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Home My WebLink About04/21/2026 13.B. Amended Utility Tax Ordinances adopted April 14, 2026 'V ii ii S _� r,....,.,. • i „..,..., ..:,, ",„:,,„,.,.„,„**kf, BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 13.B. For Meeting of: April 21, 2026 ITEM TITLE: Amended Utility Tax Ordinances adopted April 14, 2026 SUBMITTED BY: Vicki Baker, City Manager Sara Watkins, City Attorney SUMMARY EXPLANATION: Please find enclosed the signed ordinances associated with the increase in utility tax, and the language indicating that the additional utility tax amounts would be repealed upon passage of a $0.50/$1,000 EMS levy passed by Yakima County. ITEM BUDGETED: No STRATEGIC PRIORITY 24-25: A Thriving Yakima RECOMMENDATION: ATTACHMENTS: ORD. NO. 2026-014 amend YMC 5.50.060 Water business tax_signed ORD. NO. 2026-015 amend YMC 7.64.020 Water and Wastewater tax_signed ORD. NO. 2026-016 amend YMC 7.64.030 Refuse tax_signed ORD. NO. 2026-017 amend YMC 7.64.040 Stormwater tax_signed 226 ORDINANCE NO. 2026-014 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: 5.50.60 Water businesses. A. 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 227 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. B. The additional 4% utility tax added on April 14, 2026, shall be repealed if Yakima County passes an EMS Levy at $0.50 per$1,000.00 of assessed value, upon receipt of those EMS funds. 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 14th day of April, 2026. ~�.f�f11lf bb ATTEST: .''''• ‘11 I# Matt Brown, Mayor IP * : SEAL • ter ::. s. _ ' •salinda Ibarra, CMC, City � , Hrra,:,:ef Publication Date: April 18, 2026 Effective Date: May 18. 2026 228 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 229 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. B. The additional 4% utility tax added on April 14, 2026, shall be repealed if Yakima County passes an EMS Levy at$0.50 per$1,000.00 of assessed value, upon receipt of those EMS funds. 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: 230 ORDINANCE NO. 2026-015 AN ORDINANCE amending the City of Yakima Municipal Code Section 7.64.020 Water and Wastewater tax. WHEREAS, the City of Yakima is authorized by Title 35 RCW to acquire, construct, own, operate, and provide financing for water services construction, operation, management and delivery, and wastewater services construction, operation, management and delivery, and to establish rates, fees, and charges therefore; and WHEREAS, the City Council of the City of Yakima finds and determines that adoption of this ordinance amending the water and wastewater tax rate section of the Yakima Municipal Code, Section 7.64.020, 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 7.64.020 of the City of Yakima Municipal Code is hereby amended to read as follows: 7.64.020 Water and Wastewater tax. A. For the provision of water and wastewater services, there is levied a tax against the total gross revenue of the water operating fund and the wastewater operating fund derived from domestic water, wastewater, pretreatment, food processing wastewater, septage and exceptional wastewater disposal, diverted flow, and connection charges. The rate of the tax for calendar year 2026 and the following years shall be as follows: All service charges: 24% B. 1. The water and wastewater tax shall not be applied against that portion of the total gross revenue of the wastewater operating fund which is collected as debt coverage for the wastewater debt. 2. Commencing on the effective date of the ordinance codified in this chapter, the water and wastewater tax shall not be applied against that portion of the total gross revenue of the water operating fund which is collected as debt coverage for water debt issued after the effective date of said ordinance. For use in this chapter, "debt coverage" shall mean that revenue collected specifically to meet the requirements of bonded debt coverage and state revolving loan coverage. C. The water and wastewater tax shall not be applied against that portion of the total gross revenue of the wastewater operating fund which constitutes payment by the Terrace Heights sewer district or the city of Union Gap of charges imposed under the agreement dated February 23, 1976, or the settlement agreement dated September 9, 1997. 231 D. The additional 3% utility tax added on April 14, 2026, shall be repealed if Yakima County passes an EMS Levy at $0.50 per$1,000.00 of assessed value, upon receipt of those EMS funds. 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 14th day of April, 2026. ATTEST: r:"- .AKrhr4?• hr Matt Brown, Mayor i . •*r Pt • i SEAL . .1.1 `r 1 . ++ *` 'osalinda Ibarra, CMC, City Clerk it-' hrNa•o•t Publication Date: April 18, 2026 Effective Date: May 18, 2026 232 ORDINANCE NO. 2026- AN ORDINANCE amending the City of Yakima Municipal Code Section 7.64.020 Water and Wastewater tax. WHEREAS, the City of Yakima is authorized by Title 35 RCW to acquire, construct, own, operate, and provide financing for water services construction, operation, management and delivery, and wastewater services construction, operation, management and delivery, and to establish rates, fees, and charges therefore; and WHEREAS, the City Council of the City of Yakima finds and determines that adoption of this ordinance amending the water and wastewater tax rate section of the Yakima Municipal Code, Section 7.64.020, 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 7.64.020 of the City of Yakima Municipal Code is hereby amended to read as follows: 7.64.020 Water and Wastewater tax. A. For the provision of water and wastewater services, there is levied a tax against the total gross revenue of the water operating fund and the wastewater operating fund derived from domestic water, wastewater, pretreatment, food processing wastewater, septage and exceptional wastewater disposal, diverted flow, and connection charges. The rate of the tax for calendar year 2026 and the following years shall be as follows: All service charges: 2-4 2 After three years, the tax levied herein will be reduced to twenty percent B. 1. The water and wastewater tax shall not be applied against that portion of the total gross revenue of the wastewater operating fund which is collected as debt coverage for the wastewater debt. 2. Commencing on the effective date of the ordinance codified in this chapter, the water and wastewater tax shall not be applied against that portion of the total gross revenue of the water operating fund which is collected as debt coverage for water debt issued after the effective date of said ordinance. For use in this chapter, "debt coverage" shall mean that revenue collected specifically to meet the requirements of bonded debt coverage and state revolving loan coverage. C. The water and wastewater tax shall not be applied against that portion of the total gross revenue of the wastewater operating fund which constitutes payment by the Terrace Heights sewer district or the city of Union Gap of charges imposed under the agreement dated February 23, 1976, or the settlement agreement dated September 9, 1997. 233 D. The additional 3% utility tax added on April 14, 2026, shall be repealed if Yakima County passes an EMS Levy at $0.50 per$1,000.00 of assessed value, upon receipt of those EMS funds. 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 14th day of April, 2026. ATTEST: Matt Brown, Mayor Rosalinda Ibarra, CMC, City Clerk Publication Date: April 18, 2026 Effective Date: May 18, 2026 234 ORDINANCE NO. 2026-016 AN ORDINANCE amending the City of Yakima Municipal Code Section 7.64.030 Refuse Tax WHEREAS, RCW 35.22.195, RCW 35.21.120 and RCW 35.21.130 give cities primary responsibility to manage solid waste collection and disposal; and WHEREAS, the City Council of the City of Yakima finds and determines that adoption of this ordinance amending the refuse tax rate section of the Yakima Municipal Code, Section 7.64.030, 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 7.64.030 of the City of Yakima Municipal Code is hereby amended to read as follows: 7.64.030 Refuse tax. For the provision of refuse services, there is levied a twenty-four percent tax against the total gross revenue of the refuse fund derived from refuse collection and disposal service charges. The additional 3% utility tax added on April 14, 2026, shall be repealed if Yakima County passes an EMS Levy at $0.50 per$1,000.00 of assessed value, upon receipt of those EMS funds. 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 14th day of April, 2026. 1/11/14,, `!!K!..Ma ++ Matt Brown, Mayor ATTEST: # IP I 0 : ftsEAL ) I. r Rosalinda Ibarra, CMC, City Clerk'i,;-gsylNG-co :^ Publication Date: April 18, 2026 Effective Date: May 18, 2026 235 ORDINANCE NO. 2026- AN ORDINANCE amending the City of Yakima Municipal Code Section 7.64.030 Refuse Tax WHEREAS, RCW 35.22.195, RCW 35.21.120 and RCW 35.21.130 give cities primary responsibility to manage solid waste collection and disposal; and WHEREAS, the City Council of the City of Yakima finds and determines that adoption of this ordinance amending the refuse tax rate section of the Yakima Municipal Code, Section 7.64.030, 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 7.64.030 of the City of Yakima Municipal Code is hereby amended to read as follows: 7.64.030 Refuse tax. For the provision of refuse services, there is levied a twenty- percent tax against the total gross revenue of the refuse fund derived from refuse collection and disposal service charges. After three years, the tax levied herein will be reduced to twenty percent. The additional 3% utility tax added on April 14, 2026, shall be repealed if Yakima County passes an EMS Levy at$0.50 per$1,000.00 of assessed value, upon receipt of those EMS funds. 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 14th day of April, 2026. ATTEST: Matt Brown, Mayor Rosalinda Ibarra, CMC, City Clerk Publication Date: April 18, 2026 Effective Date: May 18, 2026 236 ORDINANCE NO. 2026-017 AN ORDINANCE amending the City of Yakima Municipal Code Section 7.64.040 Stormwater tax. WHEREAS, the City of Yakima is authorized by Title 35 RCW to acquire, construct, own, operate, and provide financing for storm drainage and surface water management, and to establish rates, fees, and charges therefore; and WHEREAS, the City Council of the City of Yakima finds and determines that adoption of this ordinance amending the stormwater tax rate section of the Yakima Municipal Code, Section 7.64.040, 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 7.64.040 of the City of Yakima Municipal Code is hereby amended to read as follows: 7.64.040 Stormwater tax. For the provision of stormwater compliance and stormwater collection services there is levied a tax against the total assessments collected from annual stormwater assessments charges. Commencing June 1, 2026, and effective annually thereafter, the rate of the tax shall be twenty-four percent. The additional 3% utility tax added on April 14, 2026, and effective on June 1, 2026, shall be repealed if Yakima County passes an EMS Levy at $0.50 per$1,000.00 of assessed value, upon receipt of those EMS funds. 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 14th day of April, 2026. .4 P Mq►y, ATTEST: *�'' +► Matt Brown. Mayor S,EAL !� s*i • k 111 . �� _ AP, a .6�a. .. ... 'e Rosalinda Ibarra, CMC, City Clerk`'►,,HIi G- ' Publication Date: April 18, 2026 Effective Date: May 18. 2026 237 ORDINANCE NO. 2026- AN ORDINANCE amending the City of Yakima Municipal Code Section 7.64.040 Stormwater tax. WHEREAS, the City of Yakima is authorized by Title 35 RCW to acquire, construct, own, operate, and provide financing for storm drainage and surface water management, and to establish rates, fees, and charges therefore; and WHEREAS, the City Council of the City of Yakima finds and determines that adoption of this ordinance amending the stormwater tax rate section of the Yakima Municipal Code, Section 7.64.040, 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 7.64.040 of the City of Yakima Municipal Code is hereby amended to read as follows: 7.64.040 Stormwater tax. For the provision of stormwater compliance and stormwater collection services there is levied a tax against the total assessments collected from annual stormwater assessments charges. Commencing June 'I, 2U26February 1, 2026, and effective annually thereafter, the rate of the tax shall be twenty-anefour percent. Y' I Lei Li o .: yect the tax levied herein will be reduced to twenty percent. The additional 3% utility tax added on April 14, 2026, and effective on June 1, 2026, shall be repealed if Yakima County passes an EMS Levy at$0.50 per$1,000.00 of assessed value, upon receipt of those EMS funds. 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 14th day of April, 2026. ATTEST: Matt Brown, Mayor Rosalinda Ibarra, CMC, City Clerk Publication Date: April 18, 2026 Effective Date: May 18, 2026 238