Chapter 3.14
SALES AND USE TAX FOR AFFORDABLE HOUSING
Sections:
3.14.010 Imposition of sales and use tax for affordable housing.
3.14.030 Administration and collection – Statutory compliance.
3.14.040 Affordable housing sales tax fund.
3.14.010 Imposition of sales and use tax for affordable housing.
A. There is imposed a sales and use tax as authorized by RCW 82.14.540, upon every taxable event, as defined in Chapter 82.14 RCW, occurring within the city of Fife. The tax is imposed upon and collected from those persons from whom the state sales tax or use tax is collected pursuant to Chapters 82.08 and 82.12 RCW.
B. The rate of the tax imposed by this section is 0.0073 percent of the selling price in the case of the sales tax, or value of the article used, in the case of the use tax.
C. The tax imposed under this section will be deducted from the amount of 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 will perform the collection of such taxes on behalf of the city of Fife at no cost to the city.
D. The Department of Revenue will calculate the maximum amount of tax distributions for the city of Fife based on the taxable retail sales in the city in state fiscal year 2019, and the tax imposed under this section will cease to be distributed to the city of Fife for the remainder of any state fiscal year in which the amount of tax exceeds the maximum amount of tax distributions for the city as properly calculated by the Department of Revenue. Distributions to the city of Fife that have ceased during a state fiscal year will resume at the beginning of the next state fiscal year. (Ord. 2031 § 2, 2020).
3.14.020 Purpose of tax.
A. The city may use the moneys collected by the tax imposed under FMC 3.14.010 or bonds issued only for the following purposes:
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; and
2. Providing the operations and maintenance costs of new units of affordable or supportive housing; and
3. Providing rental assistance to tenants.
B. The housing and services provided under this section may only be provided to persons whose income is at or below 60 percent of the median income of the city.
C. In determining the use of funds under this section, the city must consider the income of the individuals and families to be served, the leveraging of the resources made available under FMC 3.14.010, and the housing needs within the city.
D. The finance director must report annually to the Washington State Department of Commerce, in accordance with the Department’s rules, on the collection and use of the revenue from the tax imposed under FMC 3.14.010.
E. The city may enter into an interlocal agreement with one or more counties, cities, or public housing authorities for administration of the funds in accordance with Chapter 39.34 RCW. The agreement may include, but is not limited to, pooling the 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 agreement and RCW 82.14.540.
F. The tax imposed by the city under FMC 3.14.010 will expire 20 years after the date on which the tax is first imposed. The finance director will notify the city council and the city manager of the expiration date of the tax each year beginning three years before the expiration date, and will also promptly notify the city council and the city manager of any changes to the expiration date. (Ord. 2031 § 3, 2020).
3.14.030 Administration and collection – Statutory compliance.
The administration and collection of the tax imposed by this chapter will be in accordance with the provisions of RCW 82.14.540. (Ord. 2031 § 4, 2020).
3.14.040 Affordable housing sales tax fund.
A. There is hereby established a special revenue fund for the city of Fife, to be known as the “affordable housing sales tax fund,” into which will be deposited all moneys received from a portion of sales and use taxes otherwise required to be collected and paid to the Department of Revenue pursuant to legislation enacted by the 2019 Washington State Legislature.
B. This fund has been established to receive that portion of sales and use tax credited back to the city for the acquisition, construction or rehabilitation of affordable housing or facilities providing supportive housing, and for the operations and maintenance costs of new units of affordable or supportive housing, and if eligible, for providing rental assistance for tenants.
C. Any unexpended funds remaining in the affordable housing sales tax fund at the end of the budget period will not be transferred to the general fund or otherwise lapse, but funds will be carried forward from year to year until expended for the purpose set forth in subsection (B) of this section. (Ord. 2031 § 5, 2020).