HomeMy WebLinkAboutItems Submitted at the Meeting 7 .
Finance Department Memorandum
Date: November 1, 2010
From: Shelley Coleman, Finance Director
To: Finance Committee
Cc: Pete Le\vis, Ma}'or
Re: Sales Tax Refiind on New Construction
ri'he Mayor has asl:ed thlt the committee consider a sales tax refund (rebate at Bonney
Lake) for new construction in the City for retail businesses for a limited window of time,
five years. This may be an incentive for new retail businesses to consider locating in the
City.
3.70.040 Construction sales tax rebate.
A. For businesses qualifying under BLMC 3.70.010(B), the business shall be entitled to a rebate
of 75 percent of the city portion of the sales and use taxes collected by the city for the city portion
of construction of the project, including construction materials, flxed equipment or machinery
installation, up to a maximum rebate amount of S100,000. It shall be the responsibility of the
applicant to document the total construction-related sales tax paid on the project.
B. At the expiration of a six-month period commencing from the date of issuance of a certificate of
occupancy, the city shall determine the city of Bonney Lake portion of construction-related sales
and use tax revenue received by the city during the construction of the project. Construction sales
taxes received by the city for the project pursuant to this section shall then be rebated to the
applicant within 60 days. (Ord. 1319 § 1, 2009
3.70.010 Development incentives authorized.
A. There are hereby established a variety of tax and fee waivers and rebates to serve as
incentives to encourage business investment in the city of Bonney Lake and the construction of
new or expanded retail commercial buildings in the city in conformance with the adopted plans
and ordinance of the city. These incentives are in addition to the traffic impact fee (TIF) funding
source adjustment incentive provided in Chapter 19.04 BLMC.
B. In order to qualify for the incentives provided in this chapter, the applicant must construct a
new retail commercial building or expand an existing retail commercial building within any
downtown core (DC), downtown mixed use (DM), or commercial (C-1, C-2, C-3) zoning district. In
the case of mixed use buildings, at least 50 percent of the building space shall be devoted to
retail commercial use. (Ord. 1319 § 1, 2009).