HomeMy WebLinkAboutOrdinance No. 2020-014 An Ordinance of the City Council of the City of Arlington, Washington, Authorizing the Maximum Capacity of a Local Sales and Use Tax to Fund Investments in Affordable and Supportive.. ORDINANCE NO. 2020--014
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARLINGTON, WASHINGTON,
AUTHORIZING THE MAXIMUM CAPACITY OF A LOCAL SALES AND USE TAX TO FUND
INVESTMENTS IN AFFORDABLE AND SUPPORTIVE HOUSING, TO BE CODIFIED AT
CHAPTER 3.24 OF THE ARLINGTON MUNICIPAL CODE; PROVIDING FOR SEVERABILITY;
AND ESTABLISHING AN EFFECTIVE DATE.
WHEREAS, Arlington's Comprehensive Plan states that more than half of City residents
are burdened by housing costs, paying more than 30%of their income for housing; and
WHEREAS, Goal GH-7 of Arlington's Comprehensive Plan is that the City of Arlington
should increase the opportunity for all residents to purchase or rent safe and sanitary housing
through incentives and other programs; and,
WHEREAS, Goal GH-8 of Arlington's Comprehensive Plan is that the City should promote
and facilitate the provision of affordable housing in all areas and zoning districts of the City; and
WHEREAS, Arlington's Comprehensive Plan recognizes in Policy PH-8.5.6 that the City of
Arlington should work with the county and seek partnership with other jurisdictions to assess
housing needs; and
WHEREAS, the Arlington City Council, in accordance with Washington State Legislature
Chapter 338, Laws of 2019, has adopted a resolution of intent to adopt legislation to authorize
the maximum capacity of a sales and use tax within six months of the effective date of Chapter
338, Laws of 2019; and
WHEREAS, the City of Arlington intends to impose the maximum local sales and use tax
authorized under Chapter 338, Laws of 2019 within one year of the date on which said law takes
effect; and
WHEREAS, the Department of Revenue requires 30 days' notice of adoption of sales tax
credits and the credit will then take effect on the first day of the month following the 30-day
period; and
WHEREAS, the local sales and use tax will be credited against the state sales and use tax
so that the total tax paid by the consumer will not increase; and
WHEREAS, the local sales and use tax revenue shall be spent on acquiring, rehabilitating,
constructing affordable housing or supportive housing, or rental assistance and other related
expenditures as authorized by Chapter 338, Laws of 2019; and
WHEREAS, Chapter 338, Laws of 2019 authorizes the City of Arlington to issue general
obligation or revenue bonds to carry out the purposes of the legislation and to pledge the
revenue collected by the local sales and use tax to repay the bonds; and
ORDINANCE NO. 2020-014 1
WHEREAS, the City has determined it is in the best interest of the City and its residents
to begin implementation of the tax and then later determine the process for the distribution of
the funds collected to meet the requirements of Chapter 338, Laws of 2019;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARLINGTON, WASHINGTON,
HEREBY ORDAINS AS FOLLOWS:
Section 1. Chapter 3.24 of the Arlington Municipal Code Established. A new chapter
of the Arlington Municipal Code entitled "Sales and Use Tax for Affordable Housing," to be
codified as Arlington Municipal Code (AMC) Chapter 3.24, is hereby established to read as
follows:
CHAPTER 3.24
SALES AND USE TAX FOR AFFORDABLE HOUSING
Sections:
3.24. 010 Imposition of Sales and Use Tax for Affordable Housing
3.24. 020 Purpose of Tax
3.24. 030 Administration and Collection — Statutory Compliance
3.24.010 Imposition of Sales and Use Tax for Affordable Housing
A. There is imposed a sales and use tax as authorized by Washington State
Legislature Chapter 338, Laws of 2019, which shall be codified in Chapter 82.14 RCW,
upon every taxable event, as defined in Chapter 82. 14 RCW, occurring within the City of
Arlington. The tax shall be imposed upon and collected from those persons from whom
the State sales tax or use tax is collected pursuant to Chapter 82.08 and 82.12 RCW.
B. The rate of the tax imposed by AMC Section 3.24.010 shall be 0.0073 percent of
the selling price or value of the article used.
C. The tax imposed under AMC Section 3.24 010 shall be deducted from the
amount of tax otherwise required to be collected or paid to the Department of Revenue
under Chapter 82.08 or 82.12 RCW. The Department of Revenue will perform the
collection of such taxes on behalf of the City of Arlington at no cost to the City.
D. The Department of Revenue will calculate the maximum amount of tax distributions
for the City of Arlington based on the taxable retail sales in the City in State Fiscal Year
2020, and the tax imposed under AMC Section 3.24.010 will cease to be distributed to the
City of Arlington for the remainder of any State Fiscal Year in which the amount of tax
exceeds the maximum amount of tax distributions for the City as properly calculated by
the Department of Revenue. Distributions to the City of Arlington that have ceased during
a State Fiscal Year shall resume at the beginning of the next State Fiscal Year.
ORDINANCE NO. 2020-014 2
3.24.020 Purpose of Tax
A. The City may use the moneys collected by the tax imposed under AMC Section
3.24.010 or bonds issued only for the following purposes:
1. Acquiring, rehabilitating, or constructing affordable housing, which may
include new units of affordable housing within an existing structure or facilities
providing supportive housing services under RCW 71.24.385; and
2. Providing the operations and maintenance costs of new units of affordable
or supportive housing; and
3. Providing rental assistance to tenants.
B. The housing and services provided under AMC Section 3.24.020 may only be
provided to persons whose income is at or below 60 percent of the median income of the
City.
C. In determining the use of funds under AMC Section 3.24.020, the City must
consider the income of the individuals and families to be served, the leveraging of the
resources made available under AMC Section 3.24.010, and the housing needs within
the City.
D. The Finance Director must report annually to the Washington State Department
of Commerce, in accordance with the Department's rules, on the collection and use of the
revenue from the tax imposed under AMC Section 3.24.010.
E. The tax imposed by the City under AMC Section 3.24.010 will expire 20 years
after the date on which the tax is first imposed. The Finance Director shall provide notice
to the City Council and the Mayor of the expiration date of the tax each year beginning
three years before the expiration date, and shall also promptly notify the City Council and
the Mayor of any changes to the expiration date.
3.24.030 Administration and Collection — Statutory Compliance
The administration and collection of the tax imposed by Chapter 3.24 shall be in
accordance with the provisions of Washington State Legislature Chapter 338, Laws of
2019, which shall be codified in Chapter 82.14 RCW.
Section 2. Authorization. The Finance Director is authorized to provide any necessary
notice to the Department of Revenue to effectuate the tax enacted by this ordinance and to
execute, for and on behalf of the City of Arlington, any necessary agreement with the
Department of Revenue for the collection and administration of the tax enacted by this
ordinance.
Section 3. Corrections by City Clerk or Code Reviser. Upon approval of the City
Attorney, the City Clerk and the code reviser are authorized to make necessary
corrections to this ordinance, including the correction of clerical errors; references to other
ORDINANCE NO. 2020-014 3
local, state or federal laws, codes, rules, or regulations; or ordinance numbering and
section/subsection numbering.
Section 4. Severability. If any section, subsection, paragraph, sentence, clause or
phrase of this ordinance or its application to any person or situation should be held to be
invalid or unconstitutional for any reason by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity or constitutionality of the
remaining portions of this ordinance or its application to any other person or situation.
Section 5. Effective Date. This ordinance or a summary thereof shall be published
in the official newspaper of the City, and shall take effect and be in full force five days
after passage and publication as provided by law.
PASSED BY the City Council and APPROVED by the Mayor this 20th day of July, 2020.
CITY OF ARLINGTON
Barbara Tolbert, Mayor
Attest:
JQ
Wendy Van ifer Meersche, City Clerk
Approved as to form:
Ste n le
Cit ttorney
ORDINANCE NO. 2020-014 4
CERTIFICATION OF ORDINANCE
I, Wendy Van Der Meersche, being the duly appointed and City Clerk of the City of
Arlington, Washington, a municipal corporation, do hereby certify that the following
Ordinance No. 2020-014 was approved at the July 20, 2020 City Council meeting.
ORDINANCE NO. 2020-014
"AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ARLINGTON,WASHINGTON,
AUTHORIZING THE MAXIMUM CAPACITY OF A LOCAL SALES AND USE TAX TO FUND
INVESTMENTS IN AFFORDABLE AND SUPPORTIVE HOUSING,TO BE CODIFIED AT
CHAPTER 3.24 OF THE ARLINGTON MUNICIPAL CODE; PROVIDING FOR SEVERABILITY;
AND ESTABLISHING AN EFFECTIVE DATE"
A true and correct copy of the original ordinance is attached.
Dated this 22nd day of July, 2020.
l
Wendy Van Der Meersche
City Clerk for the City of Arlington