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ORDINANCE NO. 6020
AN ORDINANCE OF THE CITY OF AUBURN,
WASHINGTON, AMENDING AUBURN CITY CODE
SECTION 3.94.040 RELATING TO MULTI-FAMILY
PROPERTY TAX EXEMPTION
WHEREAS, in 1995 the Washington State Legislature adopted Chapter
84.14 RCW, to encourage increased residential opportunities in cities required to
plan under the Growth Management Act, by providing for special property tax
valuation for eligible multi-family housing in targeted urban, residential areas;
and
WHEREAS, Chapter 84.14 further authorized cities with a population of at
least thirty-thousand to adopt procedures to implement the special property tax
valuations; and
WHEREAS, on August 4, 2003, the Auburn City Council approved
Ordinance No. 5779 establishing a multi-family tax abatement program for the
Auburn urban center subject to certain requirements; and
WHEREAS, Ordinance No. 5779 applies only newly constructed units in
the target area with a minimum investment of $150,000 per unit annually
adjusted for inflation by the Consumer Price Index as of the passage date of
Ordinance No. 5779; and
WHEREAS, pressures on housing costs in the region continue to increase
the median sale price of residential units with the median sales price of a
condominium unit in King County increasing from $202,000 in December 2004 to
$222,990 in December 2005; and
WHEREAS, the Consumer Price Index is inadequate to account for the
increases in housing costs for the region; and
WHEREAS, increasing the base minimum investment amount for these
units from $150,000 to $200,000 will assist the City in implementing the vision for
high quality residential development in its downtown and will help ensure that
multi-family units constructed in Auburn's downtown will be of a value consistent
with those found in other urban centers.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN
DO ORDAIN as follows:
Ordinance No. 6020
April 24, 2006
Page 1
SECTION ONE. AMENDMENT TO CITY CODE.
That Auburn City Code section 3.94.040 is hereby amended to read as
follows:
3.94.040 Tax Exemption - Duration - Valuation - Exceptions.
A. Exemption, Duration of. The value of improvements
for property qualifying under this Chapter, is exempt from ad
valorem property taxation for ten (10) successive years beginning
January 1 st of the year immediately following the calendar year of
issuance of the Final Certificate of Tax Exemption.
B. Limits on exemption. The exemption does not apply
to the value of land or to the value of non-housing improvements,
nor does the exemption apply to increases in assessed valuation of
land and non-qualifying improvements. This Chapter also does not
apply to increases in assessed valuation made by the assessor on
non-qualifying portions of building and value of land, nor to
increases made by lawful order of a county board of equalization,
the Department of Revenue, or a county, to a class of property
throughout the county or specific area of the county achieve the
uniformity of assessment or appraisal required by law.
C. Only newly constructed units with a minimum
investment of $150,000-,$200,000 per unit annually adjusted for
inflation by the Consumer Price Index.1-as of the passage effective
date of the ordinance codified in this chapter Ordinance No. 6020
shall qualify for the exemption. (Ord. 5779 ~ 1, 2003.)
SECTION TWO. GENERAL SEVERABILITY.
That if any provision of this Ordinance or the application thereof to any
person or circumstance is held to be invalid, the remainder of such code,
ordinance or regulation or the application thereof to other person or
circumstances shall not be affected.
SECTION THREE. RATIFICATION.
That any act consistent with the authority and prior to the effective date of
this ordinance is hereby ratified and affirmed.
SECTION FOUR. IMPLEMENTATION.
The Mayor is hereby authorized to implement such administrative
procedures as may be necessary to carry out the directives of this legislation.
Ordinance No. 6020
April 24, 2006
Page 2
SECTION FIVE. EFFECTIVE DATE.
That this Ordinance shall be in full force and effect five (5) days after
publication of the Ordinance Summary.
INTRODUCED: MAY I 1 2006
PASSED: MAY I 1 2006
APP~ 200~
::>,' ~
PETER B. LEWIS, MAYOR
ATTEST:
A0aJ;);~
Danielle E. Daskam, City Clerk
PUBLISHED: 657 4:vCJ (p
Ordinance No. 6020
April 24, 2006
Page 3