Chapter 4.15 SALES AND USE TAX

A. Imposition. There is imposed a sales and/or use tax, as the case may be, upon every taxable event as defined in Chapter 82.14 RCW, as the same now 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.

B. Tax Rate. The rate of tax imposed by subsection (A) 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 Pierce 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 as of the effective date of the ordinance codified in this section shall be 425/1000th of one percent.

(Ord. 15 § 1, 1995).

4.15.020 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. 15 § 2, 1995).

4.15.030 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. 15 § 3, 1995).

4.15.040 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. 15 § 4, 1995).

Article II. Violations

4.15.050 Authority to adopt Pierce County Code.

Pursuant to RCW 35A.12.140 and 35A.13.180, the City adopts by reference PCC 4.28.060, as presently constituted or hereinafter amended, as a regulation of the City.

(Ord. 54 § 1, 1995).

4.15.060 Adoption of administrative rules.

There are hereby further adopted by reference any and all implementing and administrative rules and enforcement remedies now in effect regarding sales or use tax violations adopted pursuant to Chapter 2.06 PCC and PCC 4.28.060 except that, unless the context requires otherwise, any reference to the “County” or to “Pierce County” shall refer to the City of University Place, and any reference to County staff shall refer to the City Manager or designee.

(Ord. 54 § 2, 1995).

4.15.070 Adoption of certain other laws.

To the extent that any provision of the Pierce County Code, or any other law, rule or regulation referenced in the adopted sales and use tax section is necessary or convenient to establish the validity, enforceability or interpretation of the code section, then such provision of the Pierce County Code and chapter, or other law, rule or regulation, is hereby adopted by reference.

(Ord. 54 § 3, 1995).

Article III. Additional Sales and Use Tax

4.15.110 Imposition.

A. Imposition. In addition to other taxes which 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).

B. 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 Pierce 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 chapter, then said county shall receive 15 percent of the City tax; provided further, that if Pierce 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 section, 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. 16 § 1, 1995).

4.15.120 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. 16 § 2, 1995).

4.15.130 Inspection of records – Agreement with Department of Revenue.

(Ord. 16 § 3, 1995).

4.15.140 Penalty.

(Ord. 16 § 5, 1995).

Article IV. Local Option Sales and Use Tax

4.15.150 Levy of local option sales and use tax.

As authorized by and in accordance with RCW 82.14.510, there is imposed a local option sales and use tax for the full duration authorized by law, such tax to be credited against the amount of the tax otherwise required to be collected and paid over to the Department under RCW 82.08.020(1), retail sales tax, or RCW 82.12.020, use tax. Except as provided in RCW 82.14.510(1), this is in addition to other taxes authorized by law and shall be collected from those persons who are taxable by the State under Chapter 82.08 RCW, Retail sales tax, and Chapter 82.12 RCW, Use tax, upon the occurrence of any taxable event within the City limits. The rate of tax imposed hereby shall be 0.24 percent of the selling price, in the case of a sales tax, and 0.24 percent of the value of the article used, in the case of a use tax.

(Ord. 593 § 1, 2011).

4.15.160 Findings and determinations.

The City Council hereby finds and determines that the tax rate imposed hereby does not exceed the lesser of:

A. The rate provided in RCW 82.08.020(1), less:

1. The aggregate rates of all other local sales and use taxes imposed by any taxing authority on the same taxable events;

2. The aggregate rates of all taxes under RCW 82.14.465, 82.14.475 and 82.14.510 that are authorized but have not yet been imposed on the same taxable events by a City or county that has been approved to receive a State contribution by the Department or the State Community Economic Revitalization Board under Chapter 39.100, 39.102, or 39.104 RCW; and

3. The percentage amount of distributions required under RCW 82.08.020(5) multiplied by the rate of State taxes imposed under RCW 82.08.020(1); and

B. The rate, as determined by the City in consultation with the Department, reasonably necessary to receive the project award under RCW 39.104.100 over 10 months.

(Ord. 593 § 2, 2011).

4.15.170 Statutory limitations.

A. The tax will first be imposed on the first day of the State’s fiscal year beginning July 1, 2011.

B. The cumulative amount of tax received by the City in any fiscal year may not exceed $500,000, which is the amount approved by the Department pursuant to RCW 82.14.510.

C. The Department must cease distributing the tax for the remainder of any fiscal year in which either:

1. The amount of tax received by the City equals the amount of distributions approved by the Department for the fiscal year pursuant to RCW 82.14.510; or

2. The amount of revenue distributed to all sponsoring and cosponsoring local governments from taxes imposed under RCW 82.14.510 equals the annual State contribution limit.

D. The tax will be distributed again, should it cease to be distributed for any of the reasons provided in subsection (C) of this section, at the beginning of the next fiscal year, subject to the restrictions in RCW 82.14.510.

E. The State is entitled to any revenue generated by the tax in excess of the amounts specified in subsection (C) of this section.

(Ord. 593 § 3, 2011).

4.15.180 Use of local option sales and use tax revenues.

The amounts generated by the local option sales and use tax up to an aggregate amount of $500,000 with respect to each one-year period commencing on July 1st and ending on the following June 30th are to be applied solely to pay principal and interest on bonds issued to finance public improvements within the local revitalization area designated by the City, including the bonds to be issued by the Authority. Any additional amounts are to be retained by the Department. The tax imposed by this article shall become effective following issuance of the bonds by the Authority pursuant to the trust agreement, which are hereby authorized and approved by the City.

(Ord. 593 § 4, 2011).

4.15.190 Administration – Collection.

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

(Ord. 593 § 5, 2011).

4.15.200 Agreement with Department.

The City Manager or Assistant City Manager is authorized to enter into an agreement with the Department for the administration of the local option sales and use tax, and for payment of the proceeds thereof to the Authority for the benefit of the City or to the trustee for the bonds, as the assignee of the Authority.

(Ord. 593 § 6, 2011).

4.15.210 Penalty.

It is unlawful for any seller to fail or refuse to collect taxes with intent to violate the provisions of this article, 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 article. Any person violating any provision of this article shall be guilty of a misdemeanor and upon conviction thereof punished pursuant to State law or City ordinance.

(Ord. 593 § 7, 2011).

4.15.220 Further action.

The Mayor, the City Manager, the City Clerk, the City Attorney and other appropriate officers and employees of the City shall be and each of them is hereby authorized, empowered and directed to execute and deliver such other documents and agreements in addition to those enumerated herein, and to take such other actions as they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent of this article and any other documents executed and delivered pursuant to the authority granted in this article. All actions taken by the Mayor, the City Manager, the City Clerk, the City Attorney and other appropriate officers, agents and employees of the City pursuant to or in anticipation of the adoption of this article but prior to its effective date are hereby ratified, confirmed and approved.

(Ord. 593 § 8, 2011).