Chapter 3.28LEASEHOLD EXCISE TAX

Sections:

3.28.010
Levied.
3.28.020
Rate.
3.28.030
Exemption.
3.28.040
Collection.
3.28.050
Contract with state authorized.
3.28.010Levied.

There is levied and shall be collected a leasehold excise tax on and after January l, 1976 upon the act or privilege of occupying or using publicly owned real or personal property within the territorial limits of the city, through a “leasehold interest” as defined by Section 2, Chapter 61, Laws of 1975-76, Second Extraordinary Session, codified at RCW 82.29A.020 (hereinafter referred to as “the state act”). The tax shall be paid, collected and remitted to the Department of Revenue of the state at the time and in the manner prescribed by Section 5 of the state act.

(Ord. 711 § 1, 1976)

3.28.020Rate.

The rate of tax imposed by Section 3.28.010 shall be four percent of the taxable rent (as defined by Section 2 of the state act); provided, that the following credit 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 l, 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 lease or agreement including options to renew which extends beyond January 1, 1985, as follows:

1. With respect to taxes due in calendar year 1976, a credit equal to eighty percent of the tax produced by the above rate;

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

3. With respect to taxes due in calendar year 1978, a credit equal to forty percent of the tax produced by the above rate;

4. With respect to taxes due in calendar year 1979, a credit equal to twenty percent of the tax produced by the above rate.

B. With respect to a product lease (as defined by RCW 82.29A.050), a credit of thirty-three percent of the tax produced by the above rate.

(Ord. 711 § 2, 1976)

3.28.030Exemption.

Leasehold interests exempted by the RCW 82.29A.130 as it now exists or may hereafter be amended shall be exempt from the tax imposed pursuant to Section 3.28.010.

(Ord. 711 § 4, 1976)

3.28.040Collection.

The administration and collection of the tax imposed by this ordinance shall be in accordance with the provisions of the state act.

(Ord. 711 § 3, 1976)

3.28.050Contract with state authorized.

The mayor of the city is authorized to execute a contract with the Department of Revenue of the state for the administration and collection of the tax imposed by Section 3.28.010; provided, that the city attorney shall first approve the form and content of the contract.