At the Council’s September 7, 2021, City Council meeting, the Council voted to place on the agenda an ordinance for review that would institute the 1/10th of 1% sales and use tax for housing and related services.  RCW 82.14.530 controls this tax and provides that the tax can be instituted by a city and used as follows:

1. A minimum of 60% must be used for:  constructing or acquiring affordable housing which may include emergency, transitional, and supportive housing and new units of affordable housing within an existing structure, and facilities providing housing-related services, or acquiring land for these purposes; or constructing or acquiring behavioral health-related facilities or acquiring land for these purposes; or funding the operations and maintenance costs of new units of affordable housing and facilities where housing-related programs are provided, or newly constructed evaluation and treatment centers.

2.    The remainder of the moneys not used for the above-listed purposes must be used for the operation, delivery, or evaluation of behavioral health treatment programs and services or housing-related services.

3.    Facilities may only be provided to persons in any of the following population groups whose income is at or below 60% of the median income of Yakima County (median household income is $51,637[1] and median individual income is $25.527[2]. 60% of the median household income is calculated to be $30,982 and 60% of the median individual income is calculated to be $15,316):

a.     Persons with behavioral health disabilities;

b.     Veterans;

c.     Senior citizens;

d.    Persons who are homeless or at-risk of being homeless, including

families with children;

e.     Unaccompanied homeless youth or young adults;

f.      Persons with disabilities; or

g.     Domestic violence survivors.

As such, to qualify a person must be in one of these population groups and meet the 60% of the median income requirement.

The ordinance indicates that the first day the tax will be in effect and collected is April 1, 2022.  Pursuant to RCW 82.14.055: A local sales tax change may take effect (a) no sooner than 75 days after the Department of Revenue receives notice of the change and (b) only on the first day of January, April, or July.  To provide the notice to the Department of Revenue 75 days in advance of January 1st, the Department of Revenue would need to receive the notice on or before October 15th.  If the Council passes the proposed ordinance on September 21st, it will not be effective until 30 days after publication, so the earliest the Department of Revenue would get notice would be approximately October 25th, depending on the date of publication.  Therefore, the first day under the statue that the tax could be effective is April 1, 2022.

[1]https://www.census.gov/quickfacts/fact/table/yakimacountywashington# [2]https://datacommons.org/ranking/Median_Income_Person/County/geoId/53?h=geoId%2F53077&unit=%24