039-22 - Ordinance - Sales and Use TaxDocuSign Envelope ID: 270348F2-F56A-465C-9378-DAA198FC4DA7
ORDINANCE NO.039-22
AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, IMPOSING AN
ADDITIONAL SALES AND USE TAX OF ONE -TENTH OF ONE PERCENT WITHIN THE
BOUNDARIES OF THE PORT ORCHARD TRANSPORTATION BENEFIT DISTRICT FOR
THE PURPOSE OF FINANCING THE COSTS ASSOCIATED WITH TRANSPORTATION
IMPROVEMENTS IN THE TRANSPORTATION BENEFIT DISTRICT AS AUTHORIZED
BY RCW 36.73.040; PROVIDING FOR SEVERABILITY AND CORRECTIONS; AND
ESTABLISHING AN EFFECTIVE DATE AND EXPIRATION DATE.
WHEREAS, on December 8, 2015 the Port Orchard City Council established a
Transportation Benefit District (hereinafter "TBD") pursuant to Chapter 36.73 RCW by adoption
of Ordinance No. 027-15; and
WHEREAS, the boundaries for the City of Port Orchard Transportation Benefits District
are coterminous with the boundaries of the City of Port Orchard City Limits; and
WHEREAS, Ordinance No. 027-15 provided all Council members would serve as the TBD
Board members and would take on all rights, powers, functions, and obligations of the TBD; and
WHEREAS, on June 14, 2016 by adoption of Ordinance No. 010-16, the City of Port
Orchard assumed the rights, powers, immunities, functions, and obligations of the Port Orchard
Transportation Benefit District, pursuant to Second Engrossed Substitute Senate Bill 5987 (2015),
which amended Chapter 36.73 RCW to allow for such assumption; and
WHEREAS, on July 16, 2016 Ordinance No. 010-16 was later repealed in error by
Ordinance No. 020-16 which was itself repealed by Ordinance 020-17 on July 27, 2016 under
which the City of Port Orchard again assumed the rights, powers, immunities, functions, and
obligations of the Port Orchard Transportation Benefit District; and
WHEREAS, on July 12, 2016 the City Council adopted Ordinance No. 019-16 which
imposed a $20 license fee on vehicles registered in Port Orchard; and
WHEREAS, the City's necessary transportation improvement projects are identified in the
City of Port Orchard's Comprehensive Plan Transportation Element and the City's Six- and
Twenty -Year Transportation Improvement Programs; and
WHEREAS, City of Port Orchard Ordinance No. 027-15 provides that funds generated by
the City of Port Orchard Transportation Benefit District shall be used for transportation
improvements that preserve, maintain, operate, construct, and reconstruct the planned and/or
existing transportation infrastructure of the City/District, consistent with the requirements of
Chapter 36.73 RCW; and
WHEREAS, RCW 36.73.040(3)(a) authorizes transportation benefit districts to impose a
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Ordinance No. 039-22
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sales and use tax subject to the provisions of RCW 36.73.065; and
WHEREAS, RCW 36.73.065(4)(a)(v) authorizes transportation benefit districts to impose a
sales and use tax in accordance with RCW 82.14.0455 in an amount not exceeding one -tenth of
one percent (0.1%) for a period of 10 years upon a majority vote of the governing board for the
purpose of financing certain transportation improvements; and
WHEREAS, the City Council held a public hearing on the imposition of the imposition of
the 0.01% TBD sales and use tax on September 13, 2022; and
WHEREAS, the City Council considered this matter at the following regular Council
meetings which included public comment periods: September 13th and September 27th, 2022;
and
WHEREAS, the City of Port Orchard has identified the sales and use tax authorized by RCW
82.14.0455, as well as any other lawful funding sources available to the TBD pursuant to RCW
36.73.040, as funding sources available to the TBD; and
WHEREAS, a sales and use tax will be used for the purpose of acquiring, investing in,
constructing, improving, providing, operating, preserving, maintaining and/or funding
transportation improvements within the City of Port Orchard Transportation Benefit District,
which are coterminous with the City of Port Orchard City limits, and which are identified in the
City of Port Orchard's Comprehensive Plan Transportation Element and the City's Six- and
twenty- Year Transportation Improvement Programs; and
WHEREAS, a sales and use tax will apply to all persons who shop and thereby use streets
and roadways in the City of Port Orchard; and
WHEREAS, such sales and use tax will be effective on January 1, 2023 and be in effect for
a period of 10 years as permitted by law; and
WHEREAS, the City Council as the governing board of the City of Port Orchard
Transportation Benefit District has considered this matter during a regular City Council meeting
of said Council, has given this matter careful review and consideration, and finds that the best
interests of the City of Port Orchard and the Transportation Benefit District will be served by
passage of this ordinance; now, therefore,
THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DOES HEREBY
ORDAIN AS FOLLOWS:
Section 1. Findings. The findings and recitals set forth above are hereby adopted and
incorporated herein by this reference.
Section 2. Imposition of additional 0.1% sales tax. The City Council as the governing
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Ordinance No. 039-22
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board of the City of Port Orchard Transportation Benefit District finds that it is in the best interest
of the City and the Transportation Benefit District to impose a sales and use tax of one -tenth of
one percent (0.1%) pursuant to Sections 36.73.040(3)(a), 36.73.065(4)(v), and 82.14.0455 of the
Revised Code of Washington. Such sales and use tax is for the purpose of raising revenue to
acquire, invest in, construct, improve, provide, operate, preserve, maintain and/or fund
transportation improvements in the Transportation Benefit District. The sales and use tax shall
be imposed for a period not exceeding ten (10) years. The tax shall be in addition to any other
taxes authorized by law and shall be collected from those persons who are taxable by the state
under Chapters 82.08 and 82.12 of the Revised Code of Washington, as amended, upon the
occurrence of any taxable event within the boundaries of the City of Port Orchard Transportation
Benefit District which is conterminous with the City of Port Orchard City limits.
Section 3. Description of transportation improvements. The revenues from a sales and
use tax may be used to acquire, invest in, construct, improve, provide, operate, preserve,
maintain and/or fund the following described transportation improvements:
A. Projects in the TBD identified in the City of Port Orchard's Comprehensive Plan
Transportation Element and the City of Port Orchard's Six- and Twenty Year
Transportation Improvement Programs;
B. Expanded projects identified in accordance with Section 36.73.160 RCW, as
amended.
The cost of all construction, maintenance, preservation, operation, design, engineering,
construction management, financial, legal, and other consulting services, inspection and testing,
administrative and relocation expenses, and other costs incurred in connection with the
foregoing described transportation benefit district projects shall be deemed to be part of the
transportation improvements.
Section 4. Notice to Department of Revenue. The City Clerk is instructed to submit this
Ordinance to the Washington Department of Revenue (DOR), and to direct DOR to take all steps
necessary to immediately implement and collect the tax imposed by this Ordinance.
Section 5. Severability. If any section, sentence, clause, or phrase of this ordinance
should be held to be invalid or unconstitutional by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not affect the validity of constitutionality of any other
section, sentence, clause, or phrase of this ordinance.
Section 6. Corrections. Upon the approval of the city attorney, the city clerk is authorized
to make any necessary technical corrections to this ordinance, including but not limited to the
correction of scrivener's/clerical errors, references, ordinance numbering, section/subsection
numbers, and any reference thereto.
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Ordinance No. 039-22
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Section 7. Effective Date. This ordinance shall be in full force and effect five (5) days
after publication as provided by law, provided that the additional sales and use tax imposed by
Section 2 shall only apply to taxable events occurring on and after 12:01 AM on January 1, 2023.
A summary of this ordinance in the form of the ordinance title may be published in lieu of
publishing the ordinance in its entirety.
Section 8. Expiration. This ordinance and the sales and use tax imposed herein shall
automatically expire without further action of the City Council of the City of Port Orchard ten
(10) years after the effective date of the tax as set forth in Section 7 above at midnight on
December 31, 2032.
PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and
attested by the City Clerk in authentication of such passage this 27th day of September 2022.
LDOCUSIgned by:
pIN-"U SWA'
Robert Putaansuu, Mayor
ATTEST:
Brandy Wallace, MMC, City Clerk
APPROVED AS TO FORM: SPONSOR:
Docu$igncd by:
Charlotte ... A Archer, City Attorney
PUBLISHED: October 7, 2022
EFFECTIVE DATE: October 12, 2022
John Clauson, Councilmember
Ordinance No. 039-22
Page 4 of 4
Section 7. Effective Date. This ordinance shall be in full force and effect five (5) days
after publication as provided by law, provided that the additional sales and use tax imposed by
Section 2 shall only apply to taxable events occurring on and after 12:01 AM on January 1, 2023.
A summary of this ordinance in the form of the ordinance title may be published in lieu of
publishing the ordinance in its entirety.
Section 8. Expiration. This ordinance and the sales and use tax imposed herein shall
automatically expire without further action of the City Council of the City of Port Orchard ten
(10) years after the effective date of the tax as set forth in Section 7 above at midnight on
December 31, 2032.
PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and
attested by the City Clerk in authentication of such passage this 27th day of September 2022.
ATTEST:
Brandy Wallace, MMC, City Clerk
APPROVED AS TO FORM:
Charlotte A. Archer, City Attorney
PUBLISHED: October 7, 2022
EFFECTIVE DATE: October 12, 2022
Robert Putaansuu, Mayor
SPONSOR: