AN ACT Relating to the marine transportation benefit area; amending RCW 82.44.020, 84.52.010, 84.52.043, 47.60.543, 46.68.030, 46.68.035, 46.68.100, 82.14.050, and 82.14.060; reenacting and amending RCW 46.68.030; adding a new section to chapter 82.14 RCW; adding a new section to chapter 84.55 RCW; creating a new chapter in Title 36 RCW; creating new sections; repealing RCW 47.60.530 and 47.60.540; and providing effective dates.

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

NEW SECTION. Sec. 1. The definitions set forth in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "MTBA" means the marine transportation benefit area created by section 2 of this act.

(2) "Authority" means the governing body of the MTBA.

(3) "Puget Sound ferry system" means the ferry system operated under the name "Washington State Ferries" before July 1, 1987, and any extensions or modifications of the system after July 1, 1987.

NEW SECTION. Sec. 2. (1) The marine transportation benefit area, consisting of the counties of Clallam, Island, Jefferson, King, Kitsap, Pierce, San Juan, Skagit, Snohomish, and Whatcom is created as a municipal corporation of this state.

(2) The governing body of the MTBA is the marine transportation benefit area authority, to be composed of ten members, one from each county in the MTBA. Each county shall have one representative, who shall be an elected member of the county's legislative authority, selected by the members of the legislative authority, and shall hold membership on the authority at the pleasure of the county's legislative authority.

(3) The chairman of the authority shall be selected by the members of the authority.

NEW SECTION. Sec. 3. The authority shall exercise all powers and perform all duties necessary to operate and maintain the Puget Sound ferry system except those relating to the acquisition, construction, or improvements to vessels, terminals, and other major facilities of the system.

NEW SECTION. Sec. 4. All powers and duties of the department of transportation and the transportation commission relating to the operation and maintenance of the Puget Sound ferry system except those relating to the acquisition, construction, or improvements to vessels, terminals, and other major facilities of the system are transferred to the marine transportation benefit area authority.

NEW SECTION. Sec. 5. The MTBA may impose a regular property tax in an amount equal to thirty cents or less per thousand dollars of assessed value of property in the MTBA. Revenues from the property tax shall be used exclusively for the operation and maintenance of the Puget Sound ferry system.

NEW SECTION. Sec. 6. A new section is added to chapter 82.14 RCW to read as follows:

The marine transportation benefit area authority may impose a sales and use tax. The tax 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 marine transportation benefit area. The rate of the tax shall not exceed two-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).

Revenues from the sales and use tax shall be used exclusively for the operation and maintenance of the Puget Sound ferry system.

NEW SECTION. Sec. 7. (1) The marine transportation account is created in the motor vehicle fund. Revenues deposited in this account in a biennium under RCW 82.44.020(6) shall first be used to meet the requirements of subsection (2) of this section. Revenues not required for this purpose shall be transferred to the motor vehicle fund.

(2) During each calendar year, the state treasurer shall distribute revenues deposited in the marine transportation account to the MTBA in an amount equal to the smaller of the following amounts:

(a) The amount of tax revenues received from the taxes authorized under sections 5 and 6 of this act that are expended for the operation and maintenance of the Puget Sound ferry system during the year; or

(b) An amount equal to twenty-five percent of the total operating and maintenance expenses of the Puget Sound ferry system incurred by the authority during the year.

(3) Revenues distributed to the MTBA shall be used exclusively for the purpose of operating and maintaining the Puget Sound ferry system.

Sec. 8. Section 82.44.020, chapter 15, Laws of 1961 as last amended by section 19, chapter 3, Laws of 1983 2nd ex. sess. and RCW 82.44.020 are each amended to read as follows:

(1) An excise tax is imposed for the privilege of using in the state any motor vehicle, except those operated under reciprocal agreements, the provisions of RCW 46.16.160 as now or hereafter amended, or dealer's licenses. The annual amount of such excise tax shall be two percent of the fair market value of such vehicle.

(2) From and after August 1, 1978, and until August 1, 2008, an additional excise tax is imposed, in addition to any other tax imposed by this section, for the privilege of using in the state any such motor vehicle, and the annual amount of such additional excise shall be two-tenths of one percent of the fair market value of such vehicle.

(3) The department of licensing and county auditors shall collect the additional tax imposed by subsections (2) and (6) of this section for any registration year for the months of that registration year in which such additional tax is effective, and in the same manner and at the same time as the tax imposed by subsection (1) of this section.

(4) In no case shall the total tax be less than two dollars except for proportionally registered vehicles.

(5) An additional tax is imposed equal to the taxes payable under subsections (1) and (2) of this section multiplied by the rate specified in RCW 82.02.030.

(6) From and after July 1, 1987, an additional excise tax is imposed in addition to any other tax imposed by this section, for the privilege of using in this state any motor vehicle, and the annual amount of such additional excise tax shall be two-tenths of one percent of the fair market value of such vehicle. Revenues from this additional tax shall be deposited in the marine transportation account of the motor vehicle fund.

Sec. 9. Section 84.52.010, chapter 15, Laws of 1961 as last amended by section 101, chapter 195, Laws of 1973 1st ex. sess. and RCW 84.52.010 are each amended to read as follows:

All taxes shall be levied or voted in specific amounts, and the rate percent of all taxes for state and county purposes, and purposes of taxing districts coextensive with the county, shall be determined, calculated, and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the county, as shown by the completed tax rolls of the county, and the rate percent of all taxes levied for purposes of taxing districts within any county shall be determined, calculated, and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the taxing districts respectively: PROVIDED, That when any such county assessor shall find that the aggregate rate of levy on any property will exceed the limitation set forth in RCW 84.52.043 and RCW 84.52.050 as now or hereafter amended, he shall recompute and establish a consolidated levy in the following manner:

(1) He shall include for extension on the tax rolls the full rates of levy certified to him for state, county, county road districts, city, and school district purposes in amounts not exceeding the limitations established by law: PROVIDED, That in the event of a levy made pursuant to RCW 84.34.230, the rates of levy for county, county road district, and school district purposes shall be reduced in such uniform percentages as will result in a consolidated levy by such taxing districts which will be no greater on any property than a consolidated levy by such taxing districts would be if the levy had not been made pursuant to RCW 84.34.230, and

(2) He shall include for extension on the tax rolls the full rate of levy certified to him by the marine transportation benefit area authority in an amount not exceeding any limitations established by law.

(3) He shall include for extension on the tax rolls the rates percent of the tax levies certified to him by all other taxing districts imposing taxes on such property, other than port districts and public utility districts, reduced by him in such uniform percentages as will bring the consolidated tax levy on such property within the provisions of such limitation.

Sec. 10. Section 134, chapter 195, Laws of 1973 1st ex. sess. and RCW 84.52.043 are each amended to read as follows:

Within and subject to the limitations imposed by RCW 84.52.050 as amended, the regular ad valorem tax levies upon real and personal property by the taxing districts hereafter named shall be as follows: The levy by the state shall not exceed three dollars and sixty cents per thousand dollars of assessed value adjusted to the state equalized value in accordance with the indicated ratio fixed by the state department of revenue to be used exclusively for the support of the common schools; the levy by any county shall not exceed one dollar and eighty cents per thousand dollars of assessed value; the levy for any road district shall not exceed two dollars and twenty-five cents per thousand dollars of assessed value; and the levy by or for any city or town shall not exceed three dollars and thirty-seven and one-half cents per thousand dollars of assessed value: PROVIDED FURTHER, That counties of the fifth class and under are hereby authorized to levy from one dollar and eighty cents to two dollars and forty-seven and one-half cents per thousand dollars of assessed value for general county purposes and from one dollar and fifty-seven and one-half cents to two dollars and twenty-five cents per thousand dollars of assessed value for county road purposes if the total levy for both purposes does not exceed four dollars and five cents per thousand dollars of assessed value: PROVIDED FURTHER, That counties of the fourth and the ninth class are hereby authorized to levy two dollars and two and one-half cents per thousand dollars of assessed value until such time as the junior taxing agencies are utilizing all the dollar rates available to them: AND PROVIDED FURTHER, That the total property tax levy authorized by law without a vote of the people shall not exceed nine dollars and fifteen cents per thousand dollars of assessed value. Levies at the rates provided by ((~~existing~~)) law by or for the marine transportation benefit area or any port or public utility district shall not be included in the limitation set forth by this proviso.

Nothing herein shall prevent levies at the rates provided by ((~~existing~~)) law by or for the marine transportation benefit area or any port or power district.

It is the intent of the legislature that the provisions of this section shall supersede all conflicting provisions of law including section 24, chapter 299, Laws of 1971 ex. sess. and section 8, chapter 124, Laws of 1972 ex. sess.

NEW SECTION. Sec. 11. A new section is added to chapter 84.55 RCW to read as follows:

This chapter shall not apply to a levy made by the marine transportation benefit area authority.

Sec. 12. Section 7, chapter 27, Laws of 1979 and RCW 47.60.543 are each amended to read as follows:

Any state funds expended from the motor vehicle fund pursuant to the appropriations contained in sections 5 and 6 of ((~~this~~)) chapter 27, Laws of 1979 ((~~act~~)) which are not reimbursed by federal emergency relief funds or by insurance settlements shall be repaid to the motor vehicle fund from the Puget Sound capital construction account ((~~and the Puget Sound ferry operations account~~)) of the motor vehicle fund before July 1, 1990.

Sec. 13. Section 46.68.030, chapter 12, Laws of 1961 as last amended by section 122, chapter 3, Laws of 1983 and by section 23, chapter 15, Laws of 1983 and RCW 46.68.030 are each reenacted and amended to read as follows:

All fees received by the director for vehicle licenses under the provisions of chapter 46.16 RCW shall be forwarded to the state treasurer, accompanied by a proper identifying detailed report, and be by him deposited to the credit of the motor vehicle fund, except that the proceeds from the vehicle license fee and renewal license fee shall be deposited by the state treasurer as hereinafter provided. After July 1, 1981, that portion of each vehicle license fee in excess of $7.40 and that portion of each renewal license fee in excess of $3.40 shall be deposited in the state patrol highway account in the motor vehicle fund, hereby created. Vehicle license fees, renewal license fees, and all other funds in the state patrol highway account shall be for the sole use of the Washington state patrol for highway activities of the Washington state patrol, subject to proper appropriations and reappropriations therefor, for any fiscal biennium after June 30, 1981((, and twenty-seven and three-tenths percent of the proceeds from $7.40 of each vehicle license fee and $3.40 of each renewal license fee shall be deposited each biennium in the Puget Sound ferry operations account to partially finance, together with other funds in the account, any budgeted state ferry system maintenance and operating deficit for that biennium. The deficit shall be calculated by subtracting from total costs the sum of all unappropriated funds available to the state ferry system, including revenues from tolls that are adjusted by the transportation commission)). Any remaining amounts of vehicle license fees and renewal license fees that are not deposited in the ((~~Puget Sound ferry operations~~)) state patrol highway account shall be deposited in the motor vehicle fund.

Sec. 14. Section 20, chapter 380, Laws of 1985 and RCW 46.68.030 are each amended to read as follows:

Except for proceeds from fees for vehicle licensing for vehicles paying such fees under RCW 46.16.070 and 46.16.085, all fees received by the director for vehicle licenses under the provisions of chapter 46.16 RCW shall be forwarded to the state treasurer, accompanied by a proper identifying detailed report, and be by him deposited to the credit of the motor vehicle fund, except that the proceeds from the vehicle license fee and renewal license fee shall be deposited by the state treasurer as hereinafter provided. After July 1, 1981, that portion of each vehicle license fee in excess of $7.40 and that portion of each renewal license fee in excess of $3.40 shall be deposited in the state patrol highway account in the motor vehicle fund, hereby created. Vehicle license fees, renewal license fees, and all other funds in the state patrol highway account shall be for the sole use of the Washington state patrol for highway activities of the Washington state patrol, subject to proper appropriations and reappropriations therefor, for any fiscal biennium after June 30, 1981((, and twenty-seven and three-tenths percent of the proceeds from $7.40 of each vehicle license fee and $3.40 of each renewal license fee shall be deposited each biennium in the Puget Sound ferry operations account to partially finance, together with other funds in the account, any budgeted state ferry system maintenance and operating deficit for that biennium. The deficit shall be calculated by subtracting from total costs the sum of all unappropriated funds available to the state ferry system, including revenues from tolls that are adjusted by the transportation commission)). Any remaining amounts of vehicle license fees and renewal license fees that are not deposited in the ((~~Puget Sound ferry operations~~)) state patrol highway account shall be deposited in the motor vehicle fund.

Sec. 15. Section 21, chapter 380, Laws of 1985 and RCW 46.68.035 are each amended to read as follows:

All proceeds from combined vehicle licensing fees received by the director for vehicles licensed under RCW 46.16.070 and 46.16.085 shall be forwarded to the state treasurer to be distributed into accounts according to the following method:

(1) 34.644 percent, representing the vehicle licensing fee, shall be distributed according to the following formula:

(a) 76.772 percent shall be deposited into the state patrol highway account of the motor vehicle fund;

(b) ((~~6.348 percent shall be deposited into the Puget Sound ferry operations account of the motor vehicle fund;~~

~~(c) 16.880~~)) 23.228 percent shall be deposited into the motor vehicle fund.

(2) The sum of one dollar for each vehicle shall be deposited into the highway safety fund, except that for each vehicle registered by a county auditor or agent to a county auditor pursuant to RCW 46.01.140, the sum of one dollar shall be credited to the current county expense fund.

(3) The remaining proceeds, representing the gross vehicle weight fee, identification fee, special fee, minimum fee, and application fee, shall be deposited into the motor vehicle fund.

Sec. 16. Section 46.68.100, chapter 12, Laws of 1961 as last amended by section 73, chapter 7, Laws of 1984 and RCW 46.68.100 are each amended to read as follows:

From the net tax amount in the motor vehicle fund there shall be paid monthly as funds accrue the following sums:

(1) To the cities and towns, to be distributed as provided by RCW 46.68.110, sums equal to ((~~six and ninety-two hundredths~~)) 7.15 percent of the net tax amount;

(2) To the cities and towns, to be expended as provided by RCW 46.68.115, sums equal to ((~~four and sixty-one hundredths~~)) 4.76 percent of the net tax amount;

(3) To the counties, sums equal to ((~~twenty-two and seventy-eight hundredths~~)) 23.52 percent of the net tax amount out of which there shall be distributed from time to time, as directed by the department of transportation, those sums as may be necessary to carry out the provisions of RCW 47.56.725, with the balance of such county share to be distributed monthly as the same accrues for distribution in accordance with RCW 46.68.120;

(4) To the urban arterial trust account in the motor vehicle fund, sums equal to ((~~seven and twelve hundredths~~)) 7.35 percent of the net tax amount;

(5) To the state, to be expended as provided by RCW 46.68.130, sums equal to ((~~forty-five and twenty-six hundredths~~)) 46.73 percent of the net tax amount;

(6) To the state, to be expended as provided by RCW 46.68.150 as now or hereafter amended, sums equal to ((~~six and ninety-five hundredths~~)) 7.18 percent of the net tax amount;

(7) To the Puget Sound reserve account in the motor vehicle fund sums equal to ((~~three and twenty-one hundredths~~)) 3.31 percent of the net tax amount((;

~~(8) To the Puget Sound ferry operations account in the motor vehicle fund sums equal to three and fifteen hundredths percent of the net tax amount~~)).

Nothing in this section or in RCW 46.68.090 or 46.68.130 may be construed so as to violate any terms or conditions contained in any highway construction bond issues now or hereafter authorized by statute and whose payment is by such statute pledged to be paid from any excise taxes on motor and special vehicle fuels.

Sec. 17. Section 6, chapter 94, Laws of 1970 ex. sess. as last amended by section 81, chapter 57, Laws of 1985 and RCW 82.14.050 are each amended to read as follows:

The marine transportation benefit area authority, counties, metropolitan municipal corporations, and cities shall contract, prior to the effective date of a resolution or ordinance imposing a sales and use tax, the administration and collection to the state department of revenue, which shall deduct a percentage amount, as provided by contract, not to exceed two percent of the taxes collected for administration and collection expenses incurred by the department. The remainder of any portion of any tax authorized by this chapter which is collected by the department of revenue shall be deposited by the state department of revenue in the local sales and use tax account hereby created in the state treasury. Moneys in the local sales and use tax account may be spent only for distribution to the marine transportation benefit area authority, counties, metropolitan municipal corporations, and cities imposing a sales and use tax. All administrative provisions in chapters 82.03, 82.08, 82.12, and 82.32 RCW, as they now exist or may hereafter be amended, shall, insofar as they are applicable to state sales and use taxes, be applicable to taxes imposed pursuant to this chapter.

Sec. 18. Section 7, chapter 94, Laws of 1970 ex. sess. as last amended by section 11, chapter 4, Laws of 1981 2nd ex. sess. and RCW 82.14.060 are each amended to read as follows:

Bimonthly the state treasurer shall make distribution from the local sales and use tax account to the marine transportation benefit area authority, counties, metropolitan municipal corporations, and cities the amount of tax collected on behalf of the marine transportation benefit area authority, and each county, metropolitan municipal corporation, or city, less the deduction provided for in RCW 82.14.050. The state treasurer shall make the distribution under this section without appropriation.

In the event that any ordinance or resolution imposes a sales and use tax at a rate in excess of the applicable limits contained herein, such ordinance or resolution shall not be considered void in toto, but only with respect to that portion of the rate which is in excess of the applicable limits contained herein.

NEW SECTION. Sec. 19. All references to the secretary of transportation or the department of transportation in the Revised Code of Washington shall be construed to mean the marine transportation benefit area authority when referring to the functions transferred in section 4 of this act.

NEW SECTION. Sec. 20. All reports, documents, surveys, books, records, files, papers, or written material in the possession of the department of transportation and pertaining to the powers, functions, and duties transferred by section 4 of this act shall be delivered to the custody of the marine transportation benefit area authority. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the department of transportation in carrying out the powers, functions, and duties transferred by section 4 of this act shall be made available to the marine transportation benefit area authority. All funds, credits, or other assets held in connection with the powers, functions, and duties transferred by section 4 of this act shall be assigned to the marine transportation benefit area authority.

Whenever any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management shall make a determination as to the proper allocation and certify the same to the agencies concerned.

NEW SECTION. Sec. 21. All rules and all pending business before the department of transportation pertaining to the powers, functions, and duties transferred by section 4 of this act shall be continued and acted upon by the marine transportation benefit area authority. All existing contracts and obligations shall remain in full force and shall be performed by the marine transportation benefit area authority.

NEW SECTION. Sec. 22. The transfer of the powers, duties, functions, and personnel of the department of transportation shall not affect the validity of any act performed prior to the effective date of this act.

NEW SECTION. Sec. 23. Nothing contained in sections 4 or 19 through 22 of this act may be construed to alter any existing collective bargaining unit or the provisions of any existing collective bargaining agreement until the agreement has expired or until the bargaining unit has been modified by action of the marine transportation benefit area authority as provided by law.

NEW SECTION. Sec. 24. Sections 1 through 5 and 7 of this act shall constitute a new chapter in Title 36 RCW.

NEW SECTION. Sec. 25. The following acts or parts of acts are each repealed:

(1) Section 3, chapter 24, Laws of 1972 ex. sess., section 4, chapter 27, Laws of 1979 and RCW 47.60.530; and

(2) Section 4, chapter 24, Laws of 1972 ex. sess., section 334, chapter 7, Laws of 1984 and RCW 47.60.540.

NEW SECTION. Sec. 26. (1) Sections 1, 2, 5, 6, 9 through 11, 17, 18, 24, and 27 of this act shall take effect on July 1, 1986.

(2) Sections 3, 4, 12, 13, 16, 19 through 23, and 25 of this act shall take effect on July 1, 1987.

(3) Sections 14 and 15 of this act shall take effect at the same time that chapter 380, Laws of 1985 takes effect.

NEW SECTION. Sec. 27. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.