H-2189.1  _______________________________________________

                          HOUSE BILL 2260

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Representatives Eickmeyer, Alexander, Mulliken, Kessler, McMorris, Grant, Parlette, Doumit, Clements, Linville, Mielke, Koster, DeBolt, Cox, Pennington, Dunn, Crouse, Sump, Ericksen, Veloria, Mastin, Hankins, Murray, Van Luven, Skinner, Schoesler, Hatfield, Conway, Kenney, Rockefeller, Thomas, Lantz, Barlean and Haigh

Read first time 03/03/1999.  Referred to Committee on Finance.

Promoting the creation and the retention of jobs.

    AN ACT Relating to tax incentives in rural counties; amending RCW 82.14.370; and creating new sections.

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

NEW SECTION. Sec. 1.  It is the intent of the legislature to promote the creation and the retention of jobs.  To that end section 2 of this act allows counties to provide public facilities that will attract and retain businesses, thereby creating and maintaining jobs.

    Sec. 2.  RCW 82.14.370 and 1998 c 55 s 6 are each amended to read as follows:

    (1)(a) The legislative authority of a ((distressed)) rural county with a population density of sixty or fewer persons per square mile, as determined by the office of financial management, may impose a sales and use tax in accordance with the terms of this chapter.  The tax is in addition to 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.  The rate of tax shall not exceed ((0.04)) 0.08 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.

(b) The legislative authority of a rural county with a population density greater than sixty persons per square mile but less than one hundred persons per square mile, as determined by the office of financial management, may impose a sales and use tax in accordance with the terms of this chapter.  The tax is in addition to 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.  The rate of tax shall not exceed 0.04 percent of the selling price in the case of a sales tax or the value of the article used in the case of a use tax.

    (2) The tax imposed under subsection (1) of this section shall be deducted from the amount of tax otherwise required to be collected or paid over to the department of revenue under chapter 82.08 or 82.12 RCW.  The department of revenue shall perform the collection of such taxes on behalf of the county at no cost to the county.

    (3) Moneys collected under this section shall only be used for the purpose of financing qualifying public facilities in rural counties.  The public facility must be listed as an item in the county's capital facilities plan or the capital facilities plan of a city or town located within the county.  In implementing this section, the county shall consult with cities, towns, and port districts within the county.

    (4) No tax may be collected under this section before July 1, 1998.  No tax may be collected under this section by a county more than twenty-five years after the date that a tax is first imposed under this section.

    (5) For purposes of this section((, "distressed county")):

(a) "Rural county" means a county ((in which the average level of unemployment for the three years before the year in which a tax is first imposed under this section exceeds the average state unemployment for those years by twenty percent)) with a population density of fewer than one hundred persons per square mile, as determined by the office of financial management.

(b) "Public facilities" means a project of a local government for the planning, acquisition, construction, repair, reconstruction, replacement, rehabilitation, or improvement of bridges, roads, domestic and industrial water, flood control, earth stabilization, sanitary sewer, storm sewer, railroad, electricity, natural gas, telecommunications, buildings or structures, and port facilities, all for the purpose of job creation, job retention, or job expansion.

NEW SECTION. Sec. 3.  It is the intent of the legislature that a county imposing a tax under RCW 82.14.370 use that money for targeted and effective projects that benefit the public.  Therefore, the amendments in section 2 of this act apply to any ordinance adopted under RCW 82.14.370.

                            --- END ---