Chapter 5.40
LEASEHOLD EXCISE TAX
Sections:
5.40.010 Created – Collection and remittance.
5.40.030 Administration – Generally.
5.40.050 Inspection of city records.
5.40.060 Administration – Contract with state.
5.40.070 Noncompliance – Penalty.
5.40.010 Created – Collection and remittance.
There is levied and shall be collected a leasehold excise tax on and after January 1, 1976, upon the act or privilege of occupying or using publicly owned real or personal property within the city of Richland through a leasehold interest as defined by Section 2, Chapter 61, Laws of 1975-76, Second Extraordinary Session (hereinafter “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 State Act. [Ord. 27-76 § 1].
5.40.020 Rate.
The rate of tax imposed by RMC 5.40.010 shall be four percent of the taxable rent; provided, that the following credits 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 (as defined by Section 2 of the State Act) since that date, and excluding from such credit:
1. Any leasehold interest arising out of any lease of property covered by the provisions of RCW 28B.20.394; and
2. Any lease or agreement including options to renew which extends beyond January 1, 1985, as follows:
a. With respect to taxes due in calendar year 1976, a credit equal to 80 percent of the tax produced by the rate specified in the first paragraph of this section;
b. With respect to taxes due in calendar year 1977, a credit equal to 60 percent of the tax produced by the rate specified in the first paragraph of this section;
c. With respect to taxes due in calendar year 1978, a credit equal to 40 percent of the tax produced by the rate specified in the first paragraph of this section;
d. With respect to taxes due in calendar year 1979, a credit equal to 20 percent of the tax produced by the rate specified in the first paragraph of this section.
B. With respect to a product lease, a credit of 33 percent of the tax produced by the rate specified in the first paragraph of this section. [Ord. 27-76 § 2; amended during 2011 recodification].
5.40.030 Administration – Generally.
The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of the state act. [Ord. 27-76 § 3].
5.40.040 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 RMC 5.40.010. [Ord. 27-76 § 4].
5.40.050 Inspection of city records.
The city of Richland 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 82.32.220. [Ord. 27-76 § 5].
5.40.060 Administration – Contract with state.
The city manager is authorized to execute a contract with the Department of Revenue of the state of Washington for the administration and collection of the tax imposed by RMC 5.40.010; provided, that the city attorney shall first approve the form and content of the contract. [Ord. 27-76 § 6].
5.40.070 Noncompliance – Penalty.
Any governmental entity leasing publicly owned real or personal property within the corporate limits of Richland which fails to properly disclose the nature and extent of such nonexempted taxable rent or thereafter remits such tax as is required shall, upon being found guilty thereof in Division 1 of the Benton County district court, be fined or assessed a penal sum of no more than $5,000 or by imprisonment for not more than one year, or both such fine and imprisonment; provided, that each day of noncompliance shall constitute a distinct and separate violation of this section. [Ord. 27-76 § 8; Ord. 17-84].