CHAPTER 3.29
SALES AND USE TAX FOR AFFORDABLE HOUSING Revised 9/24

Sections:

3.29.010    Imposition of sales and use tax.

3.29.020    Purpose of sales and use tax. Revised 9/24

3.29.030    Administration and collection – Statutory compliance.

3.29.010 Imposition of sales and use tax.

A. There is imposed a sales and use tax, as authorized by RCW 82.14.540, upon every taxable event, as defined in Chapter 82.14 RCW, occurring within the City of Quincy. 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 subsection (A) of this section shall be the maximum rate permitted to cities under RCW 82.14.540.

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 Department of Revenue shall perform the collection of such taxes on behalf of the City at no cost to the City.

D. The Washington State Department of Revenue shall calculate the maximum amount of tax distributions for the City based on the taxable retail sales in the City during state fiscal year 2019, and the tax imposed under this section shall cease to be distributed to the City for the remainder of any state fiscal year in which the amount of tax collected exceeds the maximum amount of tax distributions for the City as properly calculated by the Department of Revenue. Distributions to the City that have ceased during a state fiscal year shall resume at the beginning of the next state fiscal year.

E. In accordance with Section 3.50.120, the monies collected by the tax imposed by this section shall be deposited into the Affordable Housing Sales Tax Fund. (Ord 20-548 §1)

3.29.020 Purpose of sales and use tax. Revised 9/24

A. The City may use the monies collected by the tax imposed under Section 3.29.010 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; or

2. Providing the operations and maintenance costs of new units of affordable or supportive housing; or

3. Providing rental assistance to tenants; or

4. Such other purposes authorized by the laws of the state of Washington.

B. The housing and services provided under subsection (A) of this section may only be provided to persons whose income is at or below sixty percent of the median income of the City.

C. In determining the use of monies under subsection (A) of this section, the City must consider the income of the individuals and families to be served, the leveraging of the resources made available under this chapter, and the housing needs within the City.

D. The Finance Director must report annually to the Washington State Department of Commerce, in accordance with Chapter 365-240 WAC, on the collection and use of the monies from the tax imposed under this chapter.

E. The tax imposed by this chapter expires as set forth in RCW 82.14.540. The Finance Director shall provide notice to the City Council and the Mayor of the expiration date of the tax each year beginning three years before the expiration date, and shall also promptly notify the City Council and the Mayor of any changes to the expiration date. (Ord 24-620 §14; Ord 20-548 §1)

3.29.030 Administration and collection – Statutory compliance.

A. The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of RCW 82.14.540.

B. The City Administrator is authorized to provide any necessary notice to the Washington State Department of Revenue to effectuate the tax enacted by this chapter, and to execute, for and on behalf of the City, any necessary agreement with the Department of Revenue for the collection and administration of the tax enacted by this chapter. (Ord 20-548 §1)