Ordinance 3539-17 - Laserfiche WebLink

2.1 Based on an analysis of the businesses in the RDA, the City has determined that State Excise Tax Allocation Revenues in 2016 were $656,299 and the State Property Tax Allocation Revenues for 2017 are estimated at$0. 2.2 The City Council finds that the City has satisfied all prerequisites for imposing the LIFT Tax and for receiving the State Contribution, including without limitation,the conditions set forth in RCW 39.102.040 and RCW 82.14.475. 2.3 Prior to June 30, 2018, the City may incur indebtedness via general obligation bonds,pursuant to RCW 39.102.150 to finance the Public Improvements. Section 3. State-Shared Sales and Use Tax ("LIFT Tax") imposed as of July 1. 2015. The sales and use tax authorized under RCW 82.14.475 is imposed as of July 1,2017 as follows: 3.1 Effective Date and Duration. The sales and use tax authorized by this ordinance shall be imposed and become effective as of July 1,2017. It shall expire when all indebtedness issued under the authority of RCW 39.102.150 is retired and all other contractual obligations relating to the financing of public improvements under RCW 39.102 are satisfied, but not later than July 1, 2042, which is twenty-five years after the date the LIFT Tax is first imposed. 3.2 Rate. The tax rate shall initially be set at 0.02951% of the selling price (in the case of a sales tax) or value of the article used (in the case of a use tax). The tax rate may be adjusted by resolution of the City Council from time to time so that it is set at the rate reasonably necessary to receive the state contribution over ten months, in accordance with RCW 82.14.475(3)(b), but shall not exceed the rate of 0.02951% established by Resolution No. 6178 3.3 Use of LIFT Tax Receipts. Subject to RCW 39.102.195, receipts of the