Chapter 3.04
LEASEHOLD EXCISE TAX
Sections:
3.04.010 Purpose – City council findings.
3.04.020 Levied – Payment and collection.
3.04.040 Rate – Credits allowed when.
3.04.050 Administration and collection.
3.04.070 Inspection of records.
3.04.010 Purpose – City council findings.
A. The purpose of this chapter is to levy and collect a leasehold excise tax on the act or privilege of occupying or using publicly owned real or personal property through a leasehold interest in publicly owned property within the city limits on or after January 1, 1976, and at a rate of four percent of the taxable rent.
B. The city council recognizes that properties of the state, counties and school district and other municipal corporations are exempted by the State Constitution from property tax obligations, but that private lessees of such public properties receive substantial benefits from governmental services provided by the city, and that there should be a uniform method of taxation to apply to such leasehold interests, and that the lessees of publicly owned property are entitled to those governmental services, and that there is a need to provide for a leasehold excise tax to fairly compensate the city for services rendered. (Ord. 851 § 1, 1976).
3.04.020 Levied – Payment and collection.
There is levied and shall be collected a leasehold excise tax on and after January 1, 1976, upon the act or privilege of occupying or using publicly owned real or personal property within the city through a “leasehold interest” as defined RCW 82.29A.020. The tax shall be paid, collected and remitted to the Department of Revenue of the state at the time and in the manner prescribed by RCW 82.29A.050. (Ord. 851 § 2, 1976).
3.04.030 Exemptions.
Leasehold interests exempted by RCW 82.29A.130 as it now exists or may hereafter be amended shall be exempt from the tax imposed pursuant to BMC 3.04.020. (Ord. 853 § 2, 1976; Ord. 851 § 5, 1976).
3.04.040 Rate – Credits allowed when.
The rate of the tax imposed by BMC 3.04.020 shall be four percent of the taxable rent, as defined by RCW 82.29A.020; provided, that the following credits shall be allowed in determining the tax payable:
A. With respect to a leasehold interest arising out of any lease or agreement, the terms of which were binding on the lessee prior to July 1, 1970, where such lease or agreement has not been renegotiated, as defined by RCW 82.29A.020, since that date, and excluding from such credit:
1. Any leasehold interest arising out of any lease of property covered by the provisions of RCW 28B.20.394; and
2. Any lease or agreement including options to renew which extends beyond January 1, 1985, as follows:
a. with respect to taxes due in calendar year 1976, a credit equal to 80 percent of the tax produced by the above rate,
b. With respect to taxes due in calendar year 1977, a credit equal to 60 percent of the tax produced by the above rate,
c. With respect to taxes due in calendar year 1978, a credit equal to 40 percent of the tax produced by the above rate,
d. With respect to taxes due in calendar year 1979, a credit equal to 20 percent of the tax produced by the above rate.
B. With respect to a produce lease, as defined by RCW 82.29A.020, a credit of 33 percent of the tax produced by the above rate. (Ord. 851 § 3, 1976).
3.04.050 Administration and collection.
The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of chapter 82.29A RCW. (Ord. 851 § 4, 1976).
3.04.060 Contract with state.
The mayor of the city is authorized to execute a contract with the Department of Revenue of the state for the administration and collection of the tax imposed by BMC 3.04.020; provided, that the city attorney shall first approve the form and content of said contract. (Ord. 853 § 2, 1976; Ord. 851 § 7, 1976).
3.04.070 Inspection of records.
The city consents to the inspection of such records as are necessary to qualify the city for inspection of records of the Department of Revenue pursuant to RCW 82.32.330. (Ord. 851 § 6, 1976).