HomeMy WebLinkAboutDraft Levy Sales Use Tax for Affordable Housing
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STATE OF WASHINGTON
County of Jefferson
AN ORDINANCE IMPOSING A SALES AND }
USE TAX FOR AFFORDABLE AND } ORDINANCE NO. __________
SUPPORTIVE HOUSING IN ACCORDANCE }
WITH SUBSTITUTE HOUSE BILL 1406 }
(CHAPTER 338, LAWS OF 2019) TO BE }
CREDITED AGAINST THE STATE SALES }
AND USE TAX }
WHEREAS, in the 2019 Regular Session, the Washington State Legislature approved,
and the Governor signed, Substitute House Bill 1406 (Chapter 338, Laws of 2019), which was
codified as RCW 82.14.540 (“RCW 82.14.540”); and
WHEREAS, RCW 82.14.540 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, or, for providing rental assistance to tenants; and
WHEREAS, the tax will be credited against state sales and use taxes collected within the
County and, therefore, will not result in higher sales and use taxes within the County and will
represent an additional source of funding to address housing needs in the County; and
WHEREAS, the tax must be used to assist persons whose income is at or below sixty
percent of the County median income; and
WHEREAS, on July 31, 2017, the Jefferson County Board of Commissioners adopted
Resolution No. 35-17, finding “that an emergency exists with respect to the availability of
housing that is affordable to low-income households and with respect to the availability of
housing that is affordable to very low-income households in Jefferson County,” and has
determined that imposing the sales and use tax authorized by RCW 82.14.540 to help address
this need will benefit its citizens; and
WHEREAS, RCW 82.14.540 authorizes the County to enter into an interlocal agreement
with one or more counties, cities, or public housing authorities for purposes of pooling the tax
monies received, allocating the proceeds, or pledging these taxes to bonds issued by one or more
parties to the agreement, all in accordance with the interlocal agreement and RCW 82.14.540;
and
WHEREAS, in order for a city or county to impose the tax, within six months of the
effective date of RCW 82.14.540, or January 28, 2020, the governing body must adopt a
resolution of intent to authorize the maximum capacity of the tax, and within twelve months of
the effective date of RCW 82.14.540, or July 28, 2020, must adopt legislation to authorize the
maximum capacity of the tax; and
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WHEREAS, the Jefferson County Board of Commissioners adopted Resolution No. 52-
19 on October 14, 2019, declaring the County’s intent to impose a local sales and use tax as
authorized by RCW 82.14.540; and
WHEREAS, the Port Townsend City Council adopted Resolution No. 19-087 on
November 12, 2019, declaring the City’s intent to impose a local sales and use tax within the
City of Port Townsend as authorized by RCW 82.14.540; and
WHEREAS, Jefferson County may use these tax monies in collaboration with the City of
Port Townsend as a means to fully leverage the resources for affordable and supportive housing
or for providing rental assistance, as allowed by RCW 82.14.540;
NOW, THEREFORE, be it ordained by the Jefferson County Board of Commissioners
as follows:
Section 1. Tax Imposed
There is hereby imposed by this ordinance a sales and use tax at the maximum levy rate
authorized by RCW 82.14.540 for the County to levy in unincorporated Jefferson County, and a
sales and use tax at the maximum levy rate authorized by RCW 82.14.540 for the County to levy
in the City of Port Townsend.
Section 2. Applicability of Tax
The tax shall be imposed upon and collected from those persons from whom the state sales and
use tax is collected pursuant to Chapters 82.08 and 82.12 RCW. The rate of tax imposed by this
ordinance shall be applied to the selling price in the case of a sales tax or the value of the article
used in the case of a use tax.
Section 3. Administration and Collection
The tax imposed by this ordinance shall be administered and collected in accordance with
Chapter 82.14.050 RCW.
Section 4. Use of Funds.
Monies collected shall be used for allowable expenditures authorized by RCW 82.14.540.
Section 5. Administration of Fund.
The funds shall be collected in County Fund 148 Jefferson County Affordable Housing, and shall
be administered by the Board of County Commissioners.
Section 6. Expiration
The tax imposed under this Chapter expires 20 years after the date on which the tax is first
imposed.
Section 7. Effective Date.
This ordinance is effective on the date of signing.
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Section 8. Severability.
If any provision of this ordinance or its application to any person or circumstance is held invalid,
the remainder of this ordinance or the application of the remaining provisions to a person or
circumstance shall not be affected.
Section 9. Code Reviser.
The Code Reviser shall codify this ordinance as a separate chapter in Title 3 Revenue And
Finance of the Jefferson County Code, possibly as Chapter 3.29.
ADOPTED this ____ day of December, 2019.
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
SEAL:
______________________________
Kate Dean, Chair
______________________________
David Sullivan, Member
ATTEST: ______________________________
Greg Brotherton, Member
APPROVED AS TO FORM:
______________________________ ______________________________
Carolyn Gallaway, CMC Philip C. Hunsucker, Date
Deputy Clerk of the Board Chief Civil Deputy Prosecuting Attorney