AN ACT Relating to environment; amending RCW 82.08.020, 82.12.020, 82.12.045, and 43.99.110; adding a new section to chapter 43.99 RCW; creating a new section; and providing an effective date.

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

Sec. 1. Section 1, chapter 32, Laws of 1985 and RCW 82.08.020 are each amended to read as follows:

(1) There is levied and there shall be collected a tax on each retail sale in this state equal to six and five-tenths percent of the selling price.

(2) In addition to the tax imposed under subsection (1) of this section, there is levied and shall be collected on each retail sale in this state an additional tax equal to one-tenth of one percent of the selling price. Moneys collected under this subsection shall be deposited as provided in section 4 of this 1986 act.

(3) The tax imposed under this chapter shall apply to successive retail sales of the same property.

((~~(3)~~)) (4) The rates provided in this section ((~~applies~~)) apply to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020.

Sec. 2. Section 82.12.020, chapter 15, Laws of 1961 as last amended by section 7, chapter 7, Laws of 1983 and RCW 82.12.020 are each amended to read as follows:

(1) There is hereby levied and there shall be collected from every person in this state a tax or excise for the privilege of using within this state as a consumer any article of tangible personal property purchased at retail, or acquired by lease, gift, repossession, or bailment, or extracted or produced or manufactured by the person so using the same, or otherwise furnished to a person engaged in any business taxable under RCW 82.04.280, subsections (2) or (7). This tax will not apply with respect to the use of any article of tangible personal property purchased, extracted, produced or manufactured outside this state until the transportation of such article has finally ended or until such article has become commingled with the general mass of property in this state. This tax shall apply to the use of every article of tangible personal property, including property acquired at a casual or isolated sale, and including byproducts used by the manufacturer thereof, except as hereinafter provided, irrespective of whether the article or similar articles are manufactured or are available for purchase within this state. Except as provided in RCW 82.12.0252, payment by one purchaser or user of tangible personal property of the tax imposed by chapter 82.08 or 82.12 RCW shall not have the effect of exempting any other purchaser or user of the same property from the taxes imposed by such chapters. The tax shall be levied and collected in an amount equal to the value of the article used by the taxpayer multiplied by the rate in effect for the retail sales tax under RCW 82.08.020, as now or hereafter amended, in the county in which the article is used.

(2) The moneys collected under this section which result from a rate of one-tenth of one percent of the value of the article used shall be deposited as provided in section 4 of this 1986 act.

Sec. 3. Section 82.12.045, chapter 15, Laws of 1961 as last amended by section 2, chapter 77, Laws of 1983 and RCW 82.12.045 are each amended to read as follows:

In the collection of the use tax on motor vehicles, the department of revenue may designate the county auditors of the several counties of the state as its collecting agents. Upon such designation, it shall be the duty of each county auditor to collect the tax at the time an applicant applies for the registration of, and transfer of title to, the motor vehicle, except in the following instances: (1) Where the applicant exhibits a dealer's report of sale showing that the retail sales tax has been collected by the dealer; (2) where the application is for the renewal of registration; (3) where the applicant presents a written statement signed by the department of revenue, or its duly authorized agent showing that no use tax is legally due; or (4) where the applicant presents satisfactory evidence showing that the retail sales tax or the use tax has been paid by him on the vehicle in question. The term "motor vehicle," as used in this section means and includes all motor vehicles, trailers and semitrailers used, or of a type designed primarily to be used, upon the public streets and highways, for the convenience or pleasure of the owner, or for the conveyance, for hire or otherwise, of persons or property, including fixed loads, facilities for human habitation, and vehicles carrying exempt licenses. It shall be the duty of every applicant for registration and transfer of certificate of title who is subject to payment of tax under this section to declare upon his application the value of the vehicle for which application is made, which shall consist of the consideration paid or contracted to be paid therefor. Any person wilfully misrepresenting, or failing or refusing to declare upon his application, such value shall be guilty of a gross misdemeanor.

Each county auditor who acts as agent of the department of revenue shall at the time of remitting license fee receipts on motor vehicles subject to the provisions of this section pay over and account to the state treasurer for all use tax revenue collected under this section, after first deducting as his collection fee the sum of two dollars for each motor vehicle upon which the tax has been collected. Except as provided in RCW 82.12.020, all revenue received by the state treasurer under this section shall be credited to the general fund. The auditor's collection fee shall be deposited in the county current expense fund. A duplicate of the county auditor's transmittal report to the state treasurer shall be forwarded forthwith to the department of revenue.

Any applicant who has paid use tax to a county auditor under this section may apply to the department of revenue for refund thereof if he has reason to believe that such tax was not legally due and owing. No refund shall be allowed unless application therefor is received by the department of revenue within two years after payment of the tax. Upon receipt of an application for refund the department of revenue shall consider the same and issue its order either granting or denying it and if refund is denied the taxpayer shall have the right of appeal as provided in RCW 82.32.170, 82.32.180 and 82.32.190.

The provisions of this section shall be construed as cumulative of other methods prescribed in chapters 82.04 to 82.32 RCW, inclusive, for the collection of the tax imposed by this chapter. The department of revenue shall have power to promulgate such rules and regulations as may be necessary to administer the provisions of this section. Any duties required by this section to be performed by the county auditor may be performed by the director of licensing but no collection fee shall be deductible by said director in remitting use tax revenue to the state treasurer.

NEW SECTION. Sec. 4. A new section is added to chapter 43.99 RCW to read as follows:

(1) The moneys collected under RCW 82.08.020(2) and 82.12.020(2) shall be deposited as follows:

(a) One-third into the outdoor recreation account;

(b) One-third into the wildlife account hereby created in the state treasury; and

(2) Moneys deposited in the outdoor recreation account under this section shall be used for the immediate and long-range planning, acquisition, development, improvement, redevelopment, rehabilitation, renovation, completion, and preservation of outdoor recreation areas and facilities or for making debt service payments for bonds issued for these purposes. Seventy-five percent of these moneys shall be used by local government for these purposes, and twenty-five percent of these moneys shall be used by the state for these purposes.

(3) The wildlife account shall be administered by the interagency committee for outdoor recreation and shall be used for programs and projects related to fish and wildlife conservation and recreation. Moneys in the wildlife account shall be divided as follows:

(a) Not less than forty percent to state agencies, upon application, for eligible programs and projects. "State agencies" include the Washington departments of fisheries, game, natural resources, and ecology, the state parks and recreation commission, and the office of the superintendent of public instruction.

(b) Not less than forty percent to local agencies, upon application, for eligible programs and projects. "Local agencies" means those public bodies defined in RCW 43.99.020(2).

The interagency committee for outdoor recreation shall adopt rules for the distribution of funds from the wildlife account.

(4) The wildlife habitat account shall be administered by the interagency committee for outdoor recreation and shall be used for programs and projects related to fish and wildlife habitat protection, management, and recreation. Applications for funding of eligible projects and programs may be made by state agencies, local agencies, and nonprofit organizations. "State agencies" include the Washington departments of game, natural resources, fisheries, and ecology, the state parks and recreation commission, and the office of the superintendent of public instruction. "Local agencies" means those public bodies defined in RCW 43.99.020(2). "Nonprofit organizations" include nature conservancy corporations as defined in RCW 64.04.130 and other tax exempt organizations with a primary purpose of promoting fish and wildlife habitat protection, environmental education, or wildlife recreation. Moneys in the wildlife habitat account shall be divided as follows:

(a) Not less than twenty-five percent to fish and wildlife recreation projects and programs. Eligible projects and programs shall include, but not be limited to, obtaining public access, building trails, interpretive programs, natural area acquisition and management, and wildlife population enhancement.

(b) Not less than twenty-five percent for the acquisition and management of critical habitat for endangered, threatened, and sensitive species and representative high quality native ecosystems as defined in the State of Washington Natural Heritage Plan.

(c) Not less than ten percent for conservation and environmental education programs and projects. Eligible projects and programs shall include youth-oriented habitat enhancement projects, teacher training, and research.

Sec. 5. Section 84, chapter 287, Laws of 1984 as amended by section 1, chapter 77, Laws of 1985 and RCW 43.99.110 are each amended to read as follows:

There is created the interagency committee for outdoor recreation consisting of the commissioner of public lands, the director of parks and recreation, the director of game, the director of fisheries, or their designees, and, by appointment of the governor with the advice and consent of the senate, five members from the public at large who have a demonstrated interest in and a general knowledge of outdoor recreation and wildlife in the state. The terms of members appointed from the public at large shall commence on January 1st of the year of appointment and shall be for three years or until a successor is appointed, except in the case of appointments to fill vacancies which shall be for the remainder of the unexpired term; provided the first such members shall be appointed for terms as follows: One member for one year, two members for two years, and two members for three years. The governor shall appoint one of the members from the public at large to serve as chairman of the committee for the duration of the member's term. Members employed by the state shall serve without additional pay and participation in the work of the committee shall be deemed performance of their employment. Members from the public at large shall be compensated in accordance with RCW 43.03.240 and shall be entitled to reimbursement individually for travel expenses incurred in performance of their duties as members of the committee in accordance with RCW 43.03.050 and 43.03.060.

NEW SECTION. Sec. 6. This act shall take effect January 1, 1987.

NEW SECTION. Sec. 7. This act constitutes an alternative to Initiative 90. The secretary of state shall place this act on the ballot in conjunction with Initiative 90 at the next general election.