HomeMy WebLinkAboutOrdinance to Enact Affordable Housing Sales and Use Tax under RCW 82.14.530 - for 12 21 2020 HearingJEFFERSON COUNTY
STATE OF WASHINGTON
AN ORDINANCE IMPOSING AN ADDITIONAL }
SALES AND USE TAX OF ONE -TENTH OF ONE }
PERCENT FOR HOUSING AND RELATED }
SERVICES AS AUTHORIZED BY RCW 82.14.530; } ORDINANCE NO.
ADDING A NEW CHAPTER 3.33 TO JEFFERSON }
COUNTY CODE; PROVIDING SEVERABILITY; }
AND ESTABLISHING AN EFFECTIVE DATE }
WHEREAS, in the 2020 Regular Session, the Washington State Legislature approved,
and the Governor signed, House Bill 1590 (Chapter 222, Laws of 2020), which amended RCW
82.14.530 Sales and Use Tax For Housing And Related Services; and
WHEREAS, as amended, RCW 82.14.530 authorizes the governing body of a city or
county to impose a local sales and use tax for affordable housing and related services; and
for:
WHEREAS, pursuant to RCW 82.14.530(2)(a), at least 60% of the revenue must be used
i) constructing affordable housing or facilities providing housing -related services,
where the housing or facilities providing services are provided to people whose
income is 60% or less of the county median income and who are within specified
population groups listed in RCW 82.14.530(2)(b);
ii) constructing mental and behavioral health -related facilities; or
iii) funding the operations and maintenance costs of new units of affordable housing,
of facilities where housing -related programs are provided, or of newly constructed
evaluation and treatment centers; and
WHEREAS, pursuant to RCW 82.14.530(2)(c), the remaining revenue from the sales and
use tax must be used for the operation, delivery, or evaluation of mental and behavioral health
treatment programs and services or housing -related services; and
WHEREAS, pursuant to RCW 82.14.530(6)(b), no more than 10% of the revenue may be
used to supplant existing local funds; and
WHEREAS, as referenced in RCW 82.14.530(4), Jefferson County imposed a sales and
use tax for chemical dependency or mental health treatment services or therapeutic courts county-
wide pursuant to RCW 82.14.460 in 2005, which is before October 9, 2015, and the City of Port
Townsend did not impose the tax authorized by RCW 82.14.460 prior to October 9, 2015; 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
WHEREAS, the housing affordability problem and its impact to increase homelessness in
Jefferson County has continued to get worse since 2017, and requires prompt attention to reduce
human suffering for County residents; and
WHEREAS, over the course of two months, five local affordable housing provider
organizations — the Peninsula Housing Authority, Olympic Community Action Programs, Bayside
Housing Services, DOVE House, and Habitat for Humanity of East Jefferson County — worked
with City and County staff to develop a blueprint for how new revenue from an affordable housing
sales tax authorized by House Bill 1590 could be used to create permanent affordable rental and
resident -owned housing in the initial years if a sales tax were passed, and how this revenue could
be managed effectively in the longer term to create affordable housing in Jefferson County, which
the organizations summarized in a Draft Strategy For Permanent Affordable Housing; and
WHEREAS, on November 13, 2020, the Joint Oversight Board of the City and County
transmitted to the Board of County Commissioners its recommendation that the Board consider
adopting a 1/loth of 1% Sales Tax for Affordable Housing under RCW 82.14.530, consistent with
the draft strategy for permanent Affordable Housing.; and
WHEREAS, on December 7, 2020, the Port Townsend City Council voted unanimously
to adopt City Resolution No. 20-063 urging the Jefferson County Board of Commissioners to
consider imposing the sales and use tax for housing and related services authorized by RCW
82.14.530 guided by the draft housing strategy developed in partnership by the City, County and
providers; and
WHEREAS, there is an urgent need for additional affordable housing in Jefferson County;
WHEREAS, the Jefferson County Board of Commissioners held a duly noticed Public
Hearing on December 21, 2020 to take testimony for and against a proposed ordinance to levy a
one -tenth of one percent sales and use tax for housing and related services as authorized by RCW
82.14.530, and deliberated on the hearing record; and
WHEREAS, Jefferson County has determined that the tax should be imposed and that the
proceeds will be used solely for purposes authorized by RCW 82.14.530;
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NOW, THEREFORE, Jefferson County Board of Commissioners hereby ordains as
follows:
Section 1. Additional Sales and Use Tax Imposed. A new Chapter 3.33 is hereby added to the
Jefferson County Code imposing the one -tenth of one percent sales and use tax authorized by RCW
82.14.530, and shall read as follows:
Chapter 3.33
ADDITIONAL SALES AND USE TAX - HOUSING AND RELATED SERVICES
(1) Tax Imposed. There is hereby imposed an additional sales and use tax, separate and apart
from any other sales and use tax imposed by this title, upon every taxable event occurring
in the County, to be used for housing and related services as authorized by RCW 82.14.530.
(2) Applicability of Tax. As used in this section, the term "taxable event" has the same
meaning as in RCW 82.14.020(3), as it now exists or may be amended.
(3) Rate of Tax. The rate of the sales and use tax imposed by this chapter shall be one -tenth
of one percent of the selling price, in the case of a sales tax, or the value of the article used,
in the case of a use tax.
(4) Administration and Collection. The tax shall be imposed upon and collected from those
persons from whom the state sales tax or use tax is collected pursuant to Chapter 82.08
RCW and Chapter 82.12 RCW.
(5) Use of Funds. Moneys collected from the tax shall be used solely for those housing and
related services authorized by RCW 82.14.530, as it now exists or may be amended.
(6) Administration of Funds. The Funds shall be collected in a Jefferson County fund dedicated
to affordable housing, and shall be administered by the Board of County Commissioners
or the Board's designee.
Section 2. Severability. If any section, sentence, clause or phrase of this ordinance should be held
to be invalid or unconstitutional by a court, board or tribunal of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of any other
section, sentence, clause or phrase of this ordinance.
Section 3. Effective Date. This ordinance or a summary thereof consisting of the title shall be
published in the official newspaper of the County and shall take effect and be in full force five (5)
days after publication, provided, that pursuant to RCW 82.14.055 the additional sales and use tax
imposed by Section 1 shall apply only to taxable events occurring on and after April 1, 2021.
Section 4. Code Reviser. The Code Reviser shall codify this ordinance as a separate chapter in
Title 3 Revenue And Finance of the Jefferson County Code, namely as Chapter 3.33 JCC.
SEAL:
ADOPTED this day of 2020, at p.m.
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
Greg Brotherton, Chair
Kate Dean, Member
David Sullivan, Member
ATTEST: APPROVED AS TO FORM:
Carolyn Gallaway, Date
Deputy Clerk of the Board
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Philip C. Hunsucker, Date
Chief Civil Deputy Prosecuting Attorney