Ordinance 2759-04 - Laserfiche WebLink

obtaining a suitable site including buildings, related facilities, infrastructure and other improvement for the location of the final assembly of the 7E7 Aircraft and other operations related thereto. As a result of diligient good faith negotiations the City of Everett and The Boeing Company have agreed on a Business and Occupation tax reduction to be permanent for the calandar years 2006 through 2023. During such period the City of Everett agrees not to suspend, revoke or require repayment of such reduction as authorized by its Business and Occupation tax reduction, provided that final assembly of the 7E7 Aircraft begins by December 31, 2007. The rate reduction by the City of Everett is intended by the parties to create an estimated net present value reduction of approximately thirty- five million dollars ($35,000,000.00) which amount is calcuated using a six percent (6%) discount rate over a twenty (20) year period beginning 2004 and based on current estimated aircraft production and sales. Section 2: The provisons of Section 3.24.080 Everett Municipal Code and Section 8 of Ordinance No. 2582-02 which read: Engaging in business both within and without the city. A person, who is subject to tax under Section 3.24.050(A) or (B) and maintains an office, plant, warehouse or other business establishment which engages in business partly within and partly outside of the city, shall be taxable on the value of products, gross proceeds of sales or gross income of the business attributable to business activity within the city, ascertained either: A. By a fair and equitable formula agreed upon by the finance director and the taxpayer after a consideration of the facts; B. By a segregation of business within and business outside the city, shown and supported by accounting records satisfactory to the director; or C. In the absence thereof,by an apportionment to the city of that part of the total value of products, gross proceeds of sales, or gross income of the business derived from business both within and outside the city in the proportion that the cost of doing business within the city bears to the cost of doing business both within and outside of the city. are hereby repealed as of January 1, 2006. Section 3: The provisions of Section 5 of Ordinance No. 2582-02, (EMC 3.24.050), which read: Imposition of the tax—Tax or fee levied. There is hereby levied upon and shall be collected from every person as hereinafter provided, for the act or privilege of engaging in business activities within the city, whether his or her office or place of business be within or without the city, a business and occupation tax or fee, sometimes herein referred to as the "tax." The tax shall be in amounts to be determined by application of rates against gross proceeds of sale, gross 2