Chapter 3.04
LEASEHOLD EXCISE TAX
Sections:
3.04.030 Administration and collection.
3.04.050 Inspection of records.
3.04.010 Levied.
There is levied and shall be collected a leasehold excise tax on or after January 1, 1976, upon the act or privilege of occupying or using publicly owned real or personal property within the City through a “leasehold interest” as defined in Section 2, Chapter 61, Laws of 1975-1976, Second Extraordinary Session (hereinafter “the State Act”). The tax shall be paid, collected and remitted to the Department of Revenue of Washington at the time and in the manner prescribed by Section 5 of the State Act. [1956 Code § 5-1701.]
3.04.020 Rate.
The rate of the tax imposed by SMC 3.04.010 shall be four percent of the taxable rent as defined by Section 2 of the State Act; 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 are 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 any leasehold interest arising out of any lease of property covered by the provisions of RCW 28B.20.394 and any lease or any lease or agreement including options to renew which extends beyond January 1, 1985, as follows:
1. With respect to taxes due in the calendar year 1976, a credit equal to 80 percent of the tax produced by the above rate;
2. With respect to taxes due in calendar year 1977, a credit equal to 60 percent of the tax produced by the above rate;
3. With respect to taxes due in the calendar year 1978, a credit equal to 40 percent of the tax produced by the above rate;
4. With respect to taxes due in calendar year 1979, a credit equal to 20 percent of the tax produced by the above rate.
B. With respect to a product lease, as defined by Section 2 of the State Act, a credit of 33 percent of the tax produced by the above rate. [Ord. 1220 § 1, 2, 1979; 1956 Code § 5-1702.]
3.04.030 Administration and collection.
The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of the State Act. [1956 Code § 5-1703.]
3.04.040 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 SMC 3.04.010. [1956 Code § 5-1704.]
3.04.050 Inspection of records.
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. [1956 Code § 5-1705.]
3.04.060 Contract execution.
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 SMC 3.04.010; provided, that the City Attorney shall first approve the form and content of the contract. [1956 Code § 5-1706.]