Chapter 3.06
LEASEHOLD EXCISE TAX
Sections:
3.06.020 Administration and collection.
3.06.010 Levied.
There is levied and shall be collected a leasehold excise tax on and after July 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, Second Extraordinary Session (hereafter “the State Act”). The tax shall be paid, collected, and remitted to the Department of Revenue of the state at the time and in the manner prescribed by Section 5 of the State Act. (Ord. 1785 § 1, 1976).
3.06.020 Administration and collection.
The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of the State Act. (Ord. 1785 § 3, 1976).
3.06.030 Rate – Credits.
The rate of the tax imposed by LMC 3.06.010 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:
(1) 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 leasehold interest arising out of any lease of property covered by the provisions of RCW 28B.20.394 and any lease or agreement including options to renew which extends beyond July 1, 1985, as follows:
(a) With respect to taxes due in calendar year 1976, a credit equal to 80 percent of the tax produced by the rate designated in this section;
(b) With respect to taxes due in calendar year 1977, a credit equal to 60 percent of the tax produced by the rate designated in this section;
(c) With respect to taxes due in calendar year 1978, a credit equal to 40 percent of the tax produced by the rate designated in this section;
(d) With respect to taxes due in calendar year 1979, a credit equal to 20 percent of the tax produced by the rate designated in this section;
(2) 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 rate designated in this section. (Ord. 1785 § 2, 1976).
3.06.040 Exemption.
Leasehold interest 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 LMC 3.06.010. (Ord. 1785 § 4, 1976).
3.06.050 Record inspection.
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. 1785 § 5, 1976).
3.06.060 Contract with state.
The city manager is authorized to execute a contract with the Department of Revenue of the state for the administration and collection of the tax imposed by LMC 3.06.010; provided, that the city attorney shall first approve the form and content of the contract. (Ord. 1785 § 6, 1976).
3.06.070 Violation – Penalty.
It is a misdemeanor to fail to pay the tax imposed in this chapter, and anyone failing to pay the tax imposed in this chapter and convicted thereof shall be punished by a fine of $100.00 for each violation. (Ord. 1785 § 8, 1976).