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09/21/2021 09. Ordinance adding Chapter 3.124:Additional Sales and Use Tax for Housing and Related Services, to the Yakima Municipal Code 1 1s°v—Z'�'`'�a°++a • i rr 11 i "���i�O enc unTry 1 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. p. 7 ESHB 1070 . SL 16 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 p. 8 ESHB 1070 . SL 17 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 . --- p. 9 ESHB 1070 . SL