Chapter 3.22
AFFORDABLE HOUSING SALES AND USE TAX
Sections:
3.22.010 Scope and interpretation.
3.22.070 Interlocal agreements.
3.22.010 Scope and interpretation.
This chapter is intended to authorize the city to act to the fullest extent permitted by, and not to limit the authority of the city to act in accordance with, RCW 82.14.540, as currently enacted or hereafter amended. The tax imposed by this chapter allows the city to receive a portion of the sales and use taxes already collected by the state and, therefore, does not result in any additional or new taxes being imposed on purchasers or recipients of goods within the city. For the purpose of this chapter, the words and terms used shall have the same meaning each has under RCW 82.14.540, as currently enacted and hereafter amended. (Ord. 2741 § 1 (part), 2020)
3.22.020 Imposed.
There is imposed an affordable housing sales and use tax that shall be assessed on either the selling price, in the case of a sales tax, or value of an article used, in the case of a use tax, for every taxable event, as defined in chapter 82.14 RCW, occurring within the city of Sumner. (Ord. 2741 § 1 (part), 2020)
3.22.030 Rate.
Pursuant to RCW 82.14.540, the rate of tax shall be 0.0073 percent or, if a higher amount is authorized by RCW 82.14.540, then up to the maximum amount authorized therein. (Ord. 2741 § 1 (part), 2020)
3.22.040 Collection.
The tax shall be deducted from the amount of sales or use tax otherwise required to be collected or paid to the Department of Revenue under chapter 82.08 or 82.12 RCW. The Department of Revenue shall collect such taxes on behalf of the city of Sumner at no cost to the city. The Department of Revenue shall distribute the proceeds of this tax to the city as provided in RCW 82.14.540, up to the maximum amount authorized by state law. (Ord. 2741 § 1 (part), 2020)
3.22.050 Administration.
A. There is created a special fund in the treasury of the city to be known as the affordable housing sales and use tax fund. All taxes collected herein shall be placed in said special fund.
B. The city administrator, or designee, is authorized to execute, for and on behalf of the city of Sumner, any necessary agreement with the Department of Revenue for the collection and administration of the tax and to administer the tax in accordance with state laws and regulations. (Ord. 2741 § 1 (part), 2020)
3.22.060 Purpose and use.
A. Revenues collected pursuant to this chapter shall only be used as authorized by RCW 82.14.540, as currently enacted or hereafter amended. RCW 82.14.540 authorizes the following uses:
1. Acquiring, rehabilitating, or constructing affordable housing, which may include new units of affordable housing within an existing structure or facilities providing supportive housing services under RCW 71.24.385;
2. Funding the operations and maintenance costs of new units of affordable or supportive housing; or
3. Providing rental assistance to tenants.
B. The housing and services provided with the revenues of the tax may only be provided to persons whose income is at or below 60 percent of the median income of the city. (Ord. 2741 § 1 (part), 2020)
3.22.070 Interlocal agreements.
The city may enter into an interlocal agreement with one or more counties, cities, or public housing authorities in accordance with chapter 39.34 RCW. Such agreements may allow for the pooling of tax receipts received under RCW 82.14.540, pledging those taxes to bonds issued by one or more parties to the agreement, and allocating the proceeds of the taxes levied or the bonds issued in accordance with such interlocal agreements. (Ord. 2741 § 1 (part), 2020)
3.22.080 Duration.
The tax shall become effective as of December 1, 2019, or the earliest practical date consistent with RCW 82.14.055. The tax shall expire 20 years after the date on which the tax is first imposed unless otherwise extended in accordance with state law. (Ord. 2741 § 1 (part), 2020)