Recitals:

The City of Seattle in 2019 began taxing transportation network companies (TNCs) for rides that took place in Seattle. TNCs provide application dispatch services that allow passengers to directly request the dispatch of drivers via the internet using mobile interfaces such as smartphone application.

Also in 2019, the City Council passed Resolution 31914, which outlined the uses of TNC tax proceeds, including for a TNC Driver Resource Center, low-income housing, and transportation including transit.

The Washington State Legislature in 2022 adopted Engrossed Substitute House Bill 2076, enacted as Chapter 281, Laws of 2022, which creates a state TNC tax and preempts the City from enforcing the TNC Driver Minimum Compensation and TNC Driver Deactivation Rights Ordinances starting on January 1, 2023.

The City’s expenditure growth has outpaced revenues and inflation, creating a structural budget gap between projected General Fund revenues and expenditures.

The Mayor and City Council wish to address the funding gap by temporarily continuing expanded uses of TNC tax proceeds to include other General Fund activities. Therefore,

Be it resolved by the City Council of The City of Seattle, the Mayor concurring:

Section 1. The City shall use the proceeds of the transportation network company (TNC) tax imposed by Chapter 5.39 of the Seattle Municipal Code as follows:

A. Funding of the administration of the TNC tax and regulations related to TNCs shall constitute up to five percent of the annual anticipated revenues from the TNC tax.

B. After administrative costs related to the tax and regulations related to TNCs as described in subsection 1.A of this resolution, the remainder of revenue collected shall be used to support other City General Fund activities.

Section 2. Resolution 31914, amended by Resolution 32152 and Ordinances 126719 and 127145, is superseded.

Adopted by the City Council and signed in open session in authentication of its adoption on .

President of the City Council

Signed in concurrence on .

Katie B. Wilson, Mayor

Attested on .

Lenné Dedman, City Clerk

Seal