Chapter 3.40
LEASEHOLD EXCISE TAX
Sections:
3.40.030 Administration and collection.
3.40.050 Inspection of city records.
3.40.060 Contract with state Department of Revenue.
3.40.010 Established.
There is levied and shall be collected a leasehold excise tax on and after April 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. 180 § 1, 1976)
3.40.020 Rate—Credits.
The rate of the tax imposed by Section 3.40.010 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:
A. With respect to a leasehold interest other than a product lease, executed with an effective date of April 1, 1986, or thereafter, or a leasehold interest in respect to which the Department of Revenue under the authority of RCW 82.29A.020 does adjust the contract rent base used for computing the tax provided for in RCW 82.29A.030, there shall be allowed a credit against the tax as otherwise computed equal to the amount, if any, that such tax exceeds the property tax that would apply to such leased property without regard to any property tax exemption under RCW 84.36.381, if it were privately owned by the lessee or if it were privately owned by any sublessee if the value of the credit inures to the sublessee. For lessees and sublessees who would qualify for a property tax exemption under RCW 84.36.381 if the property were privately owned, the tax otherwise due after this credit shall be reduced by a percentage equal to the percentage reduction in property tax that would result from the property tax exemption under RCW 84.36.381.
B. With respect to a product lease, as defined by Section 2 of the State Act, a credit of thirty-three percent of the tax produced by the above rate.
(Ord. 637 § 1, 1998: Ord. 180 § 2, 1976)
3.40.030 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. 180 § 3, 1976)
3.40.040 Exemptions.
Leasehold interests 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 Section 3.40.010. (Ord. 180 § 4, 1976)
3.40.050 Inspection of city records.
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. 180 § 5, 1976)
3.40.060 Contract with state Department of Revenue.
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 Section 3.40.010; provided, that the city attorney shall first approve the form and content of the contract. (Ord. 180 § 6, 1976)