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HomeMy WebLinkAboutOrd 2777 - Adopting Sales and Use Tax for Criminal JusticeCity of Tukwila Washington Ordinance No. 1-111 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, IMPOSING AN ADDITIONAL SALES AND USE TAX OF ONE -TENTH OF ONE PERCENT ($0.1%), AS AUTHORIZED BY LAWS OF 2025, CH. 350 § 201, PURSUANT TO RCW 82.14.345, FOR CRIMINAL JUSTICE PURPOSES; ESTABLISHING A NEW TUKWILA MUNICIPAL CODE (TRIG) CHAPTER 3.17, "ADDITIONAL SALES AND USE TAX FOR CRIMINAL JUSTICE"; PROVIDING FOR SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, in 2025, the Washington State Legislature enacted Engrossed Substitute House Bill 2015 (Laws of 2025, Ch. 350), codified in part at RCW 82.14.345, which authorized qualified cities to impose by ordinance a new local option sales and use tax of one -tenth of one percent (0.1 °/a) for criminal justice purposes. The cost of this new local sales and use tax an a $100 purchase is $0.10; and WHEREAS, a city is qualified to impose the new local option sales and use tax only if the city meets the eligibility requirements to receive a grant from the Local Law Enforcement Grant Program created through ESHB 2015. The City of Tukwila meets these qualification requirements and, as such, the Tukwila Police Department submitted its substantiating documentation to the Criminal Justice Training Commission demonstrating its qualifications (See, Laws of 2025, Ch. 350 § 201(1)(c), codified at RCW 82.14.345(1)(c)-(d) and RCW 43.101.540); and WHEREAS, the City of Tukwila is located in the heart of the Puget Sound region, approximately 12 miles south of downtown Seattle, 17 miles north of Tacoma and just east of the Seattle -Tacoma International airport. Tukwila has a current population of 22,930 residents and rrlore than 2,000 businesses that comprise over 40,000 jobs; and WHEREAS, in 2008, the Washington State Legislature changed the method it used to distribute sales tax revenue to cities to a destination -based model, where taxes are distributed to cities based on the receipt (or purchase) of goods manufactured and stored in other cities. Instead of Tukwila receiving from the State a portion of the sales tax assessed for goods that are sold and shipped from the City of Tukwila, since 2008, Tukwila has only received a portion of the sales tax assessed for goods that are delivered in the City of 2025 Legislation: Establishing H8 2015 Version. 1114125 Staff. T. Gunkling Page 1of7 Tukwila. In 2008-2009„ the state provided Tukwilla with payments in amounts approximating the Most revenue due to this policy change, which totaled $1,495,833 in 2009 dollars, which is equivalent to $2,243,906 of annual lost revenue in inflation -adjusted 2025 dollars; and WHEREAS, from 2008 to 2024, the State of Washington provided steadily declining payments to the City of Tukwila to mitigate the negative effects of this policy change. In 2024, the final sales tax mitigation payment was provided to Tukwila in the amount of $141,216, and sales tax mitigation payments ceased to the City of Tukwila; and WHEREAS, the City of Tukwila has continually prioritized investments in public safety. As of 2024, the City's, Police Department is fully staffed. In the most recent 5-year period (2021-2026), the Tukwila Police Department expenditures increased $11.8 million (65%), growing from $17.9 million in 2021 (actual expenditures) to $29,7 million budgeted in 2026.. Over this same time period, the Police Department added 13, vehicles to its fleet, growing from 88 to 101; and WHEREAS, the Tukwila Municipal Court has earned multiple statewide awards and recognitions for its leadership and innovative justice programs, including affordable domestic violence therapy classes (DV IVIIRT)„ a cost-effective and efficient interpreter scheduling system, City Council Conference Room, the Unified Payment (UP) Program, and the development of the curriculum for the Washington State Misdemeanant Probation Academy; and WHEREAS, the court offers a wide range of outreach initiatives such as civics education for all ages, mock trials for students, internship opportunities„ health and justice clinics, and an onsite resource center, demonstrating its strong commitment to community engagement; and WHEREAS, in the most recent 5-year period (2021-2026), the Tukwila Municipal Court budget increased $1.2 million (50%), growing from $1.2 million in 2021 (actual expenditures) to $2.4 million budgeted in 2026,, The court is currently in the middle of implementing succession planning to ensure effective operations when key staff turnover in the coming years; and, WHEREAS, Tukwila will face significant additional public defense costs and resource needs to respond to caseload limits imposed by State Supreme Court Order 25700-A-1644 beginning in January 2026, representing a significant new mandate on the local justice system in which cities must either find a way to recruit and pay for indigent defense services while case filings continue to increase or determine how to prosecute fewer offenses; and WHEREAS, revenues generated from the state -authorized sales tax will be dedicated to providing criminal justice services, including police operations, court services, and public safety programs, in accordance with RCVV 82.14.345; and WHEREAS, the 'Tukwila Police Department and the Tukwila Community ould be greatly served by the Criminal Justice Training Commission (CJTC), grants that are being 2025.Legislation Establishing HE3 2015 Page ,2. of 7 Version: 11/4/25 Stet T, Coni,rling made available through the state, conditional on this ordinance being adopted. The State has currently allocated $100 million in public safety funding for award to local governments that adopt this new local option sales and use tax, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKW WASHINGTON, HEREBY ORDAINS AS FOLLOWS: Section 1. Adoption of Findings of Fact. The Clty Council hereby adopts the foregoing recitals and incorporates them herein as support for this ordinance establishing a new local option sales and use tax. S ction 2. TMC Chapter 3.17 E tablished. Tukwila Municipal Code (TMC) Chapter 3 17, entitled 'Enhanced Criminal Justice Sales 8, Use Tax, is hereby established to read as follows: CHAPTER 3.17 ENHANCED CROI INAL JUSTICE SALES & USE TAX Sections: 3.17,010 3.17,020 3.17.030 3.17.040 3,17.050 3,17,060 Tax mposed 8, Applicability Local Law Enforcement Eligibility Criteria Administration and Collection Allowable Uses of Tax Receipts Violation and Penalty Annual Reporting Section 3. Regulations Established. A new TMC Section 3.17.010 is hereby established to read as follows: 3.17.010 Tax Imposed & Applicability Effective April 1, 2026, an additional one -tenth of one percent (0,1°,10) sales and use tax, as authcrized by Section 201, Chapter 350, Laws of Washington 2025, as codified in part at RCW 82 14.345, is hereby levied, fixed, anc imposed on all taxable events within the City of Tukwila as defined in cheater 82,08, 82,12, or 82,14 RCW, The tax shall be imposed upon and collected from those persons from whom sales tax or use tax is collected in accordance with chapter 82.08 or 82.12 RCW, and shall be collected at the rate of one -tenth of one percent of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax, The additional sales and use tax shall be in addition to all other existing sales and use taxes currently imposed by the City of Tukwila, The revenue generated through imposition of this additional sales and use tax shall be dedicated and used by the City to fund its continued commitment to sufficiently funding public safety and criminal justice. Section 4. Regulations Established. A new TMC Section 3 17.020 is hereby established to read as follows: 3.17.020 Local Law Enforcement Eligibility Criteria 2025 LlsOiatiorr Establishing He 2015 Varsionv '11/4125 ShaftT Conklin Page 3 of 7 A. The City may impose the tax authorized under this Chapter only if the City meets the requirements to receive a grant from the Local Law Enforcement Grant Program created within Laws of 2025, Ch. 350 § 101, and codifiedat RCW 43,101.540, having: 1. Issued and implemented policies and practices consistent with RCW 43.17.425 and RCW 10,93.160, and the Office of the Attorney General's Keep Washington Working Act guide, mocel policies, and training recommendations for state and local law enforcement agencies; 2. Participated in trainings of the Washington Criminal Justice Training Commission as required by RCW 43',101.455' and RCW 36,28A.445; 3, Issued and implemented policies and practices regarding use of force and de- escalation tactics consistent with RCW 10,120,030 and the state Office of the Attorney General's model policies, and all other model policies of the Washington Criminal Justice Training Commission and the state Attorney General's Office regarding use of force for law enforcement, including„ but not limited to, duty to intervene and training and use of canine teams; 4. Implemented use of force data collection and reporting consistent with chapters 110,118 and 10,120 RCW when the program is operation,al, as confirmed by a notice from the state Office of the Attorney General to all police chiefs and sheriffs; 5. Issued and implemented policies and practices consistent with chapters 7.105 and 9.41 RCW, and model policies and training of the Washington State Criminal Justice Training Commission addressing firearm relinquishment pursuant to court orders; 6. A 25 percent officer completion rate of the Washington State Criminal Justice Training Commission's 40-hour crisis intervention team training; 7. A 100 percent officer compliance rate for those officers required to complete trauma -informed, gender -based violence interviewing, investigation, response, and case review training developed or approved by the Washington State Criminal Justice Trainingi Commission pursuant to RCW' 43,101.272 and 43.101.276, and if requested by the commission, participated in agency case reviews; 8,Received funding from a sales and use tax authorized pursuant to RCW 82.14.340; 9. A chief of police who is certified by the Washington Criminal Justice Training: Commission, and who has not been convicted of a felony anywhere in the United States or under foreign law, or been convicted of a gross misdemeanor involving moral turpitude, dishonesty, fraud, or corruption; and 10. Issuec and implemented' policies and practices that prohibit volunteers who assist with agency work from enforcing criminal laws, other than for assistance with special event traffic and parking, including engaging in pursuits, detention, arrests, the use of force, or the use of deadly force; carrying or the use of firearms or other weapons; or the use of dogs to track people or animals other than for purposes of search and rescue; and that set forth the required supervision of volunteers, including that hey must be clearly identifiable 2025 LegislaUm Establlsh4IgH8 2015 Versiow 11/4125 Slat T ConlOng Page 4 of 7 by the ipublic as distinguishable from peace officers and any identifying insignia must be officially issued by the agency and only used when on duty. 11, Submitted documentation to the Washington State Criminal Justice Training Commission substantiating the City of Tukwila's qualification for imposition of the additional sales and use tax imposed under this section, including with that submittal the following additional information required under Law of 2025, Ch. 350 § Sec. 101(5), and codified at RCW 43,101,540(5): (a) The total number of corn ssioned officers currently employed with the City of Tukwila Police Department; (b) The total number of specially commissioned officers currently employed with the City of Tukwila Police Department; (c) The total number of co -response teams established within the City of Tukwila anc what staffing are included in each co -response team; (d) The total number of administrative staff currently employed with the City of Tukwila Police Department; (e) The number of officers on flexible work schedules within the City of Tukwila Police Department; (f) The average 911 response rate of the City of Tukwila Police Departm-r t over the 12-month period immediately preceding the month in which the City of Tukwila submitted documentation to the Washington State Criminal Justice Training Commission; and (gi) The average case closure rate of the City of Tukwila Police Department over the 12-month period 1 mediately preceding the month in which the City of Tukwila submitted documentation to the VVashington State Criminal Justice Training Commission, Section 5. Regulations Established. A new TMC Section 3.17.030 is hereby established to read as follows: 3.17.030 Administration and Collection The administration and collection of the tax imposed by this chapter shall be in accordance witl the provisions of RCVV 82.14,050, as currently enacted or hereafter amended, Section 6. Regulations Established. A new TMC Section 3.17,040 is hereby established to read as follows: 3.17.040 Allowable Uses of Tax Rec ipt Moneys received by the City from the tax imposed under this chapter must be expended for criminal justice purposes, As used in this chapter, "criminal justice purposes" means activities that substantially assist the criminal justice system, which may include 2025 Logisllatieni Establish mg Version: 11/4,25 Staff: T. Coniing 2015 Page 5 of 7 circumstances wiere ancillary ben; and which includes: o the civil justice lbehavioral health system occurs, (a) Domestic violence services, such as those provided by domestic violence programs, community advocates, and legal advocates, as those terms are defined in RCW 70.123.020; (b) Staffing adequate public defenders to provide appropriate defense for individuals; (c) Diversion programs; (d) Reentry work for inmates; (-) Local government programs tiat have a reasonable relationship to reducing the numbers of people interacting with the criminal justice system including, but not limited to, reducing homelessness or improving behavioral health; (f) Community placements for juvenile offenders; and (g) Community outreach and assistance programs, alternative response programs, and mental health crisis response including, but not Ilimited to, the recovery navigator program. Section 7. Regulations Established. A new TMC Section 3.17.050 is hereby established to read as follows. 3.17.050 Violation and Penalty Any seller who fails or refuses to collect the tax imposed by this chapter with the intent to violate the provisions of this chapter or to gain some advantage or benefit, whether direct or indirect, and any buyer who refuses to pay any tax due under this chapter shall be guilty of a misdemeanor. Section 8. Regulations Established. A new TMC Section 3 17.060 is hereby established to read as foillows, 3.17.0.0 Annual Reportin The Finance Director, or their designee, shall within one calendar year of imposition of the tax imposed under this chapter, and annually thereafter, make a report to the Association of Washington Cities on how the moneys received by the City from the tax were expended. Section 9. Notice to Department of Revenu:. The City's Finance Director, or their designee, is directed to submit this ordinance to the Department of Revenue and take all steps necessary to irn;ollement and collect the tax imposed by this ordinance, Section 10. 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. 2025 Legislation: EstabAshing HB 2015 Version; 11/.145. Staff 7 Conkilng Page 6 art Section 11. 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 12. 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. Pursuant to Section 3, above, the tax imposed by this ordinance shall take effect on April 1, 2026, which is more than 75 days after the City notified the Department of Revenue of this change consistent with RCW 82.14.055(1). PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this A day of 1\) kf IYt')W , 2025. ATTEST/AUTHENTICATED: y o -Barn , CMC, City Clerk APPR D AS TO FORM BY: ESigned by: '6AL ZUJIVel 5E499CA4165E452... Office of the City Attorney 2025 Legislation: Establishing HB 2015 Version: 11/4/25 Staff: T, Conkling Thamas McLeod, Mayor Filed with the City Clerk: Passed by the City Council: Published: Effective Date: Ordinance Number: Page 7 of 7 City of Tukwila Public Notice of Ordinance Adoption for Ordinance 2777: On November 24, 2025, the City Council of the City of Tukwila, Washington, adopted the following ori inance, the main points of which are summarized by title as follows: ORDINANCE 2777: AN ORDNANCE OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, IMPOSING AN ADDITIONAL SALES AN* USE TAX OF ONE -TENTH OF ONE PERCENT (801%), AS AUTHORIZED BY LAWS OF 2025, CH, 350 § 201,, mURSUANT TO RCVV 82.14.345, FOR CRIMINAL JUSTICE, PURPOSES; ESTABLISHING A NEW TUKVVILA MUNICIPAL CODE (TMC) CHAPTER 317, "ADDITIONAL SALES AND USE TAX FOR CRIMINAL JUSTICE"; PROVIDING FOR SEVERA:ILITY; AND ESTABLISHING AN EFFECTIVE DATE. The full text of this ordinance will be provided upon request, Andy Youn- arnett, City Clerk Published Seattle Times: Novem er 27, 2025