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HomeMy WebLinkAboutReg 2018-09-04 Item 5A - Ordinance/Resolution - Commercial Parking TaxCOUNCIL AGVNDA SYNOPSIS Mcetiq Date Prepared by i4(9/01-,. rev;pu Council review 07/23/18 VC 08/06/18 VC LI/ 08/27/18 VC / u 09/04/18 VC ITEM INFORMATIO ITEM No, 5.A. Si \I i Si)u\s()R VICKY CARLSEN ORIGIN \i Acn NI) \ Dm! : 07/23/18 \(,1 \ I 11 \I 11111 Amend TMC Chapter 3.48 - Commercial Parking Tax C. \ii(,( )1 1 n Diirinqon 7/23&8/27 E Motion illIg Date Relobrizon 1 07 elin,rnre E I3/(1 dtkircl AN Oar( 1-1 l'illtht I leannt; ,llig D(at, Other A kg Date ,Ilie Dam Mit; 1),M 09/04/18 ,1110),119 09/04/18 )V-,( )R C witi/ Vlayor I IR 1)(1,0 Finance n I vre TV ic,-R Po/he Plf/ HCour/ ',1)( )NY )R'', The Council is being asked to approve the ordinance amending TMC Chapter 3.48 related to m \I\I \in commercial parking tax. In addition, an appeal fee is presented via resolution. RI \ II \\ I I) 131 COW. Mtg. CDN Colnin Trans &lnfrastructurc Arts Comm. 1) \ 1 V 7/17 & 8/21 C llnance Comm.Public Safety Comm. Comm. — Planning Comm. CI-1/11R QUINN Parl.,, CONINTY1TEL RECOMMENDATIONS: Si)()\suR/A1),\IIN. (-),\ I \ II Finance 1'1 I I Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE i \pi \i)iiiki RI Q111 I I) AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments. MTG. DATE RECORD OF COUNCIL ACTION 07/23/18 Forward to Regular Meeting 08/06/18 Forward back to Finance Com for discussion regarding non-profit organizations 08/27/18 Forward to Regular Meeting MTG. DATE ATTACHMENTS 07/23/18 Informational Memorandum dated 07/11/18, with attachments 08/6/18 Forward back to Finance Committee 08/27/18 Informational Memorandum dated 8/15/18 Ordinance and Resolution Minutes from the Finance Committee meeting of 8/21/18 09/4/18 Ordinance and Resolution 011 24 Washington Ordinance No. AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, REPEALING ORDINANCE NO. 1852; REENACTING TUKWILA MUNICIPAL CODE CHAPTER 3.48, "COMMERCIAL PARKING TAX," RELATING TO THE LOCAL OPTION TRANSPORTATION TAX TO INCREASE THE TAX RATE AND ADOPT A PENALTY FOR LATE PAYMENT; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, pursuant to RCW 82.80.030, the City of Tukwila is authorized to fix and impose a parking tax on all persons engaged in a commercial parking business within its respective jurisdiction; and WHEREAS, in 1998 the Tukwila City Council adopted Ordinance No. 1852, pursuant to RCW 82.80.030, to levy a 5% parking tax on all commercial parking businesses within the City; and WHEREAS, the City Council has determined that a rate increase is warranted as the City has a substantial need to increase tax revenue in order to discharge the expected expenses and obligations of the City, and based on review of neighboring cities' tax rates, and noting that the current tax rate has not been altered since its adoption 20 years ago; and WHEREAS, in addition to a rate increase, the Council desires the adoption of a penalty for late payment, as the timely payment of the tax is difficult to enforce absent a late penalty and nearly 50% of parking taxes in 2016 were remitted to the City after the due date, and it is standard practice for City taxes to include a penalty for late payment in order to provide stability for the City's budgeting purposes; and WHEREAS, the City Council has determined that it is reasonable and in the public interest for the tax rate to remain at 5% for commercial parking facilities operated by a nonprofit organization on City -owned property; and WHEREAS, the City held a duly noticed public hearing on this tax increase on November 27, 2017; W: Word Processing\Ordinances\Commercial Parking Tax amended-TMC 3.48 8-23-18 SW:bjs Page 1 of 6 25 NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Repealer. Ordinance No. 1852, as codified at Tukwila Municipal Code Chapter 3.48, is hereby repealed in its entirety. Section 2. TMC Chapter 3.48 Reenacted. Tukwila Municipal Code (TMC) Chapter 3.48 is hereby reenacted to read as follows: CHAPTER 3.48 COMMERCIAL PARKING TAX Sections: 3.48.010 Definitions 3.48.020 Exemptions 3.48.030 Local Option Transportation Tax Imposed 3.48.040 Tax in Addition to Other License Fees or Taxes 3.48.050 Exempt Vehicles 3.48.060 Taxes Collected by Business Operators 3.48.070 Late Penalty 3.48.080 Use of Fund 3.48.090 Liability and Reporting 3.48.100 Violation/Penalty 3.48.110 Appeal Procedure Section 3. TMC Section 3.48.010 is hereby reenacted to read as follows: 3.48.010 Definitions The following definitions shall apply throughout this chapter: 1. "Commercial parking business" means the ownership, lease, operation or management of a commercial parking lot in which fees are charged for parking. 2. "Commercial parking" means any transaction or arrangement whereby a vehicle is parked and a fee is charged for parking or allowing the vehicle to be parked. Commercial parking shall include instances where a fee is charged specifically for the parking of a vehicle. This shall include any business which uses part or all of its area to park vehicles for a fee where no other service, lodging or business is being provided or conducted in conjunction with the parking of the vehicle. Commercial parking shall also include instances such as when a guest of a hotel, motel or other lodging establishment is allowed to park or leave his/her vehicle before or after his or her lodging or business stay there so that, for a fee, the guest's vehicle is parked at the hotel, motel or other lodging establishment during days when the guest is no longer staying there. 26 W: Word Processing \Ordinances\Commercial Parking Tax amended-TMC 3.48 8-23-18 SW:bjs Page 2 of 6 Section 4. TMC Section 3.48.020 is hereby reenacted to read as follows: 3.48.020 Exemptions The following exemptions to the commercial parking tax are allowed: 1. Local employee parking, with parking spaces provided or reserved for use by an employee who works within the City, where the employee parks his or her vehicle in connection with his or her employment, without regard to whether arrangements or payment for the parking is made by the employee or by his or her employer. 2. Apartments and condominiums, where parking is provided in conjunction with arrangements for residential living spaces. 3. Offices, retail establishments, warehouses and industrial buildings, where parking is provided in association with tenant arrangements for the use of such facilities. Section 5. TMC Section 3.48.030 is hereby reenacted to read as follows: 3.48.030 Local Option Transportation Tax Imposed There is hereby levied a special local option transportation tax to be imposed in connection with commercial parking businesses within the City. 1. For commercial parking businesses operated by nonprofit organizations on City -owned property, the tax shall be imposed at the rate of 5% of the gross revenues generated by non-exempt commercial parking charges and fees. 2. For all other commercial parking businesses, the tax shall be imposed at the rate of 8% of the gross revenues generated by non-exempt commercial parking charges and fees effective January 1, 2019, and then as follows: January 1, 2020: 11% of the gross revenues generated by non-exempt commercial parking charges and fees January 1, 2021: 15% of the gross revenues generated by non-exempt commercial parking charges and fees Section 6. TMC Section 3.48.040 is hereby reenacted to read as follows: 3.48.040 Tax in Addition to Other License Fees or Taxes The tax levied under this chapter shall be in addition to any license fee or tax imposed or levied under any law, statute or ordinance whether imposed or levied by the City, State or other governmental entity or political subdivision. Section 7. TMC Section 3.48.050 is hereby reenacted to read as follows: 3.48.050 Exempt Vehicles The tax shall not be levied on vehicles with official State disabled person decals, government vehicles which are exempt from tax, and tax-exempt carpool vehicles. W: Word Processing \Ordinances\Commercial Parking Tax amended-TMC 3.48 8-23-18 SW:bjs 27 Page 3 of 6 Section 8. TMC Section 3.48.060 is hereby reenacted to read as follows: 3.48.060 Taxes Collected by Business Operators Taxes imposed herein shall be collected by the operators of the commercial parking businesses, and shall be due and payable to the City in monthly installments. The operators of the commercial parking businesses shall remit to the City the local option transportation taxes collected on or before the last day of the month following the month during which the taxes were collected. The City shall be authorized to review and inspect financial records involving activities of businesses which are taxable by this tax, at least quarterly each year. Section 9. TMC Section 3.48.070 is hereby established to read as follows: 3.48.070 Late Penalty If a Commercial Parking Business subject to this tax fails to pay any tax required by this chapter within 15 days after the due date thereof, there shall be added to such tax a penalty of 10`)/0 of the tax per month for each month overdue, which shall be added to the amount of the tax due. Section 10. TMC Section 3.48.080 is hereby reenacted to read as follows: 3.48.080 Use of Fund All revenues, assessments and other charges generated and collected as local option transportation taxes shall be placed in the City's 104 Bridge and Arterial Street Fund, to be used for transportation purposes within the Transportation Element of the Tukwila Comprehensive Plan, in accordance with RCW 82.80.070; and to be used for administration of the tax, including those activities of the City in keeping and tracking records, financial reports and other documents, reviewing filings and compiling reports by commercial parking businesses, and other activities involved in collection and enforcement of the tax. Section 11. TMC Section 3.48.090 is hereby reenacted to read as follows: 3.48.090 Liability and Reporting A. All officers, directors and managers of any organization or association operating a Commercial Parking Business, including owners and lessees of a parking facility used for Commercial Parking, shall be jointly and severally liable for the payment of said tax, penalties, and any fine imposed under this chapter B. The Finance Director shall have the power to adopt rules and regulations not inconsistent with the terms of this chapter for carrying out and enforcing the payment, collection and remittance of the tax herein levied; and a copy of the rules and regulations shall be on file and available for public examination in the City of Tukwila Finance Department. 28 W: Word Processing \Ordinances\Commercial Parking Tax amended-TMC 3.48 8-23-18 SW:bjs Page 4 of 6 Section 12. TMC Section 3.48.100 is hereby reenacted to read as follows: 3.48.100 Violation/Penalty It is unlawful for any person, firm or corporation engaged in a Commercial Parking Business to fail or refuse to collect and remit parking taxes as required by the provisions of this chapter or to gain for himself or herself some advantage or benefit from the tax, whether direct or indirect. Any such violation shall constitute a misdemeanor and shall be punishable by a fine not to exceed $1,000 and/or by imprisonment not exceeding 90 days. Any such fine shall be in addition to any tax and penalties required. Section 13. TMC Section 3.48.110 is hereby established to read as follows: 3.48.110 Appeal Procedure A. Any person aggrieved by the calculation of the tax determined to be due to the City pursuant to this chapter may appeal to the Finance Director or his/her designee from such determination by filing a written notice of appeal with the City Clerk within 20 calendar days from the date on which such person was given notice of the tax. The notice of appeal must state the grounds for appeal, including a detailed explanation of why the amount of the tax was incorrect. The Finance Director or designee shall review the basis for the appeal and may request clarification from the appellant. After the review is complete, the Finance Director or designee shall issue an administrative decision that may sustain or modify the amount of tax owed. Notice of the administrative decision shall be sent to the appellant by certified mail within 10 days of issuance. B. The appellant, if aggrieved by the decision of the Finance Director or designee, may then appeal to the City Hearing Examiner within 20 calendar days of the date the administrative decision is mailed to the appellant. The notice of appeal must state the grounds for appeal, including a detailed explanation of why the administrative decision is incorrect. The notice of appeal must be accompanied by an Appeal Fee in accordance with the fee schedule adopted by resolution of the City Council. C. Upon timely filing of a notice of appeal, the Finance Director shall schedule a hearing on the appeal before the City's Hearing Examiner. The hearing shall be conducted no later than 30 days from the date of the notice of appeal, unless an extension is agreed to by the appellant or otherwise ordered by the Hearing Examiner for good cause shown. Notice of the hearing and the appeal shall be given to the appellant by certified mail at least five days prior to the date of the hearing. D. The hearing shall be governed by the City of Tukwila Hearing Examiner's procedural rules. The hearing shall be de novo. The decision of the City's Hearing Examiner or other hearing body shall be based upon a preponderance of the evidence. The burden of proof shall be on the appellant. The Hearing Examiner or other hearing body may affirm, reverse or modify the Finance Director's decision. E. Within 20 business days, excluding holidays recognized by the City of Tukwila, from the date of the hearing on an appeal under this section, the Hearing Examiner shall issue a written decision which shall set forth the reasons therefor. W: Word Processing \Ordinances\Commercial Parking Tax amended-TMC 3.48 8-23-18 SW:bjs 29 Page 5 of 6 Section 14. Corrections by City Clerk or Code Reviser. Upon approval of the City Attorney, the City Clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; references to other local, state or federal laws, codes, rules, or regulations; or ordinance numbering and section/subsection numbering. Section 15. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this ordinance or its application to any person or situation should be held to be invalid or unconstitutional for any reason by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of the remaining portions of this ordinance or its application to any other person or situation. Section 16. Effective Date. This ordinance or a summary thereof shall be published in the official newspaper of the City, and shall take effect and be in full force five days after passage and publication as provided by law. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2018. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk APPROVED AS TO FORM BY: Rachel B. Turpin, City Attorney Allan Ekberg, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: 30 W: Word Processing \OrdinancesCommercial Parking Tax amended -TM 3.48 8-23-18 SW:bjs Page 6 of 6 Washington Resolution No. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ADOPTING A FEE SCHEDULE FOR TUKWILA MUNICIPAL CODE CHAPTER 3.48, "COMMERCIAL PARKING TAX." WHEREAS, the City Council intends to remove specific amounts for fees and charges from the Tukwila Municipal Code in favor of a City-wide fee resolution; and WHEREAS, the updated commercial parking tax ordinance references an appeal process, including an appeal fee, which will be included as part of the City-wide fee resolution; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Fee Schedule. The following fee shall be charged to appellants by the City of Tukwila Finance Department to appeal a commercial parking tax decision: Type of appeal Fee Hearing Examiner Appeal Fee TMC 3.48.110 $250.00 PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2018. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Verna Seal, Council President APPROVED AS TO FORM BY: Filed with the City Clerk: Passed by the City Council: Resolution Number: Rachel B. Turpin, City Attorney W:\Word Processing\Resolutions\Commercial parking tax appeal fee schedule 7-9-18 SWNC:bjs 31 Page 1 of 1