Chapter 3.78
SALES AND USE TAX

Sections:

3.78.010    Imposed.

3.78.020    Rate.

3.78.030    Administration—Collection.

3.78.040    Inspection of records.

3.78.050    Contract execution.

3.78.060    Imposition of additional sales-use tax.

3.78.065    Imposition of sales and use tax for affordable and supportive housing.

3.78.067    Purposes of tax.

3.78.070    Rate of tax.

3.78.080    Administration and collection of tax.

3.78.090    Consent to inspection of records.

3.78.100    Authorizing execution of contract for administration.

3.78.110    Penalties.

3.78.120    Severability.

3.78.010 Imposed.

There is imposed a sales or use tax, as the case may be, upon every taxable event, as defined in Section 3, Chapter 94, Laws of 1970, First Extraordinary Session, 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 Chapters 82.08 and 82.12. (Ord. 1210 § 1, 1970).

3.78.020 Rate.

The rate of the tax imposed by YMC 3.78.010 shall be one-half of one 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 or use tax imposed by Yakima County, the rate of tax imposed by this chapter shall be four hundred twenty-five one-thousandths of one percent. (Ord. 1210 § 2, 1970).

3.78.030 Administration—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. 1210 § 3, 1970).

3.78.040 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. 1210 § 4, 1970).

3.78.050 Contract execution.

The city manager and city clerk of the city of Yakima are authorized and directed to execute such contracts with the state of Washington, Department of Revenue, as may be necessary from time to time for the administration of the tax imposed by this chapter. (Ord. 1210 § 5, 1970).

3.78.060 Imposition of additional sales-use tax.

In addition to the tax for which provision is made by YMC 3.78.010 through 3.78.050, commencing January 1, 1983, there is 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 of Yakima. 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 of the Revised Code of Washington. (Ord. 2647 § 2, 1982).

3.78.065 Imposition of sales and use tax for affordable and supportive housing.

A.    There is imposed a sales and use tax, as the case may be, as authorized by RCW 82.14.540, upon every taxable event, as defined in Chapter 82.14 RCW, occurring within the city of Yakima. 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.

B.    The rate of the tax imposed by this section shall be the maximum rate authorized under RCW 82.14.540, which shall be 0.0073 percent, except that in the event the city of Yakima levies a “qualifying local tax” as defined by and before the deadline imposed by RCW 82.14.540, the rate shall be 0.0146 percent.

C.    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. Under RCW 82.14.540(3), the Department of Revenue will perform the collection of such taxes on behalf of the city of Yakima at no cost to the city.

D.    Under RCW 82.14.540(4) and (5), the Department of Revenue will calculate the maximum amount of tax distributions for the city of Yakima based on the taxable retail sales in the city in state fiscal year 2019, and the tax imposed under this section will cease to be distributed to the city of Yakima for the remainder of any state 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 of Yakima that have ceased during a state fiscal year shall resume at the beginning of the next state fiscal year. (Ord. 2019-020 § 1, 2019).

3.78.067 Purposes of tax.

A.    The city may use the funds collected by the tax imposed under YMC 3.78.065 or bonds issued under RCW 82.14.540(9), only for the following purposes and in accordance with RCW 82.14.540:

1.    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

2.    Funding the operations and maintenance costs of new units of affordable or supportive housing; or

3.    Providing rental assistance to tenants, unless and until the population of the city of Yakima should exceed one hundred thousand, upon which event the funds collected shall only be used in accordance with subsection (A)(1) and (2) of this section.

B.    The housing and services provided under this section may only be provided to persons whose income is at or below sixty 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 YMC 3.78.065, and the housing needs within the city.

D.    The city of Yakima 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 YMC 3.78.065.

E.    Under RCW 82.14.540(12), the tax imposed by the city under YMC 3.78.065 will expire twenty years after the date on which the tax is first imposed. The finance director shall provide notice to the city council and the city manager of the expiration date of the tax each year beginning three years before the expiration date, and shall also promptly notify the city council and city manager of any changes to the expiration date. (Ord. 2019-020 § 2, 2019).

3.78.070 Rate of tax.

The rate of the tax imposed by YMC 3.78.060 shall be one-half of one 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 tax or use tax imposed by Yakima 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 section, the county shall receive fifteen percent of the tax imposed by YMC 3.78.060; provided further, that during such period as there is in effect a sales tax or use tax imposed by Yakima County under Section 17(2), Chapter 49, Laws of 1982, First Extraordinary Session, at a rate which is less than the rate imposed by this section, the county shall receive from the tax imposed by YMC 3.78.060 that amount of revenues equal to fifteen percent of the rate of the tax imposed by the county under Section 17(2), Chapter 49, Laws of 1982, First Extraordinary Session. (Ord. 2647 § 3, 1982).

3.78.080 Administration and collection of tax.

The administration and collection of the tax imposed by YMC 3.78.060 through 3.78.100 shall be in accordance with the provisions of RCW 82.14.050 and 82.14.540. (Ord. 2019-020 § 3, 2019: Ord. 2647 § 4, 1982).

3.78.090 Consent to inspection of records.

The city of Yakima 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. 2647 § 5, 1982).

3.78.100 Authorizing execution of contract for administration.

The city manager and city clerk of the city of Yakima are authorized to enter into a contract with the Department of Revenue for the administration of the tax provided for by YMC 3.78.060 through 3.78.100. (Ord. 2647 § 6, 1982).

3.78.110 Penalties.

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 direct or indirect, and any buyer who refuses to pay any tax due under this chapter, shall be guilty of a violation of this chapter and, upon conviction thereof, shall be punished by a fine of not more than five hundred dollars, or imprisonment for not more than ninety days, or by both such fine or imprisonment. (Ord. 2647 § 7, 1982).

3.78.120 Severability.

If any provision of this chapter or its application to any person or circumstance is held invalid, the remainder of this chapter or the application of its provisions to other persons or circumstances is not affected. (Ord. 2647 § 8, 1982).