Chapter 3.60
LEASEHOLD EXCISE TAX

Sections:

3.60.010    Established—Collection.

3.60.020    Rate.

3.60.030    Administration and collection.

3.60.040    Exemptions.

3.60.050    Inspection of records.

3.60.060    Contract authority.

3.60.070    Violation—Penalty.

3.60.010 Established—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 by Section 2, Chapter 61, Laws of 1975-76, Second Extraordinary Session, hereafter “the state act”. The tax shall be paid, collected, and remitted to the Department of Revenue of the state of Washington at the time and in the manner prescribed by Section 5 of the state act. (Ord. 392-76 § 1, 1976)

3.60.020 Rate.

The rate of the tax imposed by Section 3.60.010 shall be four percent of the taxable rent, as defined by Section 2 of the state act; 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 Section 2 of the state act, since that date, and excluding from such credit any leasehold interest arising out of any lease of property covered by the provisions of RCW 28B.20.394 and any lease or agreement including options to renew which extends beyond January 1, 1985, as follows:

1.    With respect to taxes due in calendar year 1976, a credit equal to eighty percent of the tax produced by the above rate;

2.    With respect to taxes due in calendar year 1977, a credit equal to sixty percent of the tax produced by the above rate;

3.    With respect to taxes due in calendar year 1978, a credit equal to forty percent of the tax produced by the above rate;

4.    With respect to taxes due in calendar year 1979, a credit equal to twenty percent of the tax produced by the above rate.

B.    With respect to a product lease, as defined by Section 2 of the state act, a credit of thirty-three percent of the tax produced by the above rate. (Ord. 392-76 § 2, 1976)

3.60.030 Administration and collection.

The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of the state act. (Ord. 392-76 § 3, 1976)

3.60.040 Exemptions.

Leasehold interests exempted by Section 13 of the state act as it now exists or may hereafter be amended shall be exempt from the tax imposed pursuant to Section 3.60.010. (Ord. 392-76 § 4, 1976)

3.60.050 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. 392-76 § 5, 1976)

3.60.060 Contract authority.

The mayor is authorized to execute a contract with the Department of Revenue of the state of Washington for the administration and collection of the tax imposed by Section 3.60.010 provided that the city attorney shall first approve the form and content of the contract. (Ord. 392-76 § 6, 1976)

3.60.070 Violation—Penalty.

Any taxpayer who holds a leasehold interest subject to a tax under this chapter without paying such tax, upon conviction thereof shall be punished by a fine in any sum not to exceed five hundred dollars. (Ord. 392-76 § 8, 1976)