DO?Page 207 of 213
52 registered events68 staff attended (divided into 15 teams)Valley Regional Fire Authority (VRFA) and Puget Sound Energy (PSE) also participatedSparky (VRFA) and McGruff (APD) mascots attended and connected with kids2019 RECAPauburnwa.gov/nnoPage 208 of 213
Tuesday Aug. 2nd First time in-person since 2019Registration opened on June 6thand closes July 25thGreater emphasis on community gathering spacesPlaces of worshipNonprofitsBusinessesAuburn Library2022 PLANS FOR NNOauburnwa.gov/nnoPage 209 of 213
Partner Agency VisitorsValley Regional Fire AuthorityPuget Sound EnergyKing County MetroSound Transit (downtown area)Waste Management2022 PLANS FOR NNO (CONT’D)auburnwa.gov/nnoPage 210 of 213
Event coordinators will receive:Clorox wipesHand sanitizerEvent T-ShirtName tagsPaper TowelsReusable BagsSharpiesWater2022 PLANS FOR NNO (CONT’D)auburnwa.gov/nnoPage 211 of 213
How can I be involved?Invite your neighbors to host an eventAdvertise through your personal networks2022 PLANS FOR NNO (CONT’D)auburnwa.gov/nnoPage 212 of 213
THANK YOU & QUESTIONSChris LovingsNeighborhood Programs Coordinatorauburnwa.gov/neighborhoodsclovings@auburnwa.gov253-876-1988Community Services Line: 253-288-3168Language interpretation availablePage 213 of 213