HomeMy WebLinkAboutRES 4386 CITY OF RENTON, WASHINGTON
RESOLUTION NO. 4386
A RESOLUTION OF THE CITY OF RENTON, WASHINGTON, DECLARING INTENT TO
ADOPT LEGISLATION TO AUTHORIZE A SALES AND USE TAX FOR AFFORDABLE
AND SUPPORTIVE HOUSING IN ACCORDANCE WITH SUBSTITUTE HOUSE BILL
1406.
WHEREAS, in the 2019 Regular Session, the Washington State Legislature enacted, and
the Governor signed, Substitute House Bill 1406 (Chapter 338, Laws of 2019) ("SHB 1406"); and
WHEREAS, SHB 1406 authorizes the governing body of a city or county to impose a local
sales and use tax for the acquisition, construction or rehabilitation of affordable housing or
facilities providing supportive housing, and/or for the operations and maintenance costs of
affordable or supportive housing; and
WHEREAS, the tax will be credited against existing state sales taxes collected within the
City, providing additional funding to address critical housing needs within the community while
not resulting in any new tax burden on the citizens and businesses of Renton; and
WHEREAS,the tax must be targeted toward assisting people whose income is at or below
60 percent of the King County Area Median Income; and
WHEREAS, the City has determined that imposing the sales and use tax, to be credited
against the state sales tax, addresses a high-priority need that will provide benefits to its citizens;
and
WHEREAS, in order for the City to impose the tax, the City Council must adopt within six
months of the effective date of SHB 1406(by January 28, 2020), a resolution of intent to authorize
the maximum capacity of the tax, and within 12 months of the effective date of SHB 1406, (by
July 28, 2020), must adopt legislation to authorize the maximum capacity of the tax; and
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RESOLUTION NO. 4386
WHEREAS,the maximum capacity that may be credited against the state sales tax is based
upon either a 0.0146 percent or 0.0073 percent sales tax rate, the higher of which will be
available only if the City, and its residents through an approved ballot measure, separately
authorize a qualifying affordable housing property tax levy; and
WHEREAS,this Resolution constitutes the resolution of intent required by SHB 1406; and
WHEREAS, the City Council desires to authorize the maximum capacity of the local sales
and use tax as authorized by SHB 1406 to be credited against the state sales tax, as set forth
herein;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RENTON, WASHINGTON, DO
RESOLVE AS FOLLOWS:
SECTION I. The Council declares its intent to adopt legislation to authorize the
maximum capacity of the sales and use tax authorized by SHB 1406 within one year of the
effective date of SHB 1406, or by July 28, 2020.
PASSED BY THE CITY COUNCIL this 12th day of August, 2019.
Jas A. Seth, C' lerk
APPROVED BY THE MAYOR this 12th day of August, 2 9.
Denis Law, Mayor
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RESOLUTION NO. 4386
Approved as to form:
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Shane Moloney, City Attorney * - AL
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