HomeMy WebLinkAboutOrd 2729 - TMC Chapter 3.14 "Sales and Use Tax for Affordable Housing" - Maximum Capacity of Local Sales and Use TaxWashington
Ordinance No. 'L I-2 G
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING ORDINANCE NO.
2613, AS CODIFIED AT TUKWILA MUNICIPAL CODE (TMC)
CHAPTER 3.14, "SALES AND USE TAX FOR AFFORDABLE
HOUSING," AUTHORIZING THE MAXIMUM CAPACITY OF A
LOCAL SALES AND USE TAX TO FUND INVESTMENTS IN
AFFORDABLE AND SUPPORTIVE HOUSING; PROVIDING
FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE
DATE.
WHEREAS, pursuant to Ordinance No. 2613, the City Council authorized the maximum
capacity of a local sales and use tax to fund investments in affordable and supportive
housing as authorized by Chapter 338, Laws of 2019; and
WHEREAS, the local sales and use tax is credited against the state sales and use tax
so that the total tax paid by the consumer does not increase; and
WHEREAS, since 2019, the City of Tukwila has been a member of the South King
Housing and Homelessness Partners (SKHHP) and contributes a portion of its SHB 1406
revenue to the SKHHP Housing Capital Fund; and
WHEREAS, in 2023, the Washington State Legislature passed Substitute Senate Bill
(SSB) 5604, allowing cities to retain up to 10 percent of the tax for administrative costs; and
WHEREAS, in 2024, the Washington State Legislature passed Senate Bill (SB) 6173,
allowing cities imposing the tax to provide housing and services to persons whose income
is at or below 80% of the median income if the housing and services support the
development of affordable housing intended for owner occupancy; and
WHEREAS, the City Council desires to amend Tukwila Municipal Code (TMC)
Chapter 3.14 in accordance with the changes to state law effectuated by SSB 5604 and
SB 6173 and to establish flexibility to accommodate future changes in state law;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY ORDAINS AS FOLLOWS:
2024 Legislation: Amendments to TMC 3.14
Version: 6/6/24
Staff: L. Humphrey
Page 1 of 3
Section 1. TMC Section 3.14.010 Amended. Ordinance No. 2613 §2, as codified at
TMC Section 3.14.010, "Imposition of Sales and Use Tax for Affordable Housing," is hereby
amended 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, as now enacted and hereafter amended, 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 2. TMC Section 3.14.020 Amended. Ordinance No. 2613 §3, as codified at
TMC Section 3.14.020, "Purpose of Tax," is hereby amended to read as follows:
3.14.020 Purpose of Tax
The City may use the moneys collected by the tax imposed under TMC Section
3.14.010 or bonds issued only, as allowed by Washington State Legislature Chapter 338,
Laws of 2019, as now enacted and hereafter amended.
Section 3. TMC Section 3.14.030 Amended. Ordinance No. 2613 §4, as codified at
TMC Section 3.14.030, "Administration and Collection — Statutory Compliance," is hereby
amended 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, as now enacted and hereafter amended, which shall be codified in Chapter 82.14
RCW.
2024 Legislation: Amendments to TMC 3.14
Version: 6/6/24
Staff: L. Humphrey
Page 2 of 3
Section 4. 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 5. Corrections by City Clerk or Code Reviser Authorized. 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 6. 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 7. 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 I-7-4' day of 11)14...e. , 2024.
ATTEST/AUTHENTICATED:
Andy Youn, CMC, City Clerk
APPROVED AS TO FORM BY:
Office of the City Attorney
2024 Legislation: Amendments to TMC 3.14
Version: 6/6/24
Staff: L. Humphrey
Thomas McLeod,
Filed with the City Clerk: b -1 I -2`%
Passed by the City Council:2'-
Published: 6 -2 0-221
Effective Date: 6 -Z 5 -
Ordinance Number: '21-2.9
Page 3 of 3
City of Tukwila Public Notice of Ordinance Adoption for Ordinance 2729-2730.
On June 17, 2024, the City Council of the City of Tukwila, Washington, adopted the
following ordinance, the main points of which are summarized by title as follows:
Ordinance 2729: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, AMENDING ORDINANCE NO. 2613, AS CODIFIED AT
TUKWILA MUNICIPAL CODE (TMC) CHAPTER 3.14, "SALES AND USE TAX FOR
AFFORDABLE HOUSING," AUTHORIZING THE MAXIMUM CAPACITY OF A LOCAL
SALES AND USE TAX TO FUND INVESTMENTS IN AFFORDABLE AND
SUPPORTIVE HOUSING; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN
EFFECTIVE DATE.
Ordinance 2730: AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON; AMENDING AND REPEALING VARIOUS ORDINANCES AS
CODIFIED IN VARIOUS SECTIONS OF TUKWILA MUNICIPAL CODE (TMC)
CHAPTERS 3.08, "GAMBLING ACTIVITIES TAX," 3.20, "ADMISSIONS AND
ENTERTAINMENT TAX," 3.27, "BUSINESS AND OCCUPATION ADMINISTRATIVE
PROVISIONS," 3.48, "COMMERCIAL PARKING TAX," 3.50, "UTILITY TAX," AND 3.51,
"SOLID WASTE UTILITY TAX"; RETITLING TMC CHAPTERS 3.20 AND 3.27;
ESTABLISHING AND APPLYING ADMINISTRATIVE AND OTHER PROVISIONS
UNIFORMLY AMONG THE VARIOUS BUSINESS TAXES; CLARIFYING THE
ACTIVITIES SUBJECT TO ADMISSIONS TAX, BUSINESS AND OCCUPATION TAX,
PARKING TAX, AND UTILITY TAX; PROVIDING FOR SEVERABILITY; AND
ESTABLISHING AN EFFECTIVE DATE.
The full text of this ordinance will be provided upon request.
Andy Youn, Records Governance Manager/City Clerk
Published Seattle Times: June 20, 2024