HomeMy WebLinkAboutFS 2014-11-04 Item 2C - Resolution - Streamlined Sales Tax MitigationTO:
City of Tukwila
Jim Haggerton, Mayor
INFORMATIONAL MEMORANDUM
Mayor Haggerton
Finance and Safety Committee
FROM: Laurel Humphrey, Council Analyst
DATE: October 29, 2014
SUBJECT: Resolution regarding Streamlined Sales Tax mitigation payments
ISSUE
The City of Tukwila is part of a coalition of cities, counties and transit agencies that have issued
a letter to Governor Ins lee and the Legislature urging the preservation of full Streamlined Sales
Tax (SST) mitigation payments in the 2015-2017 Operating Budget. Adoption of this proposed
resolution will affirm the City Council's commitment to this issue.
BACKGROUND
In 2007 the State of Washington entered into the Streamlined Sales Tax (SST) compact that
changed the credit for local sales taxes from point of origin to point of destination. This resulted
in enormous sales tax revenue losses to the City of Tukwila which is home to numerous
manufacturing, distribution and warehousing centers. The State made a commitment to
jurisdictions like ours through implementation of a mitigation payment program, and it is crucial
that this program be fully funded in the 2015-2017 Budget.
DISCUSSION
The proposed resolution urges the Governor and the Legislature to preserve the full SST
mitigation distribution in the 2015-2017 Budget.
RECOMMENDATION
The Committee is asked to approve the draft resolution and forward it to the November 17, 2014
Regular Consent Agenda.
ATTACHMENTS
Draft resolution
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF TUKWILA, WASHINGTON, URGING GOVERNOR
INSLEE AND THE LEGISLATURE OF THE STATE OF
WASHINGTON TO PRESERVE THE STREAMLINED
SALES TAX MITIGATION DISTRIBUTION IN THE
2015-2017 BIENNIAL BUDGET.
WHEREAS, in 2007 the State of Washington entered into the Streamlined Sales
Tax (SST) Compact that changed the credit for local sales taxes from point of origin to
point of destination; and
WHEREAS, this change to sales tax sourcing had significant negative fiscal impact
on numerous local jurisdictions in Washington, including the City of Tukwila, whose
taxing structures are highly dependent on sales tax receipts; and
WHEREAS, in 2007 the State of Washington committed to easing this impact to
jurisdictions through implementation of the SST mitigation program; and
WHEREAS, the City of Tukwila is home to regionally vital warehousing,
manufacturing, and retail complexes and expends significant resources toward the
infrastructure and services necessitated by these enterprises; and
WHEREAS, the City of Tukwila's sales tax revenues have been significantly
impacted by SST implementation and the City relies upon the ongoing commitment of
SST mitigation payments toward the provision of essential services and infrastructure;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
The City Council urges Governor Ins lee to retain streamlined sales tax mitigation
payments to local jurisdictions at current levels in his proposed 2015-2017 Budget, and
further urges the Legislature of the State of Washington to adopt said SST mitigation
payments.
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PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this day of , 2014.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk De'Sean Quinn, Council President
APPROVED AS TO FORM BY:
Filed with the City Clerk:
Passed by the City Council:
Resolution Number:
Rachel Turpin, City Attorney
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