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HomeMy WebLinkAbout1785 OrdinanceORDINANCE NO. 1785 AN ORDINANCE THAT THE CITY OF PASCO PROVIDING FOR A 12 PERCENT LEASEHOLD EXCISE TAX ON CERTAIN PROPERTY WITHIN THE CITY OF PASCO AND PROVIDING A MEANS OF COLLECTION THEREFORE. WHEREAS, the Legislature of the State of Washington has enacted legislation allowing cities to tax certain leasehold interests within cities jurisdiction, and WHEREAS, the City of Pasco finds that it is in the best interest of the City to collect such a tax., now, therefore, THE CITY COUNCIL OF THE CITY OF PASCO DO ORDAIN AS FOLLOWS: Section 1. There is hereby levied,. and shall be collected 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 Pasco through a "leasehold interest" as defined by section 2, chapter 61, Laws of 1975-75, Second Extraordinary Sesssion (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 four percent 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 interest arising out of any lease or agreement, the terms of which were 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, as follows: With respect to taxes due in calendar year 1976, a credit equal to eighty percent of the tax produced by the above rate. With respect to taxes due in calendar year 1977, a credit equal to sixty percent of the tax produced by the above rate. With respect to taxes due in calendar year 1978, a credit equal to fourty percent of the tax produced by the above rate. With respect to taxes due in calendar year 1979, a credit equal to twenty percent of the tax produced by the above rate. Any lease or agreement including options to renew which extends beyond January 1, 1985, shall be excluded from the above credit. (2) With respect to a product lease (as defined by section 2 of the state act); a credit of thirty-three percent of the tax produced by the above rate. 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 ordinance. Section 5. The city 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 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 that the city attorney shall first approve the form and content of said contract. Section 17. If any provision of this or 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. Section 8. This ordinance shall be in full force and effect immediately upon passage, publication as required by law and execution of contract with the Department of Revenue for administration and collection of the tax. PASSED by the City Council this 20 day of April 1976. Ja Tidrick, 4ayor Attest Leo E. Olney, Cily,.Clerk V Approved as to form: ., - Patrick T. Rdac:h-, City Attorney r here by certify that this is a True and Correct Copy of s document on file in -Thhe Oily of Pas p Washington