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5972CITYOFRENTON,WASHINGTONORDINANCENO.5972ANORDINANCEOFTHECITYOFRENTON,WASHINGTON,AUTHORIZINGANADDITIONALSALESANDUSETAXFORAFFORDABLEANDSUPPORTIVEHOUSINGINACCORDANCEWITHSUBSTITUTEHOUSEBILL1406(CHAPTER338,LAWSOF2019;RCW82.14.540),AMENDINGSECTIONS5-10-1AND5-10-2OFTHERENTONMUNICIPALCODE,PROVIDINGFORSEVERABILITY,ANDESTABLISHINGANEFFECTIVEDATE.WHEREAS,inthe2019RegularSession,theWashingtonStateLegislatureapproved,andtheGovernorsigned,SubstituteHouseBill1406(Chapter338,Lawsof2019;codifiedasRCW82.14.540)(“SH81406”);andWHEREAS,SHB1406authorizesthegoverningbodyofacityorcountytoimposealocalsalesandusetaxfortheacquisition,constructionorrehabilitationofaffordablehousingorfacilitiesprovidingsupportivehousingandfundingtheoperationsandmaintenancecostsofnewunitsofaffordableorsupportivehousing;andWHEREAS,thetaxwillbecreditedagainststatesalestaxescollectedwithintheCityand,therefore,willnotresultinhighersalesandusetaxeswithintheCityandwillrepresentanadditionalsourceoffundingtoaddresshousingneedsintheCity;andWHEREAS,thetaxmustbeusedtoassistpersonswhoseincomeisatorbelowsixtypercentoftheCitymedianincome;andWHEREAS,theCityhasdeterminedthatimposingthesalesandusetaxtoaddressthishigh-priorityneedwillprovidebenefittoitscitizens;andWHEREAS,inorderforacityorcountytoimposethetax,withinsixmonthsoftheeffectivedateofSHB1406,orJanuary28,2020,thegoverningbodymustadoptaresolutionof1 ORDINANCENO.5972intenttoauthorizethemaximumcapacityofthetax,andwithintwelvemonthsoftheeffectivedateofSHB1406,orJuly28,2020,mustadoptlegislationtoauthorizethemaximumcapacityofthetax;andWHEREAS,theCityCounciladoptedResolution4386onAugust12,2019declaringitsintenttoauthorizethemaximumcapacityofthetax,whichmeetsthestatutoryrequirementtoadoptaresolutionofintentwithinsixmonthsoftheeffectivedateoISHB1406;andWHEREAS,theCityCouncilhasdeterminedthatitisinthebestinterestoftheCitytoimposealocalsalesandusetaxasauthorizedbySHB1406assetforthherein;NOW,THEREFORE,THECITYCOUNCILOFTHECITYOFRENTON,WASHINGTONDOORDAINASFOLLOWS:SECTIONI.AllportionsoftheRentonMunicipalCodeinthisordinancenotshowninstrikethroughandunderlineeditsremainineffectandunchanged.SECTIONII.Sections5-10-1and5-10-2oftheRentonMunicipalCodeareherebyamendedassetforthinExhibitAincorporatedbythisreferenceasiffullysetforthherein.Allotherprovisionsinchapter5-10RMCremainineffectandunchanged.SECTIONIII.Ifanysection,subsection,sentence,clause,phraseorworkofthisordinanceshouldbeheldtobeinvalidorunconstitutionalbyacourtorcompetentjurisdiction,suchinvalidityorunconstitutionalitythereofshallnotaffecttheconstitutionalityofanyothersection,subsection,sentence,clause,phraseorwordofthisordinance.2 ORDINANCENO.5972SECTIONIII.Thisordinanceshallbeinfullforceandeffectthirty(30)daysafterpublicationofasummaryofthisordinanceintheCity’sofficialnewspaper.Thesummaryshallconsistofthisordinance’stitle.PASSEDBYTHECITYCOUNCILthis15thdayofJune,2020.Jason/A.Seth,CyClerkAPPROVEDBYTHEMAYORthisl5thdayofJune,2020.ayorApprovedastoform:ShaneMoloney,CityAttorneyDateofPublication:6/19/2020(summary)ORD:2106:5/7/20203 ORDINANCENO.5972ExhibitA:CHAPTER10SALESANDUSETAXSECTION:5-10-1:ImpositionOfSalesOrUseTax5-10-2:RateOfTaxImposed5-10-3:AdministrationAndCollectionOfTax5-10-4:ConsentToInspectionOfRecords5-10-5:AuthorizingExecutionOfContractForAdministration5-10-6:Penalties5-10-7:TaxApplicableToNaturalGasSales5-10-1IMPOSITIONOFSALESORUSETAX:A.Thereisherebyimposedasalesorusetax,asthecasemaybe,asauthorizedbyRCW82.14.030(2),uponeverytaxableevent,asdefinedinRCW52.14.020,occurringwithintheCity.ThetaxshallbeimposeduponandcollectedfromthosepersonsfromwhomtheStatesalestaxorusetaxiscollectedpursuanttochapters82.08and82.12RCW.B.Thereisherebyimposedanadditionalsalesorusetaxuponeverytaxableevent,asdefinedinRCW82.14.020,occurringwithintheCity,asauthorizedbyRCW82.14.540.Moneycollectedunderthissubsectionmustbeusedsolely,asrequiredbyRCW82.14.540(orasmaybeamendedinthefuture),forthepurposeofacquiring,rehabilitating,orconstructingaffordablehousing,whichmayincludenewunitsofaffordablehousingwithinanexistingstructureorfacilitiesprovidingsupportivehousingservicesunderRCW71.24.385,orfundingtheoperationsandmaintenancecostsofnewunitsofaffordableorsupportivehousing.Thisadditionalsalesorusetaxshallexpiretwenty(20)yearsafterthedateonwhichthetaxisfirstimposed.5-10-2RATEOFTAXIMPOSED:A.TherateofthetaximposedbySectionSubsection5-10-l.AofthisChaptershallbeone-halfofonepercent(0.5%)ofthesellingpriceorvalueofthearticleused,asthecasemaybe;provided,however,thatduringsuchperiodasthereisineffectasalestaxorusetaximposedbyKingCountyundersection17(2),chapter49,Lawsof1982,FirstExtraordinarySession,atarateequaltoorgreaterthantherateimposedbythisSection,theCountyshallreceivefifteenpercent(15%)ofthetaximposedbySectionSubsection5-10-1providedfurther,thatduringsuchperiodasthereisineffectasalestaxorusetaximposedbyKingCountyundersection17(2),chapter49,Lawsof1982,FirstExtraordinarySession,ataratewhichislessthantherateimposedbythisSection,theCountyshallreceivefromthetaximposedbySectionSubsection5-4 ORDINANCENO.597210-l.Athatamountofrevenuesequaltofifteenpercent(15%)oftherateofthetaximposedbytheCountyundersection17(2),chapter49,Lawsof1982,FirstExtraordinarySession.B.ThetaxunderRMC5-10-1.Bisassessedonthesellingpriceinthecaseofasalestax,orvalueofthearticleused,inthecaseofausetax.Therateofsuchtaximposedshallbethegreaterofseventy-threeten-thousandthsofonepercent(0.0073%)orthemaximumrateallowedunderRCW82.14.540(orasmaybeamendedinthefuture).5-10-3ADMINISTRATIONANDCOLLECTIONOFTAX:TheadministrationandcollectionofthetaximposedbythisChaptershallbeinaccordancewiththeprovisionsofRCW82.14.050.5-10-4CONSENTTOINSPECTIONOFRECORDS:TheCityherebyconsentstotheinspectionofsuchrecordsasarenecessarytoqualifytheCityforinspectionofrecordsbytheDepartmentofRevenue.5-10-5AUTHORIZINGEXECUTIONOFCONTRACTFORADMINISTRATION:TheMayorandClerkareherebyauthorizedtoenterintoacontractwiththeDepartmentofRevenuefortheadministrationofthistax.5-10-6PENALTIES:AnysellerwhofailsorrefusestocollectthetaxasrequiredwiththeintenttoviolatetheprovisionsofthisSectionortogainsomeadvantageorbenefit,eitherdirectorindirect,andanybuyerwhorefusestopayanytaxdueunderthisChaptershallbeguiltyofamisdemeanor,anduponconvictionthereofshallbepenalizedinaccordancewithRMC1-3-1.5-10-7TAXAPPLICABLETONATURALGASSALES:Thereisherebyimposedasalesorusetaxupontheprivilegeofusingnaturalgasormanufacturedgasasaconsumer.Thissalesandusetaxshallbeapplicabletoallnaturalgasused,includinguseofbrokerednaturalgas.5