HomeMy WebLinkAboutOrdinance No. 0985
Ordinance No. 985 Page 1 of 3
Ordinance No. 985
MEDINA CITY COUNCIL
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MEDINA,
WASHINGTON, ADOPTING LEGISLATION TO AUTHORIZE A SALES AND
USE TAX FOR AFFORDABLE HOUSING IN ACCORDANCE WITH
SUBSTITUTE HOUSE BILL 1406 (CHAPTER 338, LAWS OF 2019), AND
OTHER MATTERS RELATED THERETO; ADDING A NEW CHAPTER 3.57 TO
TITLE 3 OF THE MEDINA MUNICIPAL CODE; PROVIDING FOR
SEVERABILITY; AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, in the 2019 Regular Session, the Washington State Legislature approved
Substitute House Bill 1406 (Chapter 338, Laws of 2019) (“SHB1406”) and codified as RCW
82.14.540; and
WHEREAS, SHB 1406 authorizes the governing body of a city or county to impose a
local sales and use tax for the acquisition, construction or rehabilitation of affordable housing or
facilities providing supportive housing; and
WHEREAS, the tax will be credited against sales and use taxes collected within the City
of Medina (the “City”) by the State of Washington and, therefore, will not result in higher sales
and use taxes within the City and will represent an additional source of funding to address
housing needs in the City; and
WHEREAS, revenue received from the sales and use tax must be used to assist
persons whose income is at or below 60% of King County’s median income; and
WHEREAS, the City has determined that there is a demand and need for affordable
housing and that imposing the sales and use tax to address this need will benefit its citizens;
and
WHEREAS, in order for a city or county to impose the sales and use tax permitted by
SHB 1406, within six months of the effective date of SHB 1406, or by January 28, 2020, the
governing body must have adopted a resolution of intent to authorize the maximum capacity of
the tax, and within twelve months of the effective date of SHB 1406, or by July 29, 2020, must
adopt legislation authorizing the maximum capacity of the tax; and
WHEREAS, on September 9, 2019, the City Council adopted Resolution No. 404
declaring its intent to adopt legislation to authorize 0.0073% of the sales and use tax as
authorized by SHB 1406; and
WHEREAS, SHB 1406 allows cities and counties to enter into interlocal agreements with
other counties, cities or public housing authorities to pool the sales and use tax receipts and
allocate the proceeds of the taxes levied under SHB 1406; and
WHEREAS, the City is a member city of and a party to the interlocal agreement
establishing A Regional Coalition of Housing (“ARCH”), a joint board established for the purpose
of pooling revenue for investment in housing; and
WHEREAS, the interlocal agreement establishing ARCH authorizes the City of Bellevue
(as the administering agency for ARCH) to establish and maintain a centralized Housing Trust
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Fund Account for the purpose of administering the contributions of ARCH members for
affordable housing projects and programs; and
WHEREAS, the City Council desires to allocate the sales and use tax receipts
authorized by SHB 1406 to ARCH, to be pooled with other sources of revenue in accordance
with terms of the exiting interlocal agreement, for administration through the ARCH Housing
Trust Fund Account, with contributions to be released only when directed by the City; and
WHEREAS, this ordinance constitutes the legislation required to authorize a sales and
use tax in the amount of 0.0073% in accordance with SHB 1406; and
WHEREAS, the City Council now desires to impose a local sales and use tax as
authorized by SHB 1406, as set forth herein, and adopt a new Chapter 3.57 to Title 3 of the
Medina Municipal Code to adopt and impose said sales and use tax;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MEDINA, WASHINGTON,
DOES ORDAIN AS FOLLOWS:
Section 1. Findings. The City Council hereby adopts the forgoing recitals as findings in
support of this Ordinance.
Section 2. Adoption. The City Council hereby adopts a new Chapter 3.57 to Title 3 of
the Medina Municipal Code, entitled “Sales and Use Tax for Affordable Housing” to read as
follows:
Chapter 3.57 Sales and Use Tax for Affordable Housing
Purpose
3.57.010 The purpose of this chapter is to impose a local sales and use tax for the acquisition,
construction or rehabilitation of affordable housing or facilities providing supportive housing as
authorized by RCW 82.14.540.
3.57.020 Imposition of Sales and Use Tax.
A. Imposition. In addition to other taxes which may be imposed by the City, there is hereby
authorized, fixed and imposed a separate sales and use tax in accordance with RCW
82.14.540. Such tax shall be assessed on the selling price in the case of a sales tax, or value of
the article used in the case of a use tax, upon every taxable event that occurs within the City
limits of Medina.
B. Tax Rate; Term. The rate of the sales and use tax authorized by this Chapter shall be
0.0073% of the selling price or value of the article used or such rate as authorized by RCW
82.14.540 as amended from time to time. The tax imposed by the City under this Chapter shall
expire twenty years after the date on which the tax is first imposed.
C. Tax Receipts; Administration. The maximum amount to be received by the City from the tax
in each year shall be equal to the taxable retail sales within the City limits of Medina in each
fiscal year multiplied by the tax rate. The tax imposed by this chapter shall be deducted from the
amount of tax otherwise required to be collected or paid to the Washington State Department of
Revenue (“DOR”) under chapter 82.08 or 82.12 RCW, as the same now exists or may hereafter
be amended. DOR shall collect and administer the tax on behalf of the City at no cost to the
City. In the event that the amount of tax exceeds the maximum amount allowed to the City
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under RCW 82.14.540, any excess shall be remitted to the State Treasurer in accordance with
RCW 82.14.540(5). The City Manager is authorized to enter in an agreement with DOR for the
administration of the tax.
3.57.030 Penalty. Any person violating any provision of this Chapter shall be guilty of a
misdemeanor and upon conviction thereof punished pursuant to State law or City ordinance.
Section 3. Use of Tax Receipts; Pooling Sales and Use Tax Receipts. Revenue received by the
City from the sales and use tax authorized in Section 1 of this ordinance shall be used for the
purposes authorized in RCW 82.14.540(6), including acquiring, rehabilitating and/or
constructing affordable housing, providing supportive housing services, and funding the
operations and maintenance costs of new units of affordable or supportive housing.
Sales and use tax receipts received by the City as authorized by RCW 82.14.540 are hereby
authorized to be remitted to ARCH in accordance with terms of the existing interlocal agreement
between ARCH and the City, for administration through the ARCH Housing Trust Fund Account,
with contributions to be released only when directed by the City Manager, who is authorized to
execute such documents as necessary to carry out the terms of this Section.
Section 4. Corrections. The City Clerk and codifiers of the ordinance are authorized to make
necessary corrections to this ordinance including, but not limited to, the correction of
scrivener/clerical errors, references, ordinance numbering, section/subsection numbers and any
references thereto.
Section 5. Severability. If any section, subsection, paragraph, sentence, clause or phrase of this
ordinance is declared unconstitutional or invalid for any reason, such invalidity shall not affect
the validity or effectiveness of the remaining portions of this ordinance.
Section 6. Publication and Effective Date. This Ordinance, or a summary thereof consistent of
the title, shall be published in the official newspaper of the City and shall take effect and be in
full force five (5) days after its adoption and publication as required by law.
PASSED BY THE CITY COUNCIL OF THE CITY OF MEDINA ON THE 8TH DAY OF JUNE
2020 BY A VOTE OF 7 FOR, 0 AGAINST, AND 0 ABSTAINING, AND IS SIGNED IN
AUTHENTICATION OF ITS PASSAGE THE 8TH DAY OF JUNE 2020.
PUBLISHED:
EFFECTIVE DATE:
ORDINANCE NO.: / AB