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Record No: CB 120118    Version: Council Bill No: CB 120118
Type: Ordinance (Ord) Status: Passed
Current Controlling Legislative Body City Clerk
On agenda: 7/19/2021
Ordinance No: Ord 126393
Title: AN ORDINANCE related to creating a fund for Payroll Expense Tax revenues; adding a new Section 5.38.055 to the Seattle Municipal Code; and providing additional guidelines for expending proceeds.
Sponsors: Teresa Mosqueda
Attachments: 1. Summary and Fiscal Note
Supporting documents: 1. Central Staff Memo, 2. Amendment 1, 3. Proposed Amendment 1, 4. Signed Ordinance 126393, 5. Affidavit of Publication
CITY OF SEATTLE
ORDINANCE __________________
COUNCIL BILL __________________
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AN ORDINANCE related to creating a fund for Payroll Expense Tax revenues; adding a new Section 5.38.055 to the Seattle Municipal Code; and providing additional guidelines for expending proceeds.
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WHEREAS, on July 6, 2020 the City Council passed Ordinance 126108, imposing a progressive tax on businesses with payrolls of $7 million and higher annually ("Payroll Expense Tax"); and
WHEREAS, on July 6, 2020 the City Council passed Ordinance 126109, establishing a spending plan for the proceeds from the Payroll Expense Tax and a Payroll Tax Oversight Committee to provide oversight on the services and programs supported by this tax; and
WHEREAS, pursuant to the spending plan in Ordinance 126109, proceeds from the Payroll Expense Tax received in 2021 are intended to provide one-time support for continuity of services of programs that would have otherwise been reduced due to the revenue impacts from the economic recession, and to replenish uses of the City's fiscal reserves for COVID-19 emergency response purposes in 2020; and
WHEREAS, on July 20, 2020 the City Council adopted Resolution 31957 to establish a clear spending plan on proceeds from the Payroll Expense Tax received in 2022 and future years to support new investments in affordable housing and homelessness services, new investments in equitable development and economic resilience, support for small businesses in Seattle, and investments that advance Seattle's Green New Deal along with administration of the tax; and
WHEREAS, the post pandemic housing market provides opportunities to accelerate the acquisition and development of affordable housing. In response, the Council intends to consider providing direction and increased resources, if needed, to the Office of Housing to use funds appropriated for affordable housing acquisition and development in the 2022 City Budget for projects that apply for funding through the Office o...

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