Chapter 5.14
LEASEHOLD EXCISE TAX

Sections:

5.14.010    Levied —State Act defined.

5.14.020    Rate —Credits allowed.

5.14.030    Administration and collection.

5.14.040    Exemptions.

5.14.050    Consent to inspection of records.

5.14.060    Contract with state —City manager authority.

5.14.010 Levied —State Act defined.

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 in Section 2, Chapter 61, Laws of 1975-76 Second Extraordinary Session (hereinafter called “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. 2312 § 1, 1976)

5.14.020 Rate —Credits allowed.

The rate of the tax imposed by Section 5.14.010 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:

1.    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

(a) Any leasehold interest arising out of any lease of property covered by the provisions of RCW 28B.20.394, and

(b) Any lease or agreement, including options to renew which extends beyond January 1, 1985 as follows: With respect to taxes due in the calendar year 1976, a credit equal to eighty percent (80%) of the tax produced by the above rate. With respect to taxes due in the calendar year 1977, a credit equal to sixty percent (60%) of the tax produced by the above rate. With respect to taxes due in the calendar year 1978, a credit equal to forty percent (40%) of the tax produced by the above rate. With respect to taxes due in the calendar year 1979, a credit equal to twenty percent (20%) of the tax produced by the above rate.

2.     With respect to a product lease (as defined by Section 2 of the State Act), a credit of thirty-three percent (33%) of the tax produced by the above rate. (Ord. 2314 § 1, 1976: Ord. 2312 § 2, 1976)

5.14.030 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. 2312 § 3, 1976)

5.14.040 Exemptions.

Leasehold interest 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 Section 5.14.010. (Ord. 2312 § 4, 1976)

5.14.050 Consent to 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 82.32.330. (Ord. 2312 § 5, 1976)

5.14.060 Contract with state —City manager authority.

The city manager 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 5.14.010, substantially in the form of the agreement attached to the original copy of the ordinance codified in this chapter, provided that the city attorney shall first approve the form and content of said contract. (Ord. 2312 § 6, 1976)