Existing Sales Tax Credit
Background: Under Chapter 82.14 of Washington state law, cities and counties may qualify to use a small share of the existing state sales taxes that are collected if the funds are used for allowable housing purposes. Several months ago, the City of Edmonds qualified to begin using its share of the funds, which is about $71,000 per year. Snohomish County also qualified to use its share, which is about $1.3 million per year. Under state law, the City can choose to use the housing funds entirely on its own or in partnership with other jurisdictions or agencies. The Edmonds City Council will consider options for how to use these funds in the near future
Policy Idea A: For the short-term, the City should use its share of the funds for rental assistance to low-income households in Edmonds who have been impacted by the coronavirus.
Policy Idea B: For the long-term, the City could assign its share of the funds to:
To Snohomish County for allowable housing purposes anywhere in the county; or
To a partnership of other cities in southwest Snohomish County for allowable housing purposes in the southwest area of the county; or
To a regional agency, such as HASCO, for use in the City or elsewhere; or
For use only within Edmonds city limits.
County Sales Tax for Housing
Background: A state law was passed last year that allows counties to adopt a 0.1% sales tax for affordable and supportive housing that benefits people earning less than 60% of the area median income.
Advocate for Snohomish County to adopt the optional 0.1% sales tax that is allowed by state law to provide affordable and supportive housing for low-income households.