Chapter 3.16
LEASEHOLD EXCISE TAX
Sections:
3.16.020 Rate and allowable credits.
3.16.030 Administration and collection.
3.16.040 Inspection of records.
3.16.010 Levied.
There is levied and shall be collected a leasehold excise tax on and after April 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, 2nd 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. 514 § 1, 1976)
3.16.020 Rate and allowable credits.
The rate of the tax imposed by FMC 3.16.010 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 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 80 percent of the tax produced by the above rate;
2. With respect to taxes due in calendar year 1977, a credit equal to 60 percent of the tax produced by the above rate;
3. With respect to taxes due in calendar year 1978, a credit equal to 40 percent of the tax produced by the above rate;
4. 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 product lease (as defined by Section 2 of the State Act), a credit of 33 percent of the tax produced by the above rate. (Ord. 514 § 2, 1976)
3.16.030 Administration and collection.
A. The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of the State Act.
B. The City Administrator is authorized to execute a contract with the Department of Revenue of the state for the administration and collection of the tax imposed by FMC 3.16.010; provided, that the City Attorney shall first approve the form and content of the contract. (Ord. 514 §§ 3, 6, 1976)
3.16.040 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. 514 § 5, 1976)
3.16.050 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 FMC 3.16.010. (Ord. 514 § 4, 1976)
3.16.060 Delinquency.
Any taxpayer who fails to remit to the Treasurer or his duly authorized representative, within 10 days of its due date, the tax levied in this chapter shall be deemed not in compliance with the provisions of this chapter, after which date the tax shall become delinquent and interest at the rate of eight percent per year shall be charged upon unpaid taxes from the date of delinquency until payment. (Ord. 514 § 7, 1976)