DEPARTMENT OF COMMERCE
[Filed December 17, 2019, 2:22 p.m.]
Preproposal statement of inquiry was filed as WSR 19-14-051 published June 27.
Title of Rule and Other Identifying Information: Chapter 365-240 WAC, Affordable and supportive housing—Sales and use tax.
Hearing Location(s): On February 5, 2020, at 1 p.m., at 1011 Plum Street S.E., Olympia, WA 98504. Public parking is available near the building.
Date of Intended Adoption: April 6, 2020.
Submit Written Comments to: Devin Proctor, P.O. Box 4252, email Devin.Proctor@commerce.wa.gov, fax 360-586-8440, submit comments online, by February 7, 2020.
Assistance for Persons with Disabilities: Contact Devin Proctor, phone 360-725-2999, fax 360-586-8440, email Devin.Proctor@commerce.wa.gov, by January 27, 2020.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The department is adding a new WAC to implement the requirements of RCW 82.14.540
Reasons Supporting Proposal: RCW 82.14.540
requires counties and cities imposing the tax to report annually to the department on the collection and use of revenue and the department must adopt rules prescribing the contents of reports.
Statutory Authority for Adoption: RCW 82.14.540
Statute Being Implemented: The affordable and supportive housing local sales and use tax.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of commerce, governmental.
Name of Agency Personnel Responsible for Drafting, Implementation, and Enforcement: Emily Grossman, 2001 6th Avenue, #2600, Seattle, WA 98121, 360-764-0262.
A school district fiscal impact statement is not required under RCW 28A.305.135
A cost-benefit analysis is not required under RCW 34.05.328
. RCW 34.05.328
does not apply to department rules unless requested by the joint administrative rules review committee or applied voluntarily.
This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:
Is exempt under RCW 19.85.025
(3) as the rules relate only to internal governmental operations that are not subject to violation by a nongovernment party; and rule content is explicitly and specifically dictated by statute.
December 17, 2019
Chapter 365-240 WAC
AFFORDABLE AND SUPPORTIVE HOUSING—LOCAL SALES AND USE TAX
This chapter is promulgated pursuant to the authority granted in RCW 82.14.540
requiring counties and cities that impose the local sales and use tax for affordable and supportive housing to report annually to the department of commerce on the collection and use of the revenue and for the department of commerce to adopt rules prescribing the content of those reports.
WAC 365-240-020Authorized uses of tax revenue.
Counties with populations over four hundred thousand and cities with populations over one hundred thousand may use tax revenue for (1) acquiring, rehabilitating, or constructing affordable housing, which may include new units within an existing structure or facilities providing supportive housing services under RCW 71.24.385
(behavioral health organizations); or (2) operations and maintenance costs of new units of affordable or supportive housing.
Counties with populations under four hundred thousand and cities with populations under one hundred thousand population may use tax revenue for the activities outlined above, as well as to provide rental assistance to tenants that are at or below sixty percent of the median income of the county or city that is imposing the tax.
WAC 365-240-030Annual report to the department of commerce.
Jurisdictions must submit a report to the department by October 1st annually with the following information pertaining to the most recent fiscal year. Reports submitted by a lead jurisdiction or managing entity pursuant to an interlocal agreement must be accompanied by contract language designating the responsible entity for submitting annual reports and ensuring their accuracy.
(1) Revenue collection:
(a) Total tax distribution from the department of revenue;
(b) Applicable tax rate.
(2) Program activities:
(a) Total funds committed;
(b) Number, types and status of supported projects;
(c) Degree of leverage with other public and private funds;
(d) Total funds utilized for rent assistance;
(e) Duration of affordability for supported projects.
(3) Program outputs:
(a) Total funds committed for loans and grants;
(b) Total funds obligated to support bonding activities;
(c) Total funds committed for operations and maintenance of new units of affordable or supportive housing;
(d) Total number of households served with rent assistance;
(e) Target populations served.