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Home My WebLink About04/14/2026 09.E. Ordinance amend_YMC_5.50.060 Water business tax S 'V ii r • i ,,,..,..y ...,, : , .„„...,„„„,,,..... .„ t,"gin.;RnTT,o_1a`` BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 9.E. For Meeting of: April 14, 2026 ITEM TITLE: Ordinance amending the Yakima Municipal Code Section 5.50.060 Water Business tax, adding a 4°/o utility tax SUBMITTED BY: Craig Warner, Budget & Finance Director SUMMARY EXPLANATION: This ordinance implements a March 17th council-directed increase to water businesses' tax rates to establish a funding source to maintain operation of Fire Station 92 until such time as other funding may be identified. The City of Yakima's adopted 2026 budget required closure of Fire Station 92. In January 2026, City Council authorized one-time funding from reserves to continue Station operations through August 2026. The proposed utility tax of 24% on water, sewer, refuse, and stormwater is estimated to provide $1,800,000 of additional revenue, sufficient to operate Fire Station 92. ITEM BUDGETED: No STRATEGIC PRIORITY 24-25: A Resilient Yakima RECOMMENDATION: Pass Ordinance. ATTACHMENTS: Ordinance re amend YMC 5.50.060 4°/o water business.docx Ordinance re amend YMC 5.50.060.pdf 102 ORDINANCE NO. 2026- AN ORDINANCE amending the City of Yakima Municipal Code Section 5.50.060: Water businesses WHEREAS, the City of Yakima has the authority as a first class city under its police powers and state statute to issue license fees and/or taxes; and WHEREAS, the City levies an in lieu tax against the City water business under YMC 7.64.020; and WHEREAS, the City Council of the City of Yakima finds and determines that adoption of this ordinance amending the water business section of the Yakima Municipal Code, Section 5.50.060 to make the tax equal to the tax for city water services, is in the public interest and best interest of the City and its residents; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Section 5.50.060 of the City of Yakima Municipal Code is hereby amended to read as follows: 5.50.060 Water businesses. There is levied and shall be collected an annual license fee or tax against persons on account of business activities, in the amount to be determined by application of the rates herein prescribed as follows: 1. Commencing January 1, 1990, and effective until December 31, 1990, upon every person engaging in or carrying on the business of selling or furnishing potable water, a fee or tax equal to six percent of the total gross revenue derived from such business in the city of Yakima. 2. Commencing January 1, 1991, and effective until December 31, 1992, upon every person engaged in or carrying on the business of selling or furnishing potable water, a fee or tax equal to twelve percent of the total gross revenue derived from such business in the city of Yakima. 3. (a) Commencing January 1, 1993, and effective until December 31, 1993, upon every person engaging in or carrying on the business of selling or furnishing potable water, a fee or tax equal to fourteen percent of the total gross revenue derived from such business in the city of Yakima. (b) Commencing January 1, 1994, and effective thereafter, upon every person engaged in or carrying on carrying on the business of selling or furnishing potable water, a fee or tax equal to fourteen percent of the total gross revenue derived from such business in the city of Yakima. 4. Commencing January 1, 2012, and effective until May 31, 2025, upon every person engaged in or carrying on carrying on the business of selling or furnishing potable 103 water, a fee or tax equal to twenty percent of the total gross revenue derived from such business in the city of Yakima. 5. Commencing June 1, 2026, and effective thereafter, upon every person engaged in or carrying on the business of selling or furnishing potable water, a fee or tax equal to twenty-four percent of the total gross revenue derived from such business in the city of Yakima. Section 2. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this day of , 2026. ATTEST: Matt Brown, Mayor Rosalinda Ibarra, City Clerk Publication Date: Effective Date: 104 ORDINANCE NO. 2026- AN ORDINANCE amending the City of Yakima Municipal Code Section 5.50.060: Water businesses WHEREAS,the City of Yakima has the authority as a first class city under its police powers and state statute to issue license fees and/or taxes; and WHEREAS, the City levies an in lieu tax against the City water business under YMC 7.64.020; and WHEREAS, the City Council of the City of Yakima finds and determines that adoption of this ordinance amending the water business section of the Yakima Municipal Code, Section 5.50.060 to make the tax equal to the tax for city water services, is in the public interest and best interest of the City and its residents; now, therefore, BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Section 5.50.060 of the City of Yakima Municipal Code is hereby amended to read as follows: 5.50.060 Water businesses. There is levied and shall be collected an annual license fee or tax against persons on account of business activities, in the amount to be determined by application of the rates herein prescribed as follows: 1. Commencing January 1, 1990, and effective until December 31, 1990, upon every person engaging in or carrying on the business of selling or furnishing potable water, a fee or tax equal to six percent of the total gross revenue derived from such business in the city of Yakima. 2. Commencing January 1, 1991, and effective until December 31, 1992, upon every person engaged in or carrying on the business of selling or furnishing potable water, a fee or tax equal to twelve percent of the total gross revenue derived from such business in the city of Yakima. 3. (a) Commencing January 1, 1993, and effective until December 31, 1993, upon every person engaging in or carrying on the business of selling or furnishing potable water, a fee or tax equal to fourteen percent of the total gross revenue derived from such business in the city of Yakima. (b) Commencing January 1, 1994, and effective thereafter, upon every person engaged in or carrying on carrying on the business of selling or furnishing potable water, a fee or tax equal to fourteen percent of the total gross revenue derived from such business in the city of Yakima. 4. Commencing January 1, 2012, and effective until May 31, 2025, upon every person engaged in or carrying on carrying on the business of selling or furnishing potable 105 water, a fee or tax equal to twenty percent of the total gross revenue derived from such business in the city of Yakima. 5. Commencing June 1, 2026, and effective thereafter, upon every person engaged in or carrying on the business of selling or furnishing potable water, a fee or tax equal to twenty-four percent of the total gross revenue derived from such business in the city of Yakima. Section 2. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this day of , 2026. ATTEST: Matt Brown, Mayor Rosalinda Ibarra, City Clerk Publication Date: Effective Date: 106