Chapter 3.10
SALES AND USE TAX FOR AFFORDABLE HOUSING
Sections:
3.10.010 Sales and use tax for affordable housing.
3.10.030 Administration and collection—Statutory compliance.
3.10.010 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 (HB1406), which is codified in RCW 82.14.540, upon every taxable event, as defined in Chapter 82.14 RCW, occurring within the city of Mukilteo. 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 by this section shall be 0.0073 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.
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 Washington State Department of Revenue will perform the collection of such taxes on behalf of the city of Mukilteo at no cost to the city. (Ord. 1441 § 1 (part), 2020)
3.10.020 Purpose of tax.
A. The city may use the moneys collected by the tax imposed under Section 3.10.010 or bonds issued only for the purposes outlined in RCW 82.14.540(6)(b), which include:
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. Any other purpose as may be added to RCW 82.14.540(6)(b).
B. The housing and services provided under this section may only be provided to persons whose income is at or below sixty percent of the city median income.
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 Section 3.10.010, and the housing needs of the city.
D. 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 Section 3.10.010.
E. The tax imposed by the city under Section 3.10.010 will expire twenty years after the date on which the tax is first imposed. (Ord. 1441 § 1 (part), 2020)
3.10.030 Administration and collection—Statutory compliance.
The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of Washington State Legislature Chapter 338, Laws of 2019 (HB 1406), codified in Chapter 82.14 RCW as the same now exists or as hereafter amended or superseded. (Ord. 1441 § 1 (part), 2020)