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HomeMy WebLinkAboutO-0892 - Leasehold excise tax (3.68)... CIT Y 0 F MAR Y S V ILL E Marysville,Washington ORDINANCE NO.892 An Ordinance of the City of Marysville levying and planning for the collection of a 4%leasehold excise tax. THE CITY COUNCIL OF THE CITY OF MARYSVILLE,WASHINGTON DO ORDAIN AS FOLLOWS: Section 1.There is hereby levied and shall be col- lected a leasehold excise tax on and after January 1,1976 upon the act or privilege of occupying or using publicly-owned real or personal property within the City of Marysville through a "leasehold interest"as defined by Section 2,Chapter 61,Laws of 1975-76,Second Extraordinary Session (hereafter "the state act"). The tax shall be paid,collected,and remitted to the Department of Revenue of the State of Washington at the time and in the manner prescribed by Section 5 of the state act. Section 2. The rate of the tax imposed by Section 1 shall be 4%of the taxable rent (as defined by Section 2 of the state act):PROVIDED,that the following credits shall be allowed in determining the tax payable: (1)With respect to a leasehold interest arising out of any lease or agreement,the terms of which are binding on the Lessee prior to July 1,1970,where such lease or agreement has not been renegotiated (as defined by Section 2 of the state act)since that date,and excluding from such credit (a)any leasehold interest arising out of any lease of property covered by the pro- visions of RCW 28B.20.394 and (b)any lease or agreement including options to renew which extends beyond January 1,1985,as follows: With respect to taxes due in calendar year 1976, a credit equal to eighty (80%)percent of the tax pro- duced by the above rate. With respect to taxes due in calendar year 1977, a credit equal to sixty (60%)percent of the tax pro- duced by the above rate. With respect to taxes due in calendar year 1978, a credit equal to forty (40%)percent of the tax pro- duced by the above rate. With respect to taxes due in calendar year 1979, a credit equal to twenty (20%)percent of the tax pro- duced by the above rate. (2)With respect to a product lease (as defined by Section 2 of the state act),a credit of thirty-three (33%)percent of the tax produced by the above rate. -1- ~'4rf~ Section 3.The administration and collection of the tax imposed by this ordinance shall be in accordance with the provisions of the state act. Section 4.Leasehold interests exempted by Section 13 of the state act as it now exists or may hereafter be amended shall be exempt from the tax imposed pursuant to Section 1 of this ord- inance. Section S.The City of Marysville hereby consents to the inspection of such records as are necessary to qualify the City for inspection of records of the Department of Revenue pursuant to RCW 82.32.330. Section 6.The Mayor of the City of Marysville is authorized to execute a contract with the Department of Revenue of the State of Washington for the administration and collection of the tax imposed by Section 1;PROVIDED,thit the City Attorney shall first approve the form and content of said contract. Section 7.If any provision of this ordinance,or its application to any person or circumstance,is held invalid,the remainder of the ordinance or the application of the provision to other persons or circumstances is not affected. this PASSED by the City Council and APPROVED by the Mayor ~,.)d'ayof /2Z/Vvc/r/1976. THE CITY OF MARYSVILLE BY~~»A ATTEST: APPROVED AS TO FORM: -2- •• AGREEMENT BETWEEN THE STATE OF WASHINGTON, DEPARTMENT OF REVENUE AND THE CITY OF MARYSVILLE REGARDING ADMINISTRATION AND COLLECTION OF LOCAL LEASEHOLD EXCISE TAX THI5 AGREEMENT,made this day of , 1976,by and between the State of Washington,Department of Revenue, hereinafter referred to as the "Department",and the above-designated City,hereinafter referred to as the "City",WITNESSETH: WHEREAS,the Legislature of the State of Washington has by Chapter 61,Laws of 1975-76,2nd Ex.Sess.,authorized cities and counties to impose a local leasehold excise tax;and WHEREAS,it is provided in Section 8 of said act that any city 'or county imposing a local leasehold excise tax by ordinance shall,prior to the effective date thereof,contract with the Department for the administration and collection of said tax;and WHEREAS,the City has by ordinance,a copy of which is attached hereto,elected,to impose a leasehold excise tax commencing on the first day of January,1976; NOW,THEREFORE,to effectuate Section 8 of the aforementioned act,the parties hereto agree as follows: 1.The Department shall exclusively perform all functions incident to,the administration and collection of the taxes imposed by the said ordinance,other than criminal prosecutions. 2.The Department shall retain from the taxes so collected the amount of two (2%)percent thereof as expenses of administration and collection.Said amount shall be subject to review during January of each year.. 3.The remainder of said taxes so collected shall be deposited by the Department in the Local Leasehold Excise Tax Revolv- ing Fund under the custody of the State Treasurer. 4.In carrying out its administration and collection duties hereunder,the Department shall,insofar as the same are applicable, apply the administration provisions contained in Chapters 82.02 and 82.32 RCW,and the Department's rules and regulations promulgated pursuant to RCW 82.32.300,as the same exist or may hereafter be amended.The Department shall adopt additional r.ules and regulations, in accordance with the State Administrative Procedure Act,to facili- tate the administration and collection of the local taxes as it may deem necessary or desirable. 5. The Department shall perform its duties hereunder so that as far as possible the local leasehold excise tax adopted by the City shall be administered and collected in a manner which is as consistent and uniform as possible with the state leasehold excise -1- ,. tax and facilitates the imposition of the local leasehold excise tax upon individual taxable events simultaneously with the imposition of the state leasehold excise tax. 6.The City shall have the right from time to time to examine the records of the Department as they concern taxpayers subject to the aforementioned ordinance. 7.The allocation of local leasehold excise tax collections among the various cities and counties will be sent by the Department to the State Treasurer within 60 days after the close of the first bimonthly period for which the tax is imposed and thereafter on a bi- monthly basis. 8.All refunds and credits for local leasehold excise tax· made by the Department shall be charged to the City. 9.The Department shall require redistribution to the . affected counties or cities,of any tax 1 penalty and interest distri- buted to a county or city other than the county or city entitled thereto,but such redistribution shall not be made as to amounts ori- ginally distributed earlier than three bimonthly periods prior to the bimonthly period in which the Department obtains knowledge or the improper distribution. 10.This agreement shall take effect on the 1st day of January,1976,and shall thereafter be automaticalli renewed on December 31st of each year unless one of the parties gives written notice of termination on or before November 1st of each such year. IN WITNESS WHEREOF,the parties hereto have affixed their signature the day and year first above written. STATE OF WASHINGTON DEPARTMENT OF REVENUE ByDi-r-e~c-::t-o-r-:-----~----------- ATTEST: -2- .,e .'.",'. AGREEMENT 'BETWEEN THE .STATE QF WASHINGTON, .DEPARTMENT'O,FREVENUEAND THE CITY OF MARYSVILLE. ~EGARDINGADMINISTRATIONAND COLLECTION "'OF LOCAL LEASEHOLD EXCISE TAX THI5 AGREEMENT,~adethis day of , 197 6 ,by'~1.Hd:between the State of Washington,Department of Revenue , here Ln a ft er referred to .as the "De pa r t me n t",and the above -de signa ted Ci t y , .hereinafter'r e f er r e d.to as the "Cd ty''',WITNESSETH:.."~.. WHEREAS,the Legislature 'of the State'ofWashington has bj Chipier,6l).Laws'~f 1975-76,2nd Ex.Sess.,authorized cities and 'counties t6 impose a local leasehold exci~e tax;and WHEREAS',it is provided in Section 80f said act that any city ot courity'i~posing ~local le~seholdexcise tax by ordinance sh~ll,pri6rto the effective date thereof,contract with the Department· ftii the administration and collection of said tax;arid ,WHEREAS,the City h~s bj ~rdinance,a copy of which is at~ached her~t6~'el~cted to impose a leasehold excise tax commencing on the first day of January;,1976;. NOW,THEREFORE,to ~f~~ctpate Settion 8 of the aforementioned .act,.the'parties her e t o agree as follows: ,1 ..Th~'Depaitmentsh~ll exclusively perform all functions incident to'the'administr~tion and collection of the taxes imposed by,the said oTdin~n~e,oih~r than criminal prosecutions...... 2.,The Department shall"retain from the t axe s so coLl.e c t ed the amount of two (2%)'percent the~edf as expenses of administration ,and collecti~n~Said.amqunt'shal1,be subject to review during January o~eachy~ar~ 3~The remiinder ~f said taxes so collected shall be t deposited by .t~e,:D~partmentin the Local Leasehold Excise Tax Revolv-' ing F~nd under the'custody of 'the State Trea~urer...",'-....,."''.' 4.In carryirig..out its administration and collection duties hereunder,the Depar~m~ntsh~ll,inSofar as the same are applicable, ·apply.the administration provision~contained in Chapters 82.02 and 82.32 RCW,.·and the D~p~ttment's rules and .regulations promulgated ,.pursuint to RCW 82~32.300;as the same exist or may hereafter be :,amended;'The DepAitment shall adopt additional rules and regulations, in acco'r danc e wi th i t he State Adm i.n i s t r a td ve tPr o cedu r e Act,to facili- tat~,the administration and tOllection of the local taxes as it may deem necessary oi desirable. .. . 5.The De pa rtment shall perform'its duties hereunder so' .tha t :as rfa r .as p os s i.b Le v t he local leasehold excise tax adopted by the City shall be administered~nd collected in a manner which is as con si s t ent and uniform as .possi.b Le w'i th the state leasehold excise ,-1- .--;.',--'"....,t,I ..,,;J >' ttixand .facilitites the "imposition of the loca~leasehold excise tax U.PO~l individual.:taxable.·,events simultaneously with the imposition o f i th e state Le'ase'hoLd i e'xc.i se tax,' """'..\'"" '.6,The 'City shall have.the r i gh t :from time to time to examine .'the 'r ecor ds of the Department as .t he y concern taxpayers s ub j e c t to the a'Eor-eme n t i oned ordinance. ,.7,..The'allocation -.ofiocalleasehold excise tax collections among the'various cities arid co~nties will be sent by the Department to t.h e State'"I'r e as ur er :Hi t h.i.n 60 days after.the close of the first bimonthly.peribd for which the tax is imposed and thereafter on a bi- monthly·basis:. 'S;Atlrefurids ~nd credits for local leasehold excise tax made by th~nepartment s~aii be charg~d to the City. 9~·The Department shall require redistribution to the affected counties or cities"o f any tax,penal ty and interest d is t r i v buted,to a co~nty or cityuther than the county or city entitled thereto,but suchredi~tribution shall not be made as to ~mounts ori- 'ginallydistribu~ed,eirlier .than three bimonthly periods prior to the bimqnth~y,period in which the Department obtains knOWledge or the ,improper ,distfibution... :r. ATTEST':·. ·B·..'c'f~;;>;_:r>y..,.fi ~~UA./ 'City~e~"". , ,. ',," STATE OF WASHINGTON DEPARTMENT OF REVENUE ByDi-r-e-c""7t-o-r-·...,.......,...-...,.-.,--,,--.---------,. '.,. '-2-