Chapter 3.14
LEASEHOLD EXCISE TAX
Sections:
3.14.010 Authority and Purpose.
3.14.040 Rate of Tax – Credits.
3.14.050 Credit for Tax Imposed by Cities or Towns.
3.14.100 Contract for Collection of Tax.
3.14.010 Authority and Purpose.
(1) This chapter is adopted pursuant to the authority set forth in RCW Ch. 82.29A, Second Extraordinary Session of the Legislature of the State of Washington, referred to in this chapter as the “state act.”
(2) The board of county commissioners recognizes that the intent of the legislature of the State of Washington, as set forth in RCW Sections 82.29A.010 and 82.29A.110, is that the method of taxation by state and local government of leasehold interests in publicly held property be as uniform, consistent, and simultaneous as possible. Therefore, this chapter is adopted in compliance with the provisions of the state act and is expressly intended to closely relate to and complement said act.
(3) Implementation and interpretation of this chapter shall be in conformity with the state act as it now exists or is hereafter amended, and with the rules and regulations promulgated by the Department of Revenue of the State of Washington pursuant to the authority granted said department by RCW Section 82.29A.140.
(Ord. 2-1976 (part), 1976).
3.14.020 Definitions.
As used in this chapter, the definitions of the terms “leasehold interest,” “taxable rent,” “product lease,” “renegotiated,” and “city” shall be as established and defined in the state act as it now exists or is hereafter amended.
(Ord. 2-1976 (part), 1976).
3.14.030 Tax Imposed.
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 county through a leasehold interest. The tax shall be paid, collected, and remitted to the Department of Revenue of the State of Washington at the time and in the manner prescribed by the state act.
(Ord. 2-1976 (part), 1976).
3.14.040 Rate of Tax – Credits.
The rate of the tax imposed by Section 3.12.030 shall be six percent of the taxable rent; provided, that the following credits 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 since that date, and excluding from such credit any leasehold interest arising out of any lease of property covered by the provisions of RCW 28B.20.394 and any lease or agreement including options to renew which extends beyond January 1, 1985, as follows:
(a) With respect to taxes due in calendar year 1976, a credit equal to eighty percent of the tax produced by the above rate;
(b) With respect to taxes due in calendar year 1977, a credit equal to sixty percent of the tax produced by the above rate;
(c) With respect to taxes due in calendar year 1978, a credit equal to forty percent of the tax produced by the above rate;
(d) With respect to taxes due in calendar year 1979, a credit equal to twenty percent of the tax produced by the above rate.
(2) With respect to a product lease, a credit of thirty-three percent of the tax produced by the above rate.
(Ord. 2-1976 (part), 1976).
3.14.050 Credit for Tax Imposed by Cities or Towns.
There shall be allowed against the tax otherwise imposed by this chapter a credit for the full amount of any leasehold excise tax authorized by RCW Section 82.29A.040 and imposed upon the same taxable event by any city or town in the County.
(Ord. 2-1976 (part), 1976).
3.14.060 Administration.
The administration and collection of the tax imposed by this chapter shall be in accordance with the provisions of the state act.
(Ord. 2-1976 (part), 1976).
3.14.070 Distribution.
Any moneys received by the county from the leasehold excise tax imposed by this chapter shall be distributed by the county treasurer in accordance with the provisions of the state act as it now exists or is hereafter amended.
(Ord. 2-1976 (part), 1976).
3.14.080 Exemptions.
Leasehold interests exempted by the state act as it now exists or may hereafter be amended shall be exempt from the tax imposed pursuant to Section 3.12.030.
(Ord. 2-1976 (part), 1976).
3.14.090 Records.
The county consents to the inspection of such records as are necessary pursuant to RCW 82.32.330 to qualify the county to inspect records of the Department of Revenue of the State of Washington.
(Ord. 2-1976 (part), 1976).
3.14.100 Contract for Collection of Tax.
The board of county commissioners is authorized to execute a contract with the Department of Revenue of the State of Washington for the administration and collection of the tax imposed by Section 3.12.030.
(Ord. 2-1976 (part), 1976).
3.14.110 Severability.
Should any section or provision of this chapter or the state act on which it is based be declared by the courts to be unconstitutional or invalid, such decision shall not affect the validity of the chapter as a whole, or any part thereof other than the part so declared to be unconstitutional or invalid.
(Ord. 2-1976 (part), 1976).
3.14.120 Effective date.
The effective date of this chapter shall be January 1, 1976; provided, that in the event the state act is declared null and void for the collection of taxes in the calendar year 1976, then the effective date of this chapter shall be January 1, 1977, and the tax imposed by Section 3.12.030 shall be levied and collected on and after January 1, 1977.
(Ord. 2-1976 (part), 1976).