BILL REQ. #:  S-0993.2 

Read first time 02/10/09.   Referred to Committee on Ways & Means.

     AN ACT Relating to authorizing cities and counties to levy and collect certain additional taxes; amending RCW 82.14.450; adding a new chapter to Title 82 RCW; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Telephone utility" means a person providing telecommunications services as defined in RCW 82.04.065.
     (2) "Water utility" means a water distribution business as defined in RCW 82.16.010.
     (3) "Sewer utility" means a sewerage collection business as defined in RCW 82.16.020.
     (4) "Solid waste utility" means a solid waste collection business as defined in RCW 82.18.010.
     (5) "Cable service utility" means a person providing cable service as defined in the federal telecommunications act of 1996.
     (6) "Electric utility" means a light and power business as defined in RCW 82.16.010.
     (7) "Natural gas utility" means a gas distribution business as defined in RCW 82.16.010.
     (8) "Utility" means a telephone utility, water utility, sewer utility, solid waste utility, cable service utility, electric utility, or natural gas utility.
     (9) "Gross income of the business" is defined as provided in RCW 82.04.080.

NEW SECTION.  Sec. 2   (1) The legislative authority of a county, by resolution or ordinance, may impose an excise tax on the privilege of engaging in business as a utility within the unincorporated territory of the county. The tax is equal to the gross income of the business multiplied by a rate not exceeding six percent.
     (2) Taxes imposed under this section must apply uniformly throughout the unincorporated territory of the county.
     (3) The utility must add a tax imposed under this section to the rates or charges it makes for utility services and separately state the amount of tax on billings.
     (4) The resolution or ordinance adopted must provide a credit against the county utility tax imposed under this chapter for the full amount of any city utility tax imposed upon the same taxable event so that the combined utilities' taxes do not exceed six percent.

NEW SECTION.  Sec. 3   Thirty percent of the revenues received from taxes imposed under this chapter must be used exclusively for criminal justice purposes as defined in RCW 82.14.340.

NEW SECTION.  Sec. 4   Any county in which a public utility district operates works, plants, or facilities for the distribution and sale of electricity has the power to levy and collect from such district a tax on the gross revenues derived by such district from the sale of electricity within the county, exclusive of the revenues derived from the sale of electricity for purposes of resale. Such tax when levied is a debt of the district, and may be collected as such. Any such district has the power to add the amount of such tax to the rates or charges it makes for electricity so sold within the limits of such city or town.

Sec. 5   RCW 82.14.450 and 2007 c 380 s 1 are each amended to read as follows:
     (1) Until July 1, 2009, a county legislative authority may submit an authorizing proposition to the county voters at a primary or general election and, if the proposition is approved by a majority of persons voting, impose a sales and use tax in accordance with the terms of this chapter. The title of each ballot measure must clearly state the purposes for which the proposed sales and use tax will be used. ((Funds raised under this tax shall not supplant existing funds used for these purposes. For purposes of this subsection, existing funds means the actual operating expenditures for the calendar year in which the ballot measure is approved by voters. Actual operating expenditures excludes lost federal funds, lost or expired state grants or loans, extraordinary events not likely to reoccur, changes in contract provisions beyond the control of the county or city receiving the services, and major nonrecurring capital expenditures.)) The rate of tax under this section shall not exceed three-tenths of one percent of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax.
     (2) Beginning July 1, 2009, a county legislative authority may, by resolution or ordinance, impose a sales and use tax in accordance with the terms of this chapter, provided that such sales and use tax is subject to repeal by referendum, using the procedures provided in RCW 82.14.036. The referendum procedure provided in RCW 82.14.036 is the exclusive method for subjecting any county sales and use tax ordinance or resolution to a referendum vote. The rate of tax under this subsection may not exceed three-tenths of one percent of the selling price in the case of a sales tax, or value of the article used, in the case of a use tax.
     (3) The tax authorized in this section is in addition to any other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the county.
     (((3))) (4) The retail sale or use of motor vehicles, and the lease of motor vehicles for up to the first thirty-six months of the lease, are exempt from tax imposed under this section.
     (((4))) (5) One-third of all money received under this section shall be used solely for criminal justice purposes and fire protection purposes. For the purposes of this subsection, "criminal justice purposes" ((means additional police protection, mitigation of congested court systems, or relief of overcrowded jails or other local correctional facilities)) has the same meaning as in RCW 82.14.340.
     (((5))) (6)(a) Money received under subsections (1) and (2) of this section shall be shared between the county and the cities as follows: Sixty percent shall be retained by the county and forty percent shall be distributed on a per capita basis to cities in the county.
     (b) A tax imposed under subsection (1) of this section continues until repealed or expires.
     (c) If a county has imposed a sales and use tax with a rate of tax equal to three-tenths of one percent under subsection (1) of this section, the tax authorized in subsection (2) of this section is not available to the county or any city within the county.
     (d) If a county has imposed a sales and use tax with a rate of tax less than three-tenths of one percent under subsection (1) of this section, a county may impose an additional sales and use tax under subsection (2) of this section so that the combined rate of tax does not exceed three-tenths of one percent.

NEW SECTION.  Sec. 6   Sections 1 through 4 of this act constitute a new chapter in Title 82 RCW.

NEW SECTION.  Sec. 7   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2009.