03-082.00 Washington State Department of RevenueAPR -27-2004 TUE 12:33 PM DOR MISC TAX/UPC FAX NO. 36.0.5862163 P. 02
JAN -29-2003 WED 09;37 AM I WE EXECUTIVE FAX N0, 35C J543 P. 03
r ' JAN -08-2003 UED 08;57 AM DOR 'MISC TAXIUPC FAX K0. 3606662163 P, Ol
AGRREMNNT DF.1'WFEN'1111? STATE OP WASIJINGTOr', I)EPARTMENC OF
Rl;YnNUF, AND TFIC, TOWNIC11'Y OF S? NE VALLEY RROA)W NG
ADMNISTRAT10N AND COLLL),C' "OF LOCAL LEASEFTOLn BXCISE TAX
THIS At: RIMMENT, Mado this t3 ch day of Jsausr {�
_0=, by curd between the 9tatc of Washington, Depixtment of ltcvcnuc, heroinaftex
rorcrred to as tho Department, and the above dos{gnated city/town, hereinafter referred to
as tho city, W117NESSETR;
NNgJBR'FAS, Tho Leglslatuto of the State of Woshington has by chapter 61, Laws
of 1975 -?6, 2nd ex, sess., authorised cities and counties to impose a local tnasehold
exc64 tax, and
WHEREAS, It is provided in scclion R of said act that any city or county
imposing a local lctsachold aelse. tax by ordinance, shall, prior to the elTective date
thereof, cantmct with rho Dopsrtment for the administration and collection of said tax,
and
WHERUAS, The oily hos by ordinance, a copy of wl►ich is Attrwllyd hereto,
oloeted to imposo a l aichold excis+l tart commencing on tho first day of MARCH 31 ,
2003 ,
NUW, TIMREFORF, To cf%ctuAty sectiotl B of the aforomentioned Qct, tho
parties hereto agree as follows:
1, ne Dep' rUncnl shall e-tchlaivCly perform a functions. incident to the
admiiustmilon and collection of Qie taxes imposed by the sold ordinance, other than
criminal proseeldlons.
2. The l?cptartnicrit shall retain from the taxes so collected the amount of two
percent thercoras expenses of adminlstretinn And collection. Said Mount shall be
subject to rovlow during Jam=ey of each year.
3. The remainder of said twos so collected shall be dcposlted by the
ncpattmcnt in the Local Leasehold Pxcise Tax Revolving Fund under the cwtody of the
Stato Treasurer.
4. in carrying 0111 itS ncitnlnl9tr3t1ori altd collection duties hereunder, the
Dcpnrtmant shall, Insofar as the sgnlc arc applicable, apply the ndministrative provisions
colitaita&I in chaptars 92.02 and 82.52 ACW. and the laepar#ment's rules cod regulations
promulgated pursuant to RCW 9232.300, oa the sante exist nr may hereafter be mnandcd.
'Tbe Aopnrtment shall adopl:udditiooal rules w14 regulations, in accordance with the State
Adminislrativo rroct clurc Act, to flctlitato tho adminisutaion and collectian of the local
taxes Fis it may dean nrcessalry or desirable,
APR -27-2004 TUE 12:33 PM DOR MISC TAX/UPC
JA11-25-2003 WED 09:37 AM, .:NUE EXECUTIVE
Jt1N-00-2003 WED 08:58 AM DORASC TAMPC
FAX NO. 3605862163
FAX No. 361'.15543
FAX NO, 3805862163
5, Tho Departmcut Shall retrerm its duties hereunder so that as far as
possible the local leasehold oxeisr w adopted by the city shall be administcreJ and
collected in n irtnnner which is as coiuistent and uniform es l osslble with the state
leasehold encisa tax and 5611lat0e the impoaidon of the local leasehold excise tax upon
individual taxable events sitnU1Mneous1y with the imposition of the state leasehold excise
tax.
6, The city shall have the right from tine to time to examine the records of
the Department as they coarern taxpayers subject to the aroromontioned ordinance.
7. The allooation of Cowl leasehold =Ise tax collections among the vat4olu
cities and counties will be cant by the Mpnttment to Tho State Treacurcr within 60 days
allot the close ortho first bimotuldy perfect for which the tax is imPosed and thereafter on
a b1monthly lows.
b, All refunds and eradits for local leRschold excise tax mrtde by the
Department shall be charged to the city.
9. Tho 1)1;pa1trae11t shall restuire. redistribution to the e0eetod counties or
cities, of any tax, penalty and interest distributed to a county or city other than the county
of city catitled fli mto but such redisftlbution shall not be mane as to amounts originally
distributed earlier thin three bimonthly periods prior to the binwathly period In which lho
Deportment obtains knowledge of the improper distribution.
10. This agreement shall tako effect on the 31 cc day of
Idar,,t, , _ _ 2oo�and slu'ill thereafter bt automatically renewed on Docetnber
31 of aai`.h YtAr unless Ono of the parties elves written notice of termination on or before;
Novarnbor 1 of each Such scat.
11, In wimess wborcof the Patties hereto hive nMye.d Their signature the day
and year rt3't above wriit"-
DEPATUMPW OF R�F.�� 1.18
STATE Q ANH�N AN
By
Director
CITY /LEY
Hobert WTi?O ok,
Interim Finance Director
P. 03
P. 04
P. 02
APR -27-2004 TUE 12:33 PIS DOR HiSC TAX/UPC FAX N0. 360.5862163
STATE, OF' WASHINGTON
DEPARTMENT OF KFVENUL
�, Y Special Programs Division - Miscellaneous Tax Section
P.O. I;ox 47477 - Olympia, Wel 98504-7477
(360) 753-5545 - FAX (360) 586-2163
FAX coy Eu 'f'VITL, It
Datcffinie: 4-27-04
To: Chris
Business: City of Spokane Valley
FAX No.: 509 688-0194
Telephone No.:
from: DEPARTMENT OF RT.VENUI -
SPF:CfAL PROGRAMS DIVISION, MISCELLANEOUS TAX SECTION
Sender: Kathy Forsberg
I'clephonc No.: (360) 570-3247
Subject: leasehold tax
FAX No-: (3 60) 586-2163
C:ONFIDEN'I'IAl,**********
The information and the enclosed documents in this fax are privileged and confidential, if you
Have received this in error, you arc hereby notified that any dissemination of the communication is
prohibited. if you have received this message in error, please notify the sender immediately and
return the origimil message to the point of origin.
Additional CornimlilLs:
_ ha!;es transmitted, including cover sheet. if fhere is any problem with the fay:
docui rtl, please call the sender listed above.
P. 01
CITY OF SPOKANE VALLEY
SPOKANE COUNTY, WASHINGTON
ORDINANCE NO. 19
AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, WASHINGTON IMPOSING
A LEASEHOLD EXCISE TAX TO OBTAIN THE LOCAL SHARE OF EXISTING
TAXES COLLECTED BY THE STATE AND SPOKANE COUNTY AND PROVIDING
FOR OTHER MATTERS PROPERLY RELATED THERETO.
WHEREAS, the State of Washington through RCW Chapter 82.29A recognizes that
properties of the State, County, school districts and other municipal corporations are exempt
from taxation pursuant to the State Constitution but that private lessees of such public property
receive benefit from governmental services;
WHEREAS, the leasehold excise tax is designed to compensate governmental units for
providing services to lessees of publicly owned property who are not obligated to pay State or
local property tax;
WHEREAS. Spokane County through Chapter 7.36 of the Spokane County Code
imposes a leasehold excise tax upon the occupancy of publicly owned real property in an amount
of six percent of the taxable rent payable by lessee;
WHEREAS, the City is authorized to levy a leasehold excise tax not to exceed four
percent, with the City tax deemed to be a credit against the County tax and thereby obtain a local
share of existing taxes; and
WHEREAS, the imposition of the leasehold excise tax will not result in an increase in tax
payable by lessees of public property but will transfer revenues from Spokane County to the City
as compensation for the provision of City services.
NOW, THEREFORE, the City Council of the City of Spokane Valley, Washington, do
ordain as follows:
Section 1. Leasehold Excise Tax. There is levied and shall be collected a leasehold
excise tax on the act or privilege of occupying or using publicly owned real or personal property
through a "leasehold interest" as that term as defined in RCW 82.29A.020. The leasehold excise
tax shall be imposed upon and collected from those persons holding a leasehold interest within
the City on publicly owned property who are required to pay a leasehold excise tax to the State
Department of Revenue pursuant to RCW Chapter 82.29A.
Section 2. Rate of Leasehold Excise Tax. The City imposes a leasehold excise tax in
the amount of four percent of the taxable rent, as that term is defined in RCW 82.29A.020 less
any allowable credits in RCW 82.29A.120.
Section 3. Exemptions. The City exempts certain leasehold interests from this
ordinance pursuant to RCW 82.29A.130, RCW 82.29A.134, RCW 82.29A.135 and RCW
82.29A.136.
Section 4. Administration and Collection. The City Treasurer, or designee, is
authorized and directed to contact the Washington State Department of Revenue to administer
and collect the tax in accordance with RCW 82.29A.080. The City Manager is authorized to
IISv-fsllUserslCBtiinbridgelchainbridoe%Ordinances%Ordinances 200310rdinance 19 Excise Tax_doc 1
enter into a contract with the State Department of Revenue for the administration, collection and
disbursement of the taxes imposed herein, pursuant to RCW 82.29A.080. A copy of the contract
shall be maintained on file in the office of the City Clerk.
The City Clerk is further directed to transmit a certified copy of this ordinance to the
Clerk of the Board for Spokane County, the Washington State Office of Financial Management
and the Department of Revenue.
Section 5. Adoption of Other Laws. Pursuant to RCW 35A..11.020 and 35A.21.160,
the City adopts by reference the State leasehold excise tax laws, RCW Chapter 82.29A and the
State leasehold excise tax rules found at WAC Chapter 458-29A which are incorporated by this
reference as presently written or hereafter amended as the excise tax laws and rules of the City of
Spokane Valley.
Section 6. Penalty. It is unlawful for any person to fail or refuse to pay the leasehold
excise tax imposed tinder this ordinance. Any person violating any provision of this ordinance
shall be guilty of a misdemeanor and upon conviction shall be punished according to State law
and/or City ordinance.
Section 7. Severability. If any section, sentence, clause or phrase of this ordinance
shall be eUc to be invalid or unconstitutional by a court of competent jurisdiction, such
invalidity or unconstitutionality shall not effect the validity or constitutionality of any other
section; sentence, clause or phrase of this ordinance.
Section 8, Effective Date. This Ordinance shall be in full force and effect five (5)
days after publication of this Ordinance or a summary thereof in the official newspaper of the
City as provided by law.
PASSEL? by the City Council of the City of Spokane Valley on January , 2003.
Mayor, Michael DeVleming
AT`1'EST:
Interim City Clerk, Ruth Muller
Approved As To Form:
Interim City Attorney, Stanley M. Schwartz
Date of Publication:
H ffective Date:
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