A. Pursuant to Section 38 of Chapter 17, Laws of 1990, First Extraordinary Session, there is imposed an excise tax on each sale of real property constituting a taxable event as defined in Chapter 82.45 RCW and occurring within the corporate limits of the city of Gig Harbor. The tax imposed under this section shall be collected from persons who are taxable by the state under Chapter 82.45 RCW and such tax shall comply with all applicable rules, regulations, laws, and court decisions regarding real estate excise taxes as imposed by the state under Chapter 82.45 RCW.

B. Rate of Tax. The rate of tax imposed by subsection A of this section shall be one-quarter of one percent of the selling price of all real property upon which this tax is imposed by subsection A.

C. Use of Proceeds. Revenues generated from the tax imposed by this section shall be used solely for the financing of capital projects specified in a capital facilities plan element of a comprehensive plan approved by the council. (Ord. 587 § 2, 1990).