CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
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AN ORDINANCE establishing a spending plan for proposed use of the proceeds generated from the capital gains excise tax authorized by the ordinance introduced as Council Bill 120908; and adding a new Section 5.66.170 to the Seattle Municipal Code.
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WHEREAS, the Department of Housing and Urban Development considers households rent burdened if more than 30 percent of their income is spent on housing costs such as rent and utilities; and
WHEREAS, the Department of Housing and Urban Development considers households severely rent burdened if more than 50 percent of their income is spent on housing costs such as rent and utilities; and
WHEREAS, according to the Census Bureau’s annual American Community Survey in 2023, 90,700 households or 44 percent of renter households in Seattle are rent burdened; and
WHEREAS, as of August 2024 United Way reported there were approximately 5,800 City of Seattle residents on the wait list for rental assistance; and
WHEREAS, United Way of King County estimated it would take $10 million to clear their backlog of households waiting for rental assistance; and
WHEREAS, the city faces a significant lack of funding to support down payment assistance; and
WHEREAS, according to the Brookings Institution, Black Americans have a homeownership rate of 46.4 percent compared to 75.8 percent of white Americans; and
WHEREAS, owning a home is not just a dream but a critical step toward creating and preserving wealth that can be passed down through generations; and
WHEREAS, according to the US Census Bureau King County had a 61.5 percent homeownership rate while Black residents had only a 28 percent homeownership rate; and
WHEREAS, homeownership is a key way to build intergenerational wealth and racial covenants, and redlining restricted the ability of nonwhite residents of Seattle to buy homes; and
WHEREAS, according to the Congressional Research Service homeownership increases the tax base and encourages social and political involvement; and
WHEREAS, according to United Way of King County, 32 percent of Black and 26 percent of Latino adults experience food insecurity; and
WHEREAS, communities of color face disproportionate levels of poverty and food insecurity because of historic and systemic racism; NOW, THEREFORE,
BE IT ORDAINED BY THE CITY OF SEATTLE AS FOLLOWS:
Section 1. Proceeds from the new capital gains excise tax imposed by the ordinance introduced as Council Bill 120908 may only be used as described in Section 2 of this ordinance. The Council intends to adopt by resolution, or through adoption of the annual budget, spending details by year and program area to provide: (1) specific allocations of funds for each program area based on the anticipated annual revenue from the capital gains excise tax authorized by the ordinance introduced as Council Bill 120908; and (2) programmatic details such as incomes levels served by proposed investments. The spending plan may be amended from time to time by the City Council by ordinance.
Section 2. A new Section 5.66.170 is added to the Seattle Municipal Code as follows:
5.66.170 Capital gains excise tax - Allocation of proceeds
Proceeds of the capital gains excise tax are intended to support rental assistance to rent burdened households, down payment assistance to low, moderate, and workforce households, and food assistance to food insecure households.
Section 3. This ordinance shall take effect as provided by Seattle Municipal Code Sections 1.04.020 and 1.04.070.
Passed by the City Council the ________ day of _________________________, 2024, and signed by me in open session in authentication of its passage this ________ day of _________________________, 2024.
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President ____________ of the City Council
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Approved / |
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returned unsigned / |
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vetoed this _____ day of _________________, 2024. |
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Bruce A. Harrell, Mayor
Filed by me this ________ day of _________________________, 2024.
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Scheereen Dedman, City Clerk
(Seal)