Title
Approval of an Ordinance Increasing Sales and Use Tax by One Tenth of One Percent for Housing
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to approve on second reading the ordinance increasing the City's sales and use tax by one-tenth of one percent.
Report
Issue:
Whether to adopt an ordinance increasing the City's sales and use tax by one-tenth of one percent consistent with the ballot proposition approved by the City's voters at the February 13, 2018, election.
Staff Contact:
Debbie Sullivan, Administrative Services Director, 360.753.8499
Presenter(s):
None - Consent Calendar Item
Background and Analysis:
Background and analysis has not changed from first to second reading.
Olympia residents voted to increase the City's sales and use tax by one-tenth of one percent for housing and housing-related services as provided by RCW 82.14.530 at the February 13, 2018, special election, on a vote of 7,437 (yes) and 4,309 (no). The election results were certified on February 23, 2018, by the County Auditor. The Council must now adopt an Ordinance increasing the City's local sales and use tax.
Neighborhood/Community Interests (if known):
The tax proposal was supported by community groups and associations.
Options:
1. Approve the ordinance increasing the City's sales and use tax by one-tenth of one percent, consistent with the ballot proposition approved by voters.
2. Delay the effective date of this tax increase. Any delay would reduce the amount of revenue received in 2018. The increase may only take effect at the start of each quarter.
Financial Impact:
On an annual basis, the increase in sales and use tax is estimated to generate $2,300,000 for housing and housing-related purposes. In accordance with RCW 82.14.055, the sales and use tax takes effect 75 days after the Department of Revenue receives notification and can only start on the first day of January, April or July. Therefore, ...
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