January 4, 2010

Subject: Change to Job Credit requirements

Our records indicate you have used job credits to offset your business & occupation tax.
According to Tacoma Municipal Code (TMC), to remain eligible for the credit, the
position, along with the company’s increased workforce of eligible persons, must be
maintained for the year the position was created plus an additional 4 subsequent years.

A recent change in TMC (Ordinance 27862) has redefined when an employer is

required to pay back credits once an employer has lost eligibility for the credit. As a
result of the change, an employer is not required to pay back the tax credit received for
any prior periods if “there exists or existed a recognized general economic
recession or a declared natural disaster.”

However, if an employer moves its principle place of business outside the City, then
regardless of any conditions, the total amount of taxes for which a credit has been
claimed for current and all prior periods shall immediately become due.

If you have lost eligibility for one or more job credits, please complete the form enclosed
and return it to Tax & License. An auditor will review the information and determine how
many positions remain eligible for the credit. Although an employer will not be required
to pay back any credits used in prior periods when certain conditions exist, once a
position is no longer eligible for the credit, the credit cannot be used on any future tax
returns.

Or

If you have paid back job credits from prior periods and lost eligibility due to a
recognized general economic recession or a declared natural disaster, please complete
the form enclosed and return it to Tax & License. An auditor will review the information
and determine if you are due a refund.

If we can be of assistance please contact our office at 253-591-5252.

Sincerely,

City of Tacoma
Tax & License Division