HomeMy WebLinkAboutOrdinance 03-019 Imposes Leasehold Excise Tax •
CITY OF SPOKANE VALLEY
SPOKANE COUNTY, WASHINGTON
ORDINANCE NO. 19
AN ORDINANCE OF TILE 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 OTTER 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 R.CW 82.29A.080. The City Manager is authorized to
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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 under 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 held 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.
PASSED by the City Council of the City of Spokane ' ley on January /7 , 2003.
NIle
Mayor, Michael D eVlen ng
ATTEST:
Interim City Clerk, Ruth Muller
Approved As To Form:
In Iff ity A im- Stanle M. Schwartz
Date of Publication: /lJ.'c l+ Z? 2563
Effective Date: 3( 3
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