The URL can be used to link to this page

Home My WebLink About5377 ORDINANCE NO. 5377 AN ORDINANCE of the City Council of the City of Bremerton, Washington, imposing a local sales and use tax for affordable and supportive housing in accordance with Substitute House Bill 1406 (Chapter 338, Laws of 2019), providing for severability and establishing an effective date. WHEREAS, in the 2019 Regular Session, the Washington State Legislature approved, and the Governor signed, Substitute House Bill 1406 (Chapter 338, Laws of 2019) ("SHB 1406"); and WHEREAS, 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, for providing rental assistance to tenants; and WHEREAS, the tax will be credited against state sales taxes collected within the City of Bremerton and, therefore, will not result in higher sales and use taxes within the City of Bremerton and will represent an additional source of funding to address housing needs in the City of Bremerton; and WHEREAS, the tax must be used to assist persons whose income is at or below sixty percent of the City of Bremerton median income; and WHEREAS, the City of Bremerton has a need to provide affordable housing or facilities and to provide for the operations and maintenance costs of affordable or supportive housing and provide rental assistance to tenants and has determined that imposing the sales and use tax to address this need will benefit its citizens; and WHEREAS, in order for the City to impose the tax,the City was required to adopt a resolution within six months of the effective date of SHB 1406, or January 28, 2020, declaring the City's intent to adopt legislation to levy the maximum capacity of the tax; and WHEREAS, in fulfillment of the resolution of intent requirement, the Bremerton City Council passed Resolution No. 3318 on August 7, 2019; and WHEREAS, SHB 1406 also requires that the City adopt legislation to authorize the maximum capacity of the tax within one year from the effective date of SHB 1406; and WHEREAS, this ordinance constitutes the required legislation; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BREMERTON, WASHINGTON, DOES HEREBY ORDAIN AS FOLLOWS: 1 Ordinance Implementing SHB 1406— Funding for Affordable Housing SECTION 1. Imposition of Tax. Pursuant to SHB 1406 (Chapter 338, Laws of 2019), there is hereby imposed a sales or use tax, as the case may be, on all taxable events within the City of Bremerton defined in RCW 82.14.020, as the same now exists or as hereafter amended or superseded, for the purpose of providing for affordable and supportive housing. The rate of the tax shall be the maximum rate authorized pursuant to SHB 1406 of 0.0073 percent or 0.0146 percent. SECTION 2. Collection of Tax by Department of Revenue. The Washington State Depattinent of Revenue shall deduct the amount of the tax levied in Section 1 above from the amount of sales or use tax otherwise required to be collected or paid to the Department of Revenue under Chapter 82.08 RCW or Chapter 82.12 RCW. The Department of Revenue is authorized to collect such taxes on behalf of the City of Bremerton at no cost to the City. SECTION 3. Distribution by Department of Revenue -Maximum Amount of Tax. The Washington State Department of Revenue shall distribute the proceeds of the tax to the City as provided in SHB 1406, up to the maximum amount provided in such state law. SECTION 4. Use of Tax Revenues. The City may use the revenues from the tax solely for the acquisition, construction or rehabilitation of affordable housing or facilities providing supportive housing,for the operations and maintenance costs of affordable or supportive housing, for providing rental assistance to tenants, or for any other purpose authorized by SHB 1406, as the same now exists or as hereafter amended or superseded. SECTION 5. Bonds. SHB 1406 authorizes the City to issue general obligation or revenue bonds to carry out the purposes of such state law and to pledge the monies collected from the tax for repayment of such bonds. Such bonds, if any, shall be authorized by separate action of the Bremerton City Council. SECTION 6. Interlocal Agreements. SHB 1406 authorizes cities imposing the tax provided for in the ordinance to enter into interlocal agreements with one or more counties,cities, or public housing authorities in accordance with Chapter 39.34 RCW. Such interlocal agreements may include, but are not limited to, pooling the tax receipts, pledging those taxes to bonds issued by one or more parties, and allocating the proceeds of the taxes levied or bonds issued in accordance with such interlocal agreement. Such interlocal agreements,if any, shall be authorized by separate action of the Bremerton City Council. SECTION 7. Reporting. The City shall report annually to the Washington State Department of Commerce on the collection and use of the tax revenues. The report shall be in such form and contain such content as the Department of Commerce shall prescribe by rule. The Mayor,or his or her designee, shall prepare the annual report and provide a copy to the Bremerton City Council at the time the same is filed with the state. SECTION 8. Expiration of Tax. The tax imposed by this ordinance shall expire twenty years after the date on which the tax is first imposed. 2 Ordinance Implementing SHB 1406— Funding for Affordable Housing SECTION 9. Corrections. The City Clerk and codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to,the correction of scrivener, clerical,typographical, and spelling errors, references, ordinance numbering, section/subsection numbers and any references thereto. SECTION 10. Severability. If any section, sentence, clause or phrase of this ordinance should be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this ordinance. SECTION 11. Effective Date. This ordinance shall take effect and be in full force five days after publication of the attached summary which is hereby approved. PASSED by the City Council the 4,n d day of /4. , 2019 ERIC YOUN( ', Co #President Approved this 3 Cd' day of O e..k'o\o r , 2019 GREG ELER, Mayor ATTEST: APPROVED AS TO FORM: S0 Ole VT& e. • • ANGEL'4 WOODS, City Clerk OGER A. LUB It CH, City Attorney PUBLISHED theil. day of 00(31.7.19Cr. , 2019 YEFFECTIVE the da ofo-b r , 2019 R:\Legal\Legal\Ordinances\Finance\Ordinance to Implement HB 1406-8-30-19.doc 3 Ordinance Implementing SHB 1406— Funding for Affordable Housing i Kitsap Sun PART OF THE USA TODAY NETWORK PROOF OF PUBLICATION i CITY OF BREMERTON EN GINEERING 345 6 TH STREET STE 100 BREMERTON,WA 98337 i STATE OF WISCONSIN,COUNTY OF BROWN I,being first duly sworn on oath,deposes and says:That I am now,and at all times embraced in the publication herein mentioned was the principal clerk of the printers and publishers of KITSAP SUN;that said newspaper has been approved as a legal newspaper by the order of the Superior Court of the County of Kitsap,in which County it is published and is now and has been for more than 6 months prior to the date of the publication hereinafter referred to, published in the English language continually as a daily newspaper in Bremerton, Kitsap County, Washington, a weekly newspaper in Kitsap County, Washington and is now and during all of the said time,was printed in an office maintained in the aforesaid place of publication of said newspaper;that the following is a true text of an advertisement as it was published in regular issues(and not in supplement form)of said newspaper on the following date(s),to wit:And on October 4,2019 such newspaper was regularly distributed to its subscribers during all of said period Subscribed and sworn to before on October 4,2019 G - Legal erk Notary,State , Cou y f Brown 5./503 My commission expires Publication Cost:$96.76 Ad No:0003827184 EpA\\ NY HEYRi1Ln �' Customer No: 1240752 v P,t b!i co t��rPO#: P of #of Affidavits: 1 i CITY OF BREMERTON, WASHINGTON ORDINANCE NO.5377 AN ORDINANCE of the City Council of the City of Bremerton, Washington, im- posing a local sales and use tax for affordable and sup- portive housing in accord- once with Substitute House Bill 1406 (Chapter 338, Laws of 2019), providing for severability and establish- ing an effective date ORDINANCE NO.5378 AN ORDINANCE of the City Council of the City of Bremerton, Washington, amending Section 2.03.010 of the Bremerton Municipal Code relating to the May- or's compensation PASSED by the City Council on the 2nd day of October, 2019. The full text of this ordi- nance is available from the City Clerk's Office, 345 Sixth Street, Suite 100, Bre- merton, WA 98337. Oct 4, 2019 #3827184