Chapter 4.64
LEASEHOLD EXCISE TAX

Sections:

4.64.010    Levied.

4.64.020    Rate.

4.64.030    Administration and collection.

4.64.040    Exemptions.

4.64.050    Inspection of records.

4.64.060    Contract execution.

4.64.070    Effect of partial invalidity.

4.64.080    Violation – Penalty.

4.64.010 Levied.

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 through a “leasehold interest” as defined by Section 2, Chapter 61, Laws of 1975-76, Second Extraordinary Session (referred to in this chapter as “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 said State Act. [Ord. 8482 § 1, 1976].

4.64.020 Rate.

The rate of tax imposed by BMC 4.64.010 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 or 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 above rate;

b. With respect to taxes due in calendar year 1977, a credit equal to 60 percent of the tax produced by the above rate;

c. 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, a credit of 33 percent of the tax produced by the above rate. [Ord. 8482 § 2, 1976].

4.64.030 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. [Ord. 8482 § 3, 1976].

4.64.040 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 BMC 4.64.010. [Ord. 8482 § 4, 1976].

4.64.050 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 82.32.220. [Ord. 8482 § 5, 1976].

4.64.060 Contract execution.

The mayor 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 BMC 4.64.010; provided, that the city attorney shall first approve the form and content of said contract. [Ord. 8482 § 6, 1976].

4.64.070 Effect of partial invalidity.

If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of the chapter or the application of the provision to other persons or circumstances is not affected. [Ord. 8482 § 7, 1976].

4.64.080 Violation – Penalty.

A. It shall be unlawful for any governmental entity leasing publicly owned real or personal property within the corporate limits of the city:

1. To fail to disclose the nature and extent of such nonexempted taxable rent; or

2. To fail to remit such tax as is required.

B. Any governmental agency convicted of violating any provision of this section shall be guilty of a civil infraction and be fined or assessed a penal sum of no more than $500.00; provided, that each day of noncompliance shall constitute a distinct and separate violation of this section. [Ord. 2013-09-073 § 3; Ord. 8482 § 8, 1976].