Chapter 4.50
SALES AND USE TAX FOR AFFORDABLE HOUSING
Sections:
4.50.010 Credit against state’s share of tax – Sales or use tax for affordable housing – Imposition.
4.50.030 Administration and collection.
4.50.010 Credit against state’s share of tax – Sales or use tax for affordable housing – Imposition.
There is a sales and use tax as authorized by Washington State Legislature Laws of 2019, Chapter 338, Section 1, which shall be codified in Chapter 82.14 RCW (RCW 82.14.540), upon every taxable event, as defined in Chapter 82.14 RCW, occurring within the city of East Wenatchee. This tax is separate and apart from the tax referred to in Chapters 4.04 and 4.08 EWMC. The tax shall be imposed upon and collected from those persons from whom the state sales tax or use tax is collected pursuant to Chapters 82.08 and 82.12 RCW. (Ord. 20-05 § 6, 2020)
4.50.020 Rate.
A. The rate of the tax imposed by EWMC 4.50.010 shall be 0.0073 percent of the selling price, in the case of a sales tax, or value of the article used, in the case of a use tax, as the case may be, upon every taxable event that occurs within the city.
B. The tax imposed under this section shall be deducted from the amount of tax otherwise required to be collected or paid to the Department of Revenue under Chapter 82.08 or 82.12 RCW.
C. The Department of Revenue will calculate the maximum amount of tax distributions for the city of East Wenatchee based on the taxable retail sales in the city in state fiscal year 2019, and the tax imposed under this section will cease to be distributed to the city of East Wenatchee for the remainder of any state fiscal year in which the amount of tax exceeds the maximum amount of tax distributions for the city as properly calculated by the Department of Revenue. Distributions to the city of East Wenatchee that have ceased during a state fiscal year shall resume at the beginning of the next state fiscal year. (Ord. 20-05 § 6, 2020)
4.50.030 Administration and collection.
A. The State Department of Revenue shall collect and administer the tax on behalf of city at no cost to the city. The administration and collection of the sales and use tax imposed by EWMC 4.50.010 shall be in accordance with the provisions of the Laws of 2019, Chapter 338, Section 1 which will be codified in Chapter 82.14 RCW (RCW 82.14.540).
B. The mayor and city treasurer are authorized to enter into any agreements or contracts with the State Department of Revenue for the administration and collection of the tax imposed by this chapter. (Ord. 20-05 § 6, 2020)
4.50.040 Use of funds.
A. The city may use the moneys collected by the tax imposed under EWMC 4.50.010 or bonds issued only for the following purposes:
1. Acquiring, rehabilitating, or constructing affordable housing, which may include new units of affordable housing within an existing structure or facilities providing supportive housing services under RCW 71.24.385; or
2. Providing the operations and maintenance costs of new units of affordable or supportive housing; or
3. Providing rental assistance to tenants.
B. The housing and services provided under this section may only be provided to persons whose income is at or below 60 percent of the median income of the Wenatchee standard metropolitan statistical area.
C. Any unexpended funds remaining in the affordable housing sales tax fund, established as EWMC 4.20.120, at the end of a budget period shall not be transferred to the general fund or otherwise lapse, but funds shall be carried forward from year to year until expended for a purpose set forth in subsection A of this section. (Ord. 20-05 § 6, 2020)
4.50.050 Annual reports.
The city shall report annually to the State Department of Commerce on the collection and use of the revenue as prescribed in rules adopted by such department. If the amount of revenue from the sales or use tax imposed by EWMC 4.50.010 exceeds the maximum amount allowed to the city under the Laws of 2019, Chapter 338, Section 1, any excess shall be remitted to the State Treasurer in accordance with the Laws of 2019, Chapter 338, Section 1. (Ord. 20-05 § 6, 2020)
4.50.060 Expiration.
The sales and use tax for affordable housing set forth in EWMC 4.50.010 shall expire 20 years after the date on which the tax is first imposed. (Ord. 20-05 § 6, 2020)