HomeMy WebLinkAbout6732 ORDINANCE NO. 6732
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
AUBURN, WASHINGTON RELATED TO SALES AND USE
TAXES; AUTHORIZING AN ADDITIONAL SALES AND USE TAX
FOR AFFORDABLE AND SUPPORTIVE HOUSING, AND
AMENDING CHAPTER 3.60 OF THE AUBURN CITY CODE
WHEREAS, in the 2019 Regular Session, the Washington State Legislature
approved, and the Governor signed, Substitute House Bill 1406 (Chapter 338, Laws of
2019) ("SHB 1406"); and
WHEREAS, 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, for the operations and maintenance
costs of affordable or supportive housing, or, if eligible, for providing rental assistance to
tenants, when that use is for persons whose income is at or below sixty percent of the
King County median income; and
WHEREAS, the tax will be credited against state 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; and
WHEREAS, on October 22, 2018 city staff informed City Council that the City of
Auburn's adopted 2015 Comprehensive Plan Housing Element indicates that there are at
least 2,430 dwelling units in Auburn where more than 30% of household income is
dedicated to rent or mortgage payments. This means that there is a need to take action
to create, preserve and promote opportunities for more affordable housing within the
community; and
Ordinance No. 6732
September 10, 2019
Page 1
WHEREAS, believing that imposing the sales and use tax will help address this
need and will benefit Auburn residents, the Auburn City Council adopted Resolution 5454
on September 16, 2019 declaring its intent to authorize the maximum capacity of the tax,
which meets the statutory requirement to adopt a resolution of intent within six months of
the effective date of SHB 1406; and
WHEREAS, the City Council of the City of Auburn has determined that it is in the
best interest of the City to enact legislation that authorizes a sales and use tax for
affordable and supportive housing.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as follows:
Section 1. Amendment to City Code. Sections 3.60.010 and 3.60.020 of the
Auburn City Code are amended as shown in Exhibit A.
Section 2. Implementation. The Mayor is authorized to implement those
administrative procedures necessary to carry out the directives of this legislation.
Section 3. Severability. The provisions of this ordinance are declared to be
separate and severable. The invalidity of any clause, sentence, paragraph, subdivision,
section or portion of this ordinance, or the invalidity of the application thereof to any
person or circumstance shall not affect the validity of the remainder of this ordinance, or
the validity of its application to other persons or circumstances.
Ordinance No. 6732
September 10, 2019
Page 2
Section 4. Effective Date. This Ordinance shall take effect and be in force five
days from and after its passage, approval and publication as provided by law.
INTRODUCED: SFP 1 6 201
PASSED: SEP 1 6 201
APPROVED: SEP 1 6 20T9
CITY OF AUBURN
ANCY B S, MAYOR
ATTEST: APPROVED AS TO FORM:
e
Shawn Campbell, MMC,'City Clerk Steven L. Gross, City Attorney
PUBLISHED: 611/Attl.CRIA
Ordinance No. 6732
September 10, 2019
Page 3
Ord 6732 Exhibit A
3.60.010 Imposition of tax.
A, There is imposed a sales or use tax, as the case may be, as authorized by RCW 82.14.030(2),
upon every taxable event, as defined in RCW 82.14.020, occurring within the city. The tax shall be
imposed upon and collected from those persons from whom the state sales tax or use tax is
collected pursuant to Chapters 82.08 and 82.12 RCW.
B. There is imposed an additional sales or use tax upon every taxable event, as defined in RCW
82.14.020, occurring within the City, as authorized by Laws of the State of Washington, Chapter 338,
§1. Money collected under this subsection must be used solely, as required by Laws of 2019, Ch.
338, § 1 (or as may be amended in the future), for the purpose of providing rental assistance, or for
acquiring, rehabilitating, or constructing affordable housing, which may include new units of
affordable housing within an existing structure or facilities providing supportive housing services
under RCW 71.24.385. or funding the operations and maintenance costs of new units of affordable
or supportive housing. This additional sales or use tax shall expire 20 years after the first date it is
first imposed. (Ord. 3822§ 1, 1982.)
3.60.020 Rate of tax imposed.
A. The rate of the tax imposed by ACC 3.60.010A shall be one-half of one percent of the selling
price or value of the article used, as the case may be; provided, however, that during such period as
there is in effect a sales tax or use tax imposed by King County under Section 17(2), Chapter 49,
Laws of 1982, First Extraordinary Session at a rate equal to or greater than the rate imposed by this
section, the county shall receive 15 percent of the tax imposed by ACC 3.60.010; provided further,
that during such period as there is in effect a sales tax or use tax imposed by King County under
Section 17(2), Chapter 49, Laws of 1982, First Extraordinary Session at a rate which is less than the
rate imposed by this section, the county shall receive from the tax imposed by ACC 3.60.010 that
amount of revenues equal to 15 percent of the rate of the tax imposed by the county under Section
17(2), Chapter 49, Laws of 1982, First Extraordinary Session.
B. The rate of the tax imposed by ACC 3.60.010B shall be the greater of 0.0073 percent of the
selling price or value of the article used, or the maximum rate allowed to the City under Laws of
2019, Ch. 338, § 1 (or as may be amended in the future). (Ord.4176§ 1, 1986; Ord. 3938§ 1, 1984; Ord.
3822§2, 1982.)
Ordinance No. 6732
September 10, 2019
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