HomeMy WebLinkAboutItem VIII-B-3CITY OF ' *
WASHINGTON
AGENDA BILL APPROVAL FORM ]
Aqenda Subiect: Resolution No. 3665 Date: December 4, 2003
Department:
Finance
Attachments:
Resolution No. 3665
Budget Impact:
Administrative Recommendation:
City Council adopt Resolution No. 3665
Backqround Summary:
The Washington State Department of Revenue is considering adopting a policy concerning sales tax
streamlining for interstate and intrastate sales. If the policy changes the distribution of sales tax receipts
from point of sale to point of distribution, it could have disparate impacts for jurisdictions other than the
State cf Washington.
This resolution urges the Department of Revenue adopt a policy for adopting sales tax streamlining for
interstate sales that has no negative fiscal impact to any City in the State, and that does no harm to any
such jurisdiction. The resolution also urges the Department of Revenue continue the point of sale
distribution of sales tax for intrastate sales.
N1215-1
F6.7
Reviewed by Council & Committees:
DArts Commission COUNCIL COMMITTEES:
[~Airport
r~ Hearing Examiner D Finance
r~ Human Services [q Municipal Serv.
rq Library Board r~ Planning & CD
[] Park Board []Public Works
[] Planning Comm. []Other
Reviewed by Departments & Divisions:
[~ Human Resources
[] Building [] M&O
[] Cemetery [] Mayor
[] Finance [] Parks
[] Fire [] Planning
[] Legal [] Police
[] Public Works
Committee Approval: ["]Yes []NO
Council Approval: DYes DNo Call for Public Hearing
Referred to Until / /
Tabled Until / /
/ /
Councilmember: Poe Staff: Coleman
Meeting Date: December 15, 2003 Item Number: VIII.B.3
AUBURN · MORE THAN YOU IMAGINED
RESOLUTION NO. 3 6 6 5
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF AUBURN WASHINGTON ENDORSING THE
ADOPTION AND IMPLEMENTATION OF STREAMLINED
SALES TAXES BY THE STATE OF WASHINGTON AT
SUCH TIME AS AND CONCURRENT WITH FEDERAL
ADOPTION OF INTERNET AND CATALOG SALES
TAXES; AND REQUESTING THAT ANY SYSTEM
ADOPTED BY THE STATE OF WASHINGTON NOT
NEGATIVELY IMPACT CITIES
WHEREAS, the City Council of the City of Auburn understands and supports the
concept of streamlining definitions and sales tax rates for interstate sales, and
WHEREAS, the City Council also believes that it is important to make the State
sales tax system effective and efficient for private businesses both within the state of
Washington and for businesses outside its geographic boundaries, and
WHEREAS, the State of Washington's tax structure is highly dependent upon
sales tax receipts, and
WHEREAS, the City of Auburn has made a commitment to the citizens and
businesses of Auburn to seek capital programs that have promised present and future
dollars for the construction and reconstruction of infrastructure and facilities, and for the
purchase of open space and park land, all for the better delivery of serviices to the
citizens of Auburn, and
WHEREAS, pursuant to the expectations of the Growth Management Act, the
City of Auburn and many other cities have worked hard to develop economic, traffic and
land use policies that meet regional needs for employment in industrial and retail fields,
and have made significant improvements to the transportation grid, including State
routes, using resources from the City of Auburn tax base; and
WHEREAS, the City's industrial, commercial and retail zones have provided a
sales tax base that has allowed the City to develop and improve infrastructure to
facilitate commerce, and that the City has used revenue from these zones to mitigate
concurrent impacts; and
WHEREAS, the same industrial, commercial and retail zones place
disproportionate traffic, utility and public safety demands on the citizens of Auburn; and
WHEREAS, if the State changes the distribution of sales tax receipts from point
of sale to point of distribution, there would be a tax shift between cities who have
Resolution No. 3665
December 1, 2003
Page 1 of 3
developed the economic and land use policies to support regional growth to areas
where cities have chosen not to have this activity in their geographic boundaries; and,
WHEREAS, if the State changes the distribution of sales tax receipts from point
of sale to point of distribution, a relatively small number of cities would bear the largest
share of the burden and, conversely a small number of jurisdictions would be the
greatest beneficiaries; and,
WHEREAS, the issues of equity and fundamental fairness are crucial for any
organization to function and operate; and,
WHEREAS, the proposed changes for sales tax distribution would provide a
positive impact for the State of Washington, but would produce disparate impacts for all
other jurisdictions.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AUBURN,.
WASHINGTON, HEREBY RESOLVES as follows:
Section 1. The City of Auburn supports the concept of streamlining sales tax
information and definitions to make it easier for inter and intra state commerce.
Section 2. The City of Auburn strongly urges the Department of Revenue adopt
a policy for adopting sales tax streamlining for interstate sales, but for intrastate sales
the point of sale distribution of sales tax continues,
Section 3. The City of Auburn endorses the Washington State adoption and
implementation of streamlined sales taxes concurrent ONLY upon federal adoption of
Internet and catalog sales taxes.
Section 4. The City of Auburn strongly urges the Department of Rewenue adopt
a policy for adopting sales tax streamlining for interstate sales that has no negative
fiscal impact to any City in the State, and that does no harm any such jurisdiction.
Section 5. This Resolution shall be in full force and effect upon passage and
signatures hereon.
PASSED this day of ,2003.
Resolution No. 3665
December 1, 2003
Page 2 of 3
Peter B. Lewis
Mayor
ATTEST:
Danielle Daskam,
City Clerk
APPROVED AS TO FORM:
Daniel B. He~,~
City Attorney
Published:
Resolution No. 3665
December 1, 2003
Page 3 of 3