Chapter 3.44
AFFORDABLE HOUSING FUNDS
Sections:
3.44.010 Imposition of sales and use tax for affordable housing.
3.44.030 Administration and collection – Statutory compliance.
3.44.010 Imposition of sales and use tax for affordable housing.
A. There is imposed a sales and use tax as authorized by Washington State Legislature Chapter 338, Laws of 2019, which shall be codified in Chapter 82.14 RCW, upon every taxable event, as defined in Chapter 82.14 RCW, occurring within the city of Leavenworth. 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.
B. The rate of the tax imposed under 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 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 of Leavenworth at no cost to the city.
D. The Department of Revenue will calculate the maximum amount of tax distributions for the city of Leavenworth based on the taxable retail sales in the city in state fiscal year 2019, and the tax imposed under this section will cease to be distributed to the city of Leavenworth for the remainder of any state fiscal year in which the amount of tax exceeds the maximum amount of tax distributions for the city as properly calculated by the Department of Revenue. Distributions to the city of Leavenworth that have ceased during a state fiscal year shall resume at the beginning of the next state fiscal year. [Ord. 1608 § 1 (Exh. A), 2020.]
3.44.020 Purpose of tax.
A. The city may use the moneys collected by the tax imposed under LMC 3.44.010 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; and
4. Bonding as allowed by RCW 71.24.540.
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. The finance director must report annually to the Washington State Department of Commerce, in accordance with the Department’s rules, on the collection and use of the revenue from the tax imposed under LMC 3.44.010.
D. Any unexpected 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 (A) of this section.
E. The tax imposed by the city under LMC 3.44.010 will expire 20 years after the date on which the tax is first imposed. [Ord. 1608 § 1 (Exh. A), 2020.]
3.44.030 Administration and collection – Statutory compliance.
The administration and collection of the tax imposed under this chapter shall be in accordance with the provisions of Washington State Legislature Chapter 338, Laws of 2019, which shall be codified in Chapter 82.14 RCW. The city clerk-treasurer is authorized to take all actions required for administration and collection of the tax, and to establish a fund or funds related to the receipt of funds and their use under this chapter. [Ord. 1608 § 1 (Exh. A), 2020.]