Chapter 5.110
SALES OR USE TAX FOR AFFORDABLE HOUSING1
Sections:
5.110.020 Credit against state’s share of tax – Sales or use tax for affordable housing – Rate.
5.110.030 Administration and collection.
5.110.010 Credit against state’s share of tax – Sales or use tax for affordable housing – Imposition.
There is hereby imposed an additional sales or use tax, as the case may be, separate and apart from the tax referred to in Chapters 5.96 and 5.97 WCC, as authorized by RCW 82.14.540, upon every taxable event, as defined in RCW 82.14.020, occurring within Wenatchee, Chelan County, Washington. 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 but will be credited against the state’s share of the tax. Moneys collected under this section must be used solely, as required by RCW 82.14.540, and any subsequent amendments, for the purpose of 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, or funding the operation and maintenance of new units of affordable housing or supportive housing or for providing rental assistance to tenants. (Ord. 2020-01 § 1)
5.110.020 Credit against state’s share of tax – Sales or use tax for affordable housing – Rate.
The rate of the tax imposed by WCC 5.110.010 shall be 0.0073 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, as the case may be upon every taxable event that occurs within the city. (Ord. 2020-01 § 1)
5.110.030 Administration and collection.
The administration and collection of the sales and use tax imposed by WCC 5.110.010 shall be in accordance with the provisions of the RCW 82.14.540.
The maximum amount to be received by the city in each year from the sales or use tax imposed by WCC 5.110.010 shall be equal to the taxable retail sales within the city limits of Wenatchee in state fiscal year 2019 multiplied by the tax rate set forth in WCC 5.110.020. The State Department of Revenue shall collect and administer the tax on behalf of city at no cost to the city. So long as the city collects the sales or use tax imposed by WCC 5.110.010, the city shall report annually to the State Department of Commerce on the collection and use of the revenue as prescribed in rules adopted by such Department. In the event that the amount of revenue from the sales or use tax imposed by WCC 5.110.010 exceeds the maximum amount allowed to the city under the RCW 82.14.540, any excess shall be remitted to the State Treasurer in accordance with the RCW 82.14.540. The mayor and clerk are authorized to enter into an agreement with the State Department of Revenue for the administration of the tax. (Ord. 2020-01 § 1)
Code reviser’s note: Ord. 2020-01 § 3 states “The sales and use tax for affordable housing set forth in Wenatchee Municipal Code Chapter 5.110 above shall expire twenty (20) years after the date on which the tax is first imposed.”