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<br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br />Project title: <br /> <br />AN ORDINANCE relating to Business and Occupation Tax, adopting the new revisions to the <br />Model B&O Tax Ordinance incorporating SB 5814 changes relating to retail sales and amending <br />EMC 3.24.030. <br />Council Bill # interoffice use <br />CB 2510-62 Project: Adopt revisions to the Model B&O Tax Ordinance and amend EMC 3.24.030 <br />Partner/Supplier: NA <br /> Location: NA <br />Preceding action: NA <br />Fund: 002 General Fund <br />Agenda dates requested: <br /> <br />1st Reading 11/05/25 <br />2nd Reading 11/12/25 <br />Action 11/19/25 <br />Ordinance X <br />Public hearing <br /> Yes X No <br /> <br />Budget amendment: <br /> Yes X No <br /> <br />PowerPoint presentation: <br /> Yes X No <br /> <br />Attachments: <br />Ordinance, AWC Fact Sheet <br /> <br />Department(s) involved: <br />Finance <br /> <br />Contact person: <br />Heide Brillantes, Finance <br />Director <br /> <br />Phone number: <br />(425) 257-8612 <br /> <br />Email: <br />HBrillantes@everettwa.gov <br />Initialed by: <br />HB <br />Department head <br /> <br />Administration <br /> <br />Council President <br />Fiscal summary statement: <br />A more definitive fiscal estimate can be developed after the new classifications have been <br />implemented and an annual reporting period has passed, allowing for the collection of initial <br />revenue data. <br /> <br />Project summary statement: <br />Pursuant to RCW 35.102, cities which collect business and occupation (B&O) tax must B&O <br />ordinances to reflect changes that are made to the AWC model ordinance. Senate Bill 5814 <br />changed the tax classification for the following services to retail sales: <br />• Advertising services; <br />• Live presentations; <br />• Information technology services; <br />• Custom website development services; <br />• Investigation, security, and armored car services; <br />• Temporary staffing services; and <br />• Sales of custom software and customization of prewritten software. <br />B&O tax cities must adopt these mandatory changes to the model ordinance with an effective <br />date on January 1, 2026. <br />Recommendation (exact action requested of Council): <br />Adopt an Ordinance relating to Business and Occupation Tax, adopting the new revisions to the <br />Model B&O Tax Ordinance incorporating SB 5814 changes relating to retail sales and amending <br />EMC 3.24.030. <br /> <br />City Council Agenda Item Cover Sheet