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HomeMy WebLinkAboutRes 1539 - Support Streamlined Sales Tax Agreement ILA, r r- s2`\ i 1s y �p rsoe 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