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Home My WebLink About6342 _ ORDINANCE NO. 6 3 4 2 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY ` OF AUBURN, WASHINGTON, AMENDING SECTION 3.60.035 OF THE AUBURN CITY CODE REGARDING CONSTRUCTION SALES TAX EXEMPTION WHEREAS, Auburn City Code. Chapter 3.60 imposes a sales or use tax, as the case may be, as authorized under RCW 82.14.030 (2), upon every faxable event, as defined in RCW 82.14.020, occurring within the Cify and specifies that 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; and WHEREAS, the City of Auburn desires to promote economic development through the development of new businesses or the expansion of existing businesses in certain zoned areas of the City that will contribute to increased sales tax revenue generation within the City through new or increased sales activities that create taxable event opportunities as specified above; and WHEREAS, the City ofi Auburn desires to incentivize the construction of new or expanded businesses in certain zoned areas of the City by providing a sales tax exemption and remittance opportunity for purchasers who have paid the tax imposed in the City of Auburn on construction materials, fixed equipment, or machinery installation directly related fo the construction of new commercial buildings, expansion of existing commercial buildings, or tenanfi improvements to existing commercial buildings, or on sales of or charges made for labor and services rendered in respect to such construction or installation of such machineryor equipment; and Ordinance No. 6342 June 1, 2011 Page 1 of 5 WHEREAS, the Auburn City Council finds that it is in the public interest because of current economic conditions and challenges to create an economic incentive for the construction of new or expanded businesses in certain zoned areas of the City for businesses that will contribute to increased sales tax revenue generation within the City through new or increased sales activities that create taxable event opportunities. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN, WASHINGTON, DO ORDAIN as follows: Section 1. Amendment to City Code. That Chapter 3.60 of the Auburn City Code, entitled'Sales or Use Tax,' regarding the imposition of sales or use taxes within the City of Aubum., is hereby amended to read as follows: , 3.60.036 = Construction Sales Tax Exemption 1(a). Purchasers in the Eligible Target Business Class who have paid the tax ' imposed by this Chapter on construction materials, fixed equipment, or mactiinery installation direcfly related to the construction of new commercial buildings or redevelopment of existing vacant buildings 25,000 square feet or greater or expansion of existing commercial buildings that creates new or - expanded building floor area that generates.sales tax revenue on property zoned ' Downtown Ucban Center (DUC), C3 (Heavy Commercial District), and C4 (Mixed Use Commercial) or on sales of or charges made for labor and services rendered in respect-to such construction or installation of such machinery or equipment, are eligible for an exemption as provided for in this Section. (b) Beginning on June 28, 2014 through June 27; 2015, a purchaser is eligible for an exemption specified under subsection (1) from the local sales and use tax paid under this Chapter, as, authorized under RCW 82.14.030 (2), up to a maximum of twenfy (20) percent of tazes imposed and paid to the City of Auburn not to exceed $100,000: The purchaser is eligible for an exemption under this subsection (1)(b) in the form-of a remittance. 2. For purposes of this Section, the following definitions apply: (a) "Commercial building" means a structure that has, as its primary purpose, a Commercial Use as that term is defined in ACC 18.04.240. (b) "Expansion" means to add to the floor area or height of a building. , (c) "Purchaser: means a person or entity that is the recipient of a good or service. Ordinance No. 6342 June 1, 2011 Page 2 of 5 , 3. Eligible Target Business Class. The construction sales tax exemption specified in Section 3.60.035.1.a-b shall only apply to those businesses engaged in normal business activities under the following classifications of businesses occurring within the specified zoning designations: (a) General Merchandise, Warehouse Club, SuperCenter - Sales Tax Classification Code 45291 (b) Building Materials and Garden Home Center - Sales Tax Classification Code 44441 (c) Electronics and Appliances - Sales Tax Classification Code 44311 (dj Full Service Restaurants - Sales Tax Classification Code 722110 (e) New and Used Automobile and Light Utility Truck Dealers - Sales Tax Classification Code 44110 (fl Bowling Centers - Sales Tax Classification Code 713950 (g) Motion Picture Theaters (excluding drive-in theaters) - Sales Tax Classification Code 512131 (h) Hotels - Sales Tax Classification Code 72110 4(a) A purchaser claiming an exemption in the form of a remittance under subsection (2)(b) of this section_ must pay the tax imposed by ACC 3.60.020. The purchaser may then apply to the City for remittance in a form and manner prescribed by the City and shall submit information that the City deems adequate to justifythe exemption, including but not limited to: 1) Identification of the yendor/contractor; 2) North American lndustry Classification System (NAICS) code under which the tax was reported; 3) Name and Unffied Business Identifier (UBI) number of the vendor/contractor on fhe Combined Excise Tax Retum filed with the State of Washington; and, 4) Detailed information. supported the amounts reported under the State Use and Sales Tax section of the above report for Location Codes 1702 and 2724.. (b) A purchaser may not apply for a remittance under this section more frequently than once per quarter. The purchaser must specify the amount of exempted tax • claimed and the.qualifying purchases for which the exemption is claimed. The purchaser mustrefain all records provided tothe City in making its claim. (c) The City shall.detecmine eligibility under #his section based on the information provided by the purchaser, which is subject to audif vecification by the City. If the City verifies eligibifity, it shall remit eligible taxes paid to the purchaser. 5. Appeals. Any applicanf aggrieved by an action of the City concerning eligibility or computation of remittance under this Section may file a written appeal to the City's Hearing Examiner in accordance with Chapter 18.66 ACC withih fourteen (14) calendar days of receipt of the City's decision. The Hearing Examiner 'is Ordinance No. 6342 June 1, 2011 Page 3 of 5 specifically authorized to hear and decide such appeals and the decision of the Hearing Examiner shall be the final action of the City. Section 2. Imalementation. The Mayor is hereby authorized to implement such administrative procedures as may be necessary to carry out the directions of this legislation. Secfion 3. Severabilitv. 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 crrcumstance shall not affect the validity of the remainder of this ordinance, or the: validity of its application to other persons or circumstances. 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: JUN 2.0 "2011 PASSED: JUN 2.0 2011 APPROVED: - CITY OF AUBURN PETER B. LEWIS MAYOR Ordinance No. 6342 June 1, 2011 Page 4 of 5 , ATTEST: - Danielle E. Daskam, City Clerk APPR ~ED S TO FOR 7: iel B. H', City Attome Published: JUN 2.1 9f1il Ordinance No. 6342 June 1, 2011 Page 5 of 5 ,