ORDINANCE NO. 227
AN ORDINANCE OF THE TOWN OF SOUTH PRAIRIE, PIERCE COUNTY, WASHINGTON IMPOSING AN ADDITIONAL EXCISE TAX ON SALES OF REAL PROPERTY, PROVIDING FOR THE COLLECTION THEREOF, SUBJECTING THE TAX TO REFERENDUM BY SPECIAL INITIATIVE AND FIXING PENALTIES FOR THE VIOLATION THEREOF.
WHEREAS, the State Legislature, through Engrossed Substitute House Bill (ESHB) No. 2929, has authorized cities to impose an additional tax of one-quarter (1/4) of one percent (1%) on the sale price of real property within the Town; and
WHEREAS, the collection of said funds is necessary in order to carry out the functions of local government and as otherwise in the public interest.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF SOUTH PRAIRIE, PIERCE COUNTY, WASHINGTON AS FOLLOWS:
Section 1: Imposition of the Real Estate Excise Tax.
In lieu of imposing the tax authorized by RCW 82.14.030(2), there is hereby imposed an additional tax of one-quarter (1/4) of one percent (1%) of the selling price of each sale of real property within the corporate limits of this Town as authorized in ESHB 2929.
Section 2: Taxable Events.
Taxes imposed herein shall be collected from persons who are taxable by the state under Chapter 82.45 RCW and Chapter 458-61 WAC upon the occurrence of any taxable event within the corporate limits of this Town.
Section 3: Consistency with the State Tax.
The taxes imposed herein shall comply with all applicable rules, regulations, laws and court decisions regarding real estate excise taxes as imposed by the state under Chapter 82.45 RCW and Chapter 458-61 WAC. The provisions of these Chapters, to the extent that they are not inconsistent with this Ordinance, shall apply as though fully set forth herein.
Section 4: Distribution of Tax Proceeds.
(1) The County Treasurer shall place one percent (1%) of the proceeds of the taxes imposed herein in the county current expense fund to defray costs of collection.
(2) The remaining proceeds from Town taxes imposed herein shall be distributed to the Town monthly and shall be placed by the Town Treasurer in the Town's capital improvement fund.
(3) This section shall not limit the existing authority of this Town to impose special assessments on property benefited thereby in the manner prescribed by law.
Section 5: Special Initiative.
This ordinance shall be subject to a Special Initiative (referendum process), for a thirty (30) day period commencing at the time of final passage. The number of registered voters needed to sign a petition for Special Initiative shall be fifteen percent (15%) of the total number of names of persons listed as registered voters within the Town on the day of the last preceeding municipal general election. If a Special Initiative Petition is filed with the Town Council, the operation of this ordinance shall be suspended until the Special Initiative Petition is found insufficient or until this Ordinance receives a favorable majority vote by the voters. Procedures for referendum upon Petition contained in RCW 35A.11.100 shall apply to any such Special Initiative Petition.
Section 6: Seller's Obligation.
Taxes imposed herein 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.
Section 7: Lien Provisions.
The taxes imposed herein and any interest or penalties thereon are the specific lien upon each piece of 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 manner of enforcement is not an election not to pursue another type of enforcement.
Section 8: Notation of Payment.
The taxes imposed herein shall be paid .to and collected by the Treasurer of Pierce County and the County Treasurer shall act as agent for the Town for the purpose of collecting this tax. The County Treasurer shall cause a stamp evidencing the 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 herein shall be evidence of the satisfaction of the lien imposed in Section 6 of this ordinance 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 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 a suitable notation of this fact is made on the instrument by the County Treasurer.
Section 9: Date Payable.
The tax imposed hereunder shall become due and payable immediately at
the time of sale and, if not so paid within thirty (30) days thereafter, shall bear interest at the rate of one percent (1%) per month from the time of sale until the date of payment.
Section 10: Excessive and Improper Payments.
If, upon written application by a taxpayer to the County Treasurer for a refund, it appears a tax has been paid in excess of the amount actually due or upon the sale or other transfer declared as exempt, such excess amount or improper payment shall be refunded by the County Treasurer to the taxpayer; provided, that 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 shall be withheld from the next monthly distribution to the Town.
Section 11: Severability.
If any provision of this ordinance or its application to any person or circumstance is held invalid, the remainder of the ordinance or the application of the provision to other persons or circumstances is not affected.
Section 12: Effective Date.
This ordinance shall take effect and be in force five (5) days from and after its passage, approval and publication as required by law. Dated this 5th day of February, 1991
Mayor Dale P. Stubbs
Bobbie Jo Tooke
Approved as to Form:
Michael J Reynolds