HomeMy WebLinkAbout6376 ORDINANCE NO. 6 3 7 6
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF AUBURN, WASHINGTOIV, REPEALING
SECTION 3.60.035 OF THE AUBURN CITY CODE
AND CREATING A NEW SECTION :3.60.036 OF
THE AUBURN CITY CODE PROVIDING FOR A
CONSTRUCTION SALES TAX EXEMPTION
PAYABLE AS A REFUND
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 taxable event, as
defined in RCW 82.14.020, occurring wfthin the Ciry and spec�es that the tax shall be
imposed upon and collected from those persons from whom the state sales tax or use
tax is collected pursuaM to Chapters 82.08 and 82.12 RCW; and
WHEREAS, the City of Aubum adopted Ordinance No. 6342 on June 20, 2011 ,
in order 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 acfivities that create taxable everrt opportunities as specfied above;
and
WHEREAS, in addition to the incentives created by Ordinance No. 6342, the City
of Aubum desires to incentiVize the construction of new or expanded businesses in
additional zoned areas of the City, and to encourage the creation of manufacturing jobs
by providing a similar sales tax exemption, payable as a refund for purchasers who
have paid the tax imposed in the City of Aubum on construction materials, fixed
equipment, or machinery in5tallation directly related to the construction of new
commercial buildings, expansion of existing commercial buildings, or tenant
improvements to existing commercial buildings, or on sales of or charges made for labor
Ordinance No. 6376
9.16. 2011
Page 1
services rendered in respect to such construction or installation of such machinery or
equipment.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,
WASHINGTON, DO ORDAIN as foilows:
SECTION 1. REPEAL OF SECTION TO CITY CODE. That Section 3.60.035 of
the Aubum Cityr Code, entitled 'Construction Sales Tax Exemption,' is hereby repealed.
SECTION 2. CREATION OF NEW SECTION TO CITY CODE. T hat a new
Section 3.60.036 of the Auburn City Code, entitled 'Construction Sales Tax Exemption,'
is hereby created to read as follows:
3.60.036 — Construction Sales Tax Exemption
A. 1. The following purchasers in the Eligible Target Business Class who
have paid the tax imposed by this Chapter on construction materials, fixed
equipment, or machinery installation, or on sales of or charges made for labor
and services rendered in re"spect to such construction or installation of such
machinery or equipment, are eligible for�an exemption as provided for in tfiis
Section: For property zoned Downtown Urban Center (DUC), C3 (Heavy
Commercial District), and C4 (Mixed Use Commercial), purchases directly
related to the construction of new commercial buildings or redevelopment of
existing vacant buildings 25,000 square feet or greater or expansion of existing
commercia4 buildings that creates new or expanded building floor area that
generates sales tax revenue.
2. Foc property zoned Downtown Urban Center (DUC), purchases direc4ly
related to the construction of new comme[cial buildings less than 25,000 square
feet, or redevelopment of existing buildings less than 25,000 square feet, where
the cost of the improvement is at least twenty-fve percent (25 %) of the current
assessed value of the improvements on 4he property pursuant to the assessment
records of King or Fierce County, as applicable.
3. For property zoned M-1 (Light lndustrial District), M-2 (Heavy lndustrial
District) and EP (Enyironmental Park District) purchases directly related to the
construction of new commercial buildings, redevelopment of exis4ing buildings
that result in a change of occupancy from warehouse use to manufacturing use;
or redevelopment of existing buildings where the cost of the improvement is at
Ieast twenty-five percent (25 %)of the current assessed value of the �
Ordinance No. 6376
9.16. 2011
Page 2
improvements on the property pursuant So the assessment records of King or
Pierce County; as applicable.
B. Beginning on the effec4ive date of this Ordinance through a date
four years after She effective date, a purchaser is eligible for an exemption
specified under this section from the local sales and use tax paid under this
Chapter, as authorized, under RCW 82.14.030 (2), up to a maximum of twenty
(20) percent of taxes imposed and paid to the City of Aubum not to exoeed
$100,000. The purchaser is eligible for an exemption under this section in the
form of a refund. .
C. For purposes of this Section, the following definitions apply:
I. "Change of Occupancy" means a change of the purpose for which
a building is used or intended to be used.The term shall also includethe building
or portion thereof in which such change of occupancy is made. Change of
occupancy is not intended to include change of tenants or proprietors..
2. "Gommercial building" means a structure that has, as its primary
purpose, a Commercial Use as that term is defined in ACC 18.04.240.
3. "Exparision" means to add to fhe floor area of a building.
4. "Purchaser: means a person or entity that is the recipient of a good
or service.
D. Eligible Target Business Classes.
I. Tfie construction sales tax exemption specifed in Section
3.60.036.A.1 shall only apply to those businesses engaged in normal business
activities under the following classifications of businesses occurring within the
spec�ed zoning designations:
(a) General Merchandise, Warehouse Club, SuperCenter— Sales Tax
Classification Code 45291;
(b) Building Materials and Garden Home Center — Sales Tax
Classification Code 4441 1;
(c) Electronics and Appliances — Sales Tax Class�cation Code
44311;
(d) Full SerVice Restaurants — Sales Tax Classification Code 722110;
(e) New and Used Automobile and'Light Utility Truck Dealers - Sales
Tax Classification Code 44110;
(� Bowling Centers= Sales?ax Classification Code 713950;
(g) Motion Ficture Theaters (excluding drive-in theaters) - Sales Tax
Classification Code 512131 ; and
(h) Hotels — Sales Tax Classification Code 72110.
2. The consfniction sales tax exemptions specified in Sections,
3.60.035.A.2 and 3.60.035.A.3 shall apply to all businesses Iocated in the DUC,
EP M-1, and M-2 zoning districts as set forth in those subsections.
E. Application for Refund.
L A purcha§er claiming an exemption and applying for a refund under
this section must pay the tax imposed by ACC 3.60.020. The purchaser may then
apply to the City for a refund in a form and manner prescribed by the City and
Ordinance No. 6376
9.16. 2011
Page 3
shall submit information that the City deems adequate to justify the exemption;
including but not limited to:
(a) Ident�cation of the vendodcontractor;
(b) NorthAmerican Industry Classification System (NAICS) code under
which the tax was reported;
(c) � Naine and Un�ed Business Identifier (UBI) number of the
vendodcontractor on the Combined Excise Tax Return filed with the State of
Washington; and,
(d) Detailed information supporting the amounts reported under the
State Use and Sales Tax section of the above report for Location Codes I 702
and 2724.
2. A purchaser may not apply for a refund under this section more
frequenUy than once per .quarter. The purchaser must specrfy the amount of
exempted tax claimed and the qualifying purchases for which the exemption is
claimed. The purchaser must retain all records provided to the City in making its
claim.
3. The City shall determine eligibility under this section based on the
information provided by the p.urchaser, which is subject.to audit verification by the
City. If the City verifes eligibility, it shall remit eligible taxes paid to the purchaser.
F. Appeals. Ariy applicant aggrieved by an action of the City
conceming 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 within fourteen (14) calendar days of receipt of the City's decision. The
Hearing Examiner is specfically authorized to-hear and decide such appeals and
the decision of the Hearing'Examiner shall be the final action of the City.
SECTION 3. IMPLEMENTATION. The Mayor is hereby authorized to implement
such administrative procedures as may be necessary to carry out the ditections of this
legislation.
SECTION 4. SEVERABILITY. The provisions ofi 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 applicafion
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.
SECTION 5. EFFECTIVE DATE. This Ordinance shall take effect and be in force
five (5) days from and after its passage, approval and publication as provided by law.
--- - ----- - --- ---
Ordinance No. 6376
9.16. 2011
Page 4
INTRODUCED: SEP 1 9 2011
PASSED: . SEP 1 8 2U11
APPROVED: SEP 1 9 2011
CITY OF AUBURN
PETER B. LEWIS
MAYOR
ATTEST:
�� �� ,
Da ielle E. Daskam
City Clerk
APPR V� ORM:
Da ' . e
City Attorney
Published:���v��y u� ��1 --
� - -
----------- --- --
Ordinance No. 6376
9.16. 2011
Page 5
ACC 3.60.035—TEXT BEING REPEALED
3.60:035 —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
machinery installation direotly 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 Urban Center (DUC), C3 (Heayy Commercial District), and C4 (Mixed
Use Commercial) or on sales ofor charges made for labor and services rendered
in respect to such construction or installation of� such machinery or equipment,
are elig'ible for an exemption as;provided for in this Section.
(b) Beginning on June 28, 2011 through June 27, 2015, a purchaser is
eligible for an exemptio.n 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 twenty (20) percent of taxes 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 6uilding" 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.
3. Eligible Target Business Class. The construction sales tax exemption,
spec�ed in Section 3.60.035.1.a-b shall only apply to those businesses engaged
in normal business activities under the following class�cations of businesses
occurring within the specifi_ed,zoning designations
(a) General Merchandise, Warehouse Club, SuperCenter — Sales Tax
Classification Code 45291
(b) Building Materials and Garden Home Center — Sales Tax
Classification Code 44411
(c) Electronics and Appliances — Sales Tax Classification Code 44311
(d) 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 Classificafion Code 713950
(g) Motion Picture Theaters (excluding drive-in theaters) - Sales Tax
Classification Code 512131
(h) Hotels— Sales Tax Classification Code Z2110
4(a) A purchaser claiming an exemption in She form of a remittance under
subsection (2)(b) of this section must pay the taz imposed by ACC 3.60.020. The.
Ordinance No. 6376
9.16. 2011
Page 6
,
purchaser may then apply to the City for remittance in a form and manner
prescribed 6y the City and shall submit information that the City deems adequate
to justify the exemption, including but nof limited to:
1) Ident'fiication of the vendor/contractor;
2) North American Industry Classification System (NAICS) code.under
which the tax was reported;
3) Name and Unfied Business Identifier (UBI) number of the
vendodcontractor on tfie Combined Excise Tax Return 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 pec quarter. The purchaser must specify the amount of
exempted tax claimed and the qualifying purchases for which the exemption is
claimed. The purchaser must retain all records provided to the City in making its
claim.
(c) The City shall determine eligibility under this section based on the
information provided by the purchaser, which is subject to audit verification by the
City. If the City verifies eligibility, it shall remit e.ligible taxes paid to the purchaser.
5. Appeals. Any applicant aggrieved by an action of the City concerning
eligibil'ity or computation of remittance untler tfiis Section may file a written
appeal to the City's Hearing Examiner in accordance with Ghapter 18.66 ACC
within fourteen (14) calendar days of receipt of the City's decision. The Hearing
Examiner is specifically authorized to hear and decide guch appeals and the
decision of fhe Hearing Examiner shall be the final action ofthe City. (Ord. 6342
§ 1, 2011.)
Ordinance No. 6376 �
9:16.-2011
Page 7