Subtitle II. Taxation*
*State law reference(s) – Excise taxes authorized, RCW 35A.82.010 et seq.; state collected taxes, distribution, RCW 82.37.190; excise taxes, licenses and permits, RCW 35A.82.020; retail sales and use tax, RCW 82.14.010 et seq.; uniform rate requirement, RCW 35A.82.050, 35A.82.055; tax on telephone service, RCW 35A.82.060, 82.04.010 et seq.; ad valorem taxes, RCW 35A.84.010, 84.09.010 et seq., 84.12.010 et seq., 84.16.010 et seq., 84.20.010 et seq., 84.24.010 et seq., 84.36.010 et seq. through 84.69.010 et seq.; taxes levied for firefighters pension fund, RCW 41.16.060.
Chapter 3.16
SALES OR USE TAX*
Sections:
3.16.010 Imposed.
3.16.020 Rate of tax.
3.16.030 Additional sales or use tax.
3.16.035 Additional sales or use tax for housing.
3.16.036 Additional sales or use tax for housing and related services.
3.16.040 Administration and collection.
3.16.050 Inspection of records.
3.16.060 Collection by state.
3.16.070 Failure to collect or pay tax, penalty.
*Cross reference(s) – General business licenses, ch. 5.01; special amusement licenses, ch. 5.02; taxicabs and vehicles for hire license, ch. 5.03; gun clubs, ch. 5.04; pawnbrokers, ch. 5.05; going out of business sales, ch. 5.06; solicitors, ch. 5.07.
State law reference(s) – Sales or use tax authority, RCW 82.14.010 et seq.
3.16.010 Imposed.
There is hereby imposed a sales or use tax, as the case may be, upon every taxable event, as defined in RCW 82.14.020, occurring within the city. The tax shall be imposed upon and collected from those persons from whom the state sales or use tax is collected pursuant to RCW 82.08.010 et seq. and 82.12.010 et seq.
(Ord. No. 1651, § 1. Formerly Code 1986, § 3.02.010)
State law reference(s) – Sales and use tax levy authority, RCW 82.14.030.
3.16.020 Rate of tax.
The rate of the tax imposed shall be one-half of one (1) percent of the selling price or value of the article used, as the case may be; provided, that during such period as there is in effect a sales or use tax imposed by King County, the rate of tax imposed by this section shall be four hundred twenty-five one-thousandths of one (1) percent.
(Ord. No. 1651, § 2. Formerly Code 1986, § 3.02.020)
State law reference(s) – Similar provisions, RCW 82.14.030(1).
3.16.030 Additional sales or use tax.
A. There is hereby imposed a sales or use tax, as the case may be, as authorized by RCW 82.14.030(2), upon every taxable event, as defined in RCW 82.14.020, occurring within the city. The tax shall be imposed upon and collected from those persons from whom the state sales tax or use tax is collected pursuant to RCW 82.08.010 et seq. and 82.12.010 et seq.
B. The rate of the tax imposed shall be one-half of one (1) percent of the selling price or value of the article used, as the case may be; provided, however, that during such period as there is in effect a sales tax or use tax imposed by King County under section 17(2), chapter 49, Laws of 1982, First Extraordinary Session, at a rate equal to or greater than the rate imposed by this subsection, King County shall receive fifteen (15) percent of the tax imposed by subsection (A) above; provided further, that during such period as there is in effect a sales tax or use tax imposed by King County under section 17(2), chapter 49, Laws of 1982, First Extraordinary Session, at a rate which is less than the rate imposed by subsection (A) above that amount of revenues equal to fifteen (15) percent of the rate of the tax imposed by King County under that state law.
(Ord. No. 2368, § 1; Ord. No. 2377, § 1. Formerly Code 1986, § 3.02.100)
State law reference(s) – Additional tax authorized, RCW 82.14.030(2).
3.16.035 Additional sales or use tax for housing.
A. There is hereby imposed an additional sales or use tax as authorized by RCW 82.14.540 upon every taxable event, as defined in RCW 82.14.020, occurring within the city.
B. The rate of the tax shall be the maximum rate permitted under RCW 82.14.540.
C. The tax shall be imposed upon and collected from those persons from whom the state sales or use tax is collected pursuant to Chapters 82.08 and 82.12 RCW, but shall be credited against the state’s share of the tax.
D. Funds collected under this subsection shall be used in accordance with RCW 82.14.540 (or as may be amended in the future) for acquiring, rehabilitating, or constructing affordable housing, which may include new units of affordable housing within an existing structure or facilities providing supportive housing services, or funding the operations and maintenance costs of new units of affordable or supportive housing.
E. The finance director shall report annually to the State Department of Commerce on the collection and use of the funds as required by RCW 82.14.540.
F. This additional sales or use tax shall expire 20 years after the date on which the tax is first imposed, unless further extended by amendment to RCW 82.14.540.
(Ord. No. 4341, § 1, 11-19-19)
3.16.036 Additional sales or use tax for housing and related services.
A. There is hereby imposed an additional sales or use tax as authorized by RCW 82.14.530 upon every taxable event, as defined in RCW 82.14.020, occurring within the city.
B. The rate of the tax shall be the maximum rate permitted under RCW 82.14.530 of one-tenth of one percent of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax.
C. The tax shall be imposed upon and collected from those persons from whom the state sales or use tax is collected pursuant to Chapters 82.08 and 82.12 RCW.
D. Funds collected under this section shall be used in accordance with RCW 82.14.530 (or as may be amended in the future) for affordable housing and related services.
E. A minimum of 60 percent of the moneys collected under this section must be used for constructing affordable housing, which may include new units of affordable housing within an existing structure, facilities providing housing-related services constructing mental and behavioral health-related facilities, or funding the operations and maintenance costs of new units of affordable housing and facilities where housing-related programs are provided, or newly constructed evaluation and treatment centers. The remainder of the moneys collected under this section must be used for the operation, delivery, or evaluation of mental and behavioral health treatment programs and services or housing-related services. Moneys collected under this section may be used to offset reductions in state or federal funds for the purposes described in this section. No more than 10 percent of the moneys collected under this section may be used to supplant existing local funds.
F. The affordable housing and facilities providing housing-related programs may only be provided to persons within any of the following population groups whose income is at or below 60 percent of the median income of King County:
1. Persons with behavioral health disabilities;
2. Veterans;
3. Senior citizens;
4. Homeless, or at-risk of being homeless, families with children;
5. Unaccompanied homeless youth or young adults;
6. Persons with disabilities; or
7. Domestic violence survivors.
(Ord. No. 4370, § 1, 10-6-20)
3.16.040 Administration and collection.
The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of RCW 82.14.050.
(Ord. No. 1651, § 4. Formerly Code 1986, § 3.02.030)
3.16.050 Inspection of records.
The city hereby consents to the inspection of such records of the city as are necessary to qualify the city for inspection of records of the State Department of Revenue pursuant to RCW 82.32.330.
Ord. No. 1651, § 4. Formerly Code 1986, § 3.02.040)
State law reference(s) – Inspection of state records by the city, RCW 82.32.330.
3.16.060 Collection by state.
The mayor is authorized to enter into an agreement with the State Department of Revenue for the collection and administration of the tax imposed by this chapter.
(Ord. No. 1651, § 5. Formerly Code 1986, § 3.02.050)
State law reference(s) – Collection and administration by state, RCW 82.14.050.
3.16.070 Failure to collect or pay tax, penalty.
Any seller who fails or refuses to collect the tax as required with the intent to violate the provisions of this chapter or to gain some advantage or benefit, either directly or indirectly, and any buyer who refuses to pay any tax due under this chapter shall be guilty of a misdemeanor.
(Ord. No. 1651, § 6. Formerly Code 1986, § 3.02.060)