TO: Members of the City Council
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
Program Coordinator, Business Licensing
TITLE:
title
Adoption of an Ordinance Amending Redmond Municipal Code (RMC) Subsection 5.04.080.F Increasing the Business License Model Minimum Threshold for Out-of-City Businesses, and Implementing Adjustments to the Threshold Every Four Years
a. Ordinance No. 3227: An Ordinance of the City of Redmond, Washington, Amending Redmond Municipal Code (RMC) Subsection 5.04.080.F to Implement a One-Time Increase to the Business License Model Minimum Threshold for Out-of-City Businesses, with Adjustments to the Threshold Every Four Years Based on Cumulative Inflation, as Required by RCW 35.90, Municipal Business Licensing; Providing For Severability, and Establishing an Effective Date
OVERVIEW STATEMENT:
recommendation
In 2024, the Association of Washington Cities (AWC) coordinated a workgroup of cities and business stakeholders to review and update the business license model minimum threshold to $4,000, effective January 1, 2026, with inflationary adjustments every four years.
Currently, per RMC 5.04.080.F, businesses or individuals whose annual value of products, gross proceeds of sales, or gross income within the City of Redmond is equal to or less than $2,000, and who do not maintain a physical place of business within the City, are exempt from the City's business license fee. This model minimum threshold of $2,000 was developed and adopted in 2019.
Cities are required to adopt the new threshold, and those who partner with the state's Business Licensing Service (BLS) must adopt the new threshold by mid-October to comply with the BLS 75-day notification requirement for any changes to city business license programming.
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