Staff Report - Resolution Sales and Use Tax for Affordable Housing

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KITTITAS COUNTY COMMISSIONER’S OFFICE AGENDA STAFF REPORT AGENDA DATE: November 5, 2019 ACTION REQUESTED: Approve a Resolution Adopting Legislation to Authorize a Sales & Use Tax for Affordable and Supporting Housing in Kittitas County. BACKGROUND: In the 2019 Regular Session, the Washington State Legislature approved, and the Governor signed, Substitute House Bill 1406 (Chapter 338, Laws of 2019) (“SHB 1406”). SHB 1406 authorizes the governing body of a city or county to impose a local and sales and use tax for the acquisition, construction or rehabilitation of affordable housing or facilities providing supportive housing and for the operations and maintenance costs of affordable or supporting housing. The tax will be credited against state sales tax collected within Kittitas County and, therefore, will not result in higher sales and use taxes within the County and will represent an additional source of funding to address housing needs. The proposed Resolution would allow the Kittitas County Board of Commissioners to adopt legislation to authorize the maximum capacity of the sales and use tax authorized by SHB 1406 within one year of the effective date of SHB 1406, or by July 28, 2020. INTERACTION: Chairman Cory Wright requested the proposed Resolution be placed on the Agenda for Board consideration. RECOMMENDATION: Approve Resolution Declaring the Intent of Kittitas County to Adopt Legislation to Authorize a Sale and Use Tax for Affordable and Supporting Housing in Accordance with Substitute House Bill 1406 (Chapter 338, Laws of 2019), and Other Materials Related Thereto. HANDLING: 1 – Clerk of the Board 1 copy – Judy Pless/Auditors office 1 copy – Prosecutors office 1 copy – HAHC Clerk 1 copy – Treasurer’s office 1 copy – johns@wliha.org (WA Low Income Housing Alliance) 1 copy – WSAC ATTACHMENTS: Resolution LEAD STAFF: Julie Kjorsvik, Clerk of the Board