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HomeMy WebLinkAbout3244 Imposing a Sales and Use Tax for Affordable and Supportive Housing in Accordance with Substitute House Bill 1406 (Chapter 338, Laws of 2019) to be Credited against the State Sales & Use Tax Ordinance 3244 Page 1 of 2 ORDINANCE NO 3244 AN ORDINANCE OF THE CITY OF PORT TOWNSEND, WASHINGTON, IMPOSING A SALES AND USE TAX FOR AFFORDABLE AND SUPPORTIVE HOUSING IN ACCORDANCE WITH SUBSTITUTE HOUSE BILL 1406 (CHAPTER 338, LAWS OF 2019) TO BE CREDITED AGAINST THE STATE SALES AND USE TAX WHEREAS, in the 2019 Regular Session,the Washington State Legislature approved,and the Governor signed, Substitute House Bill 1406 (Chapter 338, Laws of 2019),which was codified as RCW 82.14.540,; and WHEREAS, RCW 82.14.540 authorizes the governing body of a city or county to impose a local sales and use tax for the acquisition, construction or rehabilitation of affordable housing or facilities providing supportive housing, and for the operations and maintenance costs of affordable or supportive housing, or, for providing rental assistance to tenants; and WHEREAS, the tax will not increase the total sales tax collected at time of sale, but will be credited to the local government as a deduction against the state sales and use taxes otherwise collected and retained by the state; and WHEREAS, the tax credited to the local government will represent an additional source of funding to address housing needs in the City; and WHEREAS, the tax must be used to assist persons whose income is at or below sixty percent of the County median income; and WHEREAS, in order for a city or county to impose the tax, within six months of the effective date of RCW 82.14.540,or January 28,2020,the governing body must adopt a resolution of intent to authorize the maximum capacity of the tax, and within twelve months of the effective date of RCW 8214. 40, or July 28, 2020, must adopt legislation to authorize the maximum capacity of the tax; and WHEREAS, on November 12, 2019,the Port Townsend City Council adopted Resolution 19-087 declaring the City's intent to impose the local sales and use tax as authorized by RCW 82.14.540; and WHEREAS,RCW 82.1 4..540 authorizes the City to enter into an interlocal agreement with one or more counties, cities, or public housing authorities for purposes of pooling the tax monies received, allocating the proceeds, or pledging these taxes to bonds issued by one or more parties to the agreement, all in accordance with the interlocal agreement and RCW 82,14.540; and WHEREAS, the City of Port Townsend may use these tax monies in collaboration with the Jefferson County as a means to fully leverage the resources for affordable and supportive housing or for providing rental assistance, as allowed by RCW 82.14,54 ; and WHEREAS, the Jefferson County Board of Commissioners adopted Resolution No. 52- 19 on October 14, 2019, declaring the County's intent to impose a local sales and use tax as authorized by RCW 82.14.540; Ordinance 3244 Page 2 of 2 NOW, THEREFORE, the City Council of the City of Port Townsend ordains as follows: Section 1. New Chapter. A new Chapter 3.14 is added to the Port Townsend Municipal Code in substantially the same form as Exhibit A. Section 2. Severability. If any provision of this ordinance or its application to any person or circumstance is held invalid, the remainder of this ordinance or the application of the remaining provisions to a person or circumstance shall not be affected. Section 3. Notwithstanding any provisions to the contrary in Chapter 1.01.015 of the Port Townsend Municipal Code, staff and the Code Reviser are authorized to update and incorporate changes adopted in the Port Townsend Municipal Code. Staff and the Code Reviser are further authorized to make non-substantive edits related to numbering, grammar, spelling, and formatting consistent with this Ordinance. Section 4. Effective Date. This ordinance shall take effect and be in force 5 days following its publication in the manner provided by law ADOPTED by the City Council of the City of Port Townsend at a regular meeting thereof, held this 6th day of January 2020. )�!!C Michelle Sandoval Mayor Attest: Approved as to form: Joanna Sanders, MMCIYcidi Green oo `l ..........._......�_.__ City Clerk City Attorney' Ordinance 3244 Exhibit A Exhibit A Chapter 3.14 Affordable and Supportive Housing Sales tax Sections: 3.14.010 Imposition 3.14.020 Use of Funds 3.14.030 Expiration 3.14.010 Imposition (A) There is hereby imposed by this ordinance a sales and use tax at the maximum levy rate authorized by RCW 82.14.540 for the City to levy within the City limits of Port Townsend. (B) The tax shall be imposed upon and collected from those persons from whom the state sales and use tax is collected pursuant to Chapters `x.08' and 82.12 RCW. The rate of tax imposed by this ordinance shall be applied to the selling price in the case of a sales tax or the value of the article used in the case of a use tax. (C) The tax imposed by this ordinance shall be administered and collected in accordance with RCW 81'.4.050.and RCW 82.14,541 ( , by which the tax imposed by this ordinance shall be deducted from the amount of tax otherwise required to be collected or paid to the Washington State Department of Revenue under chapter 82.08 and 82.12 RCW, and the Washington State Department of Revenue will perform the collection of such taxes on behalf of the City at no cost to the City. 3.14.020 Use of Funds Monies collected shall be used for allowable expenditures authorized by RCW .14540. 3.14.030 Expiration The tax imposed under this Chapter expires 20 years after the date on which the tax is first imposed.