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HomeMy WebLinkAboutOrdinance 03-018 Imposes Additional Excise Tax on Real Estate Sales CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 18 AN ORDINANCE OF THE CiTY OF SPOKANE.VALLEY, SPOKANE COUNTY, WASHINGTON, IMPOSING AN ADDITIONAL ONE-QUARTER PERCENT EXCISE TAX ON REAL ESTATE SALES, IMPOSING RESTRICTIONS ON USE OF THE TAXES, PROVIDING FOR COLLECTION AND REFUNDS AND ESTABLISHING A SPECIAL FUND. WHEREAS, state law authorizes the imposition of certain taxes upon real estate transactions occurring within the City of Spokane Valley; WHEREAS, RCW 82.46.035 provides that revenues generated by real estate excise taxes in cities planning under the Growth Management Act and that are required to plan under RCW 36.70A.040 shall be used for financing capital projects as defined in R.CW 82.46.035(6); WHEREAS, to the extent collected, this tax does not result in an increase in the amount of tax paid by sellers of real property but diverts money from Spokane County to the City of Spokane Valley; WHEREAS, the City of Spokane Valley must be able to finance necessary capital facility improvements and it is therefore appropriate to impose the excise tax authorized by law to help finance these improvements; WHEREAS, the City of Spokane Valley has heretofore imposed a first one-quarter percent excise tax on real estate sales by adoption of Ordinance No. 17; and WHEREAS, in order to provide for the necessary capital facility improvements of the City of Spokane Valley, it is appropriate for the City of Spokane Valley to impose a second one- quarter percent excise tax on real estate sales. NOW, THEREFORE, the City Council of the City of Spokane Valley, Spokane County, Washington, do ordain as follows: Section 1. Additional One-quarter Percent Excise Tax on Real Estate Sales. A. Imposition. Pursuant to RCW 82.46.035, there is imposed an additional excise tax on each sale of real property constituting a taxable event as defined in Chapter 82.45 RCW, as the same now exists or may hereafter be amended. The tax imposed under this section shall be collected from persons who are taxable by the State under Chapter 82.45 RCW, as the same now exists or may hereafter be amended, and such tax shall comply with all applicable rules, regulations, laws and court decisions regarding real estate excise taxes as imposed by the State of Washington under RCW Chapters 82.45 and 82.46, as the same now exists or may hereafter be amended. P:Icmail attachments\Ordinancc 18, BEET 2nd Qtr.doc 1 B. Tax rate. The rate of tax imposed by this section pursuant to RCW 82.46.035, as the same now exists or may hereafter be amended, shall be one-quarter of one percent of the selling price of all real property upon which this tax is imposed. C. Use of proceeds. All proceeds from the tax imposed by this Section shall be placed by the City Treasurer, or authorized designee, in the City of Spokane Valley's Special Capital Project Fund established under Section 8 of this Ordinance and shall be used solely for financing capital projects, as specified in the capital facilities plan element of a the City Comprehensive Plan approved by the City Council. Section 2. County to Collect Payment. The County Treasurer shall collect the tax imposed by this Ordinance. The County Treasurer shall place one percent of the proceeds of the taxes imposed and collected by this Ordinance in the County Current Expense Fund to defray costs of collection. The remaining proceeds from City of Spokane Valley taxes imposed by this ordinance shall be distributed to the City of Spokane Valley monthly. Section 3. Tax is Obligation of Seller. The taxes imposed by this Ordinance are the obligation of the seller and may be enforced through the action of debt against the seller or in the manner prescribed for the foreclosure of mortgages. Section 4. "fax Lien on Real Property. The taxes imposed by this ordinance and any interest or penalties thereon is a specific lien upon each piece of real property sold from the time of sale or until the tax is paid, which lien may be enforced in the manner prescribed for the foreclosure of mortgages. Resort to one course of enforcement is not an election not to pursue the other. Section 5. Duties of County Treasurer. The taxes imposed by this ordinance shall be paid to and collected by the County Treasurer. The County Treasurer shall cause a stamp evidencing satisfaction of the lien to be affixed to the instrument of sale or conveyance prior to its recording or to the real estate excise tax affidavit in the case of used mobile home sales. A receipt issued by the County Treasurer for the payment of the tax imposed herein shall be evidence of the satisfaction of the lien imposed by this ordinance and may be recorded in the manner prescribed for recording satisfactions of mortgages. No instrument of sale or conveyance evidencing a sale subject to the tax may be accepted by the Spokane County Auditor's office for filing or recording until the tax is paid and the stamp affixed thereto. In case the tax is not due on the transfer, the instrument shall not be accepted until suitable notation of this fact is made on the instrument by the County Treasurer. P:lemail attachments\Ordinancc 18, REET 2nd Qtr.doe 2 Section 6. Payment Due. The tax imposed by this ordinance shall become due and payable immediately at the time of the sale, and if not so paid within thirty (30) days thereafter, shall bear interest at the maximum rate permitted by law from the time of sale until the date of payment. Section 7. Refunds. If, upon written application by taxpayer to the County Treasurer for a refund, it appears that tax has been paid in excess of the amount actually due or upon a sale or other transfer declared to be exempt, such excess amount or improper payment shall be refunded by the County Treasurer to the taxpayer; provided, that no refund shall be made unless the State has first authorized the refund of an excessive amount or an improper amount paid, unless such improper amount was paid as a result of miscalculation. Any refund made shall be withheld from the next monthly distribution to the City of Spokane Valley. Section 8. Creation of Special Capital Projects Fund. There is created a special fund to be known as the "Special Capital Projects Fund," into which shall be deposited all proceeds of the tax imposed by Section 1 of this ordinance. Revenue in the Special Capital Projects Fund shall be used to finance capital projects specified in the capital facilities plan element of the City Comprehensive Plan. Section 9. Penalty. It is unlawful for any person to fail or refuse to pay taxes with intent to violate the provisions of this ordinance. Any person violating any provision of this ordinance shall be guilty of a misdemeanor and upon conviction thereof, punished pursuant to state law or city ordinance. 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 unconstitutionality of any other section, sentence, clause or phrase of this ordinance. Section 11. Effective hate. This Ordinance shall be in full force and effect on the official date of incorporation provided publication of this Ordinance or a summary thereof occurs in the official newspaper of the City as provided by law. Passed By the City Council of the City of Spok .ip\ Val 1 y on January 2, 2003. Mayor, Michael DeVlemu g P:\email attachmentslOrdinance 18,REET 2nd Qtr.doc 3 F \ ATTEST: Interim City Clerk, Ruth Muller Approved As To Form: Iu ity Att e Stanley . Schwartz Date of Publication: ,A1 4 2 r ZeO Effective Date: P:\email attachments\Ordinance 18, RUT 2nd Qtr.doc 4