Ordinance 4159ORDINANCE NO. 4159
AN ORDINANCE OF THE CITY OF EDMONDS,
WASHINGTON, RELATING TO LOCAL SALES OR USE
TAXES; AUTHORIZING THE MAXIMUM CAPACITY OF THE
TAX AUTHORIZED UNDER THE PROVISIONS OF
SUBSTITUTE HOUSE BILL 1406 (HEREINAFTER CHAPTER
338, LAWS OF 2019) FOR AFFORDABLE AND SUPPORTIVE
HOUSING; ADOPTING A NEW CHAPTER 3.28A OF THE
EDMONDS CITY CODE.
WHEREAS, retail sales taxes are imposed on retail sales of most articles of tangible
personal property, digital products, and some services; and
WHEREAS, a retail sale is a sale to the final consumer or end user of the property, digital
product, or service; and
WHEREAS, if retail sales taxes were not collected when the user acquired the property,
digital products, or services, then use taxes apply to the value of property, digital product, or
service when used in this state; and
WHEREAS, the state, all counties, and all cities levy retail sales and use taxes; and
WHEREAS, the state sales and use tax rate is 6.5 percent; local sales and use tax rates vary
from 0.5 percent to 3.9 percent, depending on the location; and
WHEREAS, by virtue of Chapter 338, Laws of 2019, county and city legislative authorities
are authorized to implement a local sales tax to fund affordable or supportive housing; and
WHEREAS, under the new law, a "qualifying local tax" is defined as any of the following:
• the affordable housing levy (RCW 84.52.105),
• the sales and use tax for housing and related services (RCW 82.14.530),
• the sales and use tax for chemical dependency and mental health treatment services
or therapeutic courts (RCW 82.14.460), or
• a voter -approved property tax levy used solely for affordable housing (RCW
84.55.050); and
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WHEREAS, under the new law, the maximum rate of 0.0146 percent is available only to
a city levying a qualifying local tax; and
WHEREAS, a county may not levy the tax within the limits of a city imposing the tax at
0.0146 percent;
WHEREAS, Edmonds does not presently have a qualifying local tax and this Ordinance
would not impose a qualifying local tax; and
WHEREAS, Edmonds could still obtain the maximum rate of 0.0146 percent under the
new law if a qualifying local tax is instated in Edmonds no later than July 28, 2020 (this would
require separate additional action beyond the scope of this Ordinance); and
WHEREAS, under the new law, the rate of 0.0073 percent is available to a city, like
Edmonds, without a qualifying local tax; and
WHEREAS, to impose the tax under the new law, a city legislative authority must adopt a
resolution of intent within six months of July 28, 2019, and impose the tax within one year; and
WHEREAS, the City Council adopted a resolution of intent on August 20, 2019; and
WHEREAS, the tax imposed by this Ordinance is deducted against the state sales tax
collected in the jurisdiction, so it does not increase the total sale and use tax paid by the final
consumer or end user; and
WHEREAS, under this new tax, the amount a city may collect in any state fiscal year is
limited based on taxable retail sales in the jurisdiction for state fiscal year 2019; and
WHEREAS, a city may bond against the revenue generated by this tax; and
WHEREAS, the revenue collected or bonds issued may only be used for: 1) acquiring,
rehabilitating, or constructing affordable housing, including new units of affordable housing within
an existing structure or facilities providing supportive housing services to individuals with mental
or behavioral disorders; or 2) operations and maintenance costs of new units of affordable or
supportive housing; and
WHEREAS, cities with a population of 100,000 or less may also use the revenue to provide
rental assistance to tenants; and
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WHEREAS, housing and services may only be provided to persons whose income is at or
below 60 percent of the county median income; and
WHEREAS, a city may enter into an interlocal agreement with one or more other counties,
cities, or housing authorities to provide affordable or supportive housing; and
WHEREAS, cities imposing the tax must submit annual reports on the collection and uses
of the revenue to the Department of Commerce;
WHEREAS, the City Council desires, by this Ordinance, to levy and impose the tax
authorized by Chapter 338, Laws 2019;
NOW, THEREFORE,
THE CITY COUNCIL OF THE CITY OF EDMONDS, WASHINGTON, DO ORDAIN
AS FOLLOWS:
Section 1. A new chapter 3.28A of the Edmonds City Code, entitled "Sales and use tax for
housing," is hereby adopted to read as follows:
Chapter 3.28A
Sales and use tax for housing
3.28A.010
Sales and use tax for housing - Definitions.
3.28A.020
Sales and use tax for housing - Imposition.
3.28A.030
Sales and use tax for housing - Rate.
3.28A.040
Sales and use tax for housing - Deduction.
3.28A.050
Sales and use tax for housing - Expiration.
3.28A.060
Sales and use tax for housing - Reporting.
3.28A.010 Sales and use tax for housing - Definitions.
A. "Participating city" is a city that imposes a sales and use tax in accordance with the
terms of Chapter 338, Laws of 2019.
B. "Taxable event" means any retail sale, or any use, upon which a state tax is imposed
pursuant to chapter 82.08 or 82.12 RCW, as they now exist or may hereafter be amended.
However, the term does not include a retail sale taxable pursuant to RCW 82.08.150, as now or
hereafter amended.
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3.28A.020 Sales and use tax for housing - Imposition.
The City of Edmonds is a Participating city. Pursuant to Chapter 338, Laws 2019, there is
authorized, fixed and imposed a sales and use tax on every Taxable event. The tax shall be imposed
upon and collected from those persons from whom the state sales or use tax is collected pursuant
to Chapters 82.08 and 82.12 RCW.
3.28A.030 Sales and use tax for housing - Rate.
The rate of the tax imposed by ECC 3.28A.020 shall be the maximum rate permitted cities
under Chapter 338, Laws of 2019.
3.28A.040 Sales and use tax for housing - Deduction.
The tax imposed under this chapter must be deducted from the amount of tax otherwise
required to be collected or paid to the Department of Revenue under Chapters 82.08 or 82.12 RCW.
3.28A.050 Sales and use tax for housing - Expiration.
The tax imposed by this chapter expires twenty years after the date on which the tax is first
imposed.
3.28A.060 Sales and use tax for housing - Reporting.
The Development Services Director shall report annually to the Department of Commerce
on the collection and use of the revenue from the tax imposed by this chapter.
Section 2. 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.
rd
Section 3. 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.
MAYOR DAVE EARLING
ATTEST/AUTHEN ATE
GLERK,S SSEY
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY:
BY
JEFI ARADAr
FILED WITH THE CITY CLERK: August 30, 2019
PASSED BY THE CITY COUNCIL: September 3, 2019
PUBLISHED: September 6, 2019
EFFECTIVE DATE: September 11, 2019
ORDINANCE NO. 1459
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SUMMARY OF ORDINANCE NO. 1459
of the City of Edmonds, Washington
On the 3rd day of September, 2019, the City Council of the City of Edmonds, passed
Ordinance No. 4159. A summary of the content of said ordinance, consisting of the title,
provides as follows:
AN ORDINANCE OF THE CITY OF EDMONDS,
WASHINGTON, RELATING TO LOCAL SALES OR
USE TAXES; AUTHORIZING THE MAXIMUM
CAPACITY OF THE TAX AUTHORIZED UNDER THE
PROVISIONS OF SUBSTITUTE HOUSE BILL 1406
(HEREINAFTER CHAPTER 338, LAWS OF 2019) FOR
AFFORDABLE AND SUPPORTIVE HOUSING;
ADOPTING A NEW CHAPTER 3.28A OF THE
EDMONDS CITY CODE.
The full text of this Ordinance will be mailed upon request.
DATED this 3rd day of September, 2019.
dT,YCLERK, . C PASSEY
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Everett Daily Herald
Affidavit of Publication
State of Washington }
County -of _Snohomish }— ss_ _
Dicy Sheppard being first duly sworn, upon
oath deposes and says: that he/she is the legal
representative of the Everett Daily Herald a
daily newspaper. The said newspaper is a legal
newspaper by order of the superior court in the
county in which it is published and is now and
has been for more than six months prior to the
date of the first publication of the Notice
hereinafter referred to, published in the English
language continually as a daily newspaper in
Snohomish County, Washington and is and
always has been printed in whole or part in the
Everett Daily Herald and is of general
circulation in said County, and is a legal
newspaper, in accordance with the Chapter 99
of the Laws of 1921, as amended by Chapter
213, Laws of 1941, and approved as a legal
newspaper by order of the Superior Court of
Snohomish County, State of Washington, by
order dated June 16, 1941, and that the annexed
is a true copy of EDH872631 ORD 4159 as it was
published in the regular and entire issue of said
paper and not as a supplement form thereof for
a period of 1 issue(s), such publication
commencing on 09/06/2019 and ending on
09/06/2019 and that said newspaper was
regularly distributed to its subscribers during all
of said period.
The amount of the fee or such publication is
$50.40-- 1
Subscribed and sworn b vre me on this
day of
Linda Pwips
Nptery Public
Stele of Westtinpton
MyAPPOIf EwimEwires0&292021
Natary Public in and for the State of
Washington.
City of Edmonds- LEGAL ADS 114101416
SCOTT
Classified Proof
SUMMARY OF ORDINANCE NO, 4159
o! 1na Clty o1 Edrnon b Washington
On the 3r4 tlaq d! Sepl9mlwr, 2D19, the CIryry EOuncll of ttw
City of Edmonds, passed OrWnamo No. 418g. A summary of
trw content al mid ordinance. constxung of the IkIM, provkks
As fntbm
AN ORDINANCE OF THE CfTY OF EDMONDS,
WASHINGTON. RELATING TO LOCAL SALES OR USE
TAXES: AUTHOK12ING TkE MAXIMUM CAPACITY OF THE
TAX AUTHORIZED UNDER THE PROVISIONS OF
SUBSTITUTE HOUSE WLL 1406;HEREINAFTER CHAPTER
339, LAWS OF 2019; FOR AFFORDABLE AND
SUPPORTIVE HOUSINO3 ADOFTING A NEW CHAPTER
324A OF THE EOMO NOS CETYCODE.
The rug la%t of Inks Orcimac0 WIM as mailed Upon rsgwat.
DATED this 3rd0ay of 8eplumber. 2019.
CITY CLERK, SC TT PASSEY
PubY9hetl Seplemner S. 2010 EDH972631
Proofed by Sheppard, Dicy, 09/11/2019 03:36:27 pm Page: 2