HomeMy WebLinkAboutRes 1539 - Support Streamlined Sales Tax Agreement ILA,
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Tukwila It O f
Washington
Resolution No. -J 5,�;i 9
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
TUKWILA, WASHINGTON, SUPPORTING THE WASHINGTON
STATE ADOPTION AND IMPLEMENTATION OF THE
STREAMLINED SALES TAX AGREEMENT, PROVIDING THAT
THE STATE. 1) ENSURES A FULL MITIGATION OR "HOLD
HARMLESS" METHOD IS PUT IN PLACE FOR SOURCING
IMPACTED CITIES, AND 2) UTILIZES A TIMELINE THAT IS
CLOSELY LINKED TO CONGRESSIONAL AUTHORIZATION
OF INTERNET AND CATALOG SALES TAXES.
WHEREAS, the City of Tukwila understands and supports the concept of
streamlining definitions and sales tax rates for interstate sales, and
WHEREAS, the City of Tukwila believes it is important to make the State sales tax
system effective and efficient for private businesses both within the State of Washington
and outside our geographic boundaries, and
WHEREAS, the State of Washington's and the City of Tukwila's tax structures are
highly dependent upon sales tax receipts, and
WHEREAS, the City of Tukwila has committed to its citizens and businesses capital
improvements, repayment of outstanding debt, and the delivery of services that depend
upon present and future sales tax income projected on a point of sale basis, and
WHEREAS, many cities, including the City of Tukwila, have worked hard to
develop economic, transportation, and land use policies that meet regional needs for
employment in warehousing, manufacturing, and retail activities, and have expended
significant resources to address infrastructure, traffic and law enforcement demands
that result from those policies, and
WHEREAS, if the State changes the distribution of sales tax receipts from point of
sale to point of delivery, there is a tax shift between cities who have developed the
economic and land use policies to support regional growth to areas where cities have
chosen not to have this activity in their geographic boundaries, and
WHEREAS, if the State changes the distribution of sales tax receipts from point of
sale to point of delivery, a few dozen cities will bear the largest share of the burden, and
WHEREAS, there are fundamental fairness issues that need to be honored when a
major shift in tax policy would result in significant adverse impacts to dozens of
jurisdictions, including the City of Tukwila, that have simply been following
Washington State's tax policy and rules for many years, and
WHEREAS, issues of equality are of great importance to the City of Tukwila,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA,
WASHINGTON, HEREBY RESOLVES AS FOLLOWS:
Section 1 The above recitals are found to be true and correct in all respects
STREAMLINED SALES TAX AGREEMENT 1212103
Section 2. The City of Tukwila supports the concept of streamlining sales tax
information and definitions to make it easier to collect sales taxes for interstate and
intra -state Internet -based commerce.
Section 3. The City of Tukwila strongly urges that the Department of Revenue
recommend, and ultimately the Washington State Legislature adopt, sales tax
streamlining in a way that contains strong mitigation or hold harmless measures for
sourcing- impacted cities, such as a method that protects intra -state sales tax revenues
by adopting point -of- delivery collection measures on the one hand, but using
distribution methods that protect City revenues on the other
Section 4. The City of Tukwila strongly urges that the Department of Revenue
recommend, and ultimately the Washington State Legislature adopt, measures that
either fully link, or more closely link any implementation of the Streamlined Sales Tax
Agreement to Congressional authorization of sales tax imposition on Internet -based
and mail -order catalog sales.
PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWIL WASHINGTON,
at a Regular Meeting thereof this I day of 2003
ATTEST /AUTHENTICATED•
Pam Carter, Council President
Jane E Cantu, CMC, City Clerk
APPROVED M� Y
Filed with the City Clerk:
y 0
Passed b the City Council. J 2 0 1 A
Office 6f the ey Resolution Number- 15 9
STREAMLINED SALES TAX AGREEMENT 11126103