TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
Finance
Kelley Cochran
425-556-2748
DEPARTMENT STAFF:
Finance
Kelly Hsi
Finance Program Manager
Finance
Haritha Narra
Deputy Finance Director
TITLE:
title
Adoption of an Ordinance Amending RMC 5.44.060, Return Required - Due Dates and Payment, Changing the Frequency of Due Dates and Payment for Telephone Business, Competitive Telephone Service, and Cellular Telephone Service
a. Ordinance No. 3213: An Ordinance of the City of Redmond, Washington, Amending RMC 5.44.060, Return Required - Due Dates and Payment, to Change the Frequency of Due Dates and Payment for Telephone Business, Competitive Telephone Service, and Cellular Telephone Service
OVERVIEW STATEMENT:
recommendation
Redmond Municipal Code (RMC) 5.44.060 governs the occupation tax for businesses and requires monthly tax payments, unless a written request for an alternate payment schedule is submitted to the City. However, processing these small monthly payments is highly inefficient, as the administrative costs of handling them often exceed the tax revenue collected.
To enhance administrative efficiency and provide relief to businesses, it is recommended that RMC 5.44.060 be revised to adjust the payment frequency for telephone business, competitive telephone service, and cellular telephone service. The payment frequency of the occupation tax for these business activities will be based on gross income.
* If the monthly gross income is $20,000 or less, tax payments shall be made annually.
* If the monthly gross income exceeds $20,000, tax payments shall be made quarterly.
This recommended change impacts only telephone and cellular business activities because their tax amounts due are nominal, making the administrative burden of reporting and processing monthly payments impractical. There shall be no penalty for taxpayers who choose to make payments more frequently. This change will not impact the annual re...
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