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Home My WebLink About4370ORDINANCE NO.437O AN ORDINANCE of the City Council of the City of Kent, Washington, relating to local sales and use taxes; imposing the maximum capacity of thetax authorized under the provisions of RCW82.14.530 for housing and related services; amending Chapter 3.16 of the Kent City Code by adding a new section 3.16.036, entitled ..Additional sales or use tax for housing and related services"; and authorizing the Mayor to use the funds and pool resources with South King Housing and Homelessness Partners. RECITALS A. rn 2o2o, washington state enacted House Bill 1590 (chapter 222, Laws of 2020), which amended Rcw 92.14.530 to allow local governments to impose an additional sales and use tax to fund investments in affordable housing and related services. B. As amended, RCW 82.14.530 allows King county to impose an additional sales and use tax at a rate of up to one-tenth of one percent. However, if King County does not impose the tax, or the full rate of the tax authorized, by September 30, 2020, the city of Kent may impose the whole sales and use tax rate or the remainder of the rate. If the County imposes the tax authorized by RCW 82.14.530 after the City of Kent has imposed the tax, the County must provide a credit against its tax for the full amount of tax imposed by the City. By acting first, the full amount of the tax revenue will remain in the Kent community, and use of those funds will be controlled by the City. Amend KCC 8.76 - Re,'Sales and Use Tax for Housing 1 C. If the City imposes the tax, there are statutory restrictions on the use of the revenue. A minimum of sixty percent of the moneys collected from this tax must be used for constructing affordable housing, constructing mental and behavioral health-related facilities, 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. D. There are also restrictions regarding the population the additional funding may be used to serve. The affordable housing and facilities providing housing-related programs may only be provided to persons whose income is at or below sixty percent of the median income of King County and are persons with behavioral health disabilities, veterans, senior citizens, homeless families with children, unaccompanied homeless youth or young adults, persons with disabilities, or domestic violence survivors. E. The remainder of the moneys collected from this tax must be used for the operation, delivery, or evaluation of mental and behavioral health treatment programs and services or housing-related services. F. To date, King County has not imposed the additional sales and use tax authorized by RCW 82.14.530. By acting now, the city will receive 100o/o of the tax revenue authorized and will retain control over how the funds are used in the community. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF KENT, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: ORDINANCE Amend KCC 3,76 - Re,'Sales and Use Tax for Housing 2 sEcrroM 7. - Amendment chapter 3.16 0f the Kent city code is amended to add a new section 3.16.036, entitled "Additional sales or use tax for housing and related services," as follows: Sec. 3,16.036 related services. Additional sales or use tax for housing and A. There is hereby imposed an additional sales or use tax as authorized by RCW 82.14.530 upon every taxable event, as defined in RCW 92.L4.o2o, occurring within the City. B. The rate of the tax shall be the maximum rate permitted under RCW 82.14.530 of 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. 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.L2 RCW. D. Funds collected under this section shall be used in accordance with RCW 82.14.530 (or as may be amended in the future) for affordable housing and related services. E. A minimum of sixty percent of the moneys collected under this section must be used for constructing affordable housing, which may include new units of affordable housing within an existing structure, facilities providing housing-related services constructing mental and behavioral health-related facilities, 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. The Amend KCC 9.76 - Re,'Sa/es and Use Tax for Housing 3 remainder of the moneys collected under this section must be used for the operation, delivery, or evaluation of mental and behavioral health treatment programs and services or housing-related services. Moneys collected under this section may be used to offset reductions in state or federal funds for the purposes described in this section. No more than ten percent of the moneys collected under this section may be used to supplant existing local funds. F. The affordable housing and facilities providing housing-related programs 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 King County: t. ii. iii. iv. V. vi. vii. Persons with behavioral health disabilities; Veterans; Senior citizens; Homeless, or at-risk of being homeless, families with chirdren; Unaccompanied homeless youth or young adults; Persons with disabilities; or Domestic violence survivors. sEcrroN 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 82.14.530, subject to any limitations provided therein, 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 Amend KCC 3.76 - Re.'Sales and Use Tax for Housing 4 decision shall not affect the validity of the remaining portion of this ordinance and the same shall remain in full force and effect. sEcrroN 4. - corrections by city crerk 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. sECTroN 5. - Effective Date. This ordinance, pursuant to RCW 354.11.090(7), shall take effect and be in force five (5) days after its publication, as provided by law. DANA MLPH, MAYOR October 6. 2020 Date Approved ATTEST: October 6. 2020 Date Adopted I KIMBERLEY A MOTO,ITY RK APP D H "PA FITZPATRICK, CIry ATTORN EY October 7, 2O2O Date Publishe Amend KCC 9.76 - Re,'Sa/es and Use Tax for Housing 5 Wha$eaftteff'tmss AFFIDAVIT OF PUBTICATION Kim Komoto City of Kent, City Clerk's Office 220 4th Ave S Kent Washington 98032 STATE OFWASHINGTON, COUNTIES OF I(NGAND SNOHOMISH The undersigned, on oath states that he/she is an authorized representative of The Seattle Times Company, publisher of The Seattle Times of general circulation published daily in King and Snohomish Counties, State of Washington. The Seattle Times has been approved as a legal newspaper by others ofthe Superior Court of King and Snohomish Counties. The notice, in the exact form annexed, was published in the regular and entire issue of said paper or papers and distributed to its subscribers during all of the said period. 10t07t2020 Agent hftuud L D V/" r",-aJ Signature Subscribed and sworn to befcre (Notary Signature) N CI'Y OF KEXT NOTICE OF ORDINANCE PP.SSED AY TH€ CITY COUNCILThe followlns ls tha sumfrdrv of onordlnonc6 possed by ths Konl Citv Council on Oclobsr 6, 2020. ORDINANCE NO. 43'O 'ANORDINANCE of tho City Council ol thsCity of Kent, Woshinston, relolinc lo locsl soles ond use toxesi imposlng themoxlmum cqpqclfy ol the tqxquthortzed under the provisions of RCW 8?.1 4.530 for housios ond relsted services; omendins Chqpler 3.16 ot the Kenl City Code bv sddlns q new:.clion 3.16.036, enlltled "Addltionsl 5oles oruse tox for hou$lng qnd rel6i€dservlc€s"r dnd duthorlzlng the Mdyor to u$e the lunds ond pool tesources wllh South Kins Houslns qnd Homolessness Po rtners, Thls ordinsnce, pursuqni tg RCW 354.11,090(7), shcll laks ellact ond be in lorca live doys siter lls publlcstlen, ds provldod by low, A copy ol lhe compleie lexl ol unv ordlnonce wlll be motled upon reque3t ot th€ Clty Cl€rk, Klmbertey A. Komolo, Cltv Clerk KkomotoO KenlVVA, sov 253'856-5725 'fha^-r"-., t D '4--Uo at Seattle Publication Cost: Order No: Customer No: PO #: $368.20 1814 202 of Washington, FRANKIE FLIGHT Notary Public State of Washington Commission # 19110383 My Comm. 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