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HomeMy WebLinkAbout4341I ORDINANCE NO. 4341 AN ORDINANCE of the City Council of the City of Kent, Washington, relating to local sales or use taxes; imposing the maximum capacity of the tax authorized under the provisions of RCW 82.14.540 for affordable and supportive housing; amending Chapter 3.16 of the Kent City Code by adding a new section 3.16.035, entitled "Additional sales or use tax for housing"; and authorizing the Mayor to use the funds and pool resources with South King Housing and Homelessness Partners. RECITALS A. In 2019, Washington State enacted Substitute House Bill 1406 (Chapter 338, Laws of 2019), now codified as RCW 82.14.540, a revenue sharing program with local governments to encourage investments in affordable and supportive housing. B. Through a credit against state retail sales or use taxes, the program authorizes the City to impose an additional local sales or use tax to be used for acquiring, rehabilitating, or constructing affordable housing, which may include new units of affordable housing within an existing structure or facilities providing supportive housing services, or funding the operations and maintenance costs of new units of affordable or supportive housing. 1 Amend KCC 3.16 - Re: Sales and Use Tax for Housing C. The tax imposed under the new law will be deducted against the state sales tax collected in the City, so it does not increase the total taxes paid by the final consumer or end user. D. The additional funds raised may only be used for housing and services for persons whose income is at or below 60 percent of the City median income. E. The additional funds may be pooled through an interlocal agreement with one or more other counties, cities, or housing authorities to provide affordable or supportive housing. South King Housing Homelessness Partners (SKHHP), formed in 2019 through an interlocal agreement between the cities of Kent, Auburn, Burien, Covington, Des Moines, Federal Way, Normandy Park, Renton, Tukwila, and King County, may provide such an opportunity. The Executive Board of SKHPP is currently considering pooling public resources to address affordable housing needs in south King County. F. Cities imposing the tax must submit annual reports on the collection and uses of the revenue to the Department of Commerce. G. To impose the tax under the new law, the City Council had to adopt a resolution of intent to authorize the maximum amount of the tax, which the Council did on October 1, 2019, and it now must adopt an ordinance authorizing the maximum capacity of the tax by July 28, 2020. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: 2 Amend KCC 3.16 - Re: Sales and Use Tax for Housing ORDINANCE SECTION 1. - Amendment. Chapter 3.16 of the Kent City Code is amended to add a new section 3.16.035, entitled 'Additional sales or use tax for housing," as follows: Sec. 3.16.035. Additional sales or use tax for housing. A. There is hereby imposed an additional sales or use tax as authorized by RCW 82.14.540 upon every taxable event, as defined in RCW 82.14.020, occurring within the City. B. The rate of the tax shall be the maximum rate permitted under RCW 82.14.540. C. The tax shall be imposed upon and collected from those persons from whom the state sales or use tax is collected pursuant to Chapters 82.08 and 82.12 RCW, but shall be credited against the state's share of the tax. D. Funds collected under this subsection shall be used in accordance with RCW 82.14.540 (or as may be amended in the future) for acquiring, rehabilitating, or constructing affordable housing, which may include new units of affordable housing within an existing structure or facilities providing supportive housing services, or funding the operations and maintenance costs of new units of affordable or supportive housing. E. The Finance Director shall report annually to the State Department of Commerce on the collection and use of the funds as required by RCW 82.14.540. 3 Amend KCC 3.16 - Re: Sales and Use Tax for Housing F. This additional sales or use tax shall expire 20 years after the date on which the tax is first imposed, unless further extended by amendment to RCW 82.14.540. SECTION 2. - Use of Funds. The Mayor is hereby authorized to expend any or all funds collected in accordance with this ordinance for uses authorized by RCW 82.14.540, and may pool any or all funds collected with other cities and counties pursuant to the interlocal agreement with South King Housing and Homelessness Partners (SKHHP), and is authorized to execute any agreements necessary for the use or transfer of such funds. SECTION 3. - Severability. If any one or more section, subsection, or sentence of this ordinance is held to be unconstitutional or invalid, such decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. SECTION 4. - Corrections by City Clerk or Code Reviser. Upon approval of the city attorney, the city clerk and the code reviser are authorized to make necessary corrections to this ordinance, including the correction of clerical errors; ordinance, section, or subsection numbering; or references to other local, state, or federal laws, codes, rules, or regulations. SECTIONS. - Effective Date. This ordinance, pursuant to RCW 35A.11.090(7), shall take effect and be in force five days after its publication, as provided by law. November 19, 2019 DANA RALPH, MAYOR Date Approved 4 Amend KCC 3.16 - Re: Sales and Use Tax for Housing November 19, 2019 Date Adopted November 22, 2019 Date Published APPROVED AS TO FITZPATRICK, CITY ATTORNEY �fr m.� Aj Amend KCC 3.16 - Re: Sales and Use Tax for Housing STATE OF WASHINGTON, COUNTY OF KING } AFFIDAVIT OF PUBLICATION PUBLIC NOTICE Polly Shepherd, being first duly sworn on oath that she is the Publisher of the Kent - Covington Reporter a weekly newspaper, which newspaper is a legal newspaper of general circulation and is now and has been for more than six months prior to the date of publication hereinafter referred to, published in the English language continuously as a weekly newspaper in King County, Washington. The Kent - Covington Reporter has been approved as a Legal Newspaper by order of the Superior Court of the State of Washington for King County. The notice in the exact form annexed was published in regular issues of the Kent - Covington Reporter (and not in supplement form) which was regularly distributed to its subscribers during the below stated period. The annexed notice (881426), a: Public Notice was published on November 22"d, 2019. Thea o e fee charged for said foregoing publication is the sum of $542.99. Polly Shepherd, Publisher, Kent - Covington Reporter o 06!� NOTARY n� PUBLIC `"' Subscrind sworn to me this 22"d day of November, 2019. ��� -o r 2 �\ \ i�••�� No. 16�1`O•��Oa ale Gwin, Notary Public for the State of Washington, Residing in Covington,WA Classified Proof CITY OF KENT NOTICE OF ORDINANCES PASSED BY THE CITY COUNCIL The following are sum- maries of ordinances passed by the Kent City Council on November 19, 2019: ORDINANCE No. 4338 AN ORDINANCE of the City Council of the City of Kent, Washing- ton, was adopted on No- vember 5, 2019, which granted Zayo Group, LLC, a 10-year non-ex- clusive telecommunica- tions franchise agree- ment; authorized the Mayor to sign all docu- ments necessary to im- plement the full terms of the negotiated agree- t ment; and directed the City Clerk to publish no- tice of Council's grant of this telecommunications franchise. A complete COPY of the Telecommu- nications Franchise Agreement is available through the City Clerk's office, located at 220 Fourth Avenue South in the City of Kent, of on- line at https-.//Qocu- ments.kentwa.gov/, This ordinance, being an exercise of a power spe- cifically delegated to the City's legislative body, is not subject to referen- dum. it shall be pub- j lished and will take ef- fect 30 days after its passage. The Franchise Agreement. however, Shall become effective only upon its acceptance by Zayo Group, LLC and execution by the Mayor. Should Zayo fail to time- ly file its written accep- lance of the Franchise Agreement, Zayo will be deemed to have rejected Classified Proof the franchise will be void.ble by the City_ ORDINANCE NO, 4339 AN ORDINANCE of the City Council of the City of Kent, Washing- ton, amending chapters 15.02 and 15.04 of the j Kent City Code relating to group homes, board- ing homes, short-term rentals and communal residences. This ordinance shall take effect and be in force 30 days from and after its passage, as provided by law. ORDINANCE NO. 4340 AN ORDINANCE of the City Council of the City of Kent, Washing- ton, amending sections 6.07.020 and 6,07.050 of the Kent City Code, regulating signage in the public right of way, and amending chapters 15,02 and 15.06 of the Kent City Code, regulat- ing signage generally within the City_ This ordinance shall take effect and be in force thirty days from and after its passage, as provided by law. ORDINANCE NO. 4341 AN ORDINANCE of the City Council of the City of Kent, Washing- ton, relating to local sales or use taxes; im- posing the maximum ca- pacity of the tax author- ized under the provisions of RCW 82.14.540 for affordable and supportive housing; amending Chapter 3.16 of the Kent City Code by adding a new section 3.16.035, entitled 'Additional sales or use tax for housing'; and au- thorizing the Mayor to use the funds and pool resources with South King Housing and Homelessness Partners. This ordinance, pursuant to RCW 35A.11.090(7), shall take effect and be in force five days after its publication, as provided by law. ORDINANCE NO. 4342 - AN ORDINANCE of the City Council of the City of Kent, Washing- ton, amending chapters 3,18, 3.21, 3.26, 3.28 and 3.29, of the Kent City Code to consolidate administrative provisions for all taxes, align the City's S&O tax provi- sions with the model or- dinance, and add vari- ous clarifications. This ordinance shall take effect and be in force thirty days from and after its passage, as provided by law. The amend- ments to the Kent City Code herein, however, shall not be effective un- til January 1, 2020. ORDINANCE NO. 4343 AN ORDINANCE of Classified Proof me L;Ity Eiouncil Ot the City of Kent Washing_ ton, approving the Son- solidating budget adjust- ments made between July 1, 2019 and Sep- tember 30, 2019, reflect- ing an overall budget in- crease of $12,002,345. This ordinance shall take effect and be in force five days after publica- tion, as provided by law. ORDINANCE NO. 4344 - AN ORDINANCE of the City Council of the City of Kent, Washing- ton, relating to the mid - biennial review and modification of the 2019- 2020 biennial budget as required by RCW 35A.34.130 and Or& nance No. 4230; adopt- ing certain modifications to the 2020 budget; and establishing an effective date. This ordinance shall take effect and be in force January 1, 2020, which ismore than five days after its publication, as Provided by law. ORDINANCE NO. 4346 AN ORDINANCE of the City Council of the City of Kent, Washing- ton, levying 2019 proper- ty taxes for the 2020 bi- ennial budget for the City of Kent This ordinance shalt take 'effect and be in force January 1, 2020, which is more than five days after its publication, as provided by law. ORDINANCE NO. 4346 - AN ORDINANCE of the City Council of the City of Kent, Washing- ton, amending the Kent Comprehensive Plan and its Capital Facilities Element to reflect a six - year plan for capital im- provement projects (2)020-2025) (CPA-2019- This ordinance shall take effect and be in force 30 days from and after its Passage, as provided by law. ORDINANCE NO. 4347 AN ORDINANCE of the City Council of the City of Kent, Washing- ton, amending the Kent Comprehensive Plan and its Capital Facilities Element to include the Capital Facilities Plans of the Kent, Federal Way, Auburn and High - line School Districts (CPA-2019-1). This ordinance will take effect and be in force 30 days from and after its Passage, as provided by law. ORDINANCE NO. 4348 - AN ORDINANCE of the City Council of the City of Kent, Washing- ton, amending Section 12.13.160 of the Kent City Code to adjust the school impact fee sched- ules (CPA-2019-1). This ordinance shall take Classified Proof erect ano oe in torce ou days from and .after its passage, as provided by law. I ORDINANCE NO. 4349 AN ORDINANCE of the City Council of the City of Kent, Washing- ton, providing for the ac- quisition by eminent do- main of real property generally located on the north side of the Green River and commonly known as 7641 S, 259th St., which property is needed for the construc- tion of the Milwaukee II Levee Improvement Pro- ject. This ordinance pro- yides for the condemna- tion, appropriation, taking, and damaging of real property necessary for that project and pro- yides for the payment thereof out of the Mil - Waukee 11 Levee Im- provement Project (Fund No. D20090). This ordi- nance also directs the City Attorney to prose cute the appropriate le gal condemnation pro- ceedings in King County Superior Court, to retain any legal counsel re- quired, and to enter into settlements, stipulations, or other agreements as may be necessary. This ordinance shall take effect and be in force thirty days from and after its passage, as provided by law. ORDINANCE NO. 4350 - AN ORDINANCE of the City Council of the City of Kent, Washing- ton, providing for the ac- quisition by eminent do- main of real property generally located on the north side of the Green River, along S. .251st Street, west of Washing- ton Ave. S., which prop- erty is needed for the construction of the Sig- nature Pointe Levee Im- provement Project. This ordinance provides for the condemnation, ap- propriation, taking, and damaging of real proper- ty necessary for pro- ject and provides for the payment thereof out of the Signature Pointe Levee Improvement Pro- ject (Fund No. D20085). This ordinance also di- rects the City Attorney to prosecute the appropri- ate legal condemnation proceedings in King County Superior Court, to retain any legal coun- sel required, and to en- ter into settlements, stipulations, or other agreements as may be necessary, This ordinance shall take effect and be in force thirty days from and after its passage, as provided by law. A copy of the complete text of any ordinance will be mailed upon request of the City Clerk Classified Proof City Clerk tom ---Kent WA aov 253-856-5725 Published in the Kent - Covington Reporter November 22, 2019. #861426 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 220 4th Avenue South Kent, WA 98032 Fax: 253-856-6725W^sHtNGToN PHONE: 253-a56-s728 STATE OF WASHINGTON COUNTY OF KING I, Kimberley A. Komoto, Clerk of the City of Kent, Washington, do hereby cert¡fy that the attached is a true and correct copy of the original Ordinance No. 4341 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. SS ) ) ) Kimberley City'Clerk moto o Ol < =uc 0)v O Mayor Dana Ralph City of Kent Adm¡nistration Derek M. Matheson, CAO