Current events from the
Business Tax / Transportation Improvements Advisory Committee

On January 23, 2006, the Business Tax / Transportation Improvements (BTTI) Advisory Committee reconvened for another round of recommendations to the City Council on how to expend business tax revenue.  The committee is looking at how approximately $7.4 million in unallocated business tax funds can best be spent on transportation projects and programs in Redmond.  The total number of these dollars includes revenue collected in 2005 and projected revenue for 2006.  With the November 2005 adoption of the Transportation Master Plan, it is expected that the BTTI Committee will rely on that document to guide them in this year's recommendation process.

The BTTI Committee plans to meet monthly.  Meetings from February through June are currently scheduled for the following dates:  February 27, March 27, April 24, May 22, and June 26. 

Meetings are held at City Hall in the Council Conference Room from 5:30 PM to 7:00 PM.

Minutes from the following meetings are available for review:  January 23, February 27, March 27, May 22.

Agendas for the following meetings are also available for review: February 27.

This page was last updated on Monday, February 27, 2006.

How was Redmond's business tax established and why are businesses taxed?  

In the 1990's, rapidly growing business and residential communities placed increasing demands on Redmond's transportation system. Transportation needs were identified, but there were many more than could be addressed with the financial resources that were available. 

Without a current business tax in place, the Mayor and City Council agreed that both large and small businesses should equitably pay their fair share to improve and maintain the City's transportation system. In 1996, by Ordinance No. 1924, the City Council approved a business tax surcharge of $55 per employee to fund transportation projects and programs in Redmond. 

The tax was assessed on January 1, 1997. It would be collected for four years and sunset on December 31, 2000. At the end of those four years, by Ordinance No. 2088, the City Council approved to extend the business tax for another four years from January 1, 2001 through December 31, 2004.  Currently the business tax surcharge has been extended from January 1, 2005 through December 31, 2006.

The business tax is a critical funding source that helps the City to move forward on high priority projects that support the continued vitality of the business community while improving the community as a whole.

How is the business tax collected?  

The business tax is due each year by January 31, when a business license is renewed. 

How much is the tax?    

When the tax was first collected in 1997, business owners were required to pay an annual base fee of $10 per employee and a business tax surcharge of $55 per employee, for a total per employee of $65. In 2001, when the business tax was extended for another four years, the base fee was increased to $12.50. The surcharge remained the same at $55, for a total of $67.50 per employee. The $55 business tax surcharge goes directly to fund City transportation improvement projects. The base fee is deposited in the City's General Fund.

On November 30, 2004, the City Council approved Ordinance No. 2238 which implemented a business tax increase effective January 1, 2005. The total fee per employee was increased from $67.50 to $83.25. Inflationary increases were applied to both the base fee, which was last increased in 2000, and the surcharge, which had not been increased since the tax was first collected in 1997. The $55 surcharge is still exclusively dedicated to transportation improvements. The remaining $28.25 is applied to the City's General Fund to support all City services (Police, Fire, Parks) and maintain the City's infrastructure.   

For more details about how the business tax is calculated, call Business Licensing in the City of Redmond Finance Department at 425-556-2193.   

How much money has been collected since the tax was assessed in 1997?  

About $27.2 million in business tax revenue has been collected between 1997 and 2004.

It is projected that an additional $7.2 million will be collected for 2005 and 2006.

For more information on revenue collected since the business tax was implemented, call Business Licensing in the City of Redmond Finance Department at 425-556-2193. 

Who decides how the tax is spent?  

In 1997, the Business Tax/Transportation Improvements Advisory Committee was formed by Resolution No. 1041 to advise the City on the use of revenues generated by the business license fee surcharge. It began with 10 members: 9 private citizens (7 representatives of the business community, 2 residents not officially representing the business community) and 1 non-voting City Council member. In 2001, by Resolution No. 1131, the committee was expanded to 12 members: 11 private citizens (8 representatives from the business community, 3 residents not officially representing the business community) and 1 non-voting City Council member. 

What is the purpose of the Business Tax/Transportation Improvements Advisory Committee?

The Business Tax/Transportation Improvements Advisory Committee is charged with advising the City on the use of revenues collected through the business license fee surcharge to fund transportation projects and programs.  The committee reviews modifications made to the City's transportation plan resulting from the addition of business license fee surcharge revenues and recommends specific projects for funding through the surcharge.

A complete description of the purpose of the Business Tax/Transportation Improvements Advisory Committee can be found in Resolution No. 1041 passed by the City Council on March 18, 1997.

How does the Business Tax/Transportation Improvements Advisory Committee recommend projects and programs?  

Values and priorities established by the committee serve as the basis for selecting and rating transportation projects and programs. City staff presents projects and programs that fit the committee's criteria. Voting committee members rate the projects and programs to create a final ranking. The final ranking is discussed and voted upon by committee members, which is then proposed for City Council approval.

Some projects funded by business tax dollars are identified in the City of Redmond's 6-Year Transportation Improvement Program, or 6-Year TIP.  This is a short-range planning document that identifies funded, partially funded, and unfunded projects that are planned or needed over the next six years. The 6-Year TIP is updated and approved annually by the City Council, and is based on needs and policies identified in the more long-range Redmond Comprehensive Plan and Transportation Facility Plan.