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Ordinance 4425ORDINANCE NO. 4425 AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING EDMONDS CITY CODE TO IMPOSE AN ADDITIONAL SALES AND USE TAX OF ONE - TENTH OF ONE PERCENT WITHIN THE BOUNDARIES OF THE EDMONDS TRANSPORTATION BENEFIT DISTRICT AS AUTHORIZED BY RCW 36.73.065 AND RCW 82.14.0455. WHEREAS, in 2008, the City of Edmonds City Council established a transportation benefit district to be known as the Edmonds Transportation Benefit District ("District") by way of adoption of Ordinance No. 3707; and WHEREAS, the District's geographical boundaries comprised of the corporate limits of the City of Edmonds at the time the ordinance was adopted or as they may exist after future annexations; and WHEREAS, RCW 36.73.065(4)(a)(v) authorizes transportation benefit districts to impose an additional sales and use tax in accordance with RCW 82.14.0455 in an amount not to exceed one -tenth of one percent (0.1%) for a period of ten (10) years upon a majority vote of the governing body of the district for the purpose of financing the transportation improvements of a district; and WHEREAS, in 2016, by way of Ordinance No. 4053 and pursuant to state law, the City of Edmonds assumed the rights, powers, immunities, functions, and obligations of the District, abolished the governing body of the District, and the city council became vested with all rights, powers, immunities, functions and obligations otherwise vested by law in the governing board of the District; and WHEREAS, pursuant to RCW 36.73.065(4)(a)(v), the city council has the authority to impose up to one tenth of one percent (0.1%) sales and use tax for ten (10) years by a majority vote of the city council to be utilized pursuant to Edmonds City Code 3.65 and RCW 36.73; and WHEREAS, the city council held a public hearing on January 6, 2026 at which time the public had an opportunity to comment on the imposition of the tax and the proposed addition of new subsection B to ECC 3.65.030; and WHEREAS, the city council has carefully considered the financial needs of the city's transportation system and the imposition of the tax, and has determined that the imposition of a one tenth of one percent (0.1%) sales and use tax for ten (10) years is in the best interest of the city; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN AS FOLLOWS: Section I. Functious Amendment. Section 3.65.030 of the Edmonds City Code, entitled "Functions of the city," is hereby amended as follows (new text in underline, deleted text in ..s�, �e - g i): 3.65.030 Functions of the city. A. The city, by a majority vote of the city council, may authorize a motor vehicle license fee as follows: 1. A vehicle fee of up to $20.00 per vehicle as provided for by RCW 82.80.140. 2. A vehicle fee of up to $40.00 as provided in RCW 82.80.140 if a vehicle fee of $20.00 has been imposed for at least 24 months; or 3. A vehicle fee of up to $50.00 as provided in RCW 82.80.140 if a vehicle fee of $40.00 has been imposed for at least 24 months and the city has met all of the requirements of RCW 36.73.065(6). B. The city by a maiority vote of the city council may impose a tax of up to one -tenth of one percent of the sales and use tax in accordance with RCW 82.14.0455. B.C_When authorized by the voters pursuant to the requirements of Chapter 36.73 RCW, additional taxes, fees, charges and tolls or increases in those revenue sources may be assessed by the city for the construction, reconstruction, updating or improvement of public transportation facilities shown on the Edmonds comprehensive plan and transportation improvement plan. These additional transportation projects shall be deemed funded and effective when approved by a vote of the people in accordance with the provisions of state law. The projects authorized shall be limited to those specifically identified in the proposition put to the voters. QD Additional transportation improvements may be added to the functions of the city upon compliance with Chapter 36.73 RCW. 13 E. The city shall have and may exercise all powers and functions provided for by Chapter 36.73 RCW in order to fulfill the purposes of Chapter 36.73 RCW and this chapter. Section 2. Use of Funds Amendment. Section 3.65.040 of the Edmonds City Code, entitled "Transportation improvements funded," is hereby amended as follows (new text in underline, deleted text in trike ugh): 3.65.040 Transportation improvements funded The funds generated by vehicle fees authorized by the city council in accordance with RCW 82.80.140 and the revenues collected by the imposition of sales and use tax as authorized by city council in accordance with RCW 36.73.065(4)(a)(v) shall be used seiely for _.—tralispertatiell uat Preserve, niaifttain and apefate4he existin C—j��3-RCS for an lawful awfulPurpose under Chapter 36.73 RCW. Upon authorization by the voters. additional funds fi•om other taxes, fees. charges and tolls or increases in these revenue sources may be utilized for the construction of transportation improvements specifically described in the proposition submitted to the voters. Rinds raised by the exercise of powers g!rarited in ECC; 3.65.030 and/es- Chapter 36.73 RCNV unay be Litilized for ariy lawftll Purpose Wider Chapter . PH nds raise Such improvements are intended to comply with the provisions of the Growth Management Act and the city's comprehensive plan and reduce the risk of transportation facilities' failure, improve safety, continue the cost effectiveness of the city's infrastructure improvements and to encourage the optimum use of the transportation system. Additional transportation improvement projects may be funded only after compliance with the provisions of RCW 36.73.050(B) following notice, public hearing and enactment of an additional authorizing ordinance. Section 3 Imposition of Additional Sales and Use Tax. Anew Section 3.28.025 of the Edmonds City Code, is hereby added to impose the additional one -tenth of one percent sales and use tax authorized by RCW 36.73.065(4)(a)(v) to read as follows: 3.28.025 TBD sales and use tax authorized. A. Imposition. Pursuant to RCW 36.73.065(4)(a)(v) and RCW 82.14.0455, there is hereby imposed an additional sales and use tax to be collected from persons who are taxable by the state under Chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the district. The tax imposed by this Section shall be in addition to any other taxes authorized by law, including but not limited to, the sales and use taxes imposed under Chapter 3.28 of the Edmonds City Code. B. Tax Rate. The rate of the tax imposed by this section shall be one -tenth of one percent (0.1 %) of the selling price (in the case of the sales tax) or the value of the article used (in the case of the use tax). C. Duration. The tax imposed by this section shall apply for a period of ten (10) years from the date the tax is first collected within the district and shall thereafter cease to be imposed unless renewed with the affirmative vote of the voters voting at an election or a majority vote of the Edmonds City Council exercising its authority as the governing body of the district. D. Use of Revenues. The revenues received from the tax imposed by this Section shall be general revenues of the transportation benefit district and shall be used for those purposes as set forth in ECC 3.65, RCW 36.73 or as otherwise authorized by law. Section 4. Duties of Clerk and Finance Director. The City Clerk and the Finance Director are hereby requested to submit this ordinance to the Washington State Department of Revenue and to request that the Department take all necessary steps to implement and collect the tax imposed by this ordinance as soon as possible. Section 5. Severability. If any section, subsection, clause, sentence, or phrase of this ordinance should be held invalid or unconstitutional, such decision shall not affect the validity of the remaining portions of this ordinance. Section 6. Effective Date. This ordinance, being an exercise of a power specifically delegated to the City legislative body, is not subject to referendum and shall take effect five (5) days after passage and publication of an approved summary thereof consisting of the title. ADOPTED BY THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON ON THIS 13TH DAY OF JANUARY, 2026. APPROVED: MAYOR MIKE ROSEN ATTEST/AUTHENTICATED: CITY CLERK, LUKE LONIE APPROVED AS TO FORM: OFFICE OF THE CITY ATTORNEY: BY JEFF TARADAti FILED WITH THE CITY CLERK: January 7, 2026 PASSED BY THE CITY COUNCIL: January 13, 2026 PUBLISHED: January 16, 2026 EFFECTIVE DATE: January 21, 2026 ORDINANCE NO. 4425 SUMMARY OF ORDINANCE NO. 4425 of the City of Edmonds, Washington On the 13th day of January, 2026, the City Council of the City of Edmonds, passed Ordinance No. 4425. A summary of the content of said ordinance, consisting of the title, provides as follows: AN ORDINANCE OF THE CITY OF EDMONDS, WASHINGTON, AMENDING EDMONDS CITY CODE TO IMPOSE AN ADDITIONAL SALES AND USE TAX OF ONE -TENTH OF ONE PERCENT WITHIN THE BOUNDARIES OF THE EDMONDS TRANSPORTATION BENEFIT DISTRICT AS AUTHORIZED BY RCW 36.73.065 AND RCW 82.14.0455. The full text of this Ordinance will be mailed upon request. DATED this 13 day of January, 2026. CITY CLERK, LUKE LONIE