HOUSE BILL REPORT

EHB 1034

BYRepresentatives Fisher, Walk, Vekich, Madsen, Walker, Fisch, Spanel, Hine, H. Sommers, Jacobsen, Todd, Bristow, Cantwell, K. Wilson, Leonard, Lux, Unsoeld, Allen, Grimm, Winsley, Baugher, Nelson, Scott, Ebersole, Cole, Niemi, Sutherland, Brekke, Wang, Basich, Wineberry and P. King 

Establishing the rail development account.

House Committe on Transportation

Majority Report:  Do pass with amendment.  (16)

      Signed by Representatives Walk, Chair; Baugher, Vice Chair; Cantwell, Cooper, Day, Dellwo, Fisch, Fisher, Gallagher, Haugen, Heavey, Meyers, Spanel, Todd, Vekich and K. Wilson.

Minority Report:  Do not pass.  (9)

      Signed by Representatives Betrozoff, Doty, Patrick, Prince, Schmidt, C. Smith, D. Sommers, J. Williams and S. Wilson.

House Staff:Gene Schlatter (786-7316)

AS PASSED HOUSE MARCH 19, 1987

BACKGROUND:

Local governments may receive up to 1.0 percent of motor vehicle excise taxes collected from their jurisdiction, provided they levy a local option tax for the purpose of funding public transportation systems.  Of the 21 transit systems, 18 of them levy a local option transit sales tax.  The local option transit sales tax is imposed at a rate of up to 0.6 percent.

If a tax package passes the legislature which substantially expands the base to which sales taxes are applied, transit districts will receive revenues in excess of what had been projected for the 1987-89 biennium.

SUMMARY:

The authority for transit districts to levy a local motor vehicle excise tax would be reduced from 1.0 percent to 0.8 percent if an expansion of the sales tax base generates new sales tax revenues for transit districts in excess of $34 million.

The 0.2 percent motor vehicle excise tax will produce about $34 million which is deposited in the State Rail Development Account.

EFFECT OF SENATE AMENDMENT(S):  Authorization of municipalities to levy and collect an eight-tenths of one percent option local motor vehicle excise tax is eliminated.  Instead, those municipalities that meet certain criteria are authorized to levy a local option motor vehicle excise tax not exceeding ninety-nine one-hundredths of one percent and all other municipalities are authorized to levy up to one percent.  Municipalities authorized to collect the ninety-nine one-hundredths of one percent include:  a) any municipality within a class AA county, b) municipalities within a class A county contiguous to a class AA county, and c) municipalities within a second class county that is contiguous to a class AA county.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Jeanette Williams, Seattle City Council and Puget Sound Council of Governments; Tim Frederickson, Washington State Transit Association; Tom Stenger, Tacoma City Council and Pierce County Transit; Karl Kottman, Washington State Council of Farmers Cooperatives; William Anderson, Tacoma/Pierce County Citizens for Rail Transit; Ron Tober, METRO; Duane Berentson, Department of Transportation.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Transit agencies will not be required to participate in the Rail Development Account unless sales tax to services is passed by the legislature.

House Committee - Testimony Against:      None Presented.

VOTE ON FINAL PASSAGE:

      Yeas 64; Nays 31; Absent 1; Excused 2

Voting Nay: Representatives Amondson, Ballard, Barnes, Beck, Betrozoff, Brooks, Brough, Bumgarner, Chandler, Doty, Ferguson, Fuhrman, Hankins, Holland, Lewis, May, McLean, Miller, Nealey, Prince, Sanders, Schmidt, Schoon, Silver, C. Smith, L. Smith, D. Sommers, Taylor, B. Williams, J. Williams and S. Wilson

Absent:     Representative Padden 

Excused:    Representatives Moyer and Pruitt