Chapter 14
TAXATION

Articles:

I. In General

II. Real Estate

III. Sales and Use

IV. Amusements

V. Utilities

VI. School Impact Fees

VII. Multifamily Dwelling Unit Limited Property Tax Exemption

Article I.
IN GENERAL

Sections:

14-1 – 14-25 Reserved.

14-1 – 14-25 Reserved.

Article II.
REAL ESTATE

Sections:

Division 1. Generally

14-26 – 14-35 Reserved.

Division 2. Excise Tax on Sales

14-36 Imposition.

14-37 Rates.

14-38 Use of proceeds.

14-39 Tax is obligation of seller.

14-40 Lien declared.

14-41 County to collect.

14-42 Duties of county treasurer.

14-43 Payment due.

14-44 Refunds.

14-45 – 14-55 Reserved.

Division 3. Leaseholds

14-56 Imposition.

14-57 Administration – Collection.

14-58 – 14-65 Reserved.

Division 4. Transient Lodging Tax

14-66 Imposition.

14-67 Definitions.

14-68 Fund created.

14-69 Administration.

14-70 Violation – Penalty.

14-71 – 14-80 Reserved.

Division 1. Generally

14-26 – 14-35 Reserved.

Division 2. Excise Tax on Sales

14-36 Imposition.

There is hereby imposed an excise tax on each sale of real property constituting a taxable event as defined in Chapter 82.45 RCW and occurring within the corporate limits of the city. The tax imposed under this section shall be collected from persons who are taxable by the state under Chapter 82.45 RCW, and such tax shall comply with all applicable rules, regulations, laws and court decisions regarding real estate excise taxes as imposed by the state under Chapters 82.45 and 82.46 RCW. (Ord. No. 89-8, § 1(A), 11-28-89)

14-37 Rates.

(a) Initial levy. The initial rate of tax imposed pursuant to Chapter 82.46 RCW shall be one-quarter of one percent of the selling price of all real property upon which this tax is imposed by FWCC 14-36.

(b) Additional excise tax. The city council imposes an additional excise tax on each sale of real property in the corporate limits of the city at a rate of one-quarter of one percent of the selling price in accordance with RCW 82.46.010. (Ord. No. 89-8, § 1(B), 11-28-89; Ord. No. 91-81, § 1, 1-8-91)

14-38 Use of proceeds.

(a) All proceeds from the tax imposed by FWCC 14-37(a) shall be placed by the finance director in a capital improvement fund and shall be used for capital improvements, including but not limited to those listed in RCW 35.43.040. This section shall not limit the existing authority of this city to impose special assessments on property benefited thereby in the manner prescribed by law.

(b) All revenues from the tax imposed by FWCC 14-37(b) received by the city shall be placed by the finance director in a fund. Such revenues shall be used primarily for financing capital projects specified in a capital facilities plan element of the city comprehensive plan pursuant to RCW 82.46.010. (Ord. No. 89-8, § 1(C), 11-28-89; Ord. No. 91-81, § 2, 1-8-91)

14-39 Tax is obligation of seller.

The taxes imposed by FWCC 14-36 are the obligation of the seller and may be enforced through the action of debt against the seller or in the manner prescribed for the foreclosure of mortgages. (Ord. No. 89-8, § 3, 11-28-89)

14-40 Lien declared.

The taxes imposed by FWCC 14-36 and any interest or penalties thereon are the specific lien upon each piece of real property sold from the time of sale or until the tax is paid, which lien may be enforced in the manner prescribed for the foreclosure of mortgages. Resort to one course of enforcement is not an election not to pursue the other. (Ord. No. 89-8, § 4, 11-28-89)

14-41 County to collect.

The county shall collect the tax imposed by FWCC 14-36. County officials responsible for the collection and disposition to the city of such taxes shall collect such tax in accordance with the requirements of RCW 82.46.010. The proceeds from city taxes imposed by FWCC 14-36 shall be distributed to the city monthly. (Ord. No. 89-8, § 2, 11-28-89; Ord. No. 91-81, § 3, 1-8-91)

14-42 Duties of county treasurer.

The taxes imposed by this division shall be paid to and collected by the treasurer of the county where the real property which was sold is located. The county treasurer shall cause a stamp evidencing satisfaction of the lien to be affixed to the instrument of sale or conveyance prior to its recording or to the real estate excise tax affidavit in the case of used mobile home sales. A receipt issued by the county treasurer for the payment of the tax imposed in this division shall be evidence of the satisfaction of the lien imposed in this division and may be recorded in the manner prescribed for recording satisfactions of mortgages. No instrument of sale or conveyance evidencing a sale subject to the tax may be accepted by the county auditor or recorder for filing or recording until the tax is paid and the stamp affixed thereto. In case the tax is not due on the transfer, the instrument shall not be accepted until suitable notation of this fact is made on the instrument by the county treasurer. (Ord. No. 89-8, § 5, 11-28-89)

14-43 Payment due.

The tax imposed by this division shall become due and payable immediately at the time of the sale, and if not so paid within 30 days thereafter, shall bear interest at the maximum rate permitted by law from the time of sale until the date of payment. (Ord. No. 89-8, § 6, 11-28-89)

14-44 Refunds.

Upon written application for a refund by the taxpayer to the county treasurer, if it appears that tax has been paid in excess of the amount actually due or upon a sale or other transfer declared to be exempt, such excess amount or improper payment shall be refunded by the county treasurer to the taxpayer. Provided, however, no refund shall be made unless the state has first authorized the refund of an excessive amount or an improper amount paid, unless such improper amount was paid as a result of a miscalculation. Any refund made shall be withheld from the next monthly distribution to the city. (Ord. No. 89-8, § 7, 11-28-89)

14-45 – 14-55 Reserved.

Division 3. Leaseholds

14-56 Imposition.

Pursuant to RCW 82.29A.040, the city hereby imposes a leasehold excise tax as authorized by Chapter 82.29A RCW. The tax shall not exceed four percent of taxable rent. (Ord. No. 89-12, § 1, 12-19-89)

14-57 Administration – Collection.

Pursuant to RCW 82.29A.080, the city manager shall enter into a contract with the State Department of Revenue for the administration and collection of such tax. (Ord. No. 89-12, § 2, 12-19-89)

14-58 – 14-65 Reserved.

Division 4. Transient Lodging Tax

14-66 Imposition.

There is hereby created a special excise tax of one percent on the sale of or charge made for the furnishing of lodging that is subject to tax under Chapter 82.08 RCW. The tax imposed under Chapter 82.08 RCW applies to the sale of or charge made for the furnishing of lodging by a hotel, motel, rooming house, tourist court, or trailer camp, and the granting of any similar license to use real property as distinguished from the renting or leasing of real property. It shall be presumed that the occupancy of real property for a continuous period of one month or more constitutes a rental or lease of real property and not a mere license to use or enjoy the same. (Ord. No. 99-335, § 1, 2-16-99)

14-67 Definitions.

The definitions of “selling price,” “seller,” “buyer,” “consumer,” and all other definitions as are now contained in RCW 82.08.010, and subsequent amendments thereto, are adopted as the definitions for the tax levied in this chapter. (Ord. No. 99-335, § 2, 2-16-99)

14-68 Fund created.

There is created a special revenue fund (Hotel/Motel Tax No. 109) in the city and all taxes collected under this chapter shall be placed in this fund to be used solely for the purpose of paying all or any part of the cost of tourist promotion, acquisition of tourism-related facilities, or operation of tourism-related facilities or to pay for any other uses as authorized in Chapter 67.28 RCW, as now or hereafter amended. (Ord. No. 99-335, § 3, 2-16-99)

14-69 Administration.

For the purposes of the tax levied in this chapter:

(1) The Department of Revenue is designated as the agent of the city for the purposes of collection and administration of the tax.

(2) The administrative provisions contained in RCW 82.08.050 through 82.08.060 and in Chapter 82.32 RCW shall apply to administration and collection of the tax by the Department of Revenue.

(3) All rules and regulations adopted by the Department of Revenue for the administration of Chapter 82.08 RCW are adopted by reference. (Ord. No. 99-335, § 4, 2-16-99)

14-70 Violation – Penalty.

It is unlawful for any person, firm, or corporation to violate or fail to comply with any of the provisions of this chapter. Every person convicted of a violation of any provision of this chapter shall be punished by a fine in a sum not to exceed $500.00. Each day of violation shall be considered a separate offense. (Ord. No. 99-335, § 6, 2-16-99)

14-71 – 14-80 Reserved.

Article III.
SALES AND USE

Sections:

Division 1. Generally

14-81 – 14-90 Reserved.

Division 2. Initial Tax

14-91 Authority.

14-92 Imposition.

14-93 Tax rate.

14-94 Administration – Collection.

14-95 Inspection of records – Agreement with Department of Revenue.

14-96 – 14-105 Reserved.

Division 3. Additional Tax

14-106 Imposition.

14-107 Rate of tax.

14-108 Administration – Collection.

14-109 Inspection of records – Agreement with Department of Revenue.

14-110 – 14-130 Reserved.

Division 1. Generally

14-81 – 14-90 Reserved.

Division 2. Initial Tax

14-91 Authority.

The imposition of sales and use tax in this division is authorized by RCW 82.14.030(1). (Ord. No. 89-6, § 1, 11-28-89)

14-92 Imposition.

There is hereby imposed a sales and/or use tax, as the case may be, upon every taxable event, as defined in Chapter 82.14 RCW as the same exists or may hereafter been amended, which occurs within the city. The tax shall be imposed upon and collected from those persons from whom the state sales and/or use tax is collected pursuant to Chapters 82.04, 82.08 and 82.12 RCW. (Ord. No. 89-6, § 1(A), 11-28-89)

14-93 Tax rate.

The rate of tax imposed by this division shall be one-half of one percent of the selling price of or value of the article used as the case may be; provided, however, that during such period as there is in effect a sales or use tax imposed by the county pursuant to RCW 82.14.030(1), the rate imposed by this division shall be as provided in RCW 82.14.030(1). The rate as of the effective date of the ordinance from which this section was derived shall be 0.0425 of one percent. (Ord. No. 89-6, § 1(B), 11-28-89)

14-94 Administration – Collection.

The administration and collection of the tax imposed by this division shall be in accordance with the provisions of RCW 82.14.050. (Ord. No. 89-6, § 2, 11-28-89)

14-95 Inspection of records – Agreement with Department of Revenue.

The city consents to the inspection of such records as are necessary to qualify the city for inspection of records of the Department of Revenue, pursuant to RCW 82.32.330. The city manager is authorized to enter into an agreement with the Department of Revenue for the administration of the tax. (Ord. No. 89-6, § 3, 11-28-89)

14-96 – 14-105 Reserved.

Division 3. Additional Tax

14-106 Imposition.

In addition to other taxes which may be imposed by the city, there is hereby imposed a separate sales and/or use tax, as the case may be, upon the same taxable events, and upon which the tax imposed pursuant to RCW 82.14.030(1) is levied, and as specifically authorized by RCW 82.14.030(2). (Ord. No. 89-7, § 1(A), 11-28-89)

14-107 Rate of tax.

The rate of tax imposed by this division, which shall be in addition to the rate of tax permitted to be imposed pursuant to RCW 82.14.030(1), shall be one-half of one percent of the selling price (in the case of a sales tax) or value of the article used (in the case of a use tax); provided, however, that in the event the county shall impose a sale and/or use tax pursuant to RCW 82.14.030(2), at a rate that is equal to or less than the rate imposed under this division, the county shall receive that amount of revenues from the city tax equal to 15 percent of the city tax. (Ord. No. 89-7, § 1(B), 11-28-89)

14-108 Administration – Collection.

The administration and collection of the tax imposed by this division shall be in accordance with the provisions of RCW 82.14.050. (Ord. No. 89-7, § 2, 11-28-89)

14-109 Inspection of records – Agreement with Department of Revenue.

The city consents to the inspection of such records as are necessary to qualify the city for inspection of records of the Department of Revenue, pursuant to RCW 82.32.330. The city manager is authorized to enter into an agreement with the Department of Revenue for the administration of the tax. (Ord. No. 89-7, § 3, 11-28-89)

14-110 – 14-130 Reserved.

Article IV.
AMUSEMENTS

Sections:

Division 1. Generally

14-131 Definitions.

14-132 Administration.

14-133 Failure to make returns or to pay the tax in full.

14-134 Penalty for delinquent payment.

14-135 Overpayment of tax.

14-136 Noncompliance – Penalty.

14-137 Appeal to hearing examiner.

14-138 Business registration.

14-139 – 14-140 Reserved.

Division 2. Gambling Activities

14-141 Activities authorized.

14-142 Punchboards and pull-tabs – Permitted.

14-143 Punchboards and pull-tabs – Tax imposed.

14-144 Tax on gambling activities.

14-145 Administration – Collection.

14-146 Declaration of intent to conduct activity.

14-147 When due – Delinquency.

14-148 Financial records.

14-149 – 14-150 Reserved.

Division 3. Admissions Tax

14-151 – 14-157 Repealed.

14-158 – 14-169 Reserved.

Division 1. Generally

14-131 Definitions.

For purpose of this division the words and phrases used in this section shall have the following meanings unless the context otherwise indicates:

Director shall mean the management services director or other employee or agent of the city designated by the city manager. (Ord. No. 02-432, § 1, 11-19-02)

14-132 Administration.

The director shall have the power, and it shall be his or her duty, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with the law for the purpose of carrying out the provisions thereof, and it is unlawful to violate or fail to comply with any such rule or regulation. (Ord. No. 02-432, § 1, 11-19-02)

14-133 Failure to make returns or to pay the tax in full.

If any person fails, neglects or refuses to make its return as and when required herein, the director is authorized to determine the amount of tax payable, and by mail to notify such taxpayer of the amount so determined. The amount so fixed shall thereupon be the tax and be immediately due and payable, together with penalty and interest. Delinquent taxes, including any penalty and interest, are subject to an interest charge of 12 percent per year on any unpaid balance from the date the tax became due as provided in this chapter until paid. (Ord. No. 02-432, § 1, 11-19-02)

14-134 Penalty for delinquent payment.

If any person subject to this tax fails to pay any tax required by this chapter within 15 days after the due date thereof, there shall be added to such tax a penalty of 10 percent of the amount of such tax, and any tax due under this chapter which is unpaid and all penalties thereon shall constitute a debt to the city and may be collected by court proceedings, which remedy shall be in addition to all other remedies. (Ord. No. 02-432, § 1, 11-19-02)

14-135 Overpayment of tax.

Any money paid to the city through error, or otherwise not in payment of the tax imposed by this chapter, or in excess of such tax, shall, upon appropriate proof provided by the taxpayer and approved by the director, be credited against any tax due or to become due from such taxpayer hereunder, or, upon the taxpayer ceasing to do business in the city, be refunded to the taxpayer. (Ord. No. 02-432, § 1, 11-19-02)

14-136 Noncompliance – Penalty.

Any person, subject to this chapter, who fails or refuses to apply for a business license or to make tax returns or to pay any tax when due, or who makes any false statement or representation in connection with any such application for a business license or tax return, or who otherwise violates or refuses to comply with this chapter, is guilty of a misdemeanor, and each such person, is guilty of a separate offense for each and every day or portion thereof during which any violation of any of the provisions of this chapter is committed, continued or permitted, and upon conviction of any such violation, such person shall be punishable by a fine not to exceed $350.00 for each day or portion thereof which such person is found guilty of noncompliance with the provisions of this chapter. (Ord. No. 02-432, § 1, 11-19-02)

14-137 Appeal to hearing examiner.

Any taxpayer aggrieved by the amount of the fee or tax determined by the director to be due under the provisions of this chapter may appeal such determination to the city hearing examiner in accordance with, and subject to the procedures set forth in, FWCC 22-431 through 22-460 pursuant to Process II Appeal Procedures. Pending a hearing, a taxpayer may withhold the fee or tax determined by the director. If the tax or fee is withheld, the taxpayer shall pay such amount to the city with interest from the date the amount was withheld. The director shall periodically set the applicable interest rate for withholding. (Ord. No. 02-432, § 1, 11-19-02)

14-138 Business registration.

No person shall engage in or carry on any business or operate any place for entrance to which an admission charge is made without first having obtained from the city a business registration as provided in Chapter 9 FWCC. Such registration shall be posted in a conspicuous place in each ticket or box office where tickets of admission are sold. (Ord. No. 02-432, § 1, 11-19-02)

14-139 – 14-140 Reserved.

Division 2. Gambling Activities

14-141 Activities authorized.

The city authorizes bona fide charitable or nonprofit organizations to conduct bingo games, raffles, fund-raising events, amusement games and punchboards or pull-tabs, and to allow their premises and facilities to be used by only members, their guests, and members of a chapter or unit organized under the same state, regional, or national charter or constitution, to play social card games authorized by the commission, when licensed, conducted or operated pursuant to the provisions of Chapter 9.46 RCW. (Ord. No. 90-15, § 1, 1-30-90; Ord. No. 90-44, § 1, 3-6-90)

14-142 Punchboards and pull-tabs – Permitted.

The city authorizes any person operating an established business primarily engaged in the selling of food or drink for consumption on the premises to conduct social card games and to utilize punchboards and pull-tabs as a commercial stimulant to such business when licensed and utilized or operated pursuant to the provisions of Chapter 9.46 RCW. (Ord. No. 90-15, § 2, 1-30-90; Ord. No. 90-44, § 2, 3-6-90)

14-143 Punchboards and pull-tabs – Tax imposed.

The city imposes a tax on punchboard and pull-tab activities as specified in FWCC 14-144 with the receipts therefrom going to the city; provided, that the operation of punchboard and pull-tabs are subject to the following conditions:

(1) Chances may only be sold to adults;

(2) The price of a single chance may not exceed $1.00;

(3) No punchboard or pull-tab license may award as a prize upon a winning number or symbol being drawn the opportunity of taking a chance upon any other punchboard or pull-tab;

(4) All prizes available to be won must be described on an information flare. All merchandise prizes must be on display within the immediate area of the premises in which any such punchboard or pull-tab is located. Upon a winning number or symbol being drawn, a merchandise prize must be immediately removed, from the display and awarded to the winner. All references to cash or merchandise prizes, with a value over $20.00, must be removed from the information flare when won, or such omission shall be deemed a fraud for the purposes of this division; and

(5) When any person wins money or merchandise from any punchboard or pull-tab over an amount determined by the commission, every licensee under this section shall keep a public record of the award for at least 90 days containing such information as the State Gambling Commission deems necessary. (Ord. No. 90-15, § 3, 1-30-90; Ord. No. 97-301, § 1(A), 10-21-97)

14-144 Tax on gambling activities.

(a) In accordance with RCW 9.46.110, there is levied upon all persons a tax on every gambling activity permitted by this division at the following rates:

(1) Any bingo or raffle activity shall be taxed at a rate of five percent of the gross receipts from a bingo game or raffle less the amount awarded as cash or merchandise prizes;

(2) An amusement game shall be taxed only at a rate sufficient to pay the actual costs of enforcement of the provisions of this division and Chapter 9.46 RCW and such taxation shall not exceed two percent of the sum of the gross receipts from the amusement game less the amount awarded as prizes;

(3) Any punchboard or pull-tab activity for bona fide charitable or nonprofit organizations shall be at a rate of 10 percent on gross receipts from the operation of the games less the amount awarded as cash or merchandise prizes. Taxation of punchboards or pull-tabs for commercial stimulant operators shall be at a rate of five percent on gross receipts from the operation of the games;

(4) Any social card game at a rate of 20 percent of the annual gross receipts;

(5) Fund-raising activities at the applicable rates specified above.

Provided, no tax shall be imposed pursuant to this section on bingo, amusement games or fund-raising activities when such activities or any combination thereof are conducted by a bona fide charitable or nonprofit organization as defined in RCW 9.46.0209, which organization has not paid operating or management personnel and has gross receipts from bingo, amusement games, or fund-raising activities or any combination thereof not exceeding $5,000 per year less the amount awarded as cash or merchandise prizes. No tax shall be imposed on the first $10,000 of gross receipts less the amount awarded as cash or merchandise prizes from raffles conducted by any bona fide or charitable organization.

(b) The city clerk is instructed and authorized to adopt appropriate reporting requirements, to ensure the effective administration of license holders exempt from the payment of such tax. (Ord. No. 90-15, § 4, 1-30-90; Ord. No. 90-44, § 3, 3-6-90; Ord. No. 96-279, § 1(A), 12-3-96; Ord. No. 97-301, § 1(B), 10-21-97; Ord. No. 98-329, § 1, 12-1-98; Ord. No. 02-422, § 1, 9-17-02)

14-145 Administration – Collection.

The administration and collection of the tax imposed by this division shall be by the city clerk and pursuant to the rules and regulations of the State Gambling Commission. (Ord. No. 90-15, § 5, 1-30-90)

14-146 Declaration of intent to conduct activity.

For the purpose of identifying who shall be subject to the tax imposed by this division, any bona fide charitable or nonprofit corporation intending to conduct or operate any bingo game raffle or amusement game which requires licensing as provided in and authorized by Chapter 9.46 RCW shall, prior to commencement of any such activity, file with the city clerk a sworn declaration of intent to conduct or operate such activity, together with a copy of the license issued in accordance with Chapter 9.46 RCW. Thereafter, for any period covered by such state license or any renewal thereof, any such licensed bona fide charitable or nonprofit corporation shall, on or before the fifteenth day of the month following the end of the period in which the tax accrued, file with the city clerk a sworn statement, on a form to be provided and prescribed by the city clerk for the purpose of ascertaining the tax due for the preceding reporting period. (Ord. No. 90-15, § 6, 1-30-90; Ord. No. 96-268, § 1(A), 6-18-96; Ord. No. 96-279, § 1(B), 12-3-96)

14-147 When due – Delinquency.

(a) The tax imposed by this division shall be due and payable and remitted with such return, on a form prescribed by the city clerk, on or before the last day of the month succeeding the reporting period in which the tax accrued. The reporting period shall be as follows:

(1) For those gambling establishments whose total tax collection from gambling activities during the preceding year were $10,000 or less, the reporting period shall be quarterly.

(2) For those gambling establishments whose total tax collection from gambling activities during the preceding year were in excess of $10,000, the reporting period shall be monthly.

(b) For each reporting period, if the tax return or payment is not made by the due date thereof, interest and penalty shall be added as follows:

(1) If filed on or before the fifteenth day of the second month next succeeding the reporting period in which the tax accrued, a 10 percent penalty, with a minimum penalty of $5.00.

(2) If filed prior to the last day of the second month next succeeding the reporting period in which the tax accrued, a 15 percent penalty with a minimum penalty of $10.00.

(3) Interest shall accrue, from the date such tax is due until paid in full, at a rate of 12 percent per annum, compounded daily, on the principal interest and penalties imposed pursuant to this subsection.

(4) Failure to make payment by the last day of the second month succeeding the reporting period in which the tax accrued shall be both a criminal and civil violation of this section. (Ord. No. 90-15, § 7, 1-30-90; Ord. No. 91-101, § 1, 6-4-91; Ord. No. 96-268, § (B), 6-18-96; Ord. No. 96-279, § 1(C), 12-3-96; Ord. No. 97-286, § 1, 1-7-97)

14-148 Financial records.

It shall be the responsibility of all officers, directors and managers of any corporation conducting any gambling activities subject to taxation under this division to make available at all reasonable times such financial records as the city clerk may require in order to determine full compliance with this division. (Ord. No. 90-15, § 8, 1-30-90)

14-149 – 14-150 Reserved.

Division 3. Admissions Tax

14-151 Exercise of license revenue power.

Repealed by Ord. 06-545. (Ord. No. 02-432, § 3, 11-19-02)

14-152 Definitions.

Repealed by Ord. 06-545. (Ord. No. 02-432, § 3, 11-19-02)

14-153 Person subject to tax – Amount.

Repealed by Ord. 06-545. (Ord. No. 02-432, § 3, 11-19-02; Ord. No. 04-471, § 1, 12-7-04)

14-154 Exemption.

Repealed by Ord. 06-545. (Ord. No. 02-432, § 3, 11-19-02)

14-155 Price to be posted.

Repealed by Ord. 06-545. (Ord. No. 02-432, § 3, 11-19-02)

14-156 Collection and payment of tax.

Repealed by Ord. 06-545. (Ord. No. 02-432, § 3, 11-19-02)

14-157 Deductions.

Repealed by Ord. 06-545. (Ord. No. 02-432, § 3, 11-19-02)

14-158 – 14-169 Reserved.

Article V.
UTILITIES

Sections:

14-170 Exercise of license revenue power.

14-171 Definitions.

14-172 Business license.

14-173 Occupations subject to tax – Amount.

14-173.1 Consumer gas tax.

14-174 Cellular telephone service – Income allocation and administration.

14-175 Tax rate change.

14-176 Exemption.

14-177 License tax year.

14-178 Deductions.

14-179 Monthly installments.

14-180 Taxpayer’s records.

14-181 Applications and returns confidential.

14-182 Failure to make returns or to pay the tax in full.

14-183 Penalty for delinquent payment.

14-184 Overpayment of tax.

14-185 Noncompliance – Penalty.

14-185.1 Subpoena power.

14-186 Appeal to hearing examiner.

14-187 Designated official to make rules.

14-188 False returns.

14-189 Utility tax relief.

14-190 Utility tax relief – Qualifications.

14-191 Claim filing procedures.

14-192 – 14-208 Reserved.

14-170 Exercise of license revenue power.

The provisions of this chapter shall be deemed an exercise of the power of the city of Federal Way to tax for revenue. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96)

14-171 Definitions.

In construing the provisions of this chapter, the following definitions shall be applied:

(1) Gross income means the value proceeding or accruing from the sale of tangible property or service, and receipts (including all sums earned or charged, whether received or not), by reason of the investment of capital in the business engaged in, including rentals, royalties, fees, or other emoluments, however designated (excluding receipts or proceeds from the use or sale of real property or any interest therein, and proceeds from the sale of notes, bonds, mortgages, or other evidences of indebtedness, or stocks and the like) and without any deduction on account of the cost of the property sold, the cost of materials used, labor costs, interest or discount paid, or any expense whatsoever, and without any deduction on account of losses, including the amount of credit losses actually sustained by the taxpayer whose regular books or accounts are kept upon an accrual basis.

(2) Cable service means:

a. A system providing service pursuant to a franchise issued by the city under the Cable Communications Policy Act of 1984 Public Law No. 98-549, 47 USC Section 521, as it may be amended or superseded; and

b. Any system that competes directly with such franchised system by employing antennae, microwave, wires, wave guides, coaxial cables, or other conductors, equipment or facilities designed, construed or used for the purpose of:

1. Collecting and amplifying local and distant broadcast television signals and distributing and transmitting them;

2. Transmitting original cablecast programming not received through television broadcast signals; or

3. Transmitting television pictures, film and videotape programs not received through broadcast television signals, whether or not encoded or processed to permit reception by only selected receivers;

provided, however, that “cable television service” shall not include entities that are subject to charges as “commercial TV stations” under 47 USC Section 158.

(3) Cellular telephone service means two-way voice and data telephone/telecommunications system based in whole or substantially in part on wireless radio communications and which is not subject to regulation by the Washington Utilities and Transportation Commission (WUTC). This includes cellular mobile service. The definition of cellular mobile service includes other wireless radio communications services such as specialized mobile radio (SMR), personal communications services (PCS) and any other evolving wireless radio communications technology which accomplishes the same purpose as cellular mobile service.

(4) Competitive telecommunication service means the providing by any person of telecommunications equipment or apparatus, or service related to that equipment or apparatus such as repair or maintenance service, if the equipment or apparatus is of a type which can be provided by persons that are not subject to regulation as telephone companies under RCW Title 80 and for which a separate charge is made.

(5) Designated official means such city employee or agent as the city manager shall designate.

(6) Network telecommunication service means the providing by any person of access to a local telephone network, local telephone network switching service, toll service, or coin telephone services, or the providing of telephonic, video, data, pagers, or similar communication or transmission for hire, via a local telephone network, toll line or channel, cable, microwave, or similar communication or transmission system. “Network telecommunication service” includes interstate service, including toll service, originating from or received on telecommunications equipment or apparatus in this state if the charge for the service is billed to a person in this state. “Network telecommunication service” does not include the providing of competitive telecommunication service, the providing of cable television service, nor the providing of broadcast services by radio or television stations.

(7) Telecommunications company includes every corporation, company, association, joint stock association, partnership and person, their lessees, trustees or receivers appointed by any court whatsoever, and every city or town owning, operating or managing any facilities used to provide telecommunications for hire, sale, or resale to the general public within this state.

(8) Telecommunication business means the business of providing network telecommunication service, as defined in this section. It includes cooperative or farmer line telephone companies or associations operating an exchange.

(9) Telecommunication service means competitive telecommunication service or network telecommunication service, or both, as defined in this section.

(10) Solid waste means garbage, trash, rubbish, or other materials discarded as worthless or not economically viable for further use. The term does not include hazardous or toxic waste, and does not include yard waste or material collected primarily for recycling or salvage. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96)

14-172 Business license.

No person, firm or corporation shall engage in or carry on any business, occupation or act or privilege for which a tax is imposed by FWCC 14-173 without first having obtained, and being the holder of a business license as provided in Chapter 9 FWCC. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96)

14-173 Occupations subject to tax – Amount.

There are levied upon and shall be collected from everyone, including the city, on account of certain business activities engaged in or carried on in the city, occupation taxes in the amounts to be determined by the application of rates given against gross income as follows:

(1) Upon everyone engaged in and carrying on a telegraph business, a tax equal to 7.75 percent of the total gross income from such business in the city during the period for which the tax is due;

(2) Upon everyone engaged in or carrying on a competitive telecommunication service or network telecommunication service, a tax equal to 7.75 percent of the total gross income from such business in the city during the period for which the tax is due. In determining gross income from such business, including intrastate toll service, the taxpayer shall include 100 percent of the gross income received from such business in the city;

(3) Upon everyone engaged in or carrying on the business of cellular telephone service, a tax equal to 7.75 percent of the total gross income from such business in the city during the period for which the tax is due;

(4) Upon everyone engaged in or carrying on the business of selling, brokering or furnishing natural gas for domestic, business or industrial consumption, a tax equal to 7.75 percent of the total gross income from such business in the city during the period for which the tax is due;

(5) Upon the city in respect to the conduct, maintenance, and operation of its municipal storm drainage system as a public utility, a tax equal to 7.75 percent of the total gross income from such business in the city during the period for which the tax is due;

(6) Upon everyone engaged in or carrying on the business of selling or furnishing electric energy, a tax equal to 7.75 percent of the total gross income from such business in the city during the period for which the tax is due;

(7) Upon everyone engaged in the business of collecting solid waste, a tax equal to 7.75 percent of the total gross income from the city during the period for which the tax is due, less income derived from collection and sales of materials not defined herein as solid waste; and

(8) Upon everyone engaged in or carrying on the business of cable communications, a fee or tax equal to 7.75 percent of the total gross income from gross subscriber revenues in the city during the period for which the fee or tax is due. For purposes of this chapter, “gross subscriber revenues” means and includes those revenues derived from the supplying of subscription services, that is, installation fees, disconnect and reconnect fees, fees for regular cable benefits including the transmission of broadcast signals and access and origination channels and per-program or per-channel charges; it does not include leased channel revenue, advertising revenue, or any other income derived from the system. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96; Ord. No. 96-276, § 1, 12-3-96; Ord. No. 02-431, § 1, 11-19-02; Ord. No. 06-539, § 1, 12-5-06)

14-173.1 Consumer gas tax.

(a) As authorized by RCW 82.14.230, there is hereby imposed on every person a use tax for the privilege of using natural gas or manufactured gas in the city as a consumer. The tax shall be in an amount equal to the value of the article used by the taxpayer multiplied by the rate of tax on the gas distribution business as set forth in FWCC 14-173(4). The “value of the article used” shall have the meaning set forth in RCW 82.12.010(1).

(b) Exemption. The tax imposed under this section shall not apply to the use of natural or manufactured gas if the person who sold the gas to the consumer has paid a tax under FWCC 14-173(4) with respect to the gas for which exemption is sought under this subsection.

(c) Credit. There shall be a credit against the tax levied under this section if allowed pursuant to RCW 82.14.230(4) as it now exists or may hereafter be amended.

(d) Administration – Collection. The use tax hereby imposed shall be paid by the consumer. The administration and collection of the tax imposed by this section shall be in accordance with the provisions of RCW 82.14.050 as the same now exists or may hereafter be amended. (Ord. No. 99-360, §§ 1 – 4, 12-21-99)

14-174 Cellular telephone service – Income allocation and administration.

(a) Allocation of income.

(1) Service address. Payments by a customer for cellular telephone service from telephones without a fixed location shall be allocated among taxing jurisdictions to the location of the customer’s principal service address during the period for which the tax applies.

(2) Presumption. There is a presumption that the service address a customer supplies to the taxpayer is current and accurate, unless the taxpayer has actual knowledge to the contrary.

(3) Roaming. When the cellular telephone service is provided while a subscriber is roaming outside the subscriber’s normal cellular network area, the gross income shall be assigned consistent with the taxpayer’s accounting system to the location of the originating cell site of the call, or to the location of the main cellular switching office that switched the call.

(b) Authority of administrator. The city manager or his or her designee is authorized to represent the city in negotiations with other cities for the proper allocation of cellular telephone service taxes imposed pursuant to this chapter. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96)

14-175 Tax rate change.

No change in the rate of tax imposed by FWCC 14-173 shall apply to business activities occurring before the effective date of the change and, except for a change in the tax rate authorized by RCW 35.21.870, no change in the rate of the tax may take effect sooner than 60 days following the enactment of the ordinance establishing the change. The designated official shall send to each affected business at the address of record a copy of any ordinance changing the rate of tax promptly upon its enactment. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96)

14-176 Exemption.

The tax herein levied is in lieu of any excise, privilege or occupational tax under any chapters of this title with respect to activities specifically within the provisions of this chapter. Nothing herein shall be construed to exempt persons taxable under the provisions of this chapter from tax under any other chapters of this title with respect to activities other than those specifically within the provisions of this chapter. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96)

14-177 License tax year.

All utility occupation licenses and the fee for the tax therefor shall be for the tax year for which issued and shall expire at the end of the tax year. The tax year shall commence January 1st and shall end on December 31st. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96)

14-178 Deductions.

In computing the tax imposed by this chapter, the following items may be deducted from the measure of the tax:

(1) The amount of credit losses actually sustained by taxpayers whose regular books are kept upon an accrual basis.

(2) Charges by a taxpayer engaging in a telephone business to a telecommunications company for telephone service that the purchaser buys for the purpose of resale.

(3) That portion of the gross income derived from charges to another telecommunications company for connecting fees, switching charges, or carrier access charges relating to intrastate toll telephone services, or for access to, or charges for, interstate services.

(4) Adjustments made to a billing or to a customer account or to an accrual account in order to reverse a billing or charge that had been made as a result of third-party fraud or other crime and was not properly a debt of the customer.

(5) Amounts derived from a business which the city is prohibited from taxing under the Constitution of this state or the Constitution or laws of the United States.

(6) Grants from governmental agencies. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96)

14-179 Monthly installments.

The tax imposed by FWCC 14-173 shall be due and payable in monthly installments, and remittance therefor shall be made on or before the last day of the month following the end of the monthly period in which the tax is accrued. On or before said due date, the taxpayer shall file with the designated official a written return upon such form and setting forth such information as the designated official shall reasonably require, together with the payment of the amount. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96)

14-180 Taxpayer’s records.

(a) Each taxpayer shall keep records for up to six years reflecting the amount of his or her gross operating revenues on services within the city, and such records shall be open at all reasonable times to the inspection of the designated official, or his or her duly authorized subordinates for verification of said tax returns or for the filing of the tax of a taxpayer who fails to make such return.

(b) If a taxpayer does not keep the necessary books and records within the city, it shall be sufficient if such person (1) produces within the city such books and records as may be required by the designated official, or (2) bears the cost of examination by the designated official’s agent at the place where such books and records are kept; provided, that the taxpayer electing to bear such cost shall pay in advance to the city the estimated cost of the examination including round-trip fare, lodging, meals and incidental expenses, subject to adjustment upon completion of the examination. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96; Ord. No. 04-478, § 1, 12-21-04)

14-181 Applications and returns confidential.

The applications, statements or returns made to the designated official pursuant to this chapter shall not be made public, nor shall they be subject to the inspection of any person except the mayor, city manager, city attorney, designated official or authorized agent and to members of the city council; and it is unlawful for any person to make public or inform any other person as to the contents of or any information contained in or to permit inspection of any application or return; provided, however, that the foregoing shall not be construed to prohibit the designated official from making known or revealing names, addresses and telephone numbers of utilities operating within the city, facts or information contained in any return to any taxpayer or disclosed in any investigation or examination of the taxpayer’s books or records to the State Department of Revenue, for official purposes, but only if the statutes of the state grant substantially similar privileges to the proper officers of the city. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96)

14-182 Failure to make returns or to pay the tax in full.

If any taxpayer fails, neglects or refuses to make its return as and when required herein the designated official is authorized to determine the amount of tax payable, and by mail to notify such taxpayer of the amount so determined. The amount so fixed shall thereupon be the tax and be immediately due and payable, together with penalty and interest. Delinquent taxes, including any penalty and interest, are subject to an interest charge of 12 percent per year on any unpaid balance from the date the tax became due as provided in FWCC 14-179 until paid. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96)

14-183 Penalty for delinquent payment.

If any person, firm or corporation subject to this tax fails to pay any tax required by this chapter within 15 days after the due date thereof, there shall be added to such tax a penalty of 10 percent of the amount of such tax, and any tax due under this chapter which is unpaid and all penalties thereon shall constitute a debt to the city and may be collected by court proceedings, which remedy shall be in addition to all other remedies. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96)

14-184 Overpayment of tax.

Any money paid to the city through error, or otherwise not in payment of the tax imposed by this chapter, or in excess of such tax, shall, upon the request of the taxpayer, be credited against any tax due or to become due from such taxpayer hereunder, or, upon the taxpayer ceasing to do business in the city, be refunded to the taxpayer. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96)

14-185 Noncompliance – Penalty.

Any person, firm or corporation subject to this chapter, who fails or refuses to apply for a business license or to make tax returns or to pay any tax when due, or who makes any false statement or representation in or in connection with any such application for a business license or tax return, or who otherwise violates or refuses to comply with this chapter, is guilty of a misdemeanor, and each such person, firm or corporation is guilty of a separate offense for each and every day or portion thereof during which any violation of any of the provisions of this chapter is committed, continued or permitted, and upon conviction of any such violation, such person shall be punishable by a fine not to exceed $350.00 for each day or portion thereof which such person, firm or corporation is found guilty of noncompliance with the provisions of this chapter. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96)

14-185.1 Subpoena power.

In addition to other remedies provided for herein, the city’s designated official or his or her agent may fix a time and place for an investigation of the correctness of any return and may issue a subpoena to the taxpayer or any other person to attend upon such investigation and there testify, under oath, in regard to the matters inquired into and may, by subpoena, require the taxpayer or any other person to bring with him or her such books, records and papers as may be required by the designated official. (Ord. No. 04-478, § 2, 12-21-04)

14-186 Appeal to hearing examiner.

Any taxpayer aggrieved by the amount of the fee or tax determined by the designated official to be due under the provisions of this chapter may appeal such determination to the city hearing examiner in accordance with, and subject to the procedures set forth in, FWCC 22-431 through 22-460 pursuant to process II appeal procedures. Pending a hearing, a taxpayer may withhold the fee or tax determined by the designated official. If the tax or fee is withheld, the taxpayer shall pay such amount to the city with interest from the date the amount was withheld. The designated official shall periodically set the applicable interest rate for withholding. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96)

14-187 Designated official to make rules.

The designated official shall have the power, and it shall be his or her duty, from time to time, to adopt, publish and enforce rules and regulations not inconsistent with this chapter or with the law for the purpose of carrying out the provisions thereof, and it is unlawful to violate or fail to comply with any such rule or regulation. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96)

14-188 False returns.

It is unlawful for any person subject to this chapter to fail or refuse to make application or return for a license or to pay the fee or tax or installment thereof when due, or for any person to make any false or fraudulent application or return or any false statement or representation in, or in connection with any such application or return, or to aid or abet another in any attempt to evade payment of the fee or tax, or any part thereof; or to testify falsely upon any investigation of the correctness of a return upon the hearing of any appeal or in any manner hinder or delay the city or any of its officers in carrying out the provisions of this chapter. (Ord. No. 95-257, § 1, 12-19-95; Ord. No. 96-262, § 1, 2-20-96)

14-189 Utility tax relief.

There is granted to persons who meet the qualifications and requirements of FWCC 14-190 and 14-191 relief from the city utility tax as follows:

(1) For all utility bills billed to and paid by the person directly during a calendar year for utility service charges from any utility company who is subject to the utility tax of the city, the city shall pay to such person a “reimbursement” in an amount equal to the utility tax which applied to such bills. (Ord. No. 03-436, § 1, 1-21-03)

14-190 Utility tax relief – Qualifications.

To qualify for the relief set forth in FWCC 14-189, a person must be requesting “reimbursement” for the amount of city utility taxes imposed during the previous calendar year and must:

(1) Be 65 years of age or older at all times during any period for which “reimbursement” is requested, and meet the criteria of subsection (3) of this section; or

(2) Be disabled and unable to work, as defined under RCW 84.36.381 and WAC 458-16A-130 as they currently exist or are hereafter amended; and

(3) Have an income during the calendar year, or part thereof, for which a “reimbursement” is requested from all sources whatsoever, not exceeding the low income guidelines for the King County area as published by the Secretary of Housing and Urban Development. As used in this subsection, “income” means:

a. “Disposable income,” as that term is defined in RCW 84.36.383, as it may be amended or replaced from time to time; and

b. The aggregate value of gifts and receipts received from all sources during the calendar year for which a “reimbursement” is requested; and

(4) Have been a resident of the dwelling unit within the city at all times during any period for which a “reimbursement” is requested, and have made the payment of city utility taxes from his or her income or resources. (Ord. No. 03-436, § 1, 1-21-03; Ord. No. 06-535, § 1, 11-7-06)

14-191 Claim filing procedures.

(a) All claims for relief under FWCC 14-189 must be made annually and filed by April 30th of the calendar year following the calendar year, or portion thereof, for which a “reimbursement” is requested; and

(b) All bills for which claim is made under FWCC 14-189 shall be submitted to the director as part of the claim for relief; and

(c) All claims for relief shall be submitted in writing on forms provided by the director and certified by the claimant that, under the penalty of perjury, all information provided in the claim is true and correct; and

(d) The director may require documents deemed necessary to establish proper proof of income level and/or disability status of the claimant, including, but not limited to, the two most recent months’ bank statements, two most recent years’ income tax statements, and a current physician’s statement or Supplemental Security Income award letter.

The director shall adopt rules and regulations to implement and enforce this chapter. (Ord. No. 03-436, § 1, 1-21-03; Ord. No. 06-535, § 1, 11-7-06)

14-192 – 14-208 Reserved.

Article VI.
SCHOOL IMPACT FEES

Sections:

14-209 Findings and authority.

14-210 Definitions.

14-211 Impact fee program elements.

14-212 Fee calculations.

14-213 Assessment of impact fees.

14-214 Exemptions and credits.

14-215 Appeals and independent calculations.

14-216 The impact fee account – Uses of impact fees and refunds.

14-217 Interlocal agreement.

14-218 Submission of district capital facilities plan and data.

14-219 Review.

14-220 – 14-229 Reserved.

14-209 Findings and authority.

The city council of the city of Federal Way (the “council”) hereby finds and determines that continuing growth and development in the city of Federal Way will create additional demand and need for school facilities, and the council finds that the Washington State Growth Management Act requires that new growth and development should pay a proportionate share of the cost of new facilities needed to serve the new growth and development.

Therefore, pursuant to Chapter 82.02 RCW, the council adopts this title to assess school impact fees. The provisions of this title shall be liberally construed in order to carry out the purposes of the council in establishing the school impact fee program. (Ord. No. 95-249, § 1, 11-21-95)

14-210 Definitions.

The following words and terms shall have the following meanings for the purposes of this title, unless the context clearly requires otherwise. Terms otherwise not defined herein shall be defined pursuant to RCW 82.02.090, or given their usual and customary meaning.

(1) Capital facilities plan means the district’s capital facilities plan adopted by the school board consisting of:

a. A forecast of future needs for school facilities based on the district’s enrollment projections;

b. The long-range construction and capital improvements projects of the district;

c. The schools under construction or expansion;

d. The proposed locations and capacities of expanded or new school facilities;

e. At least a six-year financing plan component, updated as necessary to maintain at least a six-year forecast period, for financing needed school facilities within projected funding levels, and identifying sources of financing for such purposes, including bond issues authorized by the voters and projected bond issues not yet authorized by the voters;

f. Any other long-range projects planned by the district; and

g. A fee schedule indicating the standard impact fee amount per dwelling unit type.

(2) City means the city of Federal Way, a Washington municipal corporation.

(3) Classrooms means educational facilities of the district required to house students for its basic educational program. The classrooms are those facilities the district determines are necessary to best serve its student population. Specialized facilities as identified by the district, including but not limited to gymnasiums, cafeterias, libraries, administrative offices, and child care centers, shall not be counted as classrooms.

(4) Construction cost per student means the estimated cost of construction of a permanent school facility in the district for the grade span of school to be provided, as a function of the district’s design standard per grade span and taking into account the requirements of students with special needs.

(5) Design standard means the space required, by grade span and taking into account the requirements of students with special needs, which is needed in order to fulfill the educational goals of the district as identified in the district’s capital facilities plan.

(6) Developer means the person or entity who owns or holds purchase options or other development control over property for which development activity is proposed.

(7) Development activity means any residential construction or expansion of a building, structure or use, any change in use of a building or structure, or any change in the use of land that creates additional demand for school facilities.

(8) District means the Federal Way School District No. 210, King County, Washington.

(9) Elderly means a person aged 62 or older.

(10) Encumbered means to reserve, set aside, or otherwise earmark the impact fees in order to pay for commitments, contractual obligations, or other liabilities incurred for public facilities.

(11) Fee schedule means the schedule set forth in the district’s capital facilities plan adopted by reference by the city indicating the standard fee amount per dwelling unit that shall be paid as a condition of residential development within the city.

(12) Grade span means the categories into which a district groups its grade of students, i.e., elementary school, middle or junior high school, and high school.

(13) Interlocal agreement means the interlocal agreement by and between the city and the district as authorized in FWCC 14-217.

(14) Permanent facilities means the facilities of the district with a fixed foundation which are not relocatable facilities.

(15) Relocatable facility means any factory-built structure, transportable in one or more sections, that is designed to be used as an education space and is needed to prevent the overbuilding of school facilities, to meet the needs of service areas within the district, or to cover the gap between the time that families move into new residential developments and the date that construction is completed on permanent school facilities.

(16) Relocatable facilities cost per student means the estimated cost of purchasing and siting a relocatable facility in the district for the grade span of school to be provided, as a function of the district’s design standard per grade span and taking into account the requirements of students with special needs.

(17) Site cost per student means the estimated cost of a site in the district for the grade span of school to be provided, as a function of the district’s design standard per grade span and taking into account the requirements of students with special needs.

(18) Standard of service means the standard adopted by the district which identifies the program year, the class size by grade span and taking into account the requirements of students with special needs, the number of classrooms, the types of facilities the district believes will best serve its student population, and other factors as identified by the district. The district’s standard of service shall not be adjusted for any portion of the classrooms housed in relocatable facilities which are used as transitional facilities or for any specialized facilities housed in relocatable facilities. Except as otherwise defined by the school board pursuant to a board resolution, transitional facilities shall mean those facilities that are used to cover the time required for the construction of permanent facilities; provided, that, the district has the necessary financial commitments in place to complete the permanent facilities called for in the capital facilities plan.

(19) Student factor means the number derived by the district to describe how many students of each grade span are expected to be generated by a dwelling unit. Student factors shall be based on district records of average actual student generation rates for new developments constructed over a period of not more than five years prior to the date of the fee calculation; provided, that, if such information is not available in the district, data from adjacent districts, districts with similar demographics, or county-wide averages may be used. Student factors must be separately determined for single-family and multifamily dwelling units, and for grade spans. (Ord. No. 95-249, § 1, 11-21-95)

14-211 Impact fee program elements.

(a) Impact fees will be assessed on all residential development activity in the city based on the provisions of FWCC 14-213.

(b) The impact fee imposed shall be reasonably related to the impact caused by the development and shall not exceed a proportionate share of the cost of system improvements that are reasonably related to the development.

(c) The impact fee shall be based on a capital facilities plan developed by the district and approved by the school board, and adopted by reference by the city as part of the capital facilities element of the city’s comprehensive plan. (Ord. No. 95-249, § 1, 11-21-95)

14-212 Fee calculations.

(a) The impact fees for the district shall be calculated based on the formula set forth in Exhibit A attached to the ordinance codified in this article. A copy of the fee calculation formula shall be kept on file with this ordinance in the office of the Federal Way city clerk. Such formula shall take into account the following: The capital facilities needs of the district as identified in the capital facilities plan, the district’s student generation rates for single-family and multifamily dwelling units, the school site and school construction costs per student per grade level, the district’s standard of service, and the relocatable facilities cost per student per grade level.

(b) Separate fees shall be calculated for single-family and multifamily dwelling units, and separate student generation rates must be determined by the district for each type of dwelling unit. For purposes of this article, manufactured homes shall be treated as single-family dwelling units and duplexes shall be treated as multifamily dwelling units.

(c) The fee calculations shall be made on a district-wide basis to assure maximum utilization of all school facilities in the district currently used for instructional purposes. Impact fees shall be calculated annually and set forth in a fee schedule adopted by city council pursuant to FWCC 14-218 and 14-219.

(d) The formula in Exhibit A provides a credit for the anticipated tax contributions that would be made by the development based on historical levels of voter support for bond issue in the district, which historical levels shall be determined by the district.

(e) The formula also provides for a credit for school sites or facilities actually provided by a developer which the district finds to be acceptable as provided for in FWCC 14-214. (Ord. No. 95-249, § 1, 11-21-95; Ord. No. 97-293, § 1, 4-15-97)

14-213 Assessment of impact fees.

(a) The city shall collect school impact fees, based on the fee schedule adopted by city council, from any applicant seeking development approval from the city where such development activity requires the issuance of a residential building permit or a manufactured home permit.

(b) The impact fees due on a plat or a PUD shall be assessed and collected from the lot owner at the time when the building permits for each dwelling unit is issued, using the fee schedule then in effect. Residential developments proposed for short plats shall not be governed by this subsection, but shall be governed by subsection (c) of this section.

(c) For existing lots or lots not covered by subsection (b) of this section, applications for single-family and multifamily residential building permits, manufactured home permits, and site plan approval for manufactured home parks proposed, the total amount of the impact fees shall be assessed and collected from the applicant when the building permit is issued, using the fee schedule then in effect. Irrespective of the date that the application for a building permit or manufactured home permit was submitted, no permit shall be issued until the required school impact fees set forth in the fee schedule have been paid.

(d) The city shall not issue the required building permit or manufactured home permit unless and until the impact fees set forth in the fee schedule have been paid. (Ord. No. 95-249, § 1, 11-21-95; Ord. No. 97-293, § 2, 4-15-97)

14-214 Exemptions and credits.

(a) The following shall be exempt from the application of impact fees:

(1) Any form of housing exclusively for the elderly, including nursing homes and retirement centers, so long as these uses are maintained in perpetuity and the necessary covenants or declarations of restrictions are recorded on the property to ensure that no children will reside in the development; or

(2) The replacement of a structure with a new structure of substantially the same size and use at the same site or lot when such replacement occurs within 12 months of the demolition or destruction of the prior structure; or

(3) Alterations or expansion or enlargement or remodeling or rehabilitation or conversion of an existing dwelling unit where no additional units are created and the use is not changed;

(4) Accessory dwelling units (“ADUs”), whether occupied as an ADU or not; provided, that as of December 21, 1995 such ADU satisfied the definition of an ADU set forth in FWCC 22-1; and provided further, that such ADU registered with the city during the one-year period commencing on December 21, 1995 and terminating on December 20, 1996.

(b) Arrangement may be made for later payment with the approval of the district only if the district determines that it will be unable to use or will not need the payment until a later time; provided, that sufficient security, as defined by the district in its sole reasonable discretion, is provided to assure payment. Security shall be made to and held by the district, which will be responsible for tracking and documenting the security interest.

(c) The developer shall receive a credit for any payment which has already been made for the lot or development activity in question, either as a condition of development approval or pursuant to the terms of a voluntary mitigation agreement. The fee amount due on the development activity shall be reduced by the amount of the credit.

(d) The developer can request that a credit or credits be awarded for the value of dedicated land, improvements, or construction provided by the developer. The district shall first determine the general suitability of the land, improvements, and/or construction for district purposes. Second, the district shall determine whether the land, improvements, and/or the facility constructed are included within the district’s adopted capital facilities plan or the board of directors for the district may make the finding that such land, improvements, and/or facilities would serve the goals and objectives of the capital facilities plan of the district. The district shall forward its determination to the city, including cases where the district determines that the dedicated land, improvements, and/or construction are not suitable for district purposes.

(e) For each request for a credit or credits, if appropriate, the district shall select an appraiser from a list of independent appraisers. The appraiser shall be directed to determine the value of the dedicated land, improvements, or construction provided by the developer for the district. The developer shall pay for the cost of the appraisal.

(f) After receiving the appraisal, the district shall provide the developer with a letter or certificate setting forth the dollar amount of the credit, the reason for the credit, where applicable, the legal description of the site donated, and the legal description or other adequate description of the project or development to which the credit may be applied. The applicant must sign and date such letter or certificate indicating his/her agreement to the terms of the letter or certificate, and return such signed document to the district before the city will award the impact fee credit. The failure of the applicant to sign, date, and return such document within 60 calendar days shall nullify the credit.

(g) Any claim for credit must be made no later than 20 calendar days after the submission of an application for a building permit.

(h) In no event shall the credit exceed the amount of the impact fees due. (Ord. No. 95-249, § 1, 11-21-95; Ord. No. 96-265, § 1, 4-2-96)

14-215 Appeals and independent calculations.

(a) The city may adjust the amount of the school impact fee assessed if one of the following circumstances exist; provided, that the developer can demonstrate to the city’s satisfaction that the discount included in the fee formula set forth in the district’s capital facilities plan fails to adjust for the error in the calculation or fails to ameliorate for the unfairness of the fee:

(1) The developer demonstrates to the city’s satisfaction that an impact fee assessment was incorrectly calculated; or

(2) Unusual and unique circumstances identified by the developer demonstrate that if the standard impact fee amount were applied to the development, it would be unfair, unjust or unlawful.

(b) Requests for fee adjustments, and the administrative appeals process for the appeal of an impact fee, shall follow the process for the appeal of the underlying development application.

(c) A developer may provide studies and data to demonstrate that any particular factor used by the district may not be appropriately applied to the development proposal, but the district’s data shall be presumed valid unless clearly demonstrated to be otherwise by the developer. The developer shall pay for the cost of the studies and data, and must demonstrate to the city’s satisfaction that the discount included in the fee formula set forth in the district’s capital facilities plan fails to adjust for the error in the factor or in the fee calculation.

(d) Any appeal of the decision of the city’s hearing examiner with regard to fee amounts shall follow the appeals process for the underlying development application and not be subject to a separate appeal process. Any errors in the fee formula identified as a result of an appeal should be referred to the council for possible modification.

(e) Impact fees may be paid under protest in order to obtain a permit or other development approval. (Ord. No. 95-249, § 1, 11-21-95)

14-216 The impact fee account – Uses of impact fees and refunds.

(a) Impact fee receipts shall be earmarked specifically and retained in a special interest-bearing account established by the district solely for the district’s school impact fees as provided for in FWCC 14-217. All interest shall be retained in the account and expended for the purpose or purposes identified in subsection (b) of this section. Annually, the city, based on the report submitted by the district pursuant to FWCC 14-218, will forward a copy of the district’s report to the state of Washington, Growth Management Section, pursuant to RCW 82.02.070 which shows the source and amount of all monies collected, earned or received, and capital or system improvements that were financed in whole or in part by impact fees.

(b) Impact fees for the district’s system improvements shall be expended by the district for capital improvements including but not limited to school planning, land acquisition, site improvements, necessary off-site improvements, construction, engineering, architectural, permitting, financing, and administrative expenses, relocatable facilities, capital equipment pertaining to educational facilities, and any other expenses which could be capitalized, and which are consistent with the district’s capital facilities plan.

(c) In the event that bonds or similar debt instruments are issued for the advanced provision of capital facilities for which impact fees may be expended and where consistent with the provisions of the bond covenants, impact fees may be used to pay debt service on such bonds or similar debt instruments to the extent that the facilities or improvements provided are consistent with the requirements of this section.

(d) School impact fees shall be expended or encumbered within six years of receipt, unless the council identifies in written findings extraordinary and compelling reason or reasons for the district to hold the fees beyond the six-year period. The district may petition the council for an extension of the six-year period and the district set forth any such extraordinary or compelling reason or reasons in its petition. Where the council identifies the reason or reasons in written findings, the council shall establish the period of time within which the impact fees shall be expended or encumbered, after consultation with the district.

(e) The current owner of property on which an impact fee has been paid may receive a refund of such fees if the impact fees have not been expended or encumbered within six years of receipt of the funds by the city, except as provided for in subsection (d) of this section. In determining whether impact fees have been encumbered, impact fees shall be considered encumbered on a first in, first out basis. The city shall notify potential claimants by first-class mail deposited with the United States postal service addressed to the owner of the property as shown in the city’s tax records.

(f) An owner’s request for a refund must be submitted to the council in writing within one year of the date the right to claim the refund arises or the date that notice is given, whichever date is later. Any impact fees that are not expended or encumbered within the limitations in subsection (d) of this section, and for which no application for a refund has been made within this one-year period, shall be retained and expended consistent with the provisions of this section. Refunds of impact fees shall include any interest earned on the impact fees.

(g) Should the city seek to terminate any or all school impact fee requirements, all unexpended or unencumbered funds, including interest earned, shall be refunded to the current owner of the property for which a school impact fee was paid. Upon the finding that any or all fee requirements are to be terminated, the city shall place notice of such termination and the availability of refunds in a newspaper of general circulation at least two times and shall notify all potential claimants by first-class mail addressed to the owner of the property as shown in the city’s tax records. All funds available for refund shall be retained for a period of one year. At the end of one year, any remaining funds shall be retained by the city, but must be expended for the district, consistent with the provisions of this section. The notice requirement set forth above shall not apply if there are no unexpended or unencumbered balances within the account or accounts being terminated.

(h) A developer may request and shall receive a refund, including interest earned on the impact fees, when:

(1) The developer does not proceed to finalize the development activity as required by statute or city code or the Uniform Building Code; and

(2) No impact on the district has resulted. Impact shall be deemed to include cases where the district has expended or encumbered the impact fees in good faith prior to the application for a refund. In the event that the district has expended or encumbered the fees in good faith, no refund shall be forthcoming. However, if within a period of three years, the same or subsequent owner of the property proceeds with the same or substantially similar development activity, the owner shall be eligible for a credit. The owner must petition the city and provide receipts of impact fees paid by the owner for a development of the same or substantially similar nature on the same property or some portion thereof. The city shall determine whether to grant a credit, and such determinations may be appealed by following the procedures set forth in FWCC 14-215.

(i) Interest due upon the refund of impact fees required by this section shall be calculated according to the average rate received by the city or the district on invested funds throughout the period during which the fees were retained. (Ord. No. 95-249, § 1, 11-21-95)

14-217 Interlocal agreement.

(a) The city manager is authorized to execute, on behalf of the city, an interlocal agreement for the collection, expenditure, and reporting of school impact fees; provided, that, such interlocal agreement complies with the provisions of this section, be in form and content acceptable to the city attorney and be approved by the city council.

(b) The district shall establish a school impact fee account with the office of the King County treasurer, who serves as the treasurer for the district. The account shall be an interest-bearing account, and the school impact fees received shall be prudently invested in a manner consistent with the investment policies of the district.

(c) For administrative convenience while processing the fee payments, school impact fees may be temporarily deposited in a city account. On a monthly basis, the city shall deposit the school impact fees collected for the district in the district’s school impact fee account.

(d) The district shall agree to indemnify and hold the city, its elected officials, officers, employees, agents, and volunteers harmless from any and all claims, demands, losses, actions and liabilities (including costs and all attorney fees) to or by any and all persons or entities, including without limitation, their respective agents, licensees, or representatives, arising from, resulting from, or connected with the collection of impact fees or any other actions taken by the city pursuant to the terms of the ordinance codified in this article or pursuant to the terms of the interlocal agreement. (Ord. No. 95-249, § 1, 11-21-95)

14-218 Submission of district capital facilities plan and data.

On an annual basis, no later than May 1st of each year, the district shall submit the following materials to the city:

(1) The annual update of the district’s capital facilities plan;

(2) An updated fee calculation, and a proposed revised fee schedule which reflect the update to the district’s capital facilities plan; and

(3) An annual report on the school impact fee account, showing the source and amount of all monies collected, earned, or received, and the public improvements that were financed in whole or in part by impact fees. (Ord. No. 95-249, § 1, 11-21-95; Ord. No. 97-293, § 3, 4-15-97)

14-219 Review.

The city council shall review on an annual basis the materials received from the district and required under FWCC 14-218. The city council may make adjustments to the fee schedule as necessitated by its review, or applicable law and if the city council deems appropriate, shall adopt the fee schedule by resolution. The review and fee schedule adopted decision may occur in conjunction with the annual update of the capital facilities plan element of the city’s comprehensive plan. (Ord. No. 95-249, § 1, 11-21-95; Ord. No. 97-293, § 4, 4-15-97)

14-220 – 14-229 Reserved.

(Ord. No. 03-438, § 3, 2-18-03)

Article VII.
MULTIFAMILY DWELLING UNIT LIMITED PROPERTY TAX EXEMPTION

Sections:

14-230 Purpose.

14-231 Definitions.

14-232 Residential targeted areas – Designation.

14-233 Tax exemption – Duration – Valuation – Exceptions.

14-234 Project eligibility.

14-235 Application procedure.

14-236 Application review – Approval – Required findings – Issuance of conditional certificate – Denial – Appeal.

14-237 Amendment of contract.

14-238 Extension of conditional certificate – Required findings – Denial – Appeal.

14-239 Final certificate – Application – Issuance – Denial – Appeal.

14-240 Annual certification.

14-241 Cancellation of tax exemption – Appeal.

14-242 Review of program.

14-230 Purpose.

As provided for in Chapter 84.14 RCW, the purpose of this article is to provide limited, 10-year exemptions from ad valorem property taxation for qualified new multifamily housing constructed in the city center core and frame zones, in order to:

(1) Accomplish the planning goals of the Growth Management Act, Chapter 36.70A RCW, and the City of Federal Way Comprehensive Plan, specifically Goals CCP 9 and 10; and/or

(2) Encourage residential opportunities within the city center core and frame residential targeted area; and/or

(3) Stimulate new construction of multifamily housing in the city center core and frame to increase housing opportunities; and/or

(4) Assist in directing future population growth into the city center core and frame, thereby reducing development pressures on single-family residential neighborhoods; and/or

(5) Achieve development densities that are more conducive to transit use in the city center core and frame; and/or

(6) Promote community development and city center core and frame revitalization, in fulfillment of the Comprehensive Plan City Center “Vision.” (Ord. No. 03-438, § 2, 2-18-03)

14-231 Definitions.

In construing the provisions of this article, the following definitions shall be applied:

(1) Assessor means the King County assessor.

(2) Director means the director of the Federal Way community development services department, or any other city office, department or agency that shall succeed to its functions with respect to this article, or his or her authorized designee.

(3) Multifamily housing means a building or townhouse having four or more dwelling units designed for permanent residential occupancy.

(4) Owner means the property owner of record.

(5) Permanent residential occupancy means multifamily housing that provides either rental or owner occupancy for a period of at least one month. This excludes hotels and motels that predominantly offer rental accommodation on a daily or weekly basis.

(6) Residential targeted area means the city center core and frame zones, as designated by the city council pursuant to this article. (Ord. No. 03-438, § 2, 2-18-03)

14-232 Residential targeted areas – Designation.

(a) Pursuant to this section, the Federal Way city center, consisting of the areas zoned CC-C and CC-F, is designated as a “residential targeted area.”

(b) If a part of any legal lot is within the residential targeted area, then the entire lot shall be deemed to lie within the residential targeted area. (Ord. No. 03-438, § 2, 2-18-03)

14-233 Tax exemption – Duration – Valuation – Exceptions.

(a) Exemption, duration of. The value of improvements qualifying under FWCC 14-234 is exempt from ad valorem property taxation for 10 successive years beginning January 1st of the year immediately following the calendar year of issuance of the final certificate of tax exemption.

(b) Limits on exemption. The exemption does not apply to the value of land or to the value of nonhousing improvements not qualifying under FWCC 14-234, nor does the exemption apply to increases in assessed valuation of land and nonqualifying improvements. This article also does not apply to increases in assessed valuation made by the assessor on nonqualifying portions of building and value of land, nor to increases made by lawful order of a county board of equalization, the Department of Revenue, or a county, to a class of property throughout the county or specific area of the county to achieve the uniformity of assessment or appraisal required by law. (Ord. No. 03-438, § 2, 2-18-03)

14-234 Project eligibility.

To qualify for exemption from property taxation under this article, the property must satisfy all of the following requirements:

(1) The property must be located in the designated residential targeted area.

(2) The project must consist of at least four dwelling units of multifamily housing, located within a residential structure or a mixed use development, in which at least 50 percent of the space within such residential structure or mixed use development is intended for permanent residential occupancy.

(3) The project must comply with all zoning requirements, land use regulations, and building code requirements contained in Federal Way City Code Volumes I and II and applicable upon land use permit approval or submittal of a complete building permit application, whichever occurs sooner.

(4) For the duration of the exemption granted under this article, the property shall have no violations of applicable zoning requirements, land use regulations, or building code requirements contained in Federal Way City Code Volumes I and II for which the community development services department shall have issued an order to cease activity (“OTC”) or notice of violation and order to correct (“NOV”) that are not resolved by a voluntary correction agreement, vacation by the hearing examiner, or action of the property owner in compliance with the applicable code requirements as determined by the director, within the time period for compliance provided in such OTC or NOV and any extension of the time period for compliance granted by the director.

(5) New construction multifamily housing must be completed within three years from the date of approval of the application or by any extended deadline granted by the director pursuant to FWCC 14-238.

(6) The owner must enter into a contract with the city, approved by the city council, under which the owner has agreed to the implementation of the development on terms and conditions satisfactory to the city council. (Ord. No. 03-438, § 2, 2-18-03)

14-235 Application procedure.

The owner of property applying for exemption under this article shall submit an application to the director on a form established by the director. The owner shall verify the correctness of the information contained in the application by his/her signature and affirmation made under penalty of perjury under the laws of the state of Washington. The application shall contain such information as the director may deem necessary or useful, which at a minimum shall include:

(1) A completed city of Federal Way application form, including information setting forth the grounds for tax exemption;

(2) A brief written description of the project, and schematic site and floor plans of the multifamily units and the structure(s) in which they are proposed to be located;

(3) Floor and site plans of the proposed project, which plans may be revised by the owner provided such revisions are made prior to the city’s final action on the exemption application;

(4) A statement from the owner acknowledging the potential tax liability when the property ceases to be eligible for exemption under this article;

(5) At the time of initial application under this section, the owner shall pay to the city an initial application fee of $150.00, plus an amount necessary to cover recording fees under FWCC 14-239;

(6) Except as otherwise provided in subsection (7) of this section, the application shall be submitted any time before the earlier of (1) an application for a land use approval process under Chapter 22 FWCC, and (2) an application for a building or other construction permit under Chapter 5 FWCC;

(7) If, on the effective date of this article, the owner has applied for a permit identified in subsection (6) of this section, then application for exemption under this section may be submitted any time prior to issuance of a building permit. (Ord. No. 03-438, § 2, 2-18-03)

14-236 Application review – Approval – Required findings – Issuance of conditional certificate – Denial – Appeal.

(a) The director may approve an application if he or she finds that:

(1) A minimum of four new units are being constructed;

(2) The proposed project is or will be, at the time of completion, in conformance with all approved plans, and all applicable requirements of the Federal Way City Code or other applicable requirements or regulations in effect at the time the application is approved;

(3) The owner has complied with all of the requirements of this article, including but not limited to project eligibility requirements contained in FWCC 14-234 and application requirements contained in FWCC 14-235; and

(4) The project site is located within a designated residential targeted area.

(b) The director shall deny an application if the foregoing criteria are not met.

(c) If the application is approved, the owner shall enter into a contract with the city, approved by the city council, regarding the terms and conditions of the project under this article.

(d) Following council approval of the contract, the director shall issue a conditional certificate of acceptance of tax exemption. The conditional certificate shall expire three years from the date of approval unless an extension is granted as provided in FWCC 14-238.

(e) If the application is denied, the director shall state in writing the reasons for the denial and send notice of denial to the owner’s last known address within 10 days of the denial.

(f) An owner may appeal a denial of a tax exemption application to the city council by filing a notice of appeal with the city clerk within 30 calendar days of receipt of notice of the denial. The appeal before the city council shall be based upon the record before the director, and the director’s decision will be upheld unless the owner can show that there is no substantial evidence on the record to support the director’s decision. The city council’s decision on appeal is final. (Ord. No. 03-438, § 2, 2-18-03)

14-237 Amendment of contract.

(a) Any owner seeking amendment(s) to the contract approved by the director may do so by submitting a request in writing to the director at any time within three years of the date of the director’s approval of the contract.

(b) Any owner seeking amendments to the approved form of contract shall pay to the city an amendment application fee of $150.00 for administrative costs, plus any amount necessary to cover recording fees under FWCC 14-239.

(c) The date for expiration of the conditional certificate shall not be extended by contract amendment unless all the conditions for extension set forth in FWCC 14-238 are met. (Ord. No. 03-438, § 2, 2-18-03)

14-238 Extension of conditional certificate – Required findings – Denial – Appeal.

(a) The conditional certificate may be extended by the director for a period not to exceed 24 consecutive months. The owner shall submit a written request stating the grounds for the extension together with a fee of $150.00 for the city’s administrative cost to process the request. The director may grant an extension if the director finds that:

(1) The anticipated failure to complete construction within the required time period is due to circumstances beyond the control of the owner; and

(2) The owner has been acting, and could reasonably be expected to continue to act, in good faith and with due diligence; and

(3) All the conditions of the original contract between the owner and the city will be satisfied upon completion of the project.

(b) If an extension is denied, the director shall state in writing the reason for denial and shall send notice to the owner’s last known address within 10 calendar days of the denial. An owner may appeal the denial of an extension to the hearing examiner by filing a notice of appeal with the city clerk within 14 calendar days after issuance of the notice of the denial. The appeal before the hearing examiner shall follow the provisions of FWCC 22-397 through 22-406. The hearing examiner’s decision shall be the final decision of the city, and is not subject to further appeal. (Ord. No. 03-438, § 2, 2-18-03)

14-239 Final certificate – Application – Issuance – Denial – Appeal.

(a) Upon completion of the construction as provided in the contract between the owner and the city, and upon issuance of a temporary certificate of occupancy, or a permanent certificate of occupancy if no temporary certificate is issued, the owner may request a final certificate of tax exemption. The owner shall file with the director such information as the director may deem necessary or useful to evaluate eligibility for the final certificate, which shall at a minimum include:

(1) A statement of expenditures made with respect to each multifamily housing unit and the total expenditures made with respect to the entire property;

(2) A description of the completed work and a statement of qualification for the exemption;

(3) A statement that the work was completed within the required three-year period or any approved extension.

(b) At the time of application for final certificate under this section, the owner shall pay to the city a fee of $50.00 to cover the city’s administrative costs.

(c) Within thirty days of receipt of all materials required for a final certificate, the director shall determine whether the completed work is consistent with the contract between the city and owner, whether all or a portion of the completed work is qualified for exemption under this article and, if so, which specific improvements satisfy the requirements of this article.

(d) If the director determines that the project has been completed in accordance with the contract between the owner and the city and the requirements of this article, the city shall file a final certificate of tax exemption with the assessor within 10 days of the expiration of the 30-day period provided under subsection (c) of this section.

(e) The director is authorized to cause to be recorded, or to require the owner to record, in the real property records of the King County department of records and elections, the contract with the city required under FWCC 14-236, or such other document(s) as will identify such terms and conditions of eligibility for exemption under this article as the director deems appropriate for recording.

(f) The director shall notify the owner in writing that the city will not file a final certificate if the director determines that the project was not completed within the required three-year period or any approved extension, or was not completed in accordance with the contract between the owner and the city and the requirements of this article, or the owner’s property is otherwise not qualified for the limited exemption under this article.

(g) The owner may appeal the director’s decision to the hearing examiner by filing a notice of appeal with the city clerk within 14 calendar days after issuance of the notice of the denial. The appeal before the hearing examiner shall follow the provisions for appeal contained in FWCC 22-397 through 22-406. The owner may appeal the hearing examiner’s decision to the King County superior court according to the procedures contained in RCW 34.05.510 through 34.05.598, as provided in RCW 84.14.090(6), within 30 days of notification by the city to the owner of the decision. (Ord. No. 03-438, § 2, 2-18-03)

14-240 Annual certification.

(a) Within 30 days after the first anniversary of the date the city filed the final certificate of tax exemption and each year thereafter, for a period of 10 years, the property owner shall file a certification with the director, verified upon signed affirmation under penalty of perjury under the laws of the state of Washington. The certification shall contain such information as the director may deem necessary or useful, and shall at a minimum include the following information:

(1) A statement of occupancy and vacancy of the multifamily units during the previous year;

(2) A certification that the property has not changed use since the date of filing of the final certificate of tax exemption, and continues to be in compliance with the contract with the city and the requirements of this article;

(3) A description of any improvements or changes to the property made after the filing of the final certificate or most recent certification, as applicable.

(b) Failure to submit the annual certification may result in cancellation of the tax exemption. (Ord. No. 03-438, § 2, 2-18-03)

14-241 Cancellation of tax exemption – Appeal.

(a) If at any time the director determines that the property no longer complies with the terms of the contract or with the requirements of this article, or the use of the property is changed or will be changed to a use that is other than residential, or the property for any reason no longer qualifies for the tax exemption, the tax exemption shall be canceled and additional taxes, interest and penalties imposed pursuant to state law.

(b) If the owner intends to convert the multifamily housing to another use, the owner must notify the director and the King County assessor within 60 days of the change in use. Upon such change in use, the tax exemption shall be canceled and additional taxes, interest and penalties imposed pursuant to state law.

(c) Upon determining that a tax exemption shall be canceled, the director shall notify the property owner by certified mail, return receipt requested. The property owner may appeal the determination by filing a notice of appeal with the city clerk, within 30 days after issuance of the decision by the director, specifying the factual and legal basis for the appeal. The appeal before the hearing examiner shall follow the procedures set forth in FWCC 22-397 through 22-406. At the appeal hearing, all affected parties may be heard and all competent evidence received. The hearing examiner shall affirm, modify, or repeal the decision to cancel the exemption based on the evidence received. The hearing examiner shall give substantial weight to the director’s decision to cancel the exemption, and the burden of proof and the burden of overcoming the weight accorded to the director’s decision shall be upon the appellant. An aggrieved party may appeal the hearing examiner’s decision to the King County superior court in accordance with the procedures in RCW 34.05.510 through 34.05.598, as provided in RCW 84.14.110(2), within 30 days after issuance of the decision of the hearing examiner. (Ord. No. 03-438, § 2, 2-18-03)

14-242 Review of program.

(a) The provisions of this article shall be reviewed five years after the effective date of the ordinance codified herein. Such review may include, but not be limited to, the number of dwelling units granted property tax exemption under this program, consideration of the multifamily development trends in the city and region, review of administrative processes and procedures, as well as public comment. If the program is terminated, no further applications for a conditional certificate of tax exemption shall be accepted. Incomplete applications shall be returned to the owner.

(b) Notwithstanding subsection (a) of this section, pending complete applications for a conditional certificate, extension of conditional certificate or final certificate shall be processed as provided in this article under FWCC 14-234 through 14-238. FWCC 14-233, 14-236, 14-239, and 14-240 shall survive the expiration of this article and shall apply to all properties that have been issued a final certificate of tax exemption under this article until expiration, termination or cancellation of the certificate. (Ord. No. 03-438, § 2, 2-18-03)