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ORD 19-879 ORDINANCE NO. 19-879 AN ORDINANCE of the City of Federal Way,Washington, relating to investments in affordable and supportive housing; adding new sections to Chapter 3.35 FWRC. WHEREAS, in the 2019 Regular Session,the Washington State Legislature approved, and the Governor signed, Chapter 338, Laws of 2019 (Substitute House Bill 1406); and WHEREAS,Chapter 338,Laws of 2019 authorizes the governing body of a city or countyto impose a local sales and use tax for the acquiring,rehabilitating,or constructing affordable housing, including facilities providing supportive housing services, and for the operations and maintenance costs of affordable or supportive housing, or, if eligible, for providing rental assistance to tenants; and WHEREAS, the tax will be deducted from the amount of tax otherwise required to be collected within the City and,therefore,will not result in higher sales and use taxes within the City and will represent an additional revenue dedicated to addressing housing needs in the City; and WHEREAS,the tax must be used to assist persons whose income is at or below sixty percent of the City's median income; and WHEREAS,the Federal Way City Council determined that imposing the sales and use tax to address this need will benefit its residents and adopted a resolution on October 15, 2019, declaring its intent to authorize the maximum capacity of the tax, which meets the statutory requirements to adopt a resolution of intent within six months of the effective date of Laws of 2019, Chapter 338.- NOW, 38;NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF FEDERAL WAY, WASHINGTON, DO ORDAIN AS FOLLOWS: Ordinance No. 19-879 Page 1 of4 Section 1. Chapter 3.35 of the Federal Way Revised Code is hereby amended to add a new article and a new section 3.35.100 to read as follows: 3.35.100 Imposition. There is hereby imposed a sales and/or use tax, as the case may be, won every taxable event, as defined in Chapter 82.14 RCW as the same exists or may hereafter been amended, which occurs within the city. The tax shall be imposed upon and collected from those persons from whom the state sales and/or use tax is collected pursuant to Chapters 82.08 and 82.12 RC1'v.'T'lie tax impLo,sed_by tli'l section must be deducted from the amount of tax otherwise required to be collected or paid to the Department of Revenue under Chapters 82.08 and 82.12 RCW. Section 2. Chapter 3.35 of the Federal Way Revised Code is hereby amended to add a new section 3.35.110 to read as follows: 3.35.110 Tax Rate. The rate of tax imposed by FWRC 3.35.100 shall be the maximum rate Penuitted under Laws of 2019, Chapter 338. Section 3. Chapter 3.35 of the Federal Way Revised Code is hereby amended to add a new section 3.35.120 to read as follows: 3.35.120 Administration—Collection. The administration and collection of the tax minosed by this article shall be in accordance with the provisions of Laws of 2019 Chapter 338,and be accounted for separately by the finance department. Section 4. Chapter 3.35 of the Federal Way Revised Code is hereby amended to add a new section 3.35.130 to read as follows: Ordinance No. 19-879 Page 2 of 4 3.35.130 Inspectiion of records—Agreement with Dep,,rrtment of Revenue. The city consents to the inspection of such records as are necessary to qualify the cite for inspection of records of the Department of Rcvernue, pursuant to RCW 82.32.330(3)fhi. '1'17e mayor is authorized to enter into an agreement with the Department of Revenue for the administration of the tax. Section 5. Severability. Should any section,subsection,paragraph,sentence,clause,or phrase of this ordinance,or its application to any person or situation,be declared unconstitutional or invalid for any reason, such decision shall not affect the validity of the remaining portions of this ordinance or its application to any other person or situation. The City Council of the City of Federal Way hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clauses,phrase,or portion thereof,irrespective of the fact that any one or more sections,subsections, sentences, clauses,phrases, or portions be declared invalid or unconstitutional. Scc(1(-1Z1 6. Corrections. The City Clerk and the codifiers of this ordinance are authorized to make necessary corrections to this ordinance including, but not limited to, the correction of scrivener/clerical errors, references, ordinance numbering, section/subsection numbers and any references thereto. Section 7.Ratification.Any act consistent with the authority and prior to the effective date of this ordinance is hereby ratified and affirmed. Section 8. Effective Date. This ordinance shall take effect and be in force five(5)days from and after its passage and publication, as provided by law. Ordinance No. 19-879 Page 3 of 4 PASSED by the City Council of the City of Federal Way this 5th day of November, 2019. CITY OF FEDERAL WAY: r FE ELL, MAYOR ATTEST: *JM S P ANIS COURTNEY, C, CITY CLERK APPROVED AS TO FORM: J. RYAN CALL, CITY ATTORNEY FILED WITH THE CITY CLERK: 10/09/2019 PASSED BY THE CITY COUNCIL: 11/05/2019 PUBLISHED: 11/08/2019 EFFECTIVE DATE: 11/13/2019 ORDINANCE NO.: 19-879 Ordinance No. 19-879 Page 4 of 4