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HomeMy WebLinkAbout3655 ,3 ORDINANCE NO. AN ORDINANCE of the City of Port Angeles, imposing the Local Sales, and Use Tax authorized under Laws of 2019, Ch. 338 (House Bill 1406) to be used for the affordable housing and providing for other matters properly relating thereto. WHEREAS, in the 2019 Regular Session, the Washington State Legislature: approved, and the Governor signed,, Substitute House! Bill 1406 (chapter 338, Laws of 2019) ("SH13 1406"); and WHEREAS, SH13 140�6 authorizes the governing body of a city with a population of 100�,000 or less to impose a local sales and use tax for the acquisition, construction, or Irehabilitation of affordable housing or facilities providing, supportive housing, operations and 1 ,�rnaintcmance costs of affordable or supportive housing,, or rental assistance to tenants- and WHEREAS, the tax will be credited against existing state sales taxes collected within the City and therefore, will not result in higher sales and use taxes, within the City but will provide !additional ftinding to address affordable,housing needs in the City-, and f WI-111REAS, the City has, identified a housing affordability crisis, in that many people are I I 1paying more than 50 or 60 percent of income on rent; 1 WHEREAS, people are living in places that are not meant to be housing, such as cars or streets, and others are on the verge o fhomelessness; WHEREAS, the additional revenue will benefit most people who need it the most, WHEREAS, based on the facts recited above, Council has determined that imposing the sales and use tax to address affordable housing will benefit the citizens of Port Angeles, and WHEREAS, the City Council previously adopted a resolution of intent to authorize the maximum capacity of the tax, NOW, "rHEREFORE, THE CITY COUNCIL OF THE CITY OF PORT ANGELES DO HEREBY ORDAIN AS FOLLOWS: Section 1. Findings. The City Council ( "Council") of the City of Port Angeles, Washington (the "City"), makes the following findings and determinations: 1 .1 SHB 1406 authorizes cities to impose a sales and use tax increase of 0,01460 (the "State-Shared Affordable Housing Sales and Use Tax"), provided that the revenues, are dedicated to the affordable housing purposes as defined in that statute, Upon imposition of,the increase, the tax imposed will be deducted frorn the amount of State sales and use tax to be collected within the City, subject to the annual cap described in that statute, 1.2 On July 16,2019 Council passed Resolution 14-19 indicating its intention to impose the sales tax credit at its maximum capacity,, which constitutes the resolution of intent required by �ISHB 14K 1.3 On July 16, 2019 Council passed Resolution 14-19, authorizing time submission of a proposition to the qualified electors of the City asking whether the City should impose a qualifying, local tax of 0.1 percent pursuant to RCW 82.14.,530. 1.4 On September 3, 2019, the Council adopted a resolution declaring how the funds from HB 1406 and from RCW 82.14,5 3 0 would be appl i ed. 1.5 On November 5, 2019 a majority of qualified electors of the City approved the �proposition imposing a qualifying local tax of 0.1 percent pursuant to RCW 82.14.530, 1.6 w This qualifying local tax ill be imposed starting on April 1 20M 1.7 The Council finds that the City has satisfied all prerequisites to imposing the State- Shared Affordable Housing Sales and Use Tax at a rate of 0.0146%, including having imposed a Qualifying Local Tax, and finds it in the City' s best interest to begin imposing, the tax. Section 2. Affordable Housing Sales and Use Tax Imposed. 2.1 Tax Imposed; Effective Date, As authorized by SHB 1406, the City hereby imposes �a State-Shared Affordable Housing Sales and Use Tax at a rate of 0,0146% of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax. The tax shall become effective as of April 1, 2020 or the earliest practicable date consistent with RCW 82.1 4.055, whichever is, sooner. 22 Tax Imposed, Expiration Date. The tax imposed by this Ordinance expires twenty years after the date on which the tax is first imposed. Section 3. Administration. The City Clerk is directed to cause a certified copy of this ordinance to be delivered to the State of Washington Department of Revenue and any other public officers or agencies required by law. The City Finance Director and other appropriate officers are 2 authorized and directed to enter into such contracts with and provide such notices to the State Department of Revenue and other appropriate state or local agencies for the collection and distribution of the tax imposed by this ordinance as may be necessary or convenient consistent with chapter 82,14 RCW and other,applicable law. Section 4. Non-Codification. This Ordinance shall, not be codified in the Port Angeles Municipal Code, Section 5. Ratification. All actions taken in furtherance of and not inconsistent with this, ordinance are ratified and confirmed in all rspects,. Section 6. Severability., If any provisions of this Ordinance, or its application to any person or circumstances, are held invalid, the remainder of the Ordinance, or application of the f provisions of the Ordinance to other persons,or circumstances, is not affected. Section 7. Corrections. The City Clerk and the codifiers of this ordinance are 1 kauthorized to make necessary corrections to this ordinance including, but not limited to, the correction of the scrivener's/clerical errors, references to other local, state, or federal laws, codes, rules or regulations, or ordinance numbering, section/subsection numbers and any references !thereto. Section 8. Effective Date. This Ordinance, being an exercise of a, power specifically delegated to the City legislative body, is not subject to referendum. This ordinance shall take effect Ir five (5) days after passage and publication of an approved summary thereof consisting of the title. it PASSED by the City Council of the City of Port Angeles at a regular meeting of said Council held on the 41h day of February, 2020. Kate Dexter, Mayor VAPPR ED As TO FORM William E. Bloor, City Attorney Mari Martinez-bailey, City II lJ Summary of Ordinance Adopted by the Port Angeles City Council on February 4, 2020 ORDINANCE NO. 3655 AN ORDINANCE of the City of Port Angeles, imposing the Local Sales and Use Tax authorized under Laws of 2019, Ch. 338 (House Bill 1406) to be used for the affordable housing and providing for other matters properly relating thereto. This ordinance is not subject to referendum and shall take effect 5 days after passage and publication of summary. The full texts of Ordinances are available at City Hall in the Clerk's office, on the City's website at www.._ci. o� or will be mailed upon request. Office hours are Monday through Friday 8:00 a.m. to 5:00 p.m. Kari Martinez-Bailey City Clerk Published by summary: ??? 2020