ORD 19-879 - Encouraging Investment in Afforadable Housing (SHB 1406) 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