TRANSPORTATION NETWORK COMPANY TAX

SEA-MC tit. 5, subtit. II, ch. 5.39

in effect

Seattle Mun. Code § 5.39.010 Administrative provisions

5.39.010 - Administrative provisions All provisions contained in Chapter 5.55 shall have full force and application with respect to taxes imposed under this Chapter 5.39 except as may be expressly stated to the contrary herein. (Ord. 125971, § 1, 2019.)

Seattle Mun. Code § 5.39.020 Definitions

5.39.020 - Definitions The definitions contained in Chapter 5.30 shall be fully applicable to this Chapter 5.39 except as may be expressly stated to the contrary herein. The following additional definitions shall apply throughout this Chapter 5.39: "Application dispatch" means technology that allows consumers to directly request dispatch of drivers for trips and/or allows drivers or TNCs to accept payments for trips via the internet using mobile interfaces such as, but not limited to, smartphone and tablet applications. "For-hire vehicle" has the same meaning as given in Section 6.310.110. "Motor vehicle" has the same meaning as given in Section 6.310.110. "Operating in Seattle" means, with respect to a TNC, providing application dispatch services to any affiliated driver at any time for the transport of any passenger for compensation from a point within the geographical confines of Seattle. "Personal vehicle" means a motor vehicle that is not a taxicab or for-hire vehicle, that is subject to regulation under Chapter 6.310, and that is used by a driver to provide trips arranged through a TNC application dispatch system. "Taxicab" has the same meaning given in Section 6.310.110. "TNC" means a transportation network company. "TNC dispatched trip" or "trip" means the provision of transportation by a transportation network company driver to a passenger in a TNC vehicle through the use of a TNC's application dispatch system. The term "TNC dispatched trip" does not include transportation provided by taxicabs or for-hire vehicles: "TNC driver" or "driver" means a driver, licensed or required to be licensed under Chapter 6.310, affiliated with, and accepting dispatched trips from, a TNC. "TNC vehicle" means a personal motor vehicle used for the transportation of passengers for compensation that is affiliated with a TNC. "Transportation network company" means a person, licensed or required to be licensed under Chapter 6.310, operating in Seattle that offers prearranged transportation services for compensation using an online-enabled application or platform to connect passengers with drivers using their personal vehicles. "Trip that originates in Seattle" means a TNC dispatched trip where a passenger enters a TNC vehicle within Seattle city limits. (Ord. 125971, § 1, 2019.)

Seattle Mun. Code § 5.39.030 Tax imposed—Rates

5.39.030 - Tax imposed—Rates There is imposed a tax on every TNC operating in Seattle. The amount of the tax due shall be $0.57 per trip that originates in Seattle through December 31, 2022. Beginning January 1, 2023, the amount of the tax due shall be $0.42 per trip that originates in Seattle. (Ord. 126717, § 1, 2022; Ord. 125971, § 1, 2019.)

Seattle Mun. Code § 5.39.040 Deductions

5.39.040 - Deductions A taxpayer may deduct from the measure of the tax any trip that originates in Seattle and terminates outside the state of Washington. (Ord. 125971, § 1, 2019.)

Seattle Mun. Code § 5.39.050 Tax threshold

5.39.050 - Tax threshold For the period July 1, 2020 through December 31, 2020, no tax shall be due under Section 5.39.030 for a calendar quarter from a TNC that reports fewer than 1,000,000 trips that originate in Seattle in the prior calendar quarter. For periods after December 31, 2020 no tax shall be due under Section 5.39.030 for a calendar quarter from a TNC that reports fewer than 200,000 trips that originate in Seattle in the prior calendar quarter. Any TNC below the threshold shall complete and file a return and declare no tax due on the return. The TNC shall enter on the tax return the number of trips originating in Seattle even though no tax may be due. (Ord. 126231, § 1, 2020; Ord. 125971, § 1, 2019.)

Seattle Mun. Code § 5.39.060 Transportation network company tax—When due

5.39.060 - Transportation network company tax—When due The tax imposed by this Chapter 5.39 shall be due and payable in accordance with Section 5.55.040. The transportation network company tax shall be due and payable in quarterly installments. The Director may use discretion to assign businesses to a monthly or annual reporting period. Forms for such filings shall be prescribed by the Director. Persons discontinuing their business activities in Seattle shall report and pay the transportation network company tax at the same time as they file their final business license tax return. (Ord. 125971, § 1, 2019.)

Seattle Mun. Code § 5.39.070 Excise tax in addition to other license fees and taxes—Part of operating overhead

5.39.070 - Excise tax in addition to other license fees and taxes—Part of operating overhead A. The tax imposed by Chapter 5.39 is a general excise tax on the privilege of conducting certain business within Seattle and shall be in addition to any license fee or tax imposed or levied under any other law, statute, or ordinance whether imposed or levied by the City, state, or other governmental entity or political subdivision. B. It is not the intention of this Chapter 5.39 that the tax imposed herein be construed as a tax upon the purchasers or customer, but that tax shall be levied upon, and collectible from, the person engaging in the business activities herein designated and that such tax shall constitute a part of the operating overhead or cost of doing business of such persons. (Ord. 125971, § 1, 2019.)

Seattle Mun. Code § 5.39.080 Transportation network company tax—Constitutional limitation

5.39.080 - Transportation network company tax—Constitutional limitation Notwithstanding anything to the contrary in this Chapter 5.39, if imposition of the tax under this Chapter 5.39 would place an undue burden upon interstate commerce or violate constitutional requirements, a taxpayer shall be allowed a credit to the extent necessary to preserve the validity of the tax, and still apply the tax to as much of the taxpayer's activities as may be subject to the City's taxing authority. (Ord. 125971, § 1, 2019.)

Source: City of Seattle, Seattle Municipal Code and City Charter (Municode Library, library.municode.com)URL: https://library.municode.com/wa/seattle/codes/municipal_code?nodeId=TIT5REFITA_SUBTITLE_IITA_CH5.39TRNECOTAFetched: 11/1/2026