Ordinance 1833ORDINANCE NO. 1833
AN ORDINANCE OF THE CITY OF EDMONDS, WASHIN`GTON,
IMPOSING A LEASEHOLD EXCISE TAX FROM AND AFTER
JANUARY 1, 1976, PURSUANT TO CHAPTER 61 LAWS OF
1975-76 SECOND EXTRAORDINARY SESSION LAWS OF THE
STATE OF WASHINGTON; SETTING THE RATE OF SAID
TAX; PROVIDING FOR THE ADMINISTRATION AND
COLLECTION OF SAID TAX; PROVIDING FOR EXEMPTIONS
FROM SAID TAX; PROVIDING FOR CONTRACTING WITH THE
DEPARTMENT OF REVENUE OF THE STATE OF WASHINGTON
FOR THE ADMINISTRATION AND COLLECTION OF SAID TAX;
IMPOSING PENALTIES FOR FAILURE TO PAY SAID TAX;
AND CREATING A NEW CHAPTER 4.91 IN THE EDMONDS
CITY CODE.
WHEREAS, the State of Washington by virtue of Chapter 61
of the Laws of the State of Washington of the 1975-76 Second
Extraordinary Session imposed a twelve percent (12%) excise
tax on the act or privilege of occupying or using publicly
owned real or personal property through a leasehold interest
on or after January 1, 1976, and
WHEREAS, said law specifically provides that counties and
cities may enact ordinances imposing such tax which tax shall
be a credit against the taxes otherwise payable to the State
of Washington, and
WHEREAS, if the City of Edmonds does not impose the tax
revenues will be paid directly to the State of Washington that
by virtue of the imposition of the tax will thus be retained
within the City of Edmonds, and
WHEREAS, it is deemed to be in the public interest, health,
safety and general welfare and the City Council so finds that
said tax should be imposed effective January 1, 1976, now,
therefore,
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO
ORDAIN AS FOLLOWS:
Section 1. Creation of New Chapter. There is hereby
created a new Chapter 4.91 to the Edmonds City Code entitled
"Leasehold Tax."
Section 2. 4.91.010. Imposition of Tax. There is hereby
levied and shall be collected a leasehold tax on and after
January 1, 1976, upon the act or privilege of occupying or
using publicly owned real or personal property within the City
of Edmonds through a "leasehold interest" as defined by Section
2, Chapter 61, Laws of 1975-76, Second Extraordinary Session
Laws of the State of Washington (hereinafter called the "State
Act"). The tax shall be paid, collected and remitted to the
Department of Revenue of the State of Washington at the time and
in the manner prescribed by Section 5 of the "State Act."
Section 3. 4.91.020. Rate of Tax. The rate of tax imposed
by Section 1 shall be four percent (4%) of the taxable rent as
defined by Section 2 of the "State Act" provided, however, that
the following credits shall be allowed in determining the tax
payable:
(1) With respect to a leasehold interest arising out of
any lease or agreement, the terms of which were binding on the
leasee prior to July 1, 1970, where such lease or agreement has
not been renegotiated as defined by Section 2 of the "State Act"
since that date, and excluding from such credit any lease or
agreement including options to renew which extends beyond January
1, 1985, as follows:
(a) With respect to taxes due in the calendar year
1976, a credit equal to eighty percent (80%) of the tax
produced by the above rate;
(b) With respect to taxes due in the calendar year
1977, a credit equal to sixty percent (60%) of the tax
produced by the above rate;
(c) With respect to taxes due in the calendar year
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1978, a credit equal to forty percent (40%) of the tax
produced by the above rate;
(d) With respect to taxes due in the calendar year
1979, a credit equal to twenty percent (20%) of the tax
produced by the above rate.
(2) With respect to a product lease as defined by Section
2 of the "State Act", a credit of thirty-three percent (33%) of
the tax produced by the above rate.
Section 4. 4.91.030. Administration and Collection of Tax.
The administration and collection of the tax imposed by this
ordinance shall be in accordance with the provision of the "State
Act."
Section 5. 4.91.040. Exemptions. Leasehold interests
exempted by Section 13 of the "State Act" as it now exists or
may hereafter be amended shall be exempt from the tax imposed
pursuant to Section 1 of this ordinance.
Section 6. 4.91.050. Inspection of Records. The City of
Edmonds hereby consents to the inspection of such records as are
necessary to qualify the City of Edmonds for inspection of
records of the Department of Revenue pursuant to RCW 82.32.230.
Section 7. 4.91.060. Authorization to Contract with State.
The Finance Director is hereby authorized to execute a contract
with the Department of Revenue of the State of Washington for the
administration and collection of the tax imposed by this
ordinance provided, however, that the City Attorney shall first
approve the form and content of said contract.
Section 8. 4.91.070. Penalties. Failure to pay any tax
due hereunder shall constitute a misdemeanor and a person or
persons convicted of such a crime shall be subject to a fine of
up to $250 for each separate offense.
Section 9. 4.91.080. Monetary Penalty for Late Tax Payments.
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All taxes not paid when due pursuant to the terms of this
Chapter and the "State Act" shall be subject to a penalty
assessment in addition to the tax itself of an amount equal to
twenty percent (200) of the total tax delinquency.
Section 10. 4.91.300. Severability. If any provision of
this ordinance or its application to any person or circumstance
is held invalid, the remainder of the ordinance or the applica-
tion of the provision to other persons or circumstances shall be
deemed not to be affected.
APPROVED:
�91y-
PRO TEM,`-ROBERT A. ANDERSON
ATTEST:
WAi
Filed with the City Clerk: March 24, 1976
Passed by the City Council: April 6, 1976
Published: April 14, 1976