Chapter 3.72 SALES TAX CREDIT AND USE TAX CREDIT FOR AFFORDABLE AND SUPPORTIVE HOUSING

Chapter 3.72
SALES TAX CREDIT AND USE TAX CREDIT FOR AFFORDABLE AND SUPPORTIVE HOUSING

Sections:

3.72.010 Imposition of sales tax credit and use tax credit for affordable and supportive housing.

(1) 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 Puyallup. The tax shall be 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.

(2) The rate of the tax imposed by this chapter shall be 0.0073 percent of the selling price or value of the article used.

(3) The tax imposed under this chapter shall 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 Puyallup at no cost to the city.

(4) The Department of Revenue will calculate the maximum amount of tax distributions for the city of Puyallup based on the taxable retail sales in the city in fiscal year 2019. The tax imposed under this chapter will cease to be distributed to the city of Puyallup for the remainder of any 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 that have ceased during a fiscal year shall resume at the beginning of the next fiscal year and in any event shall continue for each successive year as provided by RCW 82.14.540, as it exists or as it may be amended in the future. (Ord. 3204 § 1, 2020).

3.72.020 Purpose of tax credit.

(1) The city may use the moneys collected by the tax imposed under this chapter only for the following purposes:

(a) 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

(b) Providing the operations and maintenance costs of new units of affordable or supportive housing; and

(2) The housing and services provided under this chapter may only be provided to persons whose income is at or below 60 percent of the median income of the city.

(3) In determining the use of funds under this chapter, the city must consider the income of the individuals and families to be served, the leveraging of the resources made available, and the housing needs within the city.

(4) The city 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 this chapter.

(5) The tax imposed by the city under this chapter will expire 20 years after the date on which the tax is first imposed unless extended by state law. (Ord. 3204 § 1, 2020).

3.72.030 Statutory compliance.

The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of RCW 82.14.540. (Ord. 3204 § 1, 2020).