Chapter 3.61
AFFORDABLE AND SUPPORTIVE HOUSING SALES AND USE TAX CREDIT
Sections:
3.61.020 Collection of tax by Department of Revenue.
3.61.050 Interlocal agreements.
3.61.005 Purpose.
In the 2019 legislative session, the Washington State Legislature adopted Chapter 338, Laws of 2019, codified as RCW 82.14.540, which created a local revenue sharing program for affordable housing in the form of a tax credit against the state sales tax. The purpose of this chapter is to the take advantage of this tax credit to provide revenue to support affordable and supportive housing as allowed under RCW 82.14.540. (Ord. 2019-37 § 1 (Exh. A), 2019)
3.61.010 Imposition of tax.
Pursuant to RCW 82.14.540, there is hereby imposed a sales and use tax on all taxable events, as defined in RCW 82.14.020, occurring within the city for the purpose of providing for affordable and supportive housing. The rate of the tax shall be 0.0073 percent. (Ord. 2019-37 § 1 (Exh. A), 2019)
3.61.020 Collection of tax by Department of Revenue.
The Washington State Department of Revenue is authorized to collect such taxes on behalf of the city at no cost to the city. The Washington State Department of Revenue shall deduct the amount of the tax levied under this chapter from the amount of sales or use tax otherwise required to be collected or paid to the Department of Revenue under Chapter 82.08 or 82.12 RCW. The Washington State Department of Revenue shall distribute the proceeds of the tax to the city as provided in RCW 82.14.540, up to the maximum amount provided in such state law. (Ord. 2019-37 § 1 (Exh. A), 2019)
3.61.030 Use of tax revenues.
The city may use the revenue from the tax levied under this chapter for any purpose authorized under RCW 82.14.540, as the same now exists or as hereafter amended or superseded. (Ord. 2019-37 § 1 (Exh. A), 2019)
3.61.040 Bonds.
RCW 82.14.540 authorizes the city to issue general obligation or revenue bonds to carry out the purposes of such state law and to pledge the monies collected from the tax levied under this chapter for repayment of such bonds. Such bonds, if any, shall be authorized by separate action of the city council. (Ord. 2019-37 § 1 (Exh. A), 2019)
3.61.050 Interlocal agreements.
RCW 82.14.540 authorizes the city to enter into interlocal agreements with one or more counties, cities, or public housing authorities in accordance with Chapter 39.34 RCW. Such interlocal agreements may include, but are not limited to, pooling the tax receipts, pledging those taxes to bonds issued by one or more parties, and allocating the proceeds of the taxes levied or bonds issued in accordance with such interlocal agreement. Such interlocal agreements, if any, shall be authorized by separate action of the city council. (Ord. 2019-37 § 1 (Exh. A), 2019)
3.61.060 Reporting.
The city shall report annually to the Washington State Department of Commerce on the collection and use of the tax revenues. The report shall be in such form and contain such content as the Department of Commerce shall prescribe by rule. (Ord. 2019-37 § 1 (Exh. A), 2019)
3.61.070 Expiration of tax.
The tax imposed by this chapter shall expire as provided in RCW 82.14.540, as the same now exists or as hereafter amended or superseded. (Ord. 2019-37 § 1 (Exh. A), 2019)