PED 2020-03-02 Item 1C - Resolution - Senate House Bill 1406 and Sales Tax Revenue Program for Affordable Housing

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1 (b) The maximum amount for a city equals the taxable retail sales 2 within the city in state fiscal year 2019 multiplied by the tax rate 3 imposed under subsection (1) of this section. 4 (5) The tax must cease to be distributed to a county or city for 5 the remainder of any fiscal year in which the amount of tax exceeds 6 the maximum amount in subsection (4) of this section. The department 7 must remit any annual tax revenues above the maximum to the state 8 treasurer for deposit in the general fund. Distributions to a county 9 or city meeting the maximum amount must resume at the beginning of 10 the next fiscal year. 11 (6)(a) If a county has a population greater than four hundred 12 thousand or a city has a population greater than one hundred 13 thousand, the moneys collected or bonds issued under this section may 14 only be used for the following purposes: 15 (i) Acquiring, rehabilitating, or constructing affordable 16 housing, which may include new units of affordable housing within an 17 existing structure or facilities providing supportive housing 18 services under RCW 71.24.385; or 19 (ii) Funding the operations and maintenance costs of new units of 20 affordable or supportive housing. 21 (b) If a county has a population of four hundred thousand or less 22 or a city has a population of one hundred thousand or less, the 23 moneys collected under this section may only be used for the purposes 24 provided in (a) of this subsection or for providing rental assistance 25 to tenants. 26 (7) The housing and services provided pursuant to subsection (6) 27 of this section may only be provided to persons whose income is at or 28 below sixty percent of the median income of the county or city 29 imposing the tax. If the median income of a city enacting the tax 30 under this section is not available from the United States census 31 bureau, the housing and services provided pursuant to subsection (6) 32 of this section may only be provided to persons whose income is at or 33 below sixty percent of the median income of the county in which the 34 city is located. 35 (8) In determining the use of funds under subsection (6) of this 36 section, a county or city must consider the income of the individuals 37 and families to be served, the leveraging of the resources made 38 available under this section, and the housing needs within the 39 jurisdiction of the taxing authority. p. 4 SHB 1406 M.