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HomeMy WebLinkAbout4843 Ordinance - Sales Tax Application in the TBDOrdinance – TBD Application of Sales Tax - 1 ORDINANCE NO. 4843 AN ORDINANCE OF THE CITY OF PASCO, WASHINGTON, ADDING A NEW SECTION 3.270.035 TO THE PASCO MUNICIPAL CODE IMPOSING AN ADDITIONAL SALES AND USE TAX OF ONE-TENTH OF ONE PERCENT WITHIN THE BOUNDARIES OF THE PASCO TRANSPORTATION BENEFIT DISTRICT FOR THE PURPOSE OF FINANCING THE COSTS ASSOCIATED WITH TRANSPORTATION IMPROVEMENTS IN THE DISTRICT AS AUTHORIZED BY RCW 36.73.065 AND RCW 82.14.0455; PROVIDING FOR SEVERABILITY AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, On February 17, 2026, City Council of the City of Pasco adopted Ordinance No. 4816 creating the Pasco Transportation Benefit District (“Pasco TBD”) with the same boundaries as the City limits, in accordance with Chapter 36.73 RCW; and WHEREAS, On April 20, 2026, City Council of the City of Pasco adopted Ordinance No. 4826 to assume the rights, powers, immunities, and obligations of the District pursuant to RCW 36.74.010; and WHEREAS, RCW 36.73.040(3)(a) authorizes transportation benefit districts to impose a sales and use tax, subject to the provisions of RCW 36.73.065 and RCW 82.14.0455; and WHEREAS, RCW 36.73.065(4)(a)(v) authorizes transportation benefit districts to impose a sales and use tax in accordance with RCW 82.14.0455 in an amount not exceeding one-tenth of one percent (0.1%) for a period of ten (10) years upon a majority vote of the governing body of the district for the purpose of financing the transportation improvements of a district; and WHEREAS, the Pasco City Council has carefully considered the financial needs of the City’s transportation system and the imposition of the tax and has determined that the best interests of the City and the District will be served by passing this ordinance. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PASCO, WASHINGTON DO ORDAIN AS FOLLOWS: Section 1. Imposition of Additional Sales and Use Tax. PMC 3.270.035 is hereby added to impose the additional one-tenth of one percent sales and use tax authorized by RCW 36.73.065(4)(a)(v) and to read as follows: 3.270.035 Transportation Benefit Additional Sales and Use Tax Imposed. A.Pursuant to RCW 36.73.065 and RCW 82.14.0455, there is hereby imposed an additional sales and use tax to be collected from persons who are taxable by the state under Chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the district. The amount of the additional tax shall be one-tenth of one percent (0.1%) of the selling price, in the case of the sales tax, or the value of the article used, in the case of the use tax. B.The tax imposed by this section shall apply for a period of ten (10) years from the date the tax is first collected within the district and shall thereafter cease to be imposed unless renewed with the affirmative vote of the voters voting at an election or a majority vote of the Pasco City Council exercising its authority as the governing body of the district. C.The tax imposed by this Section shall be in addition to any other taxes authorized by law, including but not limited to, the sales and use taxes imposed under Chapters 3.05, 3.10, 3.15, 3.20, 3.25, 3.26 and 3.30 of the Pasco Municipal Code. D.The revenues received from the tax imposed by this Section shall be general revenues of the district and shall be used for those purposes set forth in PMC 3.270.040 or as otherwise authorized by law. Section 2. Duties of Clerk and Finance Director. The City Clerk and the Finance Director are hereby requested to submit this ordinance to the Washington State Department of Revenue and to request that the Department take all necessary steps to implement and collect the tax imposed by this ordinance as soon as possible. Section 3. Severability. If any section, sentence, clause or phrase of this ordinance should be held to be invalid or unconstitutional, the invalidity or unconstitutionality thereof shall not affect the validity or constitutionality of any other section, clause or phrase of this ordinance. Section 4. Effective Date. This ordinance shall take full force and effect five (5) days after approval, passage and publication as required by law. PASSED by the City Council of the City of Pasco, Washington, on this 1st day of June, 2026. APPROVED AS TO FORM: ___________________________ Ogden Murphy Wallace, PLLC City Attorney _____________________________ Charles Grimm Mayor ATTEST: _____________________________ Krystle Shanks Deputy City Clerk Published: Sunday, June 7, 2026 Ordinance – TBD Application of Sales Tax - 2