CHAPTER 9
LEASEHOLD EXCISE TAX
SECTION:
5-9-4: Administration And Collection Of Tax
5-9-7: Contract With Department Of Revenue
5-9-1 PURPOSE:
This Chapter is to implement the terms and provisions of chapter 61, Laws of 1975-76, 2nd Ex. Session (H.B. 971) authorizing a city to levy a leasehold excise tax of not to exceed four percent (4%) of taxable rent on the act or privilege of occupying or using publicly owned real or personal property by means of leasehold interest in publicly owned property.
5-9-2 TAX LEVIED:
There is hereby levied and shall be collected a leasehold excise tax upon the act or privilege of occupying or using publicly owned real or personal property within the City of Renton through a leasehold interest as defined by section 2, chapter 61, Laws of 1975-76, 2nd Ex. Session, hereinafter referred to as “the State Act”. The tax shall be paid, collected and remitted to the Department of Revenue of the State of Washington at the time and in the manner prescribed by section 5 of the aforementioned State Act.
5-9-3 TAX RATE; CREDIT:
The rate of the tax imposed by Section 5-9-2 shall be four percent (4%) of the taxable rent, provided however that the following credit shall be allowed in determining the tax payable:
A. 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 since that date, and excluding from such credit (a) any leasehold interest arising out of any lease of property covered by the provisions of RCW 28B.20.394 and (b) any lease or agreement including options to renew which extends beyond January 1, 1985, as follows:
1. With respect to taxes due in calendar year 1976, a credit equal to eighty percent (80%) of the tax produced by the above rate.
2. With respect to taxes due in calendar year 1977, a credit equal to sixty percent (60%) of the tax produced by the above rate.
3. With respect to taxes due in calendar year 1978, a credit equal to forty percent (40%) of the tax produced by the above date.
4. With respect to taxes due in calendar year 1979, a credit equal to twenty percent (20%) of the tax produced by the above rate.
B. With respect to a product lease, a credit of thirty three percent (33%) of the tax produced by the above rate.
5-9-4 ADMINISTRATION AND COLLECTION OF TAX:
The administration and collection of the tax imposed by this Chapter shall be in accordance with the terms and provisions of the State Act.
5-9-5 INTERESTS EXEMPT:
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 5-9-2.
5-9-6 INSPECTION OF RECORDS:
The City hereby consents to the inspection of such records as are necessary to qualify the City for inspection of records by the Department of Revenue.
5-9-7 CONTRACT WITH DEPARTMENT OF REVENUE:
The Mayor and City Clerk are hereby authorized and directed to enter into any contract with the Department of Revenue for the administration and collection of said tax and to execute any and all documents pertinent thereto, provided that the City Attorney shall first approve the form and content of said contract.
5-9-8 PENALTIES:
Any person, firm or corporation violating any provisions or terms of this Chapter shall upon conviction thereof be guilty of a misdemeanor and penalized in accordance with RMC 1-3-1. (Ord. 3773, 12-19-83, eff. 1-1-84; Ord. 5831, 1-23-17)