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Council adopts minor amendment clarifying Lacy's B&O tax language
Summary
The council unanimously adopted Ordinance 1701 to add subsection 4 to LMC 3.02.050 clarifying the scope of business and occupation (B&O) taxation; staff said the change is housekeeping aligned with the Washington State model ordinance and will not raise taxes.
The Lacy City Council on June 16 adopted Ordinance 1701 to amend the city's business and occupation tax code.
Chelsea Knight, deputy finance director, told the council the change adds subsection 4 to Lacy Municipal Code 3.02.050 to clarify that service and other business activities not specifically enumerated in subsections 1' are subject to the city's B&O framework. Staff emphasized the amendment is a clarification, not a new tax: existing rates, exemptions and taxable activities remain unchanged.
Knight said the proposed language mirrors the Washington State B&O tax model ordinance used by cities that levy the tax and provides clearer guidance to businesses about the scope of taxable activities. Council members said their questions raised during a June 9 work session were answered by staff and moved to adopt the ordinance; the motion carried unanimously.
The amendment will appear in the codified Lacy Municipal Code as subsection 4 of LMC 3.02.050.
