HOUSE BILL REPORT

                  HB 1414

             As Reported By House Committee On:

                      Local Government

Title:  An act relating to the additional local sales and use tax for criminal justice purposes.

Brief Description:  Granting additional local taxing authority for criminal justice purposes.

Sponsors:  Representatives R. Fisher and Wang.

Brief History:

  Reported by House Committee on:

Local Government, February 23, 1993, DP.

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Majority Report:  Do pass.  Signed by 12 members:  Representatives H. Myers, Chair; Bray, Vice Chair; Edmondson, Ranking Minority Member; Reams, Assistant Ranking Minority Member; Dunshee; R. Fisher; Horn; Rayburn; Romero; Springer; Van Luven; and Zellinsky.

Staff:  Steve Lundin (786-7127).

Background:  Legislation was enacted in 1990 funding criminal justice activities of counties, cities, and towns and creating the Task Force on City and County Finances.

State motor vehicle excise tax receipts are distributed to counties, cities, and towns for criminal justice purposes under several distribution formulas.  Distributions under these programs cease as of January 1, 1994.

As determined by various population and geographic factors, a few counties were authorized to impose a 0.1 percent sales and use tax for criminal justice purposes, if a ballot proposition authorizing the tax was approved by county voters.  Distributions of these tax receipts are made to the county and to cities and towns within the county to be used for criminal justice purposes.  The authority to impose this additional tax ceases on January 1, 1994.

If a county imposes this additional sales and use tax, then the maximum rate of local option sales and use tax that various transit authorities may impose for high capacity transportation purposes in the county is reduced by 0.1 percent to 0.9 percent.

Summary of Bill:  The temporary 0.1 percent sales and use tax for criminal justice purposes becomes permanent by deleting the date after which counties lose the authority to impose this tax.

A city with a population of over 150,000 that is located in a county authorized to impose the additional 0.1 percent sales and use tax for criminal justice purposes may submit a ballot proposition to its voters authorizing the city to impose this tax, if county voters have not authorized the county in which the city is located to impose the tax.

If a city imposes this additional sales and use tax, then the maximum rate of local option sales and use tax that various transit authorities may impose for high capacity transportation purposes in the city is reduced by 0.1 percent to 0.9 percent.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This will allow Tacoma to impose the sales tax.  The money is for necessary criminal justice purposes.

Testimony Against:  None.

Witnesses:  (Pro):  Mayor Karen Vialle, city of Tacoma.