Chapter 3.50
ADDITIONAL SALES AND USE TAXES Revised 3/24
3.50.000 Chapter Contents
Sections:
Article I. Additional Sales and Use Tax
3.50.010 Imposition of sales and use tax.
3.50.020 Rate of tax imposed.
3.50.030 Administration and collection of tax.
3.50.040 Consent to inspection of records.
3.50.050 Authorizing execution of contract for administration.
3.50.060 Special initiative.
3.50.070 Penalties.
3.50.080 Effective date.
Article II. Additional Sales and Use Tax for Public Safety and Criminal Justice
3.50.110 Findings.
3.50.120 Additional sales and use tax imposed.
3.50.130 Administration.
Article III. Additional Sales and Use Tax for Affordable and Supportive Housing
3.50.210 Findings.
3.50.220 Additional sales and use tax imposed.
3.50.230 Administration.
Article IV. Additional Sales and Use Tax for the Cultural Access Program
3.50.310 Findings.
3.50.320 Sales and Use Tax Imposed.
3.50.330 Administration.
Article V. Additional Sales and Use Tax for Transportation Improvements
3.50.410 Findings. Revised 3/24
3.50.420 Sales and Use Tax Imposed. Revised 3/24
3.50.430 Administration. Revised 3/24
(Ord. 7383 §§1 – 3, 2023).
Article I. Additional Sales and Use Tax
3.50.010 Imposition of sales and use tax
In addition to any other sales and use tax imposed under this title, there is imposed a sales or use tax, as the case may be, as authorized by RCW 82.14.030(2), upon every taxable event, as defined in RCW 82.14.020, occurring within the City of Olympia. The tax shall be imposed upon and collected from those persons from whom the state sales or use tax is collected pursuant to RCW Chapters 82.08 and 82.12.
(Ord. 7250 §3, 2020; Ord. 4410 §1(part), 1983).
3.50.020 Rate of tax imposed
The rate of the tax imposed by Section 3.50.010 shall be one-half of one percent of the selling price or value of the article used, as the case may be; provided, however, that during such period as there is in effect a sales tax or use tax imposed by Thurston County under Section 17(2), Chapter 49, Laws of 1982, First Extraordinary Session at a rate equal to or greater than the rate imposed by this section, the County shall receive fifteen percent (15%) of the tax imposed by Section 3.50.010; provided, further, that during such period as there is in effect a sales tax or use tax imposed by Thurston County under Section 17(2), Chapter 49, Laws of 1982, First Extraordinary Session at a rate which is less than the rate imposed by this section, the County shall receive from the tax imposed by Section 3.50.010 that amount of revenues equal to fifteen percent (15%) of the rate of the tax imposed by the County under Section 17(2), Chapter 49, Laws of 1982, First Extraordinary Session.
(Ord. 7250 §3, 2020; Ord. 4410 §1(part), 1983).
3.50.030 Administration and collection of tax
The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of RCW 82.14.050.
(Ord. 7250 §3, 2020; Ord. 4410 §1(part), 1983).
3.50.040 Consent to inspection of records
The City of Olympia 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. 7250 §3, 2020; Ord. 4410 §1(part), 1983).
3.50.050 Authorizing execution of contract for administration
The City Manager is authorized to enter into a contract with the Department of Revenue for the administration of this tax.
(Ord. 7250 §3, 2020; Ord. 4410 §1(part), 1983).
3.50.060 Special initiative
This chapter shall be subject to a special initiative. The number of registered voters needed to sign a petition for special initiative shall be twenty-five percent of the total number of votes cast for all candidates for Mayor at the last preceding City election. If a special initiative petition is filed with the City Council, the operation of this chapter shall not be suspended pending a final decision on the disposition of the special initiative. The procedures for initiative contained in RCW 35.17.240 through 35.17.360 shall apply to any such special initiative petition.
(Ord. 7250 §3, 2020; Ord. 4410 §1(part), 1983).
3.50.070 Penalties
Any seller who fails or refuses to collect the tax as required with the intent to violate the provisions of this chapter or to gain some advantage or benefit, either direct or indirect, and any buyer who refuses to pay any tax due under this chapter shall be guilty of a misdemeanor, and upon conviction thereof shall be fined no more than five hundred dollars or imprisoned for not more than six months, or be punished by both such fine and imprisonment.
(Ord. 7250 §3, 2020; Ord. 4410 §1(part), 1983).
3.50.080 Effective date
This chapter shall take effect April 1, 1983.
(Ord. 7250 §3, 2020; Ord. 4410 §1(part), 1983).
Article II. Additional Sales and Use Tax for Public Safety and Criminal Justice
3.50.110 Findings
The City Council (the "Council") of the City of Olympia, Washington (the "City"), makes the following findings and determinations:
1. RCW 82.14.450 authorizes cities to submit a proposition to the voters authorizing a sales and use tax increase of not more than one-tenth of one percent (the "Additional Sales and Use Tax"), provided that at least one-third of the revenues are dedicated to criminal justice purposes (as defined under RCW 82.14.340), fire protection purposes, or both.
2. The Council on July 10, 2012 adopted Resolution No. M-1780 (the "Ballot Resolution") authorizing submission to the qualified voters of the City a proposition authorizing the Additional Sales and Use Tax, for Public Safety and Criminal Justice purposes ("Proposition No. 1").
3. Proposition No. 1 was approved by the requisite number of voters at the election held on November 6, 2012 and its passage was certified by the County Auditor on November 27, 2012.
4. The Council finds that the City has satisfied all prerequisites to imposing the Additional Sales and Use Tax, including without limitation, the conditions set forth in RCW 82.14.450 and the Ballot Resolution.
(Ord. 7250 §3, 2020; Ord. 6825 §1, 2012).
3.50.120 Additional sales and use tax imposed
1. Tax Imposed; Effective Date. The Additional Sales and Use Tax shall be imposed at a rate of one tenth of one 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. The tax shall become effective on the earliest practicable date consistent with RCW 82.14.055.
2. Use of Additional Sales and Use Tax Receipts. City proceeds shall be used for Public Safety and Criminal Justice purposes to ensure that at least one-third of all proceeds from the Additional Sales and Use Tax shall be used for criminal justice purposes as defined in RCW 82.14.340. Receipts shall be distributed between the City and Thurston County in accordance with RCW 82.14.450.
(Ord. 7250 §3, 2020; Ord. 6825 §2, 2012).
3.50.130 Administration
The City Clerk is directed to cause a certified copy of the ordinance codified in this article to be delivered to the State of Washington Department of Revenue and any other public officers or agencies required by law. The City Finance Director and other appropriate officers are authorized and directed to enter into such contracts with and provide such notices to the State Department of Revenue and other appropriate state or local agencies for the collection and distribution of receipts of the tax imposed by this article as may be necessary or convenient consistent with chapter 82.14 RCW and other applicable law.
(Ord. 7250 §3, 2020; Ord. 6825 §3, 2012).
Article III. Additional Sales and Use Tax for Affordable and Supportive Housing
3.50.210 Findings
The City Council (the "Council") of the City of Olympia, Washington (the "City"), makes the following findings and determinations:
1. RCW 82.14.530 authorizes cities to submit a proposition to the voters authorizing a sales and use tax increase of not more than one-tenth of one percent, provided that the City’s proceeds from said increase shall be used to construct affordable and supportive housing and for housing-related purposes, including mental and behavioral health-related facilities, and for costs for operations, maintenance, delivery, and evaluation of mental health programs and services, or housing-related services, all as permitted by state law.
2. On October 24, 2017, the Council adopted Resolution No. M-1912 (the "Ballot Resolution") authorizing submission to the qualified voters of the City a proposition authorizing an additional sales and use tax of not more than one-tenth of one percent for the Olympia Home Fund for supportive housing and housing-related purposes, including mental and behavioral health-related facilities ("Proposition No. 1").
3. Proposition No. 1 was approved by the requisite number of voters at the election held on February 13, 2018, and its passage was certified by the County Auditor on February 23, 2018.
4. The Council finds that the City of Olympia has satisfied all prerequisites to imposing the additional sales and use tax, including without limitation, the conditions set forth in RCW 82.14.530 and the Ballot Resolution.
(Ord. 7250 §3, 2020; Ord. 7127 §1, 2018).
3.50.220 Additional sales and use tax imposed
1. Tax Imposed; Effective Date. The additional sales and use tax shall be imposed at a rate of one-tenth of one 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. The tax shall become effective on the earliest practicable date consistent with RCW 82.14.055.
2. Use of Additional Sales and Use Tax Receipts. City proceeds shall be used for housing and housing-related services, including mental and behavioral health programs and facilities as required by RCW 82.14.530 and that a minimum of sixty (60) percent of the monies collected under RCW 82.14.530 shall be used for the housing and housing-related purposes as defined in RCW 82.14.530(2)(a)(i), (ii), and (iii), and the remainder of the monies collected shall be used for the operation, delivery, or evaluation of mental and behavioral health treatment programs and services or housing-related services as required by RCW 82.14.530(2)(c).
(Ord. 7250 §3, 2020; Ord. 7127 §2, 2018).
3.50.230 Administration
The City Clerk is directed to cause a certified copy of the ordinance codified in this article to be delivered to the State of Washington Department of Revenue and any other public officers or agencies required by law. The City Manager and other appropriate officers are authorized and directed to enter into such contracts with and provide such notices to the State Department of Revenue and other appropriate state or local agencies for the collection and distribution of receipts of the tax imposed by this article as may be necessary or convenient consistent with Chapter 82.14 RCW and other applicable law.
(Ord. 7250 §3, 2020; Ord. 7127 §3, 2018).
Article IV. Additional Sales and Use Tax for the Cultural Access Program
3.50.310 Findings.
The City Council (the "Council") of the City of Olympia, Washington (the "City"), makes the following findings and determinations:
1. RCW 82.14.525 and Chapter 36.160 RCW authorizes counties and cities to impose a sales and use tax of one-tenth of one percent (0.1%), provided that the sales and use tax increase is approved by voters. The City's proceeds from such a tax shall be used for a cultural access program as authorized and permitted by Chapter 36.160 RCW and RCW 82.14.525.
2. On December 14, 2021, the Council adopted Resolution No. M-2280 (the "Ballot Resolution") authorizing submission to the qualified voters of the City a proposition authorizing an additional sales and use tax of not more than one-tenth of one percent (0.1%) for the Olympia Cultural Access Program ("Proposition No. 1"), as authorized and permitted by RCW 82.14.525 and Chapter 36.160 RCW.
3. Proposition No. 1 was approved by the requisite number of City voters at the special election held on April 26, 2022, and its passage was certified by the County Auditor on May 6, 2022, with 7,266 votes for the ballot measure, and 5,244 votes against, to impose a sales and use tax for the purposes authorized under Chapter 36.160 RCW and as provided by RCW 82.14.525, for a period of seven (7) consecutive years. The funds shall be collected and used as set forth in RCW 82.14.525(4) "... only ... for the purposes set forth in RCW 36.160.110..." for the Olympia Cultural Access Program.
4. The Council finds that the City of Olympia has satisfied all prerequisites to impose the sales and use tax permitted by RCW 82.14.525 and Chapter 36.160 RCW for the Olympia Cultural Access Program.
(Ord. 7323 §1, 2022).
3.50.320 Sales and Use Tax Imposed.
1. Tax Imposed; Effective Date. The sales and use tax increase shall be imposed at a rate of one-tenth of one percent (0.1%) of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax, within the City of Olympia. The tax shall become effective on the earliest practicable date consistent with RCW 82.14.525 and RCW 82.14.055.
2. Use of Sales and Use Tax Receipts Pursuant to RCW 36.160.110. City proceeds shall be used as required by RCW 82.14.525(4) "... only ... for the purposes set forth in RCW 36.160.110," including but not limited to, start-up funding provided to the program under RCW 36.160.040 with the expectation "that the funding will be repaid...;" that the funding forming such a program to be reserved for program costs, including direct administrative costs, and repaying any start-up funding provided under RCW 36.160.040; the percentage of total funds available annually to be reserved for a public school cultural access program established and managed by the City to increase access to cultural activities and programming for public school students, including transportation to off-site cultural experiences for all students at schools in the City that are located within a school district in which at least forty percent of the district's students are eligible for the federal free and reduced-price school meals program; and the City may limit its spending on the transportation benefit to no more than five percent of funds collected each year under RCW 36.160.080; and remaining funds available annually, including all funds not initially reserved under RCW 36.160.110(1), (2), and (3), as well as funds not distributed by the City from the reserved funds, must be distributed by the City to entities designated by the legislative authority of the City creating the program, after creating guidelines and criteria for the award of funds to eligible cultural organizations, including designated entity administrative costs. In accord with RCW 36.160.110(5), the City in "... evaluating requests for funding authorized under this chapter, the designated entity responsible for the distribution of the funds must consider the public benefits that any cultural organizations represented will be derived from proposed projects." Funds distributed to cultural organizations may be used to support cultural and educational activities, programs, and initiatives, public benefits and communications, and basic operations. Funds may also be used for (a) capital expenditures or acquisitions including, but not limited to, the acquisition of or construction of improvements to real property and (b) technology, equipment, and supplies reasonably related to or necessary for a project otherwise eligible for funding under Chapter 36.160 RCW.
3. Expiration of Tax. The tax imposed by the City under RCW 82.14.525 and Chapter 36.160 RCW shall expire seven (7) years after the date on which the tax is first imposed.
(Ord. 7323 §2, 2022).
3.50.330 Administration.
The City Clerk is directed to cause a certified copy of this Ordinance to be delivered to the State of Washington Department of Revenue, the State of Washington Department of Commerce, and any other public officers or agencies required by law. The City's Finance Director and other appropriate officers are authorized and directed to enter into such contracts with and provide such notices to the State Department of Revenue or Department of Commerce, and other appropriate state or local agencies, for the collection and distribution of receipts of the tax imposed by this Ordinance as may be necessary or convenient consistent with RCW 82.14.525 and Chapter 36.160 RCW and other applicable law.
(Ord. 7323 §3, 2022).
Article V. Additional Sales and Use Tax for Transportation Improvements
3.50.410 Findings Revised 3/24
The City Council (the “Council”) of the City of Olympia, Washington (the “City”), makes the following findings and determinations:
1.1 RCW 82.14.0455 and RCW 36.73.065 authorizes cities and a transportation benefit district created under Chapter 36.73 RCW to, among other actions, impose taxes, fees, charges, and tolls as permitted by law for transportation improvements, operation, preservation, and maintenance of transportation facilities.
1.2 RCW 36.73.065(4)(a)(v) provides in part that “A district that includes all the territory within the boundaries of the jurisdiction, or jurisdictions, establishing the district may impose by a majority vote of the governing board of the district the following fees, taxes, and charges:
(i) Up to $20 of the vehicle fee authorized in RCW 82.80.140;
(ii) Up to $40 of the vehicle fee authorized in RCW 82.80.140 if a vehicle fee of $20 has been imposed for at least 24 months;
(iii) Up to $50 of the vehicle fee authorized in RCW 82.80.140 if a vehicle fee of forty dollars has been imposed for at least 24 months and a district has met the requirements of subsection (6) of this section;
(iv) A fee or charge in accordance with RCW 36.73.120; or
(v) Up to one-tenth of one percent of the sales and use tax in accordance with RCW 82.14.0455.”
1.3 On September 28, 2021, the Council adopted Resolution No. M-2254 whereby the Council declared its intent to conduct a public hearing to consider the proposed assumption of the rights, powers, functions, and obligations of the existing Olympia Transportation Benefit District (TBD or District).
1.4 On October 19, 2021, the Council conducted a public hearing allowing all persons interested in the proposed assumption, including those protesting or objecting, the opportunity to be heard on the issue of the City’s assumption of the Olympia Transportation Benefit District.
1.5 On November 16, 2021, the Council enacted Ordinance No. 7299 whereby the City assumed all of the rights, powers, functions, and obligations of the Olympia Transportation Benefit District, as permitted by RCW Chapter 36.74, and dissolved the Olympia Transportation Benefit District Board, amending Olympia Municipal Code (OMC) Chapter 12.14.
1.6 OMC 12.14.010 provides the geographical boundaries of the Transportation Benefit District are the corporate limits of the City as they currently exist or as they may exist following future annexations. Further, OMC 12.14.020 was amended to provide that the governing board of the Transportation Benefit District is the Olympia City Council “which has the authority to exercise the statutory powers set forth in Chapter 36.73 RCW.”
1.7 OMC 12.14.040 provides that the funds generated by the Transportation Benefit District may be used for “any purpose allowed by law including to operate the District and to make transportation improvements that are consistent with existing state, regional, and local transportation plans and necessitated by existing or reasonably foreseeable congestion levels pursuant to Chapter 36.73 RCW. The transportation improvements funded by the District must be made in an effort to reduce risk of transportation facility failure and improve safety, decrease travel time, increase daily and peak period trip capacity, improve modal connectivity, and preserve and maintain optimal performance of the infrastructure over time to avoid expensive infrastructure replacement in the future.”
1.8 The Council finds that the City of Olympia has satisfied all prerequisites to impose the sales and use tax permitted by RCW 36.73.065(4)(a)(v) in accordance with RCW 82.14.0455 for a period not exceeding ten (10) years unless renewed with an affirmative vote of the voters voting at an election or a majority vote of the Olympia City Council as the governing board of the district. The sales and use tax so imposed shall not exceed one-tenth of one percent and its use shall be restricted as required by law for transportation improvements, operation, preservation, and maintenance of facilities related thereto.
1.9 The Council further finds that imposition of a sales and use tax is more equitable as it would apply to all persons purchasing goods or services in the City of Olympia, including those who may not reside within Olympia’s municipal boundaries, but who use and rely upon Olympia’s streets and transportation system for goods or services for their personal or business needs.
1.10 It is projected that imposition of a sales and use tax of one-tenth of one percent (0.1%), as permitted by RCW 36.73.065(4)(a)(v), would generate approximately $3,100,000 per year to fund transportation and infrastructure improvement projects identified in the City’s Transportation Master Plan. Such revenue would be available for funding capital transportation improvement projects starting with the 2025 Capital Facilities Plan (CFP).
(Ord. 7383 §1, 2023).
3.50.420 Sales and Use Tax Imposed Revised 3/24
2.1 Tax Imposed; Effective Date. The sales and use tax increase shall be imposed at a rate of one-tenth of one percent (0.1%) of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax, within the City of Olympia. The tax shall become effective on the earliest practicable date consistent with RCW 82.14.0455 and RCW 82.14.055.
2.2 Use of Sales and Use Tax Receipts Pursuant to RCW 36.73.065 and OMC 12.14.040. City proceeds shall be used as required by RCW 82.14.0455(3) “Money received from the tax imposed under this section must be spent in accordance with the requirements of chapter 36.73 RCW.” RCW 36.73.020 provides that acquiring, constructing, improving, providing, and funding a transportation improvement with the district is consistent with existing local transportation plans and necessitated by existing or reasonably foreseeable congestion levels and transportation improvements shall be administered and maintained as other public streets and transportation improvements as provided in RCW 36.73.020.
2.3 Expiration of Tax. The tax imposed by the City under RCW 82.14.0455 and RCW 36.73.065 shall expire ten (10) years after the date on which the tax is first imposed.
(Ord. 7383 §2, 2023).
3.50.430 Administration Revised 3/24
The City Clerk is directed to cause a certified copy of this Ordinance to be delivered to the State of Washington Department of Revenue, and any other public officers or agencies required by law. The City’s Finance Director and other appropriate officers are authorized and directed to enter into such contracts with and provide such notices to the State Department of Revenue, and other appropriate state or local agencies, for the collection and distribution of receipts of the tax imposed by this Ordinance as may be necessary or convenient consistent with RCW 82.14.0455 and 36.73.065 and other applicable law.
(Ord. 7383 §3, 2023).