3.53.120 Tax credits.
A. New Business Tax Credit.
1. Purpose. The city believes that providing a temporary tax credit relating to new businesses is a meaningful method of fostering such new businesses to establish a solid financial foundation during its start-up process. Further, the city finds that a credit related to the creation of new full-time equivalent (“FTE”) employees within the city will benefit other local businesses. Therefore, considering situations particular and unique to the city, the city finds that it is appropriate to differ from the business and occupation tax model ordinance in providing for a new business tax credit as described in this section.
2. There may be credited against the tax imposed by ACC 3.53.040, the amount up to $1,000 per FTE position in the city of Auburn per quarter. To take the credit authorized by this section, a taxpayer must be able to document all of the following:
a. The taxpayer has not, for any period of time, engaged in business in the city of Auburn within the five years preceding application of the tax credit;
b. The taxpayer employs 20 or more full-time equivalent positions in Auburn. An FTE position is defined as each 1,920 worker hours per calendar year;
c. The taxpayer may be required to submit its payroll information and/or other documentation in support of such employee hours worked in the city;
d. The taxpayer must report, on each return filed, the taxpayer’s total number of full-time employment positions created and positions currently filled; and
e. The taxpayer must employ a minimum of 20 FTEs in each quarter the credit is being applied.
3. The tax credit can be taken for the first 12 consecutive reporting quarters or three reporting years.
4. This credit is not considered a payment of taxes for purposes of seeking a refund of overpayment of tax pursuant to the provisions contained in Chapter 3.54 ACC, or any other purpose. As such, unused credit amounts will not be refunded, carried over from reporting period(s) to reporting period(s), and will not accrue interest.
5. The director is authorized to promulgate rules implementing, interpreting, and enforcing the provisions of this section.
B. Auburn Business Improvement Area Assessment Credit.
1. Purpose. Certain businesses operating within the business improvement area (BIA) boundaries, as identified in Chapter 2.98 ACC, are subject to an annual assessment. The purpose of the assessment is to enhance trade, economic vitality, and livability within the city of Auburn. The city believes that providing business and occupation tax relief to local businesses that are subject to the BIA assessment helps ensure their continued downtown presence, which contributes towards a vibrant downtown core and further benefits other local businesses not subject to the BIA assessment.
2. There may be credited against the tax imposed by ACC 3.53.040, an amount equal to the BIA assessment fee paid as imposed by Chapter 2.98 ACC.
3. This credit is not considered a payment of taxes for purposes of seeking a refund of overpayment of tax pursuant to the provisions contained in Chapter 3.54 ACC, or any other purpose. As such, unused credit amounts will not be refunded, carried over from reporting period(s) to reporting period(s), and will not accrue interest.
4. The director is authorized to promulgate rules implementing, interpreting, and enforcing the provisions of this section. (Ord. 6814 § 1 (Exh. A), 2021.)