CB 120894 — Version 1 https://webapi.legistar.com/v1/seattle/Matters/15604/Texts/16866 CITY OF SEATTLE ORDINANCE __________________ COUNCIL BILL __________________ ..title AN ORDINANCE relating to Admission Tax revenue; amending Section 5.40.120 of the Seattle Municipal Code to expand uses of the revenue. ..body WHEREAS, the Revised Code of the State of Washington (RCW 36.38.010) allows cities to levy a tax on admissions charges of up to five percent; and WHEREAS, the City of Seattle has collected an admissions tax since 1943 using that authority; and WHEREAS, in 2000, Ordinance 120183 created an account to receive a percentage of Admissions Tax revenues, and amended Seattle Municipal Code (SMC) Section 5.40.120 to stipulate that such funds be used for certain arts-related purposes, including initiatives to 1) keep artists living, working and creatively challenged in Seattle; 2) build community through the arts and create opportunities for the public to intersect with artists and their work; and 3) include art opportunities for youth in and out of school; and WHEREAS, in 2002, the City created the Office of Arts and Cultural Affairs (ARTS) in the Executive Department to administer arts-related funding, including revenues from the Admissions Tax, and as such was established as the sole city department to receive Admissions Tax revenue; and WHEREAS, City departments other than ARTS engage in or fund activities that align with the criteria set forth for admissions tax revenues; NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS: Section 1. Section 5.40.120 of the Seattle Municipal Code, last amended by Ordinance 126228, is amended as follows: 5.40.120 Receipts to Arts and Culture Fund ((A. Beginning January 1, 2022, all)) All receipts from the admission tax levied in this Chapter 5.40 shall be deposited into the Arts and Culture Fund((. B. Admission tax revenue in the Arts and Culture Fund shall be annually appropriated: 1. To the Office of Arts and Culture)) to support the following purposes: A. Operation of the Office of Arts and Culture; ((a.)) B. Arts-related programs and one-time capital expenditures that keep artists living, working, and creatively challenged in Seattle; ((b.)) C. Initiatives and programs to build community through the arts and create opportunities for the public to intersect with artists and their work; ((c.)) D. Initiatives and programs that provide art opportunities for youth in and out of school; and ((2. For payment)) E. Payment of the City's rent adjustment obligations to Seattle Arena Company, LLC or its permitted successors and assigns under the Lease Agreement (Arena at Seattle Center) between The City of Seattle and Seattle Arena Company, LLC, Attachment 1 to Ordinance 125669 (as may be amended or modified in accordance with its terms) (the "Arena Lease"), and only to the extent that such annual appropriation does not exceed the total admission tax revenues generated through operations of the arena at the Seattle Center for that calendar year, minus the amount of the Rent Adjustment Threshold for Admission Tax revenues identified in Article III, Section 6 of the Arena Lease. ((C. The Office of Arts and Culture shall develop policies concerning the use of Arts and Culture Fund funds, including one or more fiscal policies concerning the retention of revenues to ensure the long-term fiscal health of the Office of Arts and Culture's program funding obligations. A draft of the policies shall be provided to the Seattle Arts Commission for comment, before being submitted to City Council in the form of a resolution for formal Council review and consideration. The policies shall be updated from time to time to ensure that the Office of Arts and Culture's fiscal policies address ongoing budget needs and priorities. Any such update shall follow the same review process as defined in this Section 5.40.120.)) Section 2. This ordinance shall take effect as provided by Seattle Municipal Code Sections 1.04.020 and 1.04.070. Passed by the City Council the ________ day of _________________________, 2024, and signed by me in open session in authentication of its passage this ________ day of _________________________, 2024. ____________________________________ President ____________ of the City Council Approved / returned unsigned / vetoed this _____ day of _________________, 2024. ____________________________________ Bruce A. Harrell, Mayor Filed by me this ________ day of _________________________, 2024. ____________________________________ Scheereen Dedman, City Clerk (Seal) Sarah Burtner CBO Admissions Tax 2024 Amendments ORD D1a 2 Template last revised January 5, 2024 2 Version No. 1