HomeMy WebLinkAbout101016_ca01JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO: Board of Commissioners
FROM: Philip Morley, County Administrator
DATE: October 10, 2016
RE: HEARING NOTICE re: Proposed Ordinance Amending Ordinance No.
05-0709-07 to Amend the Expiration Date of the Collection of Rural
County Sales and Use Tax in Jefferson County; Hearing Scheduled for
Monday, October 24, 2016 at 10:00 a.m. in the Commissioners' Chambers
STATEMENT OF ISSUE:
By Ordinance, the Board of County Commissioners raised the amount Jefferson County collects
for Rural County Sales and Use Tax for Public Facilities to 0.09 percent beginning August 1,
2007 expiring June 30, 2023. By law, Jefferson County's tax could expire on July 31, 2032.
This amended Ordinance changes the expiration date of this tax from 2023 to 2032. In order to
change this County Ordinance, a hearing must be held.
BACKGROUND;
This tax was originally authorized by the BOCC in 1998 at 0.04 percent, and raised in 1999 to
0.08 percent prior to increasing to 0.09 percent in 2007. The tax is credited against the
Washington State portion of the sales and use tax, thus does not increase the overall sales and use
tax for the citizens of Jefferson County. (Note: Over the years, this tax has also been referred to
also as the Distressed County Sales Tax or the Public Infrastructure Tax.)
ANALYSIS:
The 2007 amended Ordinance stated that the expiration date of the tax was June 30, 2023. RCW
82.14.370 4(b) states the expiration date may be as follows:
"For counties imposing the tax at the rate of 0.09 percent before August 1, 2009, the tax
expires on the date that is twenty-five years after the date that the 0.09 percent tax rate
was first imposed by that county"
The 0.09 percent tax was imposed August 1, 2007, twenty-five years after that date is July 31,
2032.
FISCAL IMPACT:
This modifies the Ordinance to allow the County to collect the tax until July 31, 2032, an
additional 10 years as allowed by RCW 82.14.370.
RECOMMENDATION:
Approve Notice of Public Hearing set for October 24, 2016 at 10:00 a.m. in the Commissioners
Chambers to Amend Ordinance No. 05-0709-07 changing the expiration date of the imposition
of the Rural County Sales and Use Tax.
+ + + D BY:
54
hilip e County Ad strator Date
Please publish 1 time: October 12, 2016
Bill to: Jefferson County Commissioner's Office
1820 Jefferson PO Box 1220
Port Townsend, WA 98368
Non -Departmental: Account #15829
NOTICE IS HEREBY GIVEN that a public hearing be is scheduled by the Jefferson County
Board of Commissioners for MONDAY, October 24 at 10:00 a.m. in the Commissioners'
Chambers, County Courthouse, 1820 Jefferson Street, Port Townsend Washington 98368.
This public hearing has been scheduled for the Commissioners to take comments for and against
a proposed ordinance to amend the expiration date of the collection of rural County Sales and
Use Tax as provided below.
JEFFERSON COUNTY BOARD OF COMMISSIONERS
Kathleen Kler, Chair
STATE OF WASHINGTON
In the Matter of Amending
Ordinance No. 05-0709-07
Changing the Expiration Date of the
Collection of Rural County Sales
and Use Tax in Jefferson County
County of Jefferson
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WHEREAS, the Washington State Legislature adopted chapter 478, Laws of 2007
amending RCW 82.14.370 to support economic development in rural areas; and,
WHEREAS, the Washington State Legislature's intent by adopting this law is to assist
rural areas in their ongoing efforts to address difficult economic problems by providing a
comprehensive and significant array of economic tools; and
WHEREAS, the Distressed County Sales and Use Tax was first imposed at the rate of
0.04 percent in Jefferson County by Ordinance No. 01-05094-98, amended by Ordinance No. 04-
0621-99 to increase the rate as allowed by law to 0.08 percent and amended by Ordinance No.
05-0709-07 as allowed by E2SSB 5557 to 0.09 percent; and
WHEREAS, E2SSB 5557 provides that monies collected shall only be used for the
purpose of financing public facilities and may not be used to fund justice system facilities; and,
WHEREAS, E2SSB 5557 provides that imposition of this tax increase is credited against
the Washington State portion of the sales and use tax, thus does not increase the overall sales and
use tax for the citizens of Jefferson County, and
WHEREAS, Per Ordinance 05-0709-07, Jefferson County modified Ordinance 01-0504-
98 to increase the tax amount to 0.09 percent effective August 1, 2007 to expire as June 30,
2023; and
WHEREAS, RCW 82.14.370 4(b) states "For counties imposing the tax at the rate of
0.09 percent before August 1, 2009, the tax expires on the date that is twenty-five years after the
date that the 0.09 percent tax rate was first imposed by that county"; and,
WHEREAS, twenty-five years after the date the 0.09 percent tax was imposed in
Jefferson County is July 31, 2032.
NOW, THEREFORE, BE IT ORDAINED, by the Board of County Commissioners of
Jefferson County, Washington that:
Section 1: Hereby amend Section 8 — Effective Date and Expiration Date to read as
follows:
This ordinance shall take effect August 1, 2007 and shall expire as provided by law July
31, 2032, which is twenty-five years after the date the 0.09 percent tax rate was first imposed by
the County.