Chapter 3.05
SALES AND USE TAX*
Sections:
3.05.020 Statutory authorization.
3.05.030 Additional sales and use tax.
3.05.060 Credit against state’s share of tax – Sales or use tax for affordable housing – Imposition.
3.05.070 Credit against state’s share of tax – Sales or use tax for affordable housing – Rate.
3.05.080 Administration and collection.
3.05.090 Affordable housing sales tax fund.
*Code reviser’s note: Ord. 1187, which amends LCMC 3.05.020 and adds LCMC 3.05.060 through 3.05.090, states that the amendatory language set forth in the ordinance will expire on August 1, 2040.
3.05.010 Purpose.
The town council finds that due to certain recent legislation by the Washington State Legislature designed to meet the financial crisis facing the citizens of the state of Washington, this chapter is necessary and essential to provide the means by which essential municipal purposes can be carried out. [Ord. 494 § 1, 1982.]
3.05.020 Statutory authorization.
LCMC 3.05.010 through 3.05.040 are adopted pursuant to the provisions of ESB 4972, 1982 First Special Session, 47th Legislature. LCMC 3.05.060 through 3.05.080 are adopted pursuant to the provisions of RCW 82.14.540. [Ord. 1187 § 1, 2020; Ord. 494 § 2, 1982.]
3.05.030 Additional sales and use tax.
The town of La Conner hereby imposes an additional sales and use tax upon certain taxable events as more particularly set forth hereinunder. [Ord. 494 § 3, 1982.]
3.05.040 Additional tax.
In addition to the tax authorized by Chapter 82.14 RCW, there is hereby imposed an additional sales and use tax of five-tenths of one 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). The tax shall be collected from those persons who are taxable by the state of Washington pursuant to Chapters 82.08 and 82.12 RCW, on the occurrence of any taxable event within the town of La Conner. [Ord. 494 § 4, 1982.]
3.05.050 Exemptions.
Exemptions to this tax shall be as set forth in Chapters 82.02, 82.08 and 82.12 RCW, and this tax shall be in conformance with the laws of the state of Washington as now or hereafter enacted. [Ord. 494 § 5, 1982.]
3.05.060 Credit against state’s share of tax – Sales or use tax for affordable housing – Imposition.
As authorized by RCW 82.14.540, there is hereby imposed an additional sales or use tax, as the case may be, separate and apart from the tax referred to in LCMC 3.05.030 and 3.05.040, upon every taxable event, as defined in RCW 82.14.020, occurring in the town. 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 but will be credited against the state of Washington’s share of the tax. In accordance with RCW 82.14.540, and as hereafter amended, monies collected under this section must be used solely for the purpose of acquiring, rehabilitating, or constructing affordable housing, or funding the operation and maintenance of new units of affordable housing or supportive housing, or for providing rental assistance to tenants. [Ord. 1187 § 2, 2020.]
3.05.070 Credit against state’s share of tax – Sales or use tax for affordable housing – Rate.
The rate of the tax imposed by LCMC 3.24.025 shall be .0073 percent of the selling price or value of the article used, as the case may be. [Ord. 1187 § 3, 2020.]
3.05.080 Administration and collection.
The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of RCW 82.14.050 and in accordance with the provisions of the RCW 82.14.540, as applicable. [Ord. 1187 § 4, 2020.]
3.05.090 Affordable housing sales tax fund.
(1) There is hereby established a special revenue fund for the town of La Conner, to be known as the “affordable housing sales tax fund,” into which shall be deposited all monies received pursuant to RCW 82.14.540, from a portion of sales and use taxes otherwise required to be collected and paid to the Department of Revenue.
(2) The affordable housing sales tax fund has been established to receive that portion of sales and use tax credited back to the city for use in the acquisition, construction or rehabilitation of affordable housing or facilities providing supportive housing, and for the operations and maintenance costs of new units of affordable or supportive housing, and for providing rental assistance to tenants.
(3) Any unexpended funds remaining in the affordable housing sales tax fund 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 (2) of this section. [Ord. 1187 § 5, 2020.]