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HomeMy WebLinkAbout3665RESOLUTION NO. 3 $ 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 services 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 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 any such jurisdiction. Section 5. signatures hereon. PASSED this This Resolution shall be in full force and effect upon passage and Peter B. Lewis Mayor Resolution No. 3665 December 1, 2003 Page 2 of 3 ATTEST: Danielle Daskam, City Clerk APPROVED AS TO FORM: City Attorney Published: Resolution No. 3665 December 1, 2003 Page 3 of 3