HomeMy WebLinkAbout09/21/2021 09. Ordinance adding Chapter 3.124:Additional Sales and Use Tax for Housing and Related Services, to the Yakima Municipal Code 1
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BUSINESS OF THE CITY COUNCIL
YAKIMA, WASHINGTON
AGENDA STATEMENT
Item No. 9.
For Meeting of: September 21, 2021
ITEM TITLE: Ordinance adding Chapter 3.124:Additional Sales and Use Tax for
Housing and Related Services, to the Yakima Municipal Code
SUBMITTED BY: Sara Watkins, City Attorney
SUMMARY EXPLANATION:
At the Council's September 7, 2021, City Council meeting, the Council voted to place on the
agenda an ordinance for review that would institute the 1/10th of 1% sales and use tax for housing
and related services. RCW 82.14.530 controls this tax and provides that the tax can be instituted
by a city and used as follows:
1 . A minimum of 60% must be used for: constructing or acquiring affordable housing which
may include emergency, transitional, and supportive housing and new units of affordable
housing within an existing structure, and facilities providing housing-related services, or
acquiring land for these purposes; or constructing or acquiring behavioral health-related
facilities or acquiring land for these purposes; or funding the operations and maintenance
costs of new units of affordable housing and facilities where housing-related programs are
provided, or newly constructed evaluation and treatment centers.
2. The remainder of the moneys not used for the above-listed purposes must be used for
the operation, delivery, or evaluation of behavioral health treatment programs and services
or housing-related services.
3. Facilities may only be provided to persons in any of the following population groups
whose income is at or below 60% of the median income of Yakima County(median
household income is $51,637[1] and median individual income is $25.527[2]. 60% of the
median household income is calculated to be $30,982 and 60% of the median individual
income is calculated to be $15,316):
a. Persons with behavioral health disabilities;
b. Veterans;
c. Senior citizens;
d. Persons who are homeless or at-risk of being homeless, including
families with children;
e. Unaccompanied homeless youth or young adults;
2
f. Persons with disabilities; or
g. Domestic violence survivors.
As such, to qualify a person must be in one of these population groups and meet the 60%
of the median income requirement.
The ordinance indicates that the first day the tax will be in effect and collected is April 1, 2022.
Pursuant to RCW 82.14.055: A local sales tax change may take effect (a) no sooner than 75
days after the Department of Revenue receives notice of the change and (b)only on the first day
of January, April, or July. To provide the notice to the Department of Revenue 75 days in
advance of January 1st, the Department of Revenue would need to receive the notice on or
before October 15th. If the Council passes the proposed ordinance on September 21st, it will
not be effective until 30 days after publication, so the earliest the Department of Revenue would
get notice would be approximately October 25th, depending on the date of publication.
Therefore, the first day under the statue that the tax could be effective is April 1 , 2022.
[1]https://www.census.gov/quickfacts/fact/table/yakimacountywashington#
[2]https://datacommons.org/ranking/Median_l ncome_Person/County/geo I d153?
h=geol d%2F53077&unit=%24
ITEM BUDGETED: No
STRATEGIC PRIORITY: Neighborhood and Community Building
APPROVED FOR SUBMITTAL BY THE CITY MANAGER
RECOMMENDATION:
ATTACHMENTS:
Description Upload Date Type
Ordinance YMC 3.124-Sales&Use Tax for Housing& 9/10/2021 Ordinance
Related Services
RCW 82.14.530_Sales&Use Tax for Housing& 9/10/2021 Backup Material
Related Srvs_
a ESHB 1070.SL 9/10/2021 Backup Material
3
ORDINANCE NO. 2021-
AN ORDINANCE adding Chapter 3.124: Additional Sales and Use Tax for Housing and
Related Services, to the Yakima Municipal Code
WHEREAS, the City of Yakima has a critical need for additional funding to provide
affordable housing and housing-related services for its residents; and
WHEREAS, housing affordability and homelessness are growing problems in the City of
Yakima which require prompt attention to reduce human suffering for the City's residents; and
WHEREAS, HB 1590, passed as Chapter 222, Laws of 2020, RCW 82.14.530, and
HB 1070, passed as Chapter 27, Laws of 2021, authorize the imposition of an additional sales
and use tax of one-tenth of one percent to be used for funding affordable housing, transitional
housing, other housing opportunities and services; and
WHEREAS, Yakima County was given the exclusive right to impose the tax until
September 30, 2020, and cities were given the right to impose the tax thereafter as long as the
county had not already done so; and
WHEREAS, Yakima County did not impose the additional sales and use tax by
September 30, 2020; and
WHEREAS, the City Council has determined that the tax should be imposed and that the
proceeds will be used for those purposes outlined in RCW 82.14.530, now and as hereafter
amended,which include, but are not limited to, construction and acquisition of affordable housing,
emergency housing, transitional housing, and operation and maintenance costs associated with
housing and housing-related programs; and
WHEREAS, the City Council of the City of Yakima finds that it is in the best interest of the
City of Yakima and its residents to impose a one tenth of one percent sales and use tax on taxable
events within the City of Yakima, the proceeds of which will go towards housing and related
services as allowed by RCW 82.14.530; now, therefore,
BE IT ORDAINED BY THE CITY OF YAKIMA:
Section 1. Chapter 3.124 Sales and Use Tax for Housing and Related Services is
hereby added to the Yakima Municipal Code to read as follows:
Chapter 3.124
SALES AND USE TAX FOR HOUSING AND RELATED SERVICES
Sections:
3.124.010 Purpose and Intent
3.124.020 Imposition of Sales and Use Tax
3.124.030 Taxable Event
3.124.040 Rate
3.124.050 Persons Subject to Tax
3.124.060 Uses of Proceeds from Tax
3.124.070 Credit Claimed
4
3.124.010 Purpose and Intent.
The City Council enacts this Chapter with the intent to help strengthen our community by
ensuring that everyone has access affordable housing and related services, regardless of
their income, by providing a local-controlled source of revenue to accomplish the specific
objectives of state law, as identified by the Washington state legislature.
3.124.020 Imposition of Sales and Use Tax.
There is hereby imposed an additional sales and use tax, separate and apart from any
other sales and use tax imposed, upon every taxable event occurring in the City, for
housing and related services as authorized by RCW 82.14.530, as the same now exists
or as is hereafter amended.
3.124.030 Taxable Event.
As used in this Chapter, the term "taxable event" has the meaning set forth in
RCW 82.14.020, as the same now exists or as is hereafter amended.
3.124.040 Rate.
The rate of the sales and use tax imposed by this section shall be one-tenth of one percent
of the selling price in the case of a sales tax, or the value of the article used, in the case
of a use tax.
3.124.050 Persons Subject to Tax.
The tax shall be imposed upon and collected from those persons from whom the state
sales tax or use tax is collected pursuant to Chapters 82.08 and 82.12 RCW.
3.124.060 Use of Proceeds from Tax.
Moneys collected from the tax shall be used solely for those housing and related services
authorized by RCW 82.14.530, as the same now exists or as is hereafter amended.
3.124.070 Credit Claimed.
As provided in RCW 82.14.530, if Yakima County subsequently imposes a sales and use
tax for housing and related services as authorized by such statute, Yakima County shall
provide a credit against its tax for the full amount of the tax imposed by the City.
Section 2. This ordinance shall be in full force and effect thirty (30) days after its
passage, approval, and publication as provided in the City Charter; provided, that the additional
sales and use tax imposed by Section 1 shall apply only to taxable events occurring on and after
April 1, 2022. The City shall notify the Department of Revenue of the imposition of the tax,
pursuant to state law.
Section 3. If any section, subsection, paragraph, sentence, clause or phrase of this
ordinance is declared invalid or unconstitutional for any reason, such decision shall not affect the
validity of the remaining portions of this ordinance.
5
PASSED BY THE CITY COUNCIL, signed and approved this_ day of_, 2021.
Patricia Byers, Mayor
ATTEST:
Sonya Claar Tee, City Clerk
Publication Date:
Effective Date:
9/10/21,8:32 AM RCW 82.14.530: Sales and use tax for housing and related services.
6
RCW 82.14.530
Sales and use tax for housing and related services.
(1)(a)(i) A county legislative authority may submit an authorizing proposition to the county voters
at a special or general election and, if the proposition is approved by a majority of persons voting,
impose a sales and use tax in accordance with the terms of this chapter. The title of each ballot measure
must clearly state the purposes for which the proposed sales and use tax will be used. The rate of tax
under this section may not exceed one-tenth of one percent of the selling price in the case of a sales tax,
or value of the article used, in the case of a use tax.
(ii) As an alternative to the authority provided in (a)(i) of this subsection, a county legislative
authority may impose, without a proposition approved by a majority of persons voting, a sales and use
tax in accordance with the terms of this chapter. The rate of tax under this section may not exceed one-
tenth of one percent of the selling price in the case of a sales tax, or value of the article used, in the case
of a use tax.
(b)(i) If a county does not impose the full tax rate authorized under (a) of this subsection by
September 30, 2020, any city legislative authority located in that county may:
(A) Submit an authorizing proposition to the city voters at a special or general election and, if the
proposition is approved by a majority of persons voting, impose the whole or remainder of the sales and
use tax rate in accordance with the terms of this chapter. The title of each ballot measure must clearly
state the purposes for which the proposed sales and use tax will be used; or
(B) Impose, without a proposition approved by a majority of persons voting, the whole or
remainder of the sales and use tax rate in accordance with the terms of this chapter.
(ii) The rate of tax under this section may not exceed one-tenth of one percent of the selling price
in the case of a sales tax, or value of the article used, in the case of a use tax.
(iii) A county with a population of greater than one million five hundred thousand may impose the
tax authorized under (a)(ii) of this subsection only if the county plans to spend at least thirty percent of
the moneys collected under this section that are attributable to taxable activities or events within any city
with a population greater than sixty thousand located in that county within that city's boundaries.
(c) If a county imposes a tax authorized under (a) of this subsection after a city located in that
county has imposed the tax authorized under (b) of this subsection, the county must provide a credit
against its tax for the full amount of tax imposed by a city.
(d) The taxes authorized in this subsection are in addition to any other taxes authorized by law
and must be collected from persons who are taxable by the state under chapters 82.08 and 82.12 RCW
upon the occurrence of any taxable event within the county for a county's tax and within a city for a city's
tax.
(2)(a) Notwithstanding subsection (4) of this section, a minimum of sixty percent of the moneys
collected under this section must be used for the following purposes:
(i) Constructing or acquiring affordable housing, which may include emergency, transitional, and
supportive housing and new units of affordable housing within an existing structure, and facilities
providing housing-related services, or acquiring land for these purposes; or
(ii) Constructing or acquiring behavioral health-related facilities, or acquiring land for these
purposes; or
(iii) Funding the operations and maintenance costs of new units of affordable housing and
facilities where housing-related programs are provided, or newly constructed evaluation and treatment
centers.
(b) The affordable housing and facilities providing housing-related programs in (a)(i) of this
subsection may only be provided to persons within any of the following population groups whose income
is at or below sixty percent of the median income of the county imposing the tax:
(i) Persons with behavioral health disabilities;
(ii) Veterans;
https://app.leg.wa.gov/RCW/default.aspx?cite=82.14.530 1/2
9/10/21,8:32 AM RCW 82.14.530: Sales and use tax for housing and related services.
7
(iii) Senior citizens;
(iv) Persons who are homeless or at-risk of being homeless, including families with children;
(v) Unaccompanied homeless youth or young adults;
(vi) Persons with disabilities; or
(vii) Domestic violence survivors.
(c) The remainder of the moneys collected under this section must be used for the operation,
delivery, or evaluation of behavioral health treatment programs and services or housing-related services.
(3)(a) A county that imposes the tax under this section must consult with a city before the county
may construct or acquire any of the facilities authorized under subsection (2)(a) of this section within the
city limits.
(b) Among other priorities, a county that acquires a facility under subsection (2)(a) of this section
must provide an opportunity for 15 percent of the units provided at that facility to be provided to
individuals who are living in or near the city in which the facility is located, or have ties to that community.
The provisions of this subsection (3)(b) do not apply if the county is unable to identify sufficient
individuals within the city in need of services that meet the criteria provided in subsection (2)(b) of this
section. This prioritization must not jeopardize United States department of housing and urban
development funding for the continuum of care program.
(4) A county that has not imposed the tax authorized under RCW 82.14.460 prior to October 9,
2015, but imposes the tax authorized under this section after a city in that county has imposed the tax
authorized under RCW 82.14.460 prior to October 9, 2015, must enter into an interlocal agreement with
that city to determine how the services and provisions described in subsection (2) of this section will be
allocated and funded in the city.
(5) To carry out the purposes of subsection (2)(a) and (b) of this section, the legislative authority
of the county or city imposing the tax has the authority to issue general obligation or revenue bonds
within the limitations now or hereafter prescribed by the laws of this state, and may use, and is
authorized to pledge, up to fifty percent of the moneys collected under this section for repayment of such
bonds, in order to finance the provision or construction of affordable housing, facilities where housing-
related programs are provided, or evaluation and treatment centers described in subsection (2)(a)(iii) of
this section.
(6)(a) Moneys collected under this section may be used to offset reductions in state or federal
funds for the purposes described in subsection (2) of this section.
(b) No more than ten percent of the moneys collected under this section may be used to supplant
existing local funds.
[ 2021 c 27 § 1; 2020 c 222 § 1; 2015 3rd sp.s. c 24 § 701.]
NOTES:
Effective date-2021 c 27: "This act is necessary for the immediate preservation of the
public peace, health, or safety, or support of the state government and its existing public institutions, and
takes effect immediately [April 14, 2021]." [ 2021 c 27 § 3.]
Construction-2015 3rd sp.s. c 24: See note following RCW 36.160.030.
https://app.leg.wa.gov/RCW/default.aspx?cite=82.14.530 2/2
8
CERTIFICATION OF ENROLLMENT
ENGROSSED SUBSTITUTE HOUSE BILL 1070
Chapter 27 , Laws of 2021
67th Legislature
2021 Regular Session
AFFORDABLE HOUSING LOCAL TAX REVENUE ALLOWED USES
EFFECTIVE DATE : April 14 , 2021
Passed by the House February 25, 2021 CERTIFICATE
Yeas 56 Nays 42
I, Bernard Dean, Chief Clerk of the
House of Representatives of the
LAURIE JINKINS State of Washington, do hereby
Speaker of the House of certify that the attached is
Representatives ENGROSSED SUBSTITUTE HOUSE BILL
1070 as passed by the House of
Representatives and the Senate on
the dates hereon set forth.
Passed by the Senate March 30, 2021
Yeas 36 Nays 13
BERNARD DEAN
DENNY HECK Chief Clerk
President of the Senate
Approved April 14, 2021 3:10 PM FILED
April 15, 2021
Secretary of State
JAY INSLEE State of Washington
Governor of the State of Washington
9
ENGROSSED SUBSTITUTE HOUSE BILL 1070
Passed Legislature - 2021 Regular Session
State of Washington 67th Legislature 2021 Regular Session
By House Finance (originally sponsored by Representatives Ryu, Macri,
Walen, Chopp, Santos, Fitzgibbon, Ramel, Wylie, Ramos, Bateman,
Tharinger, Simmons, Kloba, Peterson, Gregerson, Goodman, Sells,
Bronoske, Valdez, Callan, Hackney, Cody, Ormsby, Riccelli, Springer,
Fey, Davis, Pollet, and Harris-Talley)
READ FIRST TIME 02/01/21 .
1 AN ACT Relating to modifying allowed uses of local tax revenue
2 for affordable housing and related services to include the
3 acquisition and construction of affordable housing and facilities;
4 amending RCW 82 . 14 . 530 and 67 . 28 . 180; and declaring an emergency.
5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
6 Sec. 1 . RCW 82 . 14 . 530 and 2020 c 222 s 1 are each amended to
7 read as follows :
8 ( 1 ) ( a ) ( i ) A county legislative authority may submit an
9 authorizing proposition to the county voters at a special or general
10 election and, if the proposition is approved by a majority of persons
11 voting, impose a sales and use tax in accordance with the terms of
12 this chapter. The title of each ballot measure must clearly state the
13 purposes for which the proposed sales and use tax will be used. The
14 rate of tax under this section may not exceed one-tenth of one
15 percent of the selling price in the case of a sales tax, or value of
16 the article used, in the case of a use tax.
17 ( ii ) As an alternative to the authority provided in ( a ) ( i ) of
18 this subsection, a county legislative authority may impose, without a
19 proposition approved by a majority of persons voting, a sales and use
20 tax in accordance with the terms of this chapter. The rate of tax
21 under this section may not exceed one-tenth of one percent of the
p. 1 ESHB 1070 . SL
10
1 selling price in the case of a sales tax, or value of the article
2 used, in the case of a use tax.
3 (b) ( i ) If a county does not impose the full tax rate authorized
4 under ( a ) of this subsection by September 30, 2020, any city
5 legislative authority located in that county may:
6 (A) Submit an authorizing proposition to the city voters at a
7 special or general election and, if the proposition is approved by a
8 majority of persons voting, impose the whole or remainder of the
9 sales and use tax rate in accordance with the terms of this chapter.
10 The title of each ballot measure must clearly state the purposes for
11 which the proposed sales and use tax will be used; or
12 (B) Impose, without a proposition approved by a majority of
13 persons voting, the whole or remainder of the sales and use tax rate
14 in accordance with the terms of this chapter.
15 ( ii ) The rate of tax under this section may not exceed one-tenth
16 of one percent of the selling price in the case of a sales tax, or
17 value of the article used, in the case of a use tax.
18 ( iii ) A county with a population of greater than one million five
19 hundred thousand may impose the tax authorized under ( a ) ( ii ) of this
20 subsection only if the county plans to spend at least thirty percent
21 of the moneys collected under this section that are attributable to
22 taxable activities or events within any city with a population
23 greater than sixty thousand located in that county within that city' s
24 boundaries .
25 ( c) If a county imposes a tax authorized under ( a ) of this
26 subsection after a city located in that county has imposed the tax
27 authorized under (b) of this subsection, the county must provide a
28 credit against its tax for the full amount of tax imposed by a city.
29 (d) The taxes authorized in this subsection are in addition to
30 any other taxes authorized by law and must be collected from persons
31 who are taxable by the state under chapters 82 . 08 and 82 . 12 RCW upon
32 the occurrence of any taxable event within the county for a county' s
33 tax and within a city for a city' s tax.
34 ( 2 ) ( a ) Notwithstanding subsection ( 4 ) of this section, a minimum
35 of sixty percent of the moneys collected under this section must be
36 used for the following purposes :
37 ( i ) Constructing or acquiring affordable housing, which may
38 include emergency, transitional, and supportive housing and new units
39 of affordable housing within an existing structure, and facilities
p. 2 ESHB 1070 . SL
11
1 providing housing-related services, or acquiring land for these
2 purposes; or
3 ( ii ) Constructing ( (mental and ) ) or acquiring behavioral health-
4 related facilities, or acquiring land for these purposes; or
5 ( iii ) Funding the operations and maintenance costs of new units
6 of affordable housing and facilities where housing-related programs
7 are provided, or newly constructed evaluation and treatment centers .
8 (b) The affordable housing and facilities providing housing-
9 related programs in ( a ) ( i ) of this subsection may only be provided to
10 persons within any of the following population groups whose income is
11 at or below sixty percent of the median income of the county imposing
12 the tax:
13 ( i ) Persons with behavioral health disabilities;
14 ( ii ) Veterans;
15 ( iii ) Senior citizens;
16 ( iv) ( (Ilomcless, ) ) Persons who are homeless or at-risk of being
17 homeless, including families with children;
18 (v) Unaccompanied homeless youth or young adults;
19 (vi ) Persons with disabilities; or
20 (vii ) Domestic violence survivors .
21 ( c) The remainder of the moneys collected under this section must
22 be used for the operation, delivery, or evaluation of ( (mental and) )
23 behavioral health treatment programs and services or housing-related
24 services .
25 ( 3 ) ( a ) A county that imposes the tax under this section must
26 consult with a city before the county may construct or acquire any of
27 the facilities authorized under subsection ( 2 ) ( a ) of this section
28 within the city limits .
29 (b) Among other priorities, a county that acquires a facility
30 under subsection ( 2 ) ( a ) of this section must provide an opportunity
31 for 15 percent of the units provided at that facility to be provided
32 to individuals who are living in or near the city in which the
33 facility is located, or have ties to that community. The provisions
34 of this subsection ( 3 ) (b) do not apply if the county is unable to
35 identify sufficient individuals within the city in need of services
36 that meet the criteria provided in subsection ( 2 ) (b) of this section.
37 This prioritization must not jeopardize United States department of
38 housing and urban development funding for the continuum of care
39 program.
p. 3 ESHB 1070 . SL
12
1 ( 4 ) A county that has not imposed the tax authorized under RCW
2 82 . 14 . 460 prior to October 9, 2015, but imposes the tax authorized
3 under this section after a city in that county has imposed the tax
4 authorized under RCW 82 . 14 . 460 prior to October 9, 2015, must enter
5 into an interlocal agreement with that city to determine how the
6 services and provisions described in subsection ( 2 ) of this section
7 will be allocated and funded in the city.
8 ( 5 ) To carry out the purposes of subsection ( 2 ) ( a ) and (b) of
9 this section, the legislative authority of the county or city
10 imposing the tax has the authority to issue general obligation or
11 revenue bonds within the limitations now or hereafter prescribed by
12 the laws of this state, and may use, and is authorized to pledge, up
13 to fifty percent of the moneys collected under this section for
14 repayment of such bonds, in order to finance the provision or
15 construction of affordable housing, facilities where housing-related
16 programs are provided, or evaluation and treatment centers described
17 in subsection ( 2 ) ( a ) ( iii ) of this section.
18 ( 6) ( a ) Moneys collected under this section may be used to offset
19 reductions in state or federal funds for the purposes described in
20 subsection ( 2 ) of this section.
21 (b) No more than ten percent of the moneys collected under this
22 section may be used to supplant existing local funds .
23 Sec. 2 . RCW 67 . 28 . 180 and 2015 c 102 s 3 are each amended to
24 read as follows :
25 ( 1 ) Subject to the conditions set forth in subsections ( 2 ) and
26 ( 3 ) of this section, the legislative body of any county or any city,
27 is authorized to levy and collect a special excise tax of not to
28 exceed two percent on the sale of or charge made for the furnishing
29 of lodging that is subject to tax under chapter 82 . 08 RCW.
30 ( 2 ) Any levy authorized by this section is subject to the
31 following:
32 ( a ) Any county ordinance or resolution adopted pursuant to this
33 section must contain, in addition to all other provisions required to
34 conform to this chapter, a provision allowing a credit against the
35 county tax for the full amount of any city tax imposed pursuant to
36 this section upon the same taxable event .
37 (b) ( i ) In the event that any county has levied the tax authorized
38 by this section and has, prior to June 26, 1975, either pledged the
39 tax revenues for payment of principal and interest on city revenue or
p. 4 ESHB 1070 . SL
13
1 general obligation bonds authorized and issued pursuant to RCW
2 67 . 28 . 150 ( (through [and] ) ) and 67 . 28 . 160 or has authorized and
3 issued revenue or general obligation bonds pursuant to the provisions
4 of RCW 67 . 28 . 150 ( (through [and] ) ) and 67 . 28 . 160, such county is
5 exempt from the provisions of ( a ) of this subsection, to the extent
6 that the tax revenues are pledged for payment of principal and
7 interest on bonds issued at any time pursuant to the provisions of
8 RCW 67 . 28 . 150 ( (through [and] ) ) and 67 . 28 . 160 . However, so much of
9 such pledged tax revenues, together with any investment earnings
10 thereon, not immediately necessary for actual payment of principal
11 and interest on such bonds may be used: (A) In any county with a
12 population of one million five hundred thousand or more, for
13 repayment either of limited tax levy general obligation bonds or of
14 any county fund or account from which a loan was made, the proceeds
15 from the bonds or loan being used to pay for constructing,
16 installing, improving, and equipping stadium capital improvement
17 projects, and to pay for any engineering, planning, financial, legal
18 and professional services incident to the development of such stadium
19 capital improvement projects, regardless of the date the debt for
20 such capital improvement projects was or may be incurred; (B) in any
21 county with a population of one million five hundred thousand or
22 more, for repayment or refinancing of bonded indebtedness incurred
23 prior to January 1, 1997 , for any purpose authorized by this section
24 or relating to stadium repairs or rehabilitation, including but not
25 limited to the cost of settling legal claims, reimbursing operating
26 funds, interest payments on short-term loans, and any other purpose
27 for which such debt has been incurred if the county has created a
28 public stadium authority to develop a stadium and exhibition center
29 under RCW 36. 102 . 030; or (C) in other counties, for county-owned
30 facilities for agricultural promotion until January 1, 2009, and
31 thereafter for any purpose authorized in this chapter.
32 ( ii ) A county is exempt under this subsection with respect to
33 city revenue or general obligation bonds issued after April 1, 1991,
34 only if such bonds mature before January 1, 2013 . If any county
35 located east of the crest of the Cascade mountains has levied the tax
36 authorized by this section and has, prior to June 26, 1975, pledged
37 the tax revenue for payment of principal and interest on city revenue
38 or general obligation bonds, the county is exempt under this
39 subsection with respect to revenue or general obligation bonds issued
40 after January 1, 2007 , only if the bonds mature before January 1,
p. 5 ESHB 1070 . SL
14
1 2035 . Such a county may only use funds under this subsection ( 2 ) (b)
2 for constructing or improving facilities authorized under this
3 chapter, including county-owned facilities for agricultural
4 promotion.
5 ( iii ) As used in this subsection ( 2 ) (b) , "capital improvement
6 projects" may include, but not be limited to a stadium restaurant
7 facility, restroom facilities, artificial turf system, seating
8 facilities, parking facilities and scoreboard and information system
9 adjacent to or within a county owned stadium, together with
10 equipment, utilities, accessories and appurtenances necessary
11 thereto . The stadium restaurant authorized by this subsection ( 2 ) (b)
12 must be operated by a private concessionaire under a contract with
13 the county.
14 ( c) ( i ) No city within a county exempt under (b) of this
15 subsection may levy the tax authorized by this section so long as
16 said county is so exempt .
17 ( ii ) No city within a county with a population of one million
18 five hundred thousand or more may levy the tax authorized by this
19 section.
20 ( iii ) However, in the event that any city in a county described
21 in ( c) ( i ) or ( ii ) of this subsection ( 2 ) has levied the tax
22 authorized by this section and has, prior to June 26, 1975,
23 authorized and issued revenue or general obligation bonds pursuant to
24 the provisions of RCW 67 . 28 . 150 ( (through [and] ) ) and 67 . 28 . 160, such
25 city may levy the tax so long as the tax revenues are pledged for
26 payment of principal and interest on bonds issued at any time
27 pursuant to the provisions of RCW 67 . 28 . 150 ( (through [and] ) ) and
28 67 . 28 . 160 .
29 ( 3 ) Any levy authorized by this section by a county that has a
30 population of one million five hundred thousand or more is subject to
31 the following:
32 ( a ) Taxes collected under this section in any calendar year
33 before 2013 in excess of five million three hundred thousand dollars
34 may only be used as follows :
35 ( i ) Seventy percent from January 1, 2001, through December 31,
36 2012, for art museums, cultural museums, heritage museums, the arts,
37 and the performing arts . Moneys spent under this subsection ( 3 ) ( a ) ( i )
38 must be used for the purposes of this subsection ( 3 ) ( a ) ( i ) in all
39 parts of the county.
p. 6 ESHB 1070 . SL
15
1 ( ii ) Thirty percent from January 1, 2001, through December 31,
2 2012, for the following purposes and in a manner reflecting the
3 following order of priority: Stadium purposes as authorized under
4 subsection ( 2 ) (b) of this section; acquisition of open space lands;
5 youth sports activities; and tourism promotion. If all or part of the
6 debt on the stadium is refinanced, all revenues under this subsection
7 ( 3 ) ( a ) ( ii ) must be used to retire the debt .
8 (b) From January 1, 2013, through December 31, 2015, all revenues
9 under this section must be used to retire the debt on the stadium,
10 until the debt on the stadium is retired. On and after the date the
11 debt on the stadium is retired, and through December 31, 2015, all
12 revenues under this section in a county of one million five hundred
13 thousand or more must be deposited in the special account under ( e)
14 of this subsection.
15 ( c) From January 1, 2016, through December 31, 2020, all revenues
16 under this section must be deposited in the stadium and exhibition
17 center account under RCW 43 . 99N. 060 .
18 (d) On and after January 1, 2021, the revenues under this section
19 must be used as follows :
20 ( i ) At least thirty-seven and one-half percent of the revenues
21 under this section must be deposited in the special account under ( e)
22 of this subsection.
23 ( ii ) At least thirty-seven and one-half percent of the revenues
24 under this section must be used:
25 (A) For contracts, loans, or grants to nonprofit organizations or
26 public housing authorities for affordable workforce housing within
27 one-half mile of a transit station, as described under RCW 9 . 91 . 025
28 or for housing, facilities, or services for homeless youth; or
29 (B) To repay:
30 ( I ) General obligation bonds issued pursuant to RCW 67 . 28 . 150 to
31 finance such contracts, loans, or grants; or
32 ( II ) Revenue bonds issued pursuant to RCW 67 . 28 . 160 to finance a
33 fund to make such contracts, loans, or grants; or
34 ( III ) Revenue bonds issued pursuant to RCW 67 . 28 . 160 to finance
35 projects authorized by an authority under chapter 43 . 167 RCW to
36 promote sustainable workplace opportunities near a community impacted
37 by the construction or operation of tourism-related facilities .
38 ( iii ) The remainder must be used for capital or operating
39 programs that promote tourism and attract tourists to the county.
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1 ( e) At least forty percent of the revenues distributed pursuant
2 to ( a ) ( i ) of this subsection must be deposited in a special account .
3 The account may only be used for the purposes of ( a ) ( i ) of this
4 subsection.
5 ( f) School districts and schools may not receive revenues
6 distributed pursuant to ( a ) ( i ) of this subsection.
7 (g) Moneys distributed to art museums, cultural museums, heritage
8 museums, the arts, and the performing arts, and moneys distributed
9 for tourism promotion must be in addition to and may not be used to
10 replace or supplant any other funding by the legislative body of the
11 county.
12 (h) For the purposes of this section:
13 ( i ) "Affordable workforce housing" means housing for a single
14 person, family, or unrelated persons living together whose income is
15 ( (between thirty percent and eighty) ) at or below 80 percent of the
16 median income, adjusted for household size, for the county where the
17 housing is located; and
18 ( ii ) "Tourism promotion" includes activities intended to attract
19 visitors for overnight stays, arts, heritage, and cultural events,
20 and recreational, professional, and amateur sports events . Moneys
21 allocated to tourism promotion in a county with a population of one
22 million or more must be allocated to local public organizations and
23 nonprofit organizations formed for the express purpose of tourism
24 promotion in the county. Such organizations must use moneys from the
25 taxes to promote events in all parts of the county.
26 ( i ) No taxes collected under this section may be used for the
27 operation or maintenance of a public stadium that is financed
28 directly or indirectly by bonds to which the tax is pledged.
29 Expenditures for operation or maintenance include all expenditures
30 other than expenditures that directly result in new fixed assets or
31 that directly increase the capacity, life span, or operating economy
32 of existing fixed assets .
33 (j ) No ad valorem property taxes may be used for debt service on
34 bonds issued for a public stadium that is financed by bonds to which
35 the tax is pledged, unless the taxes collected under this section are
36 or are projected to be insufficient to meet debt service requirements
37 on such bonds .
38 ( k) If a substantial part of the operation and management of a
39 public stadium that is financed directly or indirectly by bonds to
40 which the tax is pledged is performed by a nonpublic entity or if a
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1 public stadium is sold that is financed directly or indirectly by
2 bonds to which the tax is pledged, any bonds to which the tax is
3 pledged shall be retired. This subsection ( 3 ) ( k) does not apply in
4 respect to a public stadium under chapter 36. 102 RCW transferred to,
5 owned by, or constructed by a public facilities district under
6 chapter 36. 100 RCW or a stadium and exhibition center.
7 ( 1 ) The county may not lease a public stadium that is financed
8 directly or indirectly by bonds to which the tax is pledged to, or
9 authorize the use of the public stadium by, a professional major
10 league sports franchise unless the sports franchise gives the right
11 of first refusal to purchase the sports franchise, upon its sale, to
12 local government . This subsection ( 3 ) ( 1 ) does not apply to contracts
13 in existence on April 1, 1986.
14 ( 4 ) If a court of competent jurisdiction declares any provision
15 of subsection ( 3 ) of this section invalid, then that invalid
16 provision is null and void and the remainder of this section is not
17 affected.
18 NEW SECTION. Sec. 3. This act is necessary for the immediate
19 preservation of the public peace, health, or safety, or support of
20 the state government and its existing public institutions, and takes
21 effect immediately.
Passed by the House February 25, 2021 .
Passed by the Senate March 30, 2021 .
Approved by the Governor April 14 , 2021 .
Filed in Office of Secretary of State April 15, 2021 .
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