Chapter 3.15 SALES AND USE TAX

Chapter 3.15
SALES AND USE TAX

Sections:

Article I. Sales and Use Tax

3.15.010 Imposition of a sales and use tax as authorized by RCW 82.14.030(1).

3.15.020 Administration – Collection.

3.15.030 Inspection of records – Agreement with Department of Revenue.

3.15.040 Violation – Penalty.

Article II. Additional Sales and Use Tax

3.15.050 Imposition of an additional sales and use tax as authorized by RCW 82.14.030(2).

3.15.060 Administration – Collection.

3.15.070 Inspection of records – Agreement with Department of Revenue.

3.15.080 Subject to referendum.

3.15.090 Violation – Penalty.

Article III. Sales and Use Tax for Affordable Housing

3.15.100 Imposition of a sales and use tax for affordable housing.

3.15.110 Administration and collection.

3.15.120 Purpose of tax.

3.15.130 Inspection of records – Agreement with the Department of Revenue.

3.15.140 Violation – Penalty.

Article I. Sales and Use Tax

3.15.010 Imposition of a sales and use tax as authorized by RCW 82.14.030(1).

(1) Imposition. There is imposed a separate sales and/or use tax, as the case may be, upon every taxable event as defined in Chapter 82.14 RCW, as the same exists or may hereafter be amended, which occurs within the City limits. The tax shall be imposed upon and collected from those persons from whom the state sales and/or use tax is collected pursuant to Chapters 82.08 and 82.12 RCW, as the same now exist or may hereafter be amended.

(2) Tax Rate. The rate of tax imposed by subsection (1) of this section shall be one-half of one percent of the selling price or value of the article used, as the case may be; provided, that during such period as there is in effect a sales and/or use tax imposed by King County pursuant to RCW 82.14.030(1), the rate imposed by this chapter shall be as provided in RCW 82.14.030(1), as the same now exists or may hereafter be amended. The rate at the effective date of the ordinance codified in this article shall be 425/1000th of one percent. (Ord. O99-04 § 1)

3.15.020 Administration – Collection.

The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of RCW 82.14.050, as the same now exists or may hereafter be amended. (Ord. O99-04 § 2)

3.15.030 Inspection of records – Agreement with Department of Revenue.

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, as the same now exists or may hereafter be amended. The City manager is authorized to enter into an agreement with the Department of Revenue for the administration of the tax. (Ord. O99-04 § 3)

3.15.040 Violation – Penalty.

It is unlawful for any seller to fail or refuse to collect taxes with intent to violate the provisions of this chapter, or to gain some advantage or benefit, whether direct or indirect, or for any buyer to refuse to pay any tax due under the provisions of this chapter. Any person violating any provision of this chapter shall be guilty of a misdemeanor and upon conviction thereof punished pursuant to state law or City ordinance. (Ord. O99-04 § 4)

Article II. Additional Sales and Use Tax

3.15.050 Imposition of an additional sales and use tax as authorized by RCW 82.14.030(2).

(1) Imposition. In addition to other taxes that may be imposed by the City, there is imposed a separate sales and/or use tax, as the case may be, upon the same taxable events and upon which the tax imposed pursuant to RCW 82.14.030(1) is levied, as the same exists or may hereafter be amended, and as specifically authorized by RCW 82.14.030 (2).

(2) Tax Rate. The rate of tax imposed by this section, which shall be in addition to the rate of tax permitted to be imposed by City ordinance pursuant to RCW 82.14.030(1), as the same now exists or may hereafter be amended, shall be one-half 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); provided, that if King County shall impose a sales and/or use tax pursuant to RCW 82.14.030 (2), as the same now exists or may hereafter be amended, at a rate that is equal to or greater than the rate imposed under this article, then said county shall receive 15 percent of the City tax; provided further, that if King County shall impose a sales and/or use tax pursuant to RCW 82.14.030 (2), at a rate that is less than the rate imposed under this article, the county shall receive that amount of revenues from the City tax equal to 15 percent of the rate of tax imposed by the county. (Ord. O99-05 § 1)

3.15.060 Administration – Collection.

3.15.070 Inspection of records – Agreement with Department of Revenue.

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, as the same now exists or may hereafter be amended. The City manager is authorized to enter an agreement with the Department of Revenue for the administration of the tax. (Ord. O99-05 § 3)

3.15.080 Subject to referendum.

Pursuant to RCW 82.14.036, the tax imposed by this article is subject to referendum. A referendum petition to repeal the tax imposed by this article must be filed with the interim City clerk or the interim City manager within seven days of passage of this article. Within 10 days of filing of the referendum petition, the interim City manager shall confer with the petitioner concerning the form and style of the petition, issue an identification number for the petition and write a ballot title for the measure. The ballot title shall be posed as a question so that an affirmative answer to the question and an affirmative vote on the measure results in the tax or tax rate increase being imposed, and a negative answer to the question and a negative vote on the measure results in the tax or tax rate increase not being imposed. The petitioner shall be notified of the identification number and ballot title within the 10-day period.

After notification of the identification number and ballot title, the petitioner shall have 30 days to secure on petition forms the signatures of not less than 15 percent of the registered voters of the City and to file the signed petitions with the interim City clerk or the interim City manager. Each petition form must contain the ballot title and the full text of the measure to be referred. (Ord. O99-05 § 4)

3.15.090 Violation – Penalty.

Article III. Sales and Use Tax for Affordable Housing

3.15.100 Imposition of a sales and use tax for affordable housing.

(1) Imposition. There is imposed a sales and use tax as authorized by Washington State Legislature Chapter 338, Laws of 2019, and codified in RCW 82.14.540, upon every taxable event which occurs within the City limits, as defined in RCW 82.14.020, as the same exists or may hereafter be amended. The tax shall be imposed upon and collected from those persons from whom the state sales and/or use tax is collected pursuant to Chapters 82.08 and 82.12 RCW, as the same now exist or may hereafter be amended.

(2) Tax Rate. The rate of tax imposed by subsection (1) of this section shall be 0.0073 percent of the selling price or value of the article used, as the case may be. The tax imposed under RCW 82.14.540(2) must be deducted from the amount of tax otherwise required to be collected or paid to the Department of Revenue under Chapters 82.08 and 82.12 RCW.

(3) Tax Amount. The Washington State Department of Revenue will calculate the maximum amount of annual tax distributions for the City of Sammamish based on the taxable retail sales in the City in the state’s fiscal year ending June 30, 2019. The tax imposed under subsection (1) of this section will cease to be distributed to the City for the remainder of any state fiscal year in which the amount of tax exceeds the maximum amount of tax distributions for the City as 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.

(4) Expiration Date. The tax imposed under this section will expire 20 years after the date on which the tax is first imposed. (Ord. O2019-489 § 1 (Att. A))

3.15.110 Administration and collection.

(1) The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of RCW 82.14.050, as the same now exists or may hereafter be amended.

(2) The City must report annually to the Washington State Department of Commerce on the collection and use of the revenue. The Department of Commerce must adopt rules prescribing content of such reports. By December 1, 2019, and annually thereafter, and in compliance with RCW 43.01.036, the Department of Commerce must submit a report annually to the appropriate legislative committees with regard to such uses. (Ord. O2019-489 § 1 (Att. A))

3.15.120 Purpose of tax.

Moneys collected or bonds issued under this article may only be used, as required by RCW 82.14.540(6), 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) Funding the operations and maintenance costs of new units of affordable or supportive housing; or

(3) Providing rental assistance to tenants. (Ord. O2019-489 § 1 (Att. A))