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HomeMy WebLinkAbout1995RESOLUTION NO. 1995 A RESOLUTION of the City Council of the City of Kent, Washington, declaring the intent of the City Council to adopt legislation to authorize a sales and use tax for affordable and supportive housing in accordance with Substitute House Bill 1406 (Chapter 338, Laws of 2019). RECITALS A. In the 2019 Regular Session, the Washington State Legislature passed, and the Governor signed, Substitute House Bill 1406 (Chapter 338, Laws of 2019) ("SHB 1406"). B. SHB 1406 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, and for the operations and maintenance costs of affordable or supportive housing. C. The tax will be credited against state sales taxes collected within the City and, therefore, will not result in higher sales and use taxes within the City and will represent an additional source of funding to address housing needs in the City. 1 Sales and Use Tax for Affordable Housing D. Additional funding is desirable to address the City's housing need, and the City Council has determined that imposing the sales and use tax to address this need will benefit its citizens. E. The tax must be used to assist persons whose income is at or below sixty percent of the City median income. F. In order for the City to impose the tax, within six months of the effective date of SHB 1406, or January 28, 2020, the City Council must adopt a resolution of intent to authorize the maximum capacity of the tax, and within twelve months of the effective date of SHB 1406, or July 28, 2020, must adopt legislation to authorize the maximum capacity of the tax. G. This resolution constitutes the resolution of intent required by SHB 1406, and the City Council now desires to declare its intent to impose a local sales and use tax as set forth herein. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY RESOLVE AS FOLLOWS: RESOLUTION SECTION 1. - Resolution of Intent. The City Council declares its intent to adopt legislation to authorize the maximum capacity of the sales and use tax authorized by SHB 1406 within one year of the effective date of SHB 1406, or by July 28, 2020. SECTION 2. - Severability. If any one or more section, subsection, or sentence of this resolution is held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this resolution and the same shall remain in full force and effect. 2 Sales and Use Tax for Affordable Housing SECTION 3. - Corrections by City Clerk. Upon approval of the city attorney, the city clerk is authorized to make necessary corrections to this resolution, including the correction of clerical errors; resolution, section, or subsection numbering; or references to other local, state, or federal laws, codes, rules, or regulations. SECTION 4. - Effective Date. This resolution shall take effect and be in force immediately upon its passage. DANA RALPH, MAYOR KIMBERLEA,�;",,L KOMOT--CIT-YMERK APPROVED AS TO FORM: ARTHUR ITZPATRIC, ,�CITY ATTORNEY October 1, 2019 Date Approved October 1, 2019 Date Adopted 3 Sales and Use Tax for Affordable Housing KENT FINANCE ADMINSTRATION Paula Painter, CPA, Director 22O4th Avenue South Kent, WA 98032 Fax: 253-856-6255WÀ9HrNoreñ PHONE: 253-856-5260 March L9,2020 Jessica Hicks Tax Administration Manager Department of Revenue Re: city of Kent Adoption of Sales and use Tax for Affordable Housing Dear Ms. Hicks, On October 1, 20L9, the City Council adopted Resolution No. 1995 which declared its intent to adopt legislation to authorize the maximum capacity of the sales and use tax authorized by SHB 1406 within one year of the effective date of SHB 1406, or by July 28,2020. On November 19,2OL9, the City Council adopted Ordinance No.4341 which imposed a sale and use tax rate of .0073 percent to help fund affordable housing activities pursuant to RCW 82.L4.540. The City of Kent does not levy a Qualifying Local Tax as defined in RCW 82.t4.540. Accordingly, the maximum authorized rate is .0073 percent. I have attached the enabling City Council resolution and ordinance for your records. Please feel free to contact Robert Goehring, CFE, CPA, City Auditor (253-856- 5262 or rgoehring@kentwa.gov) if you have any questions. Si rely, a ula Painte CPA Finance Director City of Kent Attachments: Certified copy of Resolution No. 1995 declaring intent to adopt enabling legislation imposing the Affordable Housing sales/use tax Certified copy of Ordinance No. 4341 imposing the Affordable Housing sales/use tax KENT CITY CLERK Kimberley A. Komoto City Clerk 22O4th Avenue South Kent, WA 98032 Fax: 253-856-6725WasHtNGtoñ PHONE: 253-856-5728 STATE OF WASHINGTON COUNTY OF KING I, Kimberley A. Komoto, Clerk of the City of Kent, Washington, do hereby certify that the attached is a true and correct copy of the orig¡nal Resolution No. 1995 as it appears on file and of record in my office and of the whole thereof. In testimony whereof, I have fixed my hand and affixed the seal of the City of Kent this 20th day of March, 2020. Kimberley A. City'Clerk SS ) ) ) ogl < =p Co:¿ o Mayor Dana Ralph City of Kent Administrat¡on Derek M. Matheson, CAO