Chapter 5.28
SALES AND USE TAX FOR AFFORDABLE HOUSING

Sections:

5.28.010    Imposition of sales—Affordable and supportive housing.

5.28.020    Rate of tax imposed.

5.28.030    Administration and collection of tax.

5.28.040    Purpose of tax.

5.28.050    Consent to inspection of records.

5.28.060    Authorizing execution of collection.

5.28.070    Penalties.

5.28.080    Expiration date.

5.28.010 Imposition of sales—Affordable and supportive housing.

As authorized by RCW 82.14.540(2), upon every taxable event, as defined in RCW 82.14.020, occurring within the city, the city shall receive a portion of the state of Washington’s portion of the state sales tax or use tax that is collected pursuant to Chapters 82.08 and 82.12 RCW, as the same now exist or may hereafter be amended. (Ord. 4727 § 1 (part), 2020)

5.28.020 Rate of tax imposed.

The rate of the tax imposed by Section 5.28.010 shall be 0.0073 percent of the selling price or value of the article used, as the case may be. The tax imposed under RCW 82.14.540(2) must be deducted from the amount of tax otherwise required to be collected or paid to the Department of Revenue under Chapters 82.08 and 82.12 RCW. (Ord. 4727 § 1 (part), 2020)

5.28.030 Administration and collection of tax.

The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of RCW 82.14.050, as the same now exists or may hereafter be amended.

The city must report annually to the Washington State Department of Commerce on the collection and use of the revenue. The Department of Commerce must adopt rules prescribing content of such reports. By December 1, 2019, and annually thereafter, and in compliance with RCW 43.01.036, the Department of Commerce must submit a report annually to the appropriate legislative committees with regard to such uses. (Ord. 4727 § 1 (part), 2020)

5.28.040 Purpose of tax.

Moneys collected or bonds issued under this chapter may only be used, as required by RCW 82.14.540(6), 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)    Funding the operations and maintenance costs of new units of affordable or supportive housing; or

(3)    Providing rental assistance to tenants.

In all cases, the housing and services may only be provided to persons whose income is at or below sixty percent of King County median income, as required by RCW 82.14.540(7). (Ord. 4727 § 1 (part), 2020)

5.28.050 Consent to 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. 4727 § 1 (part), 2020)

5.28.060 Authorizing execution of collection.

The city manager is authorized to enter into a contract with the Department of Revenue for the collection of this tax. (Ord. 4727 § 1 (part), 2020)

5.28.070 Penalties.

It is unlawful for any seller to fail or refuse to collect taxes with intent to violate the provisions of this chapter or to gain some advantage or benefit, either direct or indirect, or for any buyer to refuse to pay any tax due under this chapter. (Ord. 4727 § 1 (part), 2020)

5.28.080 Expiration date.

The tax imposed under this chapter will expire twenty years after the date on which the tax is first imposed. (Ord. 4727 § 1 (part), 2020)