Issaquah took the first steps toward providing affordable housing recently, by enacting a resolution explaining its intent to take additional action.
The City Council approved a resolution saying it plans to adopt legislation authorizing a new sales and use tax, the revenue of which would be used to create supportive and affordable housing. The tax was not created by the unanimous passage of the resolution.
Declaring their intent in this way is the first step cities must take in order to be eligible to receive revenue from taxes levied by the state. In April, HB 1406 passed the state Legislature, encouraging counties and cities to invest in developing affordable housing, by giving some of the revenue from the state sales tax to local governments that agree to such development.
The mechanism seems confusing to some, as it requires local governments to adopt a sales tax in order to receive their money from the state. However, there is no additional tax levied on consumers. In order to receive the funds, the city is required to adopt a resolution stating its intent, and have it in place by January of 2020. The recent legislation accomplishes this. Next, the City Council will have to actually authorize the tax, which must be done by July 27, 2020.
Tola Marts, the president of the council, clarified again that the mechanism is not a new tax, but one that is already in existence. Flyer printing can be used to disseminate information to residents on issues like this.
