HomeMy WebLinkAbout1661RESOLUTION NO. I"' I
A RESOLUTION of the City of Kent supportmg
the Washington State adoption and Implementation of the
Streamlined Sales Tax Agreement, provided that the State
also 1) ensures a full mitigation or "hold harmless" method
is put in place for sourcing-impacted cities; and 2) utilizes a
timeline that is fully linked, or more closely hnked, to
congressional authorization of internet and catalog sales
taxes.
WHEREAS, the City of Kent understands and supports the concept of
streamlining definitions and sales tax rates for interstate sales; and
WHEREAS, the City of Kent believes it 1s Important to make the State
sales tax system effective and efficient for private businesses both within the State of
Washington and outside our geographic boundaries; and
WHEREAS, the State of Washington's tax structure is highly dependent
upon sales tax receipts; and
WHEREAS, the C1ty of Kent has committed to its citizens and businesses
capital improvements and the delivery of services that depend upon present and futlire
sales tax income projected on a point of sale basis; and
WHEREAS, many cities, includmg the City of Kent, have worked hard to
develop economic, transportation, and land use policies that meet regional needs for
employment in warehousing, manufactliring, and retail activities and have expended
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sigmficant resources to address infrastructure, traffic, and law enforcement demands that
result from those pohctes; and
WHEREAS, if the State changes the distribution of sales tax receipts from
point of sale to point of distribution, there is a tax shift between cities who have
developed the economic and land use policies to support regional growth to cities and
counties that have chosen not to have this activity in their geographic boundanes; and
WHEREAS, tfthe State changes the distribution of sales tax receipts from
point of sale to point of distribution. a few dozen cities will bear the largest share of the
burden; and
WHEREAS, there are fundamental fairness issues that should be honored
when a major shift m tax policy would result in significant adverse Impacts to dozens of
junsdtctions, such as the City of Kent, that have simply been following Washington
State's tax policy and rules for many years; and
WHEREAS, this tssue of equality is of great importance to the City of
Kent, NOW THEREFORE,
THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. -Recitals Incorporated. The above recitals are incorporated
into this resolution.
SECTION 2. -Support. The City of Kent supports the concept of
streamlining sales tax information and definitions to make it easter to collect sales taxes
for interstate and intrastate internet-based commerce.
SECTION 3.-Mitzgatzon Measures. The City of Kent strongly urges that
the Department of Revenue recommend, and ultimately the Washington State Legtslature
adopt, sales tax streamlining in a way that contains strong mitigation or hold-harmless
measures for cities that traditionally have received sales taxes on a point of sale basis,
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such as a method that protects intrastate sales tax revenues by adopting point of delivery
collection measures on the one hand but using distribution methods that protect city
revenues on the other.
SECTION 4. -Linkage. The City of Kent strongly urges that the
Department of Revenue recommend, and ultimately the Washington State Legislature
adopt, measures that either fully link, or more closely link, any implementation of the
Streamlined Sales Tax Agreement with federal congressional authorization of sales tax
imposition on internet-based and mail order catalog sales.
SECTION 5. -Severabzlltv. If any section, subsection, paragraph,
sentence, clause, or phrase of this resolution is declared unconstitutional or invalid for
any reason, such decision shall not affect the validity of the remaining portions of this
resolution.
SECTION 6. -Effoctive Date. This resolution shall take effect and be in
force immediately upon its passage.
PASS ED at a regular open public meeting by the City Council of the City of
Kent, Washington, this 9 dayofDecember, 2003.
CONCURRED in by the Mayor of the City of Kent this ? day of
December, 2003.
ATTEST:
dh.6)fj~ ,~BRENDA JACOBER, Y CLERK
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APPROVED AS TO FORM:
TOM BRUBAKER, CITY ATTORNEY
I hereby certify that this is a true and correct copy of Resolution No. /1:, h /
passed by the City Council of the City of Kent, Washington, the ? day of
December, 2003.
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