City of Snoqualmie, WA Chapter 3.03 SALES AND USE TAX FOR AFFORDABLE AND SUPPORTIVE HOUSING

§ 3.03.010 Imposition of sales and use tax for affordable and supportive housing.

A. Imposition. There is imposed a sales and use tax as authorized by RCW 82.14.540 upon every taxable event, as defined in Chapter 82.14 RCW, occurring within the city of Snoqualmie. 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.

B. Tax Rate. The rate of the tax imposed by this section shall be 0.0073 percent of the selling price or value of the article used.

C. Tax Deduction. The tax imposed under this section shall be deducted from the amount of tax otherwise required to be collected or paid to the Department of Revenue under Chapter 82.08 or 82.12 RCW. The Department of Revenue will perform the collection of such taxes on behalf of the city of Snoqualmie at no cost to the city.

D. Effective Date. The tax shall become effective as of June 2020 (the first day of the first month that is at least 30 days after the Department of Revenue receives notice of the change), or the earliest practicable date consistent with RCW 82.14.055.

(Ord. 1232 § 1, 2020)

§ 3.03.020 Purpose of tax.

A. The city may use the revenues collected by the tax imposed under SMC § 3.03.010 or bonds issued only for the following purposes:

1. Acquiring, rehabilitating, or constructing affordable housing, which may include new units of affordable housing within an existing structure or facilities providing supportive housing services under RCW 71.24.385; and

2. Providing the operations and maintenance costs of new units of affordable or supportive housing, including, but not limited to, staffing necessary for daily operations of permanent supportive housing; and

3. Providing rental assistance to tenants.

B. Administrative costs associated with administering this section may not exceed six percent of the annual tax distributed to the city.

C. The housing and services provided under this section may only be provided to persons whose income is at or below 60 percent of the median income of the city at the time of certification or recertification.

D. In determining the use of funds under this section, the city must consider the income of the individuals and families to be served, the leveraging of the resources made available under SMC § 3.03.010, and the housing needs within the city.

(Ord. 1232 § 1, 2020)

§ 3.03.030 Administration and collection – Statutory compliance.

A. The finance director must report annually to the Washington State Department of Commerce, in accordance with the Department's rules, on the collection and use of the revenue from the tax imposed under SMC § 3.03.010.

B. The tax imposed by the city under SMC § 3.03.010 will expire 20 years after the date on which the tax is first imposed.

(Ord. 1232 § 1, 2020)