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Home My WebLink About12/02/2025 09.B. Ordinance imposing a one-tenth of one percent (0.1°/o) local sales and use tax to fund criminal justice purposes !, (7,-, ,.,4'; Iti.r. !!!� s F - � !!t,OR`i R A`}hD_1` - BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT Item No. 9.B. For Meeting of: December 2, 2025 ITEM TITLE: Ordinance imposing a one-tenth of one percent (0.1°/o) local sales and use tax to fund criminal justice purposes SUBMITTED BY: Craig Warner, Director of Finance and Budget SUMMARY EXPLANATION: This ordinance would authorize the City to impose a new 0.1% sales and use tax to support a wide range of criminal justice programs. State law (ESHB 2015) allows the City Council to adopt this tax by councilmanic action through June 2028. The tax is fully stackable with other local sales taxes, and all revenue generated remains with the City. Funds from this tax may be used for a broad set of criminal justice purposes, including domestic violence services, public defense, diversion programs, inmate reentry support, homelessness reduction, behavioral health services, community placements for juvenile offenders, and community outreach or crisis response programs. To implement the tax, the City must meet all eligibility requirements for the CJTC grant program established under the bill, although applying for the grant itself is not required. The City may submit its documentation before the CJTC completes its grant application process and website. ITEM BUDGETED: STRATEGIC PRIORITY 24-25: RECOMMENDATION: Pass Ordinance. ATTACHMENTS: criminal justice .001_ORDINANCE_2025.pdf criminal justice .001_ORDINANCE_2025.clean.docx 34 ORDINANCE NO. 2025- AN ORDINANCE relating to taxation; imposing a local sales and use tax of one-tenth of one percent for criminal justice purposes as authorized in Section 201, Chapter 350, laws of Washington 2025; adding a new Section 3.78.062 to the Yakima Municipal Code. WHEREAS, an adequately funded public safety and criminal justice system is necessary to maintain the safety and security of residents and visitors to the City of Yakima; and WHEREAS, the City of Yakima's General Fund budget, which includes public safety and criminal justice services and programs, such as police, courts, prosecution and indigent defense, has significant shortfalls in 2026; and WHEREAS, the City's General Fund tax revenue has not kept pace with inflation; and WHEREAS, during the 2025 session, the Washington State Legislature enacted ESHB 2015 authorizing qualified city, town, and county governments to impose a local sales and use tax of one-tenth of one percent (0.1%) by a legislative act prior to June 20, 2028; and WHEREAS, the local sales and use tax revenue shall be spent on "criminal justice purposes" as authorized and defined by ESHB 2015; and WHEREAS, to qualify, the City or County must provide the CJTC with documentation showing it meets the grant program's requirements; and WHEREAS, the City of Yakima is actively reviewing all policies, procedures, and practices required by ESHB 2015 to ensure compliance; WHEREAS, The City of Yakima City Council finds it is in the best interest of the City and its residents to impose the criminal justice sales and use tax authorized by ESHB 2015; now, therefore BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Findings. Pursuant to Section 201 of ESHB 2015, the City Council finds and declares that the City of Yakima is in compliance with and meets all requirements contained in RCW 43.101.540 and RCW 82.14.345(c). Section 2. A new Section, 3.78.062, is added to the Yakima Municipal Code as follows: Chapter 3.78.062. Imposition of Criminal Justice Sales and Use Tax A. There is imposed a Criminal Justice Sales and Use tax as authorized by Section 201, Chapter 350, Laws of Washington 2025, codified in RCW 82.14.345, upon all taxable events, as defined in chapter 82.14 RCW, occurring in the City of Yakima. The tax shall \\yakimacity\ykfn\Shared\Ordinances\criminal justice .001 ORDINANCE 2025.redline.docx 35 be imposed upon and collected from those persons from whom sales tax or use tax is collected pursuant to chapter 82.08 and 82.12 ROW. B. The rate of the sales and use tax imposed by this chapter shall be one-tenth of one percent (0.1%) of the selling price, in the case of a sales tax, or value of the article used, in the case of a use tax. C. Moneys received from the tax imposed by this chapter shall be deposited into the general fund and used for criminal justice purposes as authorized by RCW 82.14.345, or other lawful use. D. The tax imposed under this Section shall be administered pursuant to Sections 3.78.030 through 050. Section 3. The City Manager is authorized to provide any necessary notice to the Department of Revenue to effectuate the tax enacted by this ordinance, and to execute, on behalf of the City of Yakima, any necessary agreement with the Department of Revenue for the collection and administration of the tax enacted by this ordinance. Section 4. Section 2 of this Ordinance shall take effect on April 1, 2026. Section 5. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 2nd day of December 2025. ATTEST: Patricia Byers, Mayor Rosalinda Ibarra, City Clerk Publication Date: Effective Date: \\yakimacity\ykfn\Shared\Ordinances\criminal justice .001 ORDINANCE 2025.redline.docx 36 ORDINANCE NO. 2025- AN ORDINANCE relating to taxation; imposing a local sales and use tax of one-tenth of one percent for criminal justice purposes as authorized in Section 201, Chapter 350, laws of Washington 2025; adding a new Section 3.78.062 to the Yakima Municipal Code. WHEREAS, an adequately funded public safety and criminal justice system is necessary to maintain the safety and security of residents and visitors to the City of Yakima; and WHEREAS, the City of Yakima's General Fund budget, which includes public safety and criminal justice services and programs, such as police, courts, prosecution and indigent defense, has significant shortfalls in 2026; and WHEREAS, the City's General Fund tax revenue has not kept pace with inflation; and WHEREAS, during the 2025 session, the Washington State Legislature enacted ESHB 2015 authorizing qualified city, town, and county governments to impose a local sales and use tax of one-tenth of one percent (0.1%) by a legislative act prior to June 20, 2028; and WHEREAS, the local sales and use tax revenue shall be spent on "criminal justice purposes" as authorized and defined by ESHB 2015; and WHEREAS, to qualify, the City or County must provide the CJTC with documentation showing it meets the grant program's requirements; and WHEREAS, the City of Yakima is actively reviewing all policies, procedures, and practices required by ESHB 2015 to ensure compliance; WHEREAS, The City of Yakima City Council finds it is in the best interest of the City and its residents to impose the criminal justice sales and use tax authorized by ESHB 2015; now, therefore BE IT ORDAINED BY THE CITY OF YAKIMA: Section 1. Findings. Pursuant to Section 201 of ESHB 2015, the City Council finds and declares that the City of Yakima is in compliance with and meets all requirements contained in RCW 43.101.540 and RCW 82.14.345(c). Section 2. A new Section, 3.78.062, is added to the Yakima Municipal Code as follows: Chapter 3.78.062. Imposition of Criminal Justice Sales and Use Tax A. There is imposed a Criminal Justice Sales and Use tax as authorized by Section 201, Chapter 350, Laws of Washington 2025, codified in RCW 82.14.345, upon all taxable events, as defined in chapter 82.14 RCW, occurring in the City of Yakima. The tax shall C:\Users\ufc-prod\AppData\Local\Tem@CL Technologies\easyPDF 8\@BCL@2418D2C3\@BCL@2418D2C3.docx 37 be imposed upon and collected from those persons from whom sales tax or use tax is collected pursuant to chapter 82.08 and 82.12 RCW. B. The rate of the sales and use tax imposed by this chapter shall be one-tenth of one percent (0.1%) of the selling price, in the case of a sales tax, or value of the article used, in the case of a use tax. C. Moneys received from the tax imposed by this chapter shall be deposited into the general fund and used for criminal justice purposes as authorized by RCW 82.14.345, or other lawful use. D. The tax imposed under this Section shall be administered pursuant to Sections 3.78.030 through 050. Section 3. The City Manager is authorized to provide any necessary notice to the Department of Revenue to effectuate the tax enacted by this ordinance, and to execute, on behalf of the City of Yakima, any necessary agreement with the Department of Revenue for the collection and administration of the tax enacted by this ordinance. Section 4. Section 2 of this Ordinance shall take effect on April 1, 2026. Section 5. This ordinance shall be in full force and effect 30 days after its passage, approval, and publication as provided by law and by the City Charter. PASSED BY THE CITY COUNCIL, signed and approved this 2nd day of December 2025. ATTEST: Patricia Byers, Mayor Rosalinda Ibarra, City Clerk Publication Date: Effective Date: C:\Users\ufc-prod\AppData\Local\Tem@CL Technologies\easyPDF 8\@BCL@2418D2C3\@BCL@2418D2C3.docx 38