Chapter 3.21
SALES AND USE TAX FOR AFFORDABLE HOUSING
Sections:
3.21.010 Imposition of sales and use tax for affordable housing.
3.21.030 Administration and collection – Statutory compliance.
3.21.010 Imposition of sales and use tax for affordable housing.
A. There is imposed a sales and use tax as authorized by RCW 82.14.540 upon every taxable event, as defined in Chapter 82.14 RCW, occurring within the city of Lake Forest Park. The tax shall be imposed upon the collection from those persons from whom the state sales tax or use tax is collected pursuant to Chapters 82.08 and 82.12 RCW.
B. The rate of the tax imposed by this section shall be 0.0073 percent of the selling price or value of the article used.
C. The tax imposed under this section shall be deducted from the amount of tax otherwise required to be collected or paid to the Washington State Department of Revenue under Chapter 82.08 or 82.12 RCW. The Department of Revenue will perform the collection of such taxes on behalf of the city at no cost to the city.
D. The Department of Revenue will calculate the maximum amount of tax distribution to the city based on taxable retail sales in the city in state fiscal year 2019 multiplied by the tax rate imposed in subsection B of this section. For each year collected, the tax imposed under this section will cease to be distributed to the city for the remainder of the state fiscal year when the amount of tax exceeds the maximum amount of tax distribution for the city as properly calculated by the Department of Revenue. Distributions to the city that have ceased during a state fiscal year shall resume at the beginning of the next state fiscal year. (Ord. 1209 § 1, 2020)
3.21.020 Purpose of tax.
A. The city may use the moneys collected by the tax imposed under LFPMC 3.21.010 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; and
2. Providing the operations and maintenance costs of new units of affordable or supportive housing; and
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 city.
C. In determining the use of funds under this section, the city must consider the income of the individuals and families to be served, the leveraging of the resources made available under LFPMC 3.21.010, and the housing needs within the city.
D. The finance director must report annually to the Washington State Department of Commerce, in accordance with rules established, on the collection and use of the revenue from the tax imposed under LFPMC 3.21.010.
E. The tax imposed by the city under LFPMC 3.21.010 will expire 20 years after the date on the which the tax is first imposed. The finance director shall provide notice to the city council and the mayor of the expiration date of the tax each year beginning three years before the expiration date, and shall also promptly notify the city council and the mayor of any change to the expiration date. (Ord. 1209 § 1, 2020)
3.21.030 Administration and collection – Statutory compliance.
A. The administration and collection of the tax imposed by this chapter shall be in accordance with the applicable provisions of Chapter 82.14 RCW.
B. There is hereby created a fund known and designated as the affordable housing sales tax fund, into which shall be receipted all moneys received from the Department of Revenue pursuant to LFPMC 3.21.010.
C. Any unexpended funds remaining in the affordable housing sales tax fund at the end of the budget period shall not be transferred to the general fund or otherwise lapse, but the funds shall be carried forward from year to year until expended for the purpose set forth in LFPMC 3.21.020. (Ord. 1209 § 1, 2020)