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050-19 - Ordinance - Authorizing the Maximum Capacity of a Local Sales and Use Tax to Fund Investments in Affordable HousoRDTNANCE NO. 050-19 AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, AUTHOR Z NG THE MAX MUM CAPACITY OF A TOCAL SALES AND USE TAX TO FUND INVESTMENTS !N AFFORDABLE AND SUPPORT VE HOUSING, IN ACCORDANCE WITH SUBST TUTE HOUSE B LL 1406 (CHAPTER 338, LAWS OF 20191, PROVTD NG FOR SEVERABTL Ty AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, in the 2019 Regular Session, the Washington State Legislature approved, and the Governor signed, Substitute House Bill 1406 (Chapter 338, Laws of 2019) ("SHB 1406"); and WHEREAS, SHB L406 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; for the operations and maintenance costs of affordable or supportive housing; and for providing rental assistance to tenants; and WHEREAS, the tax will be credited against state sales taxes collected within the City of Port Orchard and, therefore, will not result in higher sales and use taxes within the City of Port Orchard and will represent an additional source of funding to address housing needs in the City of Orchard; and WHEREAS, the tax must be used to assist persons whose income is at or below sixty percent (60%l of the City of Port Orchard median income; and WHEREAS, the City of Port Orchard has a need to provide for affordable housing or facilities; for the operations and maintenance costs of affordable or supportive housing; and for rental assistance to tenants, and has determined that imposing the sales and use tax to address this need will benefit its citizens; and WHEREAS, in order to impose the tax, the City was required to adopt a resolution within six months of the effective date of SHB 1406, or January 28,2O2O, declaring the City's intent to adopt legislation to levy the maximum capacity of the tax; and WHEREAS, in fulfillment of the resolution of intent requirement, the City of Port Orchard City Council passed Resolution No. 023-19 on August 13,20L9; and WHEREAS, SHB L4OG requires the governing body to adopt legislation to authorize the maximum capacity of the tax within twelve months of the effective date of SHB 1406; and WHEREAS, this ordinance constitutes the required legislation to authorize the maximum capacity of the Local Sales and Use tax; now, therefore, Ordinance No. 050-19 Page 2 of 3 THE C TY COUNC L OF THE C TY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS FOLLOWS: sEcTroN 1.Authorization. The City Council hereby authorizes the maximum capacity of the sales and use tax authorized by SHB 1406. SECTION 2. lmposition of Tax. Pursuant to SHB 1406 (Chapter 338, Laws of 2019) there is hereby imposed as sales or use tax, as the case may be, on all "taxabte events" within the City of Port Orchard, as defined in RCW 82.L4.O20, as the same now exists or has hereafter amended or superseded, for the purpose of providing affordable and supportive housing. The rate of the tax shall be 0.0073 percent. Collection of Tax bv Department of Revenue. The Washington State Department of Revenue shall deduct the amount of the tax levied in section 2 above from the amount of sales or use 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 is authorized to cottect such taxes on behalf of the City of Port Orchard at no cost to the City. SECT ON 4. Distribution bv D epartment of Revenue-Maximu Amount of Tax. The Washington State Department of Revenue shall distribute the proceeds of the tax to the City as provided by SHB L4O6, up to the maximum amount provided in such state taw. sEcTroN 5.Use of Tax Revenues. The City may use the revenues from the tax solely for the acquisition, construction or rehabilitation of affordabte housing or facilities providing supportive housing; for the operation and maintenance costs of affordable or supportive housing; for providing rental assistance to tenants; or for any other purpose authorized by SHB L4O6, as the same now exists or is hereafter amended or superseded. sEcTtoN 6.Bonds. SHB 1406 authorizes the City to issue general obligation or revenue bonds to carry out the purposes of such state law and to pledge the monies collected from the tax for repayment of such bonds. Such bonds, if any, shalt be authorized by separate action of the Port Orchard City Council. SECTION 7. lnterlocal Asreements. SHB 1405 authorizes cities imposing the tax provided for in the ordinance to enter into interlocal agreements with one or more counties, cities or public housing authorities in accordance with chapter 39.34 RCW. Such interlocal agreements may include, but are not Iimited to, pooling the tax receipts, pledging those taxes to bonds issued by one or more parties, and allocating the proceeds of the taxes levied or bonds issued in accordance with such interlocal agreement. Such interlocal agreements, if ?hy, shall be authorized by separate action of the Port orchard City Council. Reportins. The City shall report annually to the Washington State Department of Commerce on the collection and use of the tax revenues. The report shall be in such form and Ordinance No. 050-19 Page 3 of 3 contain such content as the Department of Commerce shall prescribed by rule. The Mayor or their designee shal! prepare the annual report and provide a copy to the Port Orchard City Council at the time the same is filed with the state. Expiration of Tax. The tax imposed by this Ordinance shall expire twenty (20) years from the date this ordinance becomes effective. SECTION 10. Severabilitv. lf any section, sentence, clause or phrase of this Ordinance should be held to be unconstitutional or unlawful by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. SECTION 11. Publication. This Ordinance shall be published by an approved summary consisting of the title. SECTTON 12. Effective Date. This Ordinance shalltake effect and be in full force and effect five days after publication, as provided by law. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor Pro-Tem and attested by the Clerk in authentication of such passage this 12th day of November 2019. Bek Ashby, Mayor Pro-Tem ATTEST:SPONSOR: Brandy nearson,MMC, City Clerk n Clauson,ncilmember APPROVED AS TO FORM: n Cates, City Attorney P U BLISH ED: EFFECTIVE DATE: Novemb er 22, 2OL9 Novemb er 27 ,2OL9 NOTICE OF CITY OF PORT ORCHARD ORDINANCE The following is a summary of an Ordinance approved by the Port Orchard City Council at their regular Council meeting held November 12, 2019. ORDINANCE NO. 050-19 AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, AUTHORIZING THE MAXIMUM CAPACITY OF A LOCAL SALES AND USE TAX TO FUND INVESTMENTS IN AFFORDABLE AND SUPPORTIVE HOUSING, IN ACCORDANCE WITH SUBSTITUTE HOUSE BILL 1406 (CHAPTER 338, LAWS OF 2019), PROVIDING FOR SEVERABILITY AND ESTABLISHING AN EFFECTIVE DATE. Copies of Ordinance No. 050-19 are available for review at the office of the City Clerk of the City of Port Orchard. Upon written request, a statement of the full text of the Ordinance will be mailed to any interested person without charge. Thirty days after publication, copies of Ordinance No. 050-19 will be provided at a nominal charge. City of Port Orchard Brandy Rinearson City Clerk Published: Friday, November 22, 2019