TO: Committee of the Whole - Finance, Administration, and Communications
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Finance |
Kelley Cochran |
425-556-2748 |
DEPARTMENT STAFF:
|
Finance |
Haritha Narra |
Deputy Finance Director |
|
Finance |
Adam O’Sullivan |
Finance Manager |
|
Finance |
Denise Shinoda |
Business Licensing Program Coordinator |
TITLE:
title
Adoption of an Updated Interlocal Agreement with the Washington State Department of Revenue for Business Licensing Services
OVERVIEW STATEMENT:
recommendation
The City has an existing interlocal agreement (ILA 9515) with the Washington State Department of Revenue (DOR) to provide business licensing services, as previously approved under AM No. 20-123 on September 15, 2020. WA DOR has requested the City sign a new interlocal agreement that includes minor updates to the existing terms. The updates pertain to additional language for the use of subcontractors, specifically regarding data privacy.
As background, per RCW 35.90.020 (1), a city that requires a general business license of any person that engages in business activities within that city must partner with the department (Revenue) to have such license issued, and renewed if the city requires renewal, through the business licensing service in accordance with RCW 19.02.
body
☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☐ Receive Information ☒ Provide Direction ☐ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
o N/A
• Required:
o Interlocal agreements require Council approval
o RCW 35.90.020 (1)
• Council Request:
o N/A
• Other Key Facts:
o N/A
OUTCOMES:
The updated ILA allows subcontractors to carry out work under the interlocal agreement and requires Redmond to (1) clarify in writing with any subcontractors the data sharing safeguards and restrictions attached to the ILA, and (2) require each subcontractor to execute a copy of an acknowledgement of data privacy and data security safeguards. Both the information and form are provided by the DOR, and documentation of receipt and acknowledgement by the subcontractors must be made available by the City to DOR if requested.
Signing the updated agreement with WA DOR will allow the City to continue utilizing DOR’s business licensing services and further secure confidential tax information. This partnership creates ease for businesses to have a single customer service center to conduct their business licensing needs, and for DOR to provide the City with services including initial intake of business license applications and renewals; printing and mailing of business licenses; collection and distribution of fees; and compliance support for partners.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
N/A
• Outreach Methods and Results:
N/A
• Feedback Summary:
N/A
BUDGET IMPACT:
Total Cost:
N/A
Approved in current biennial budget: ☐ Yes ☐ No ☒ N/A
Budget Offer Number:
N/A
Budget Priority:
Strategic and Responsive
Other budget impacts or additional costs: ☐ Yes ☐ No ☒ N/A
If yes, explain:
N/A
Funding source(s):
N/A
Budget/Funding Constraints:
N/A
☐ Additional budget details attached
COUNCIL REVIEW:
Previous Contact(s)
|
Date |
Meeting |
Requested Action |
|
N/A |
Item has not been presented to Council |
N/A |
Proposed Upcoming Contact(s)
|
Date |
Meeting |
Requested Action |
|
11/17/2026 |
Business Meeting |
Approve |
Time Constraints:
Although WA DOR did not specify a deadline for partners to approve the updated ILA, the City should adopt the updated ILA as soon as possible to ensure that the City has the most up-to-date data privacy practices in place for business licensing.
ANTICIPATED RESULT IF NOT APPROVED:
If the updated partnership agreement with WA DOR is not approved, confidential taxpayer information would be at risk of disclosure, and the City would not have the flexibility to share confidential information with parties who could assist with future licensing decisions.
ATTACHMENTS:
Attachment A: Revised Interlocal Agreement
Attachment B: Interlocal Agreement 9515 (approved September 15, 2020)