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Oak Harbor authorizes participation in B&O tax data-sharing hosted by Seattle; staff say no cost to join
Summary
Council authorized the mayor to sign an agreement to participate in a regional tax-data sharing program hosted by the City of Seattle and supported by MRSC to help administer a new local B&O tax. Staff characterized Seattle as the host city and said the program carries no upfront cost and limits data access to named information-security officers.
The Oak Harbor City Council authorized the mayor on Sept. 16 to sign an agreement allowing the city to participate in a municipal data-sharing framework hosted by the City of Seattle and coordinated through the Municipal Research and Services Center (MRSC). Finance Manager Chaz Webster told council the arrangement is intended to streamline administration of Oak Harbor’s new local business and occupation (B&O) tax and to provide technical and procedural assistance at no cost to the city.
Webster said the program supports secure sharing of taxpayer information when needed for audits or compliance and provides access to Seattle’s established processes, templates and best practices to avoid building a separate tax-administration system. He said the agreement names specific information-security officers in Oak Harbor (himself and the deputy), and that daily or bulk transfer of taxpayer data is not part of the arrangement; the framework is intended for secure information-sharing and technical support.
Council member Romero raised concerns about perceived Seattle influence; staff clarified that Seattle is host only and the program is a data-sharing and administrative collaboration rather than a governance arrangement. Several council members supported the move, with Council member Marshall noting the cost savings and faster implementation for an Oct. 2025 effective date and first collections in April 2026.
Council voted unanimously to authorize the mayor to sign the agreement (motion by Council member Marshall, seconded by Council member Marrow). Staff emphasized there is no direct cost to participate and that the agreement facilitates secure, limited information sharing and technical assistance.
