MEMO TO: Members of the City Council
FROM: Mayor John Marchione
SUBJECT:
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Adoption of a Resolution of Intent and a Revised Ordinance Repealing Ordinance No. 2974 and Declaring Request for First Half of the Sales Tax Credit to Access Additional Funding to Support Affordable Housing
a. RESOLUTION NO. 1527: A Resolution Declaring the Intent of the City to Adopt the Legislation to Authorize a Sales and Use Tax for Affordable and Supportive Housing in Accordance with Substitute House Bill 1406 (Chapter 338, Laws of 2019), and Other Matters Related Thereto
b. ORDINANCE NO. 2985: An Ordinance Repealing Ordinance No. 2974 and Adopting a New Ordinance Relating to Local Sales and Use Taxes; Authorizing the Maximum Capacity of the Tax Authorized Under the Provisions of Substitute House Bill 1406 for Affordable Housing; and Other Matters Related Thereto
I. RECOMMENDED ACTION
recommendation
Per the State of Washington Department of Revenue's (DOR) request: 1. Approve an additional Resolution of Intent in alignment with Substitute House Bill (SHB) 1406 for the first half of the sales tax credit against the State sales tax. 2. Repeal Ordinance No. 2974 and adopt a revised Ordinance declaring the City of Redmond's request for the first half of the sales tax credit against the State to be used for affordable housing purposes.
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II. DEPARTMENT CONTACTS
Malisa Files, Finance Director 425-556-2166
Haritha Narra, Senior Financial Analyst 425-556-2163
III. DESCRIPTION/BACKGROUND
In August of 2019, Council passed Ordinance No. 2974 declaring their intent to impose the first half of the sales tax credit against the State for affordable housing purposes. As Council will recall, in support of housing choices, the Washington State Legislature approved a local revenue sharing program for local governments by providing up to 0.0146% local sales and use tax credit. The tax credit is available in increments of 0.0073% depending upon the imposition of a qualify...
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