Chapter 3.08
AFFORDABLE HOUSING SALES AND USE TAX

Sections:

3.08.010    Imposition of sales and use tax for affordable housing.

3.08.020    Purpose of tax.

3.08.030    Administration and collection – Statutory compliance.

3.08.010 Imposition of sales and use tax for affordable housing.

(1) There is imposed a sales and use tax as authorized by Washington State Legislature Chapter 338, Laws of 2019, codified in Chapter 82.14 RCW, upon every taxable event, as defined in Chapter 82.14 RCW, occurring within the City of Woodinville. The tax shall be imposed upon and collected from those persons with whom the State sales tax or use tax is collected pursuant to Chapters 82.07 and 82.12 RCW.

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

(3) The tax imposed under this section 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. (Ord. 697 § 1, 2020)

3.08.020 Purpose of tax.

(1) The City may use the moneys collected by the tax imposed under WMC 3.08.010 or bonds issued only for the affordable housing purposes as defined in RCW 82.14.540, as it may be amended from time to time, which currently includes the following restrictions:

(a) Revenues may only be used for (i) 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 71.24.386; (ii) funding the operations and maintenance costs of new units of affordable or supportive housing; or (iii) providing rental assistance to tenants.

(b) The housing and services funded by these revenues 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 WMC 3.08.010, and the housing needs within the City.

(2) Annual reports must be submitted 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 WMC 3.08.010.

(3) The tax imposed by the City under WMC 3.08.010 will expire 20 years after the date on which the tax is first imposed. The Finance Director shall provide notice to the City Council of the expiration date of the tax each year beginning three years before the expiration date, and shall also promptly notify the City Council of any changes to the expiration date. (Ord. 697 § 1, 2020)

3.08.030 Administration and collection – Statutory compliance.

The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of Washington State Legislature Chapter 338, Laws of 2019, codified in Chapter 82.14 RCW. (Ord. 697 § 1, 2020)