HomeMy WebLinkAboutOrd 2613 - TMC Chapter 3.14 "Sales and Use Tax for Affordable Housing"
Cover page to Ordinance 2613
The full text of the ordinance follows this cover page.
Ordinance 2613 was amended or repealed by the following
ordinances.
AMENDED REPEALED
Section(s) Amended Amended by Ord # Section(s) Repealed Repealed by Ord #
2, 3, 4
2729
City of Tukwila
Washington
Ordinance No. Z6f3
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AUTHORIZING THE MAXIMUM
CAPACITY OF A LOCAL SALES AND USE TAX TO FUND
INVESTMENTS IN AFFORDABLE AND SUPPORTIVE
HOUSING, TO BE CODIFIED AT CHAPTER 3.14 OF THE
TUKWILA MUNICIPAL CODE; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, Tukwila's Comprehensive Plan states that almost half of City residents are
burdened by housing costs, paying more than 30% of their income for housing; and
WHEREAS, Goal 3.2 of Tukwila's Comprehensive Plan is that the City of Tukwila has
safe, healthy, and affordable homes for all residents; and
WHEREAS, Goal 3.3 of Tukwila's Comprehensive Plan is that the City of Tukwila
supports and collaborates with other jurisdictions and organizations to assess housing
needs, coordinate funding, and preserve and create affordable housing opportunities; and
WHEREAS, an implementation strategy in Tukwila's Comprehensive Plan is to support
and encourage legislation at the county, state, and federal levels that promotes affordable
housing goals; and
WHEREAS, the Tukwila City Council, in accordance with Washington State
Legislature Chapter 338, Laws of 2019, has adopted a resolution of intent to adopt
legislation to authorize the maximum capacity of a sales and use tax within six months of
the effective date of Chapter 338, Laws of 2019; and
WHEREAS, the City of Tukwila intends to impose the maximum local sales and use
tax authorized under Chapter 338, Laws of 2019 within one year of the date on which
said law takes effect; and
WHEREAS, the Department of Revenue requires 30 days' notice of adoption of sales
tax credits and the credit will then take effect on the first day of the month following the
30-day period; and
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WHEREAS, the local sales and use tax will be credited against the state sales and
use tax so that the total tax paid by the consumer will not increase; and
WHEREAS, the local sales and use tax revenue shall be spent on acquiring,
rehabilitating, constructing affordable housing or supportive housing, or rental assistance
and other related expenditures as authorized by Chapter 338, Laws of 2019; and
WHEREAS, Chapter 338, Laws of 2019 authorizes the City of Tukwila to issue
general obligation or revenue bonds to carry out the purposes of the legislation and to
pledge the revenue collected by the local sales and use tax to repay the bonds; and
WHEREAS, in 2019 the cities of Auburn, Burien, Covington, Des Moines, Federal
Way, Kent, Normandy Park, Renton, Tukwila and King County entered into an Interlocal
Agreement that formed the South King Housing and Homelessness Partners (SKHPP);
and
WHEREAS, the Executive Board of SKHHP is considering cooperative action and
pooling public and private resources to address affordable housing needs in South King
County; however, no decisions have been made at this time; and
WHEREAS, the City has determined it is in the best interest of the City and its residents
to begin implementation of the tax and then later determine the process for the distribution
of the funds collected by a resolution of the Tukwila City Council to meet the requirements
of Chapter 338, Laws of 2019;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
Section 1. Chapter 3.14 of the Tukwila Municipal Code Established. A chapter
of the Tukwila Municipal Code entitled "Sales and Use Tax for Affordable Housing," to be
codified as Tukwila Municipal Code (TMC) Chapter 3.14, is hereby established to read as
follows:
CHAPTER 3.14
SALES AND USE TAX FOR AFFORDABLE HOUSING
Sections:
3.14.010
3.14.020
3.14.030
Imposition of Sales and Use Tax for Affordable Housing
Purpose of Tax
Administration and Collection — Statutory Compliance
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Section 2. Regulations Established. TMC Section 3.14.010, "Imposition of Sales
and Use Tax for Affordable Housing," is hereby established to read as follows:
3.14.010 Imposition of Sales and Use Tax for Affordable Housing
A. There is imposed a sales and use tax as authorized by Washington State
Legislature Chapter 338, Laws of 2019, which shall be codified in Chapter 82.14 RCW,
upon every taxable event, as defined in Chapter 82.14 RCW, occurring within the City of
Tukwila. The tax shall be imposed upon and collected from those persons from whom
the State sales tax or use tax is collected pursuant to Chapter 82.08 and 82.12 RCW.
B. The rate of the tax imposed by TMC Section 3.14.010 shall be 0.0073 percent of
the selling price or value of the article used.
C. The tax imposed under TMC Section 3.14.010 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. The Department of Revenue will perform the
collection of such taxes on behalf of the City of Tukwila at no cost to the City.
D. The Department of Revenue will calculate the maximum amount of tax
distributions for the City of Tukwila based on the taxable retail sales in the City in State
Fiscal Year 2019, and the tax imposed under TMC Section 3.14.010 will cease to be
distributed to the City of Tukwila 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 Tukwila that have
ceased during a State Fiscal Year shall resume at the beginning of the next State Fiscal
Year.
Section 3. Regulations Established. TMC Section 3.14.020, "Purpose of Tax," is
hereby established to read as follows:
3.14.020 Purpose of Tax
A. The City may use the moneys collected by the tax imposed under TMC Section
3.14.010 or bonds issued only for the following purposes:
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; and
2. Providing the operations and maintenance costs of new units of affordable
or supportive housing; and
3. Providing rental assistance to tenants.
B. The housing and services provided under TMC Section 3.14.020 may only be
provided to persons whose income is at or below 60 percent of the median income of the
City.
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C. In determining the use of funds under TMC Section 3.14.020, the City must
consider the income of the individuals and families to be served, the leveraging of the
resources made available under TMC Section 3.14.010, and the housing needs within
the City.
D. The Finance Director 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 TMC Section 3.14.010.
E. The tax imposed by the City under TMC Section 3.14.010 will expire 20 years
after the date on which the tax is first imposed. The Finance Director shall provide notice
to the City Council and the Mayor 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
the Mayor of any changes to the expiration date.
Section 4. Regulations Established. TMC Section 3.14.030, "Administration and
Collection — Statutory Compliance," is hereby established to read as follows:
3.14.030 Administration and Collection — Statutory Compliance
The administration and collection of the tax imposed by Chapter 3.14 shall be in
accordance with the provisions of Washington State Legislature Chapter 338, Laws of
2019, which shall be codified in Chapter 82.14 RCW.
Section 5. The Finance Director is authorized to provide any necessary notice to the
Department of Revenue to effectuate the tax enacted by this ordinance and to execute,
for and on behalf of the City of Tukwila, any necessary agreement with the Department
of Revenue for the collection and administration of the tax enacted by this ordinance.
Section 6. 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 7. 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 8. 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.
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PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at
a Regular Meeting thereof this 16ii- day of 3 /VW, , 2019.
ATTEST/AUTHENTICATED:
Christy O'Flaherty, MMC, City Clerk Kathy Houlrdy, ay ro Te
"VC
APPROVED AS TO FORM BY:
Rachel B. Turpin, City Attorney
Filed with the City Clerk: 9 - (1- I/
e
Passed by the City Council: ct--/g -(9
Published: 41-11-17
Effective Date: 9 - "i
Ordinance Number: 7-6 v5
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City of Tukwila Public Notice of Ordinance Adoption for Ordinances 2613-2614.
On September 16, 2019 the City Council of the City of Tukwila, Washington, adopted the
following ordinances, the main points of which are summarized by title as follows:
Ordinance 2613: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AUTHORIZING THE MAXIMUM CAPACITY OF A LOCAL
SALES AND USE TAX TO FUND INVESTMENTS IN AFFORDABLE AND
SUPPORTIVE HOUSING, TO BE CODIFIED AT CHAPTER 3.14 OF THE TUKWILA
MUNICIPAL CODE; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN
EFFECTIVE DATE.
Ordinance 2614: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, ADOPTING A NEW SECTION OF THE TUKWILA
MUNICIPAL CODE TO ESTABLISH PENALTIES FOR THE CRIME OF EXPOSING
MINOR CHILDREN TO DOMESTIC VIOLENCE, TO BE CODIFIED AS TUKWILA
MUNICIPAL CODE SECTION 8.06.050; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
The full text of this ordinance will be provided upon request.
Christy O'Flaherty, MMC, City Clerk
Published Seattle Times: September 19, 2019