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04/25/2023 - Regular - Additional Docs-Public Safety Sales TaxMRSC Sales Tax Kitsap Example: Mental Health Ordinance Public Safety Sales Tax Received At APR 151013 Council Meeting Cities, towns, and counties. Any city or county may impose a public safety sales tax (RCW 82.14.450), with at least one-third of the revenues used solely for criminal justice purposes (as defined in RCW 82.14.340), fire protection purposes, or both. The maximum rate is 0.3% for counties and 0.1 % for cities, and the revenue must be shared between cities and counties. However, the combined city/county rate may not exceed 0.3%. The measure requires voter approval, and unlike most local revenue options it may only be submitted at a primary or general election and may not be submitted at a February or April special election. Another unique feature is that motor vehicle sales and the first 36 months of a motor vehicle lease are exempt from this portion of the sales tax. Money received by a county under subsection (1) of this section must be shared between the county and the cities as follows: 60 percent must be retained by the county and 40 percent must be distributed on a per capita basis to cities in the county. RCW 82.14.340 - Criminal justice purposes are defined as activities that substantially assist the criminal justice system, which may include circumstances where ancillary benefit to the civil justice system occurs, and which includes domestic violence services such as those provided by domestic violence programs, community advocates, and legal advocates, as defined in RCW 70.123.020. In the expenditure of funds for criminal justice purposes as provided in this section, cities and counties, or any combination thereof, are expressly authorized to participate in agreements, pursuant to chapter 39.34 RCW, to jointly expend funds for criminal justice purposes of mutual benefit. Such criminal justice purposes of mutual benefit include, but are not limited to, the construction, improvement, and expansion of jails, court facilities, juvenile justice facilities, and services with ancillary benefits to the civil justice system. RCW 82.14.036 Imposition or alteration of additional taxes Referendum petition to repeal —Procedure —Exclusive method Tax & Population Data - Cities & Counties Breakdown of tax components by jurisdiction Examples from other jurisdictions: Kirkland City Kirkland Reno Public Safety Sales Tax Klttitas County Kittitas County Reso Public Safety Sales Tax Skagit County Itittitas County Reso Public Safety Sales Tax Electric City Electric City Reso Public Safely__ ales Tax Bridgeport Bridgeport Reso Public Safety Sales Tax Public Safety Sales Tax Statistics: 18 counties at 3/10tn 6 counties at 1 /10tn 14 other counties have 1 or more cities with Public Safety Tax, but the counties do not have the tax. Tax proceeds received by a city imposing a tax under this section must be shared between the county and city as follows: 15 percent must be distributed to the county and 85 percent is retained by the city. Estimate of Revenue in 2024 1 /10tn $6.9M - $7.25M Kitsap $4,140,000 - $4,350,000 Bainbridge $700,000 - 735,000 Bremerton $1,200,000 - 1,300,000 Port Orchard $460,000 - $480,000 Poulsbo $340,000 - $357,000 3/10tn $20.71M - $21.75M $12,420,000 - 13,000,0100 $2,100,000 - $2,200,000 $3,800,000 - $3,980,000 $1,370,000 - $1,440,000 $1,020,000 - $1,071,000 2023 Budget $117M Law & Justice Departments - 74% Budgeted Expenditures Sheriff 42%, Prosecutor 10%, Juvenile 7%, Clerk 4%, Public Defense 4%, District Court 3%, Superior Court 3%, Medical Examiner 1 % 503.55 Total FTE - List of top 15 classifications in Public Safety Departments Deputy Sheriff 100 Corrections Officer 85 Court Clerk 38.2 Attorney 2 26 Office Support Spec/Legal Assistant 20 Attorney 3 18 Sheriff Support Specialist 17.75 Court Services Officer 16 Juvenile Detention Officer 15 Office Support Coordinator 14 Sergeant 14 Program Specialist 10 Corrections Sergeant 9 Judge Superior Court 8 Medicolegal Death Investigator 7 Robert Gelder From: Eric J. Lowell <elowell@mrsc.org> Sent: Monday, April 24, 2023 11:19 AM To: Robert Gelder Subject: RE: Public Safety Sales Taxes and Credit Back to Cities EYou don't often get email from elowell@mrsc.org. Learn why this is important [CAUTION: This message originated outside of the Kitsap County mail system. DO NOT CLICK on links or open attachments unless you were expecting this email. If the email looks suspicious, contact the Helpdesk immediately at 360-337-5555, or email at Helpdesk@kitsap.gov] Good morning. Here is the response to your inquiry: INQUIRY: Public Safety Sales Tax: Cities, towns, and counties. Any city or county may impose a public safety sales tax (RCW 82.14.450), with at least one-third of the revenues used solely for criminal justice purposes (as defined in RCW 82.14.340), fire protection purposes, or both. The maximum rate is 0.3% for counties and 0.1 % for cities, and the revenue must be shared between cities and counties. However, the combined city/county rate may not exceed 0.3%. Question: if County initiated and it was passed by voters the .3%, could then a city within the county ask voters for .1% and if approved would that reduce the previously approved .3 passed within the county overall or just relative to the sales of that particular city, or not at all? Hopefully I posed that question in an understandable manner. Thanks RESPONSE: Cities can only impose the public safety sales tax if the county hasn't already done so. Once a county imposes the public safety sales tax, no new cities within the county can impose it. If a city has already imposed the public safety sales, the county would need to credit back 0.1 % for sales within any city that has imposed the tax. Outside of any cities that get 0.1%, the county would still get 0.3% for retail sales in unincorporated areas and 0.3% for retail sales within cities that did not impose the public safety sales tax. Let me know if you have further questions concerning this inquiry. Regards, Eric Lowell (He/She/They) Finance Consultant 206.625.1300 x105 MRSC Empowering local governments