A. Subject to the limitations in this section, a phased business and occupations tax credit is made available to any person who, after December 31, 2015, opens a new business, or a new branch of an existing business, within an eligible urban village. Eligible urban villages are the downtown district urban village, waterfront district urban village, Samish Way urban village, and fountain district urban village established in Chapter 20.37 BMC and the old town overlay district established in Chapter 20.35 BMC. The credit is not available to a business that relocates from a location within city limits to an eligible urban village.

B. The credit shall be 90 percent of the tax due for the first year, 75 percent of the tax due for the second year, and 50 percent of the tax due for the third year. If the taxpayer transacts business in the city at two or more separate physical locations, the credit shall apply only to the tax liability attributable to the gross receipts of the business located within an eligible urban village. The credit may not be claimed if the taxpayer is claiming any other credits, deductions or exemptions. The credit does not apply to any penalties or interest.

C. To obtain the credit, a person must apply to the city finance director prior to opening the business location for which the credit is sought. Applications shall be on a form provided by the city. The director’s decision to approve or deny the credit shall be issued within 30 days of receipt of the application and shall be based on whether the requirements of this section are met. The credit shall be effective as of the first day of the quarter in which the application is approved, and shall be effective for up to three years from that date; provided, that the requirements of this chapter are met.

D. If a person relocates a business outside the eligible urban village within three years of the effective date of the credit, the total amount of taxes for which the credit has been claimed for current and prior reporting periods shall be immediately due.

E. If a person is delinquent in filing his or her tax returns on three or more occasions while the credit is in effect, the city finance director may revoke the credit; provided, that the revocation shall apply to current and future reporting periods only.

F. The finance director may adopt procedures for the administration of the credit authorized in this section. [Ord. 2020-03-007 § 1; Ord. 2015-12-049 § 1].