HomeMy WebLinkAboutResolutions - 2019-18 - Declaring the intent of the City to adopt legislation to authorize a sales and use tax for affordable and supportive housing in accordance w/House Bill 1406. - 8/20/2019City of East Wenatchee Resolution No. 2019-18 Page 1 of 3 Retain Ordinance until no longer needed for City-business, then transfer to Washington State Archives (GS50-05A-16 Rev. 1)
City of East Wenatchee, Washington
Resolution No. 2019-18
A Resolution of the City of East Wenatchee, Washington declaring the
intent of the City Council to adopt legislation to authorize a sales and
use tax for affordable and supportive housing in accordance with
Substitute House Bill 1406 (Chapter 338, Laws of 2019).
1. Alternate format.
1.1. Para leer este documento en otro formato (español, Braille, leer en voz alta, etc.), póngase en contacto con el vendedor de la ciudad al alternatformat@east-wenatchee.com, al (509) 884-9515 o al 711 (TTY).
1.2. To read this document in an alternate format (Spanish, Braille, read aloud, etc.), please contact the City Clerk at alternateformat@east-wenatchee.com, at (509) 884-9515, or at 711 (TTY).
2. Authority.
2.1. RCW 35A.11.020 and RCW 35A.13.190 authorize the City Council
to organize and regulate its internal affairs and to define the
powers, functions and duties of its officers and employees.
2.2. RCW 82.14 authorizes the City to authorize, fix, and impose a sales
and use tax.
3. Recitals.
3.1. During the 2019 Regular Session, the Washington State
Legislature approved, and the Governor signed, Substitute House
Bill 1406 (Chapter 338, Laws of 2019) ("SHB 1406") creating a
sales and use tax, revenue-sharing program for local investments
in affordable housing.
3.2. 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 for the operations and maintenance costs
of affordable or supportive housing, and for cities of 100,000 or
less for providing rental assistance to tenants.
City of East Wenatchee Resolution No. 2019-18 Page 2 of 3 Retain Ordinance until no longer needed for City-business, then transfer to Washington State Archives (GS50-05A-16 Rev. 1)
3.3. The sales and use tax must be used to assist persons whose income
is at or below 60 percent of the City median income.
3.4. The sales and use tax provided to the City under SHB 1406 will be
credited against state share of sales taxes collected within the City
and, therefore, will not result in higher sales and use taxes within
the City and will represent an additional source of funding to
address housing needs in the City.
3.5. To take advantage of this funding source, the City Council must
pass a Resolution of intent by January 31, 2020 and within twelve
months of the effective date of SHB 1406, or July 28, 2020, must
adopt legislation to authorize the maximum capacity of the tax.
3.6. The City must submit annual reports on the collection and uses of
the revenue to the Department of Commerce.
3.7. The City Council has determined that imposing the sales and use
tax program authorized by SHB 1406 to address the housing needs
of the community will benefit its citizens.
3.8. The City Council now desires to declare its intent to impose a local
sales and use tax as authorized by SHB 1406 as set forth herein.
This Resolution constitutes the resolution of intent required by
SHB 1406.
THE CITY COUNCIL OF THE CITY OF EAST WENATCHEE DO RESOLVE AS FOLLOWS:
4. Declaration of Intent. The City 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.
5. Further Authority; Ratification. The City Council authorizes and
directs all City officials, their agents, and representatives to undertake all
action necessary or desirable from time to time to carry out the terms of,
and complete the actions contemplated by, this Resolution.
6. Severability. The provisions of this Resolution are declared separate
and severable. The invalidity of any clause, sentence, paragraph,
subdivision, section, or portion of this Resolution or the invalidity of the
application thereof to any person or circumstance, shall not affect the
CERTIFICATION OF ENROLLMENT
SUBSTITUTE HOUSE BILL 1406
Chapter 338, Laws of 2019
66th Legislature
2019 Regular Session
AFFORDABLE AND SUPPORTIVE HOUSING--LOCAL SALES AND USE TAX
EFFECTIVE DATE: July 28, 2019
Passed by the House April 28, 2019
Yeas 62 Nays 36
FRANK CHOPP
Speaker of the House of Representatives
Passed by the Senate April 28, 2019
Yeas 33 Nays 15
CYRUS HABIB
President of the Senate
CERTIFICATE
I, Bernard Dean, Chief Clerk of the
House of Representatives of the
State of Washington, do hereby
certify that the attached is
SUBSTITUTE HOUSE BILL 1406 as
passed by the House of
Representatives and the Senate on
the dates hereon set forth.
BERNARD DEAN
Chief Clerk
Approved May 9, 2019 2:51 PM FILED
May 13, 2019
JAY INSLEE
Governor of the State of Washington
Secretary of State
State of Washington
AN ACT Relating to encouraging investments in affordable and1
supportive housing; and adding a new section to chapter 82.14 RCW.2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
NEW SECTION. Sec. 1. A new section is added to chapter 82.144
RCW to read as follows:5
(1) The definitions in this subsection apply throughout this6
section unless the context clearly requires otherwise.7
(a) "Nonparticipating city" is a city that does not impose a8
sales and use tax in accordance with the terms of this section.9
(b) "Nonparticipating county" is a county that does not impose a10
sales and use tax in accordance with the terms of this section.11
(c) "Participating city" is a city that imposes a sales and use12
tax in accordance with the terms of this section.13
(d) "Participating county" is a county that imposes a sales and14
use tax in accordance with the terms of this section.15
(e) "Qualifying local tax" means the following tax sources, if16
the tax source is instated no later than twelve months after the17
effective date of this section:18
(i) The affordable housing levy authorized under RCW 84.52.105;19
SUBSTITUTE HOUSE BILL 1406
AS AMENDED BY THE SENATE
Passed Legislature - 2019 Regular Session
State of Washington 66th Legislature 2019 Regular Session
By House Housing, Community Development & Veterans (originally
sponsored by Representatives Robinson, Macri, Chapman, Valdez, Senn,
Peterson, Kloba, Tharinger, Gregerson, Stanford, Walen, Doglio,
Frame, Jinkins, Riccelli, Slatter, Ormsby, and Santos)
READ FIRST TIME 02/08/19.
p. 1 SHB 1406.SL
(ii) The sales and use tax for housing and related services1
authorized under RCW 82.14.530, provided the city has imposed the tax2
at a minimum or at least half of the authorized rate;3
(iii) The sales tax for chemical dependency and mental health4
treatment services or therapeutic courts authorized under RCW5
82.14.460 imposed by a city; and6
(iv) The levy authorized under RCW 84.55.050, if used solely for7
affordable housing.8
(2)(a) A county or city legislative authority may authorize, fix,9
and impose a sales and use tax in accordance with the terms of this10
section.11
(b) The tax under this section is assessed on the selling price12
in the case of a sales tax, or value of the article used, in the case13
of a use tax.14
(c) The rate of the tax under this section for an individual15
participating city and an individual participating county may not16
exceed:17
(i) Beginning on the effective date of this section until twelve18
months after the effective date of this section:19
(A) 0.0073 percent for a:20
(I) Participating city, unless the participating city levies a21
qualifying local tax; and22
(II) Participating county, within the limits of nonparticipating23
cities within the county and within participating cities that do not24
currently levy a qualifying tax;25
(B) 0.0146 percent for a:26
(I) Participating city that currently levies a qualifying local27
tax;28
(II) Participating city if the county in which it is located29
declares they will not levy the sales and use tax authorized under30
this section or does not adopt a resolution in accordance with this31
section; and32
(III) Participating county within the unincorporated areas of the33
county and any city that declares they will not levy the sales and34
use tax authorized under this section or does not adopt a resolution35
in accordance with this section;36
(ii) Beginning twelve months after the effective date of this37
section:38
(A) 0.0073 percent for a:39
p. 2 SHB 1406.SL
(I) Participating city that is located within a participating1
county if the participating city is not levying a qualifying local2
tax; and3
(II) Participating county, within the limits of a participating4
city if the participating city is not levying a qualifying local tax;5
(B) 0.0146 percent within the limits of a:6
(I) Participating city that is levying a qualifying local tax;7
and8
(II) Participating county within the unincorporated area of the9
county and within the limits of any nonparticipating city that is10
located within the county.11
(d) A county may not levy the tax authorized under this section12
within the limits of a participating city that levies a qualifying13
local tax.14
(e)(i) In order for a county or city legislative authority to15
impose the tax under this section, the authority must adopt:16
(A) A resolution of intent to adopt legislation to authorize the17
maximum capacity of the tax in this section within six months of the18
date in which this section takes effect; and19
(B) Legislation to authorize the maximum capacity of the tax in20
this section within one year of the date on which this section takes21
effect.22
(ii) Adoption of the resolution of intent and legislation23
requires simple majority approval of the enacting legislative24
authority.25
(iii) If a county or city has not adopted a resolution of intent26
in accordance with the terms of this section, the county or city may27
not authorize, fix, and impose the tax.28
(3) The tax imposed under this section must be deducted from the29
amount of tax otherwise required to be collected or paid to the30
department of revenue under chapter 82.08 or 82.12 RCW. The31
department must perform the collection of such taxes on behalf of the32
county or city at no cost to the county or city.33
(4) By December 31, 2019, or within thirty days of a county or34
city authorizing the tax under this section, whichever is later, the35
department must calculate the maximum amount of tax distributions for36
each county and city authorizing the tax under this section as37
follows:38
(a) The maximum amount for a participating county equals the39
taxable retail sales within the county in state fiscal year 201940
p. 3 SHB 1406.SL
multiplied by the tax rate imposed under this section. If a county1
imposes a tax authorized under this section after a city located in2
that county has imposed the tax, the taxable retail sales within the3
city in state fiscal year 2019 must be subtracted from the taxable4
retail sales within the county for the calculation of the maximum5
amount; and6
(b) The maximum amount for a city equals the taxable retail sales7
within the city in state fiscal year 2019 multiplied by the tax rate8
imposed under subsection (1) of this section.9
(5) The tax must cease to be distributed to a county or city for10
the remainder of any fiscal year in which the amount of tax exceeds11
the maximum amount in subsection (4) of this section. The department12
must remit any annual tax revenues above the maximum to the state13
treasurer for deposit in the general fund. Distributions to a county14
or city meeting the maximum amount must resume at the beginning of15
the next fiscal year.16
(6)(a) If a county has a population greater than four hundred17
thousand or a city has a population greater than one hundred18
thousand, the moneys collected or bonds issued under this section may19
only be used for the following purposes:20
(i) Acquiring, rehabilitating, or constructing affordable21
housing, which may include new units of affordable housing within an22
existing structure or facilities providing supportive housing23
services under RCW 71.24.385; or24
(ii) Funding the operations and maintenance costs of new units of25
affordable or supportive housing.26
(b) If a county has a population of four hundred thousand or less27
or a city has a population of one hundred thousand or less, the28
moneys collected under this section may only be used for the purposes29
provided in (a) of this subsection or for providing rental assistance30
to tenants.31
(7) The housing and services provided pursuant to subsection (6)32
of this section may only be provided to persons whose income is at or33
below sixty percent of the median income of the county or city34
imposing the tax.35
(8) In determining the use of funds under subsection (6) of this36
section, a county or city must consider the income of the individuals37
and families to be served, the leveraging of the resources made38
available under this section, and the housing needs within the39
jurisdiction of the taxing authority.40
p. 4 SHB 1406.SL
(9) To carry out the purposes of this section including, but not1
limited to, financing loans or grants to nonprofit organizations or2
public housing authorities, the legislative authority of the county3
or city imposing the tax has the authority to issue general4
obligation or revenue bonds within the limitations now or hereafter5
prescribed by the laws of this state, and may use, and is authorized6
to pledge, the moneys collected under this section for repayment of7
such bonds.8
(10) A county or city may enter into an interlocal agreement with9
one or more counties, cities, or public housing authorities in10
accordance with chapter 39.34 RCW. The agreement may include, but is11
not limited to, pooling the tax receipts received under this section,12
pledging those taxes to bonds issued by one or more parties to the13
agreement, and allocating the proceeds of the taxes levied or the14
bonds issued in accordance with such interlocal agreement and this15
section.16
(11) Counties and cities imposing the tax under this section must17
report annually to the department of commerce on the collection and18
use of the revenue. The department of commerce must adopt rules19
prescribing content of such reports. By December 1, 2019, and20
annually thereafter, and in compliance with RCW 43.01.036, the21
department of commerce must submit a report annually to the22
appropriate legislative committees with regard to such uses.23
(12) The tax imposed by a county or city under this section24
expires twenty years after the date on which the tax is first25
imposed.26
Passed by the House April 28, 2019.
Passed by the Senate April 28, 2019.
Approved by the Governor May 9, 2019.
Filed in Office of Secretary of State May 13, 2019.
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p. 5 SHB 1406.SL