H-3761.1  _______________________________________________

 

                          HOUSE BILL 2964

          _______________________________________________

 

State of Washington      56th Legislature     2000 Regular Session

 

By Representatives H. Sommers, Fisher, Radcliff, D. Schmidt, Cooper, McIntire, Kessler, Murray, Kagi, Constantine, Kenney, Edmonds, Cody, Dickerson, Edwards, Scott, Regala, Tokuda, Keiser, O'Brien, Haigh and Veloria

 

Read first time 01/27/2000.  Referred to Committee on Appropriations.

Allowing a sales and use tax for regional transportation authorities.


    AN ACT Relating to a sales and use tax for regional transit authorities; adding a new section to chapter 82.14 RCW; creating a new section; and providing an expiration date.

 

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

 

    NEW SECTION.  Sec. 1.  The legislature recognizes that existing transportation facilities in the central Puget Sound region are inadequate to address mobility needs of the area.  The geography of the region, growth in demand for travel, and public resistance to new roadways combine to further necessitate the rapid development of alternative modes of travel.

    The legislature has found and declared in RCW 47.06.140 that transportation facilities and services of high-capacity transportation systems are of state-wide significance.  Pursuant to RCW 81.104.140, the legislature has also declared that agencies authorized to provide high-capacity transportation service, including regional transit authorities, should seek other funds in addition to dedicated funding sources, including federal, state, local, and private sector assistance.

    The imposition of state taxes on the purchase of the goods, services, and activities necessary to construct a multicounty high-capacity transportation system reduces the revenues available to successfully implement such a system.  The credit provided by section 2 of this act would facilitate the expansion of high-capacity transportation services by offsetting the taxes paid by regional transit authorities.

    The legislature intends that the savings resulting from the credit provided in section 2 of this act will provide additional funds for the planning and construction of high-capacity transportation systems.

 

    NEW SECTION.  Sec. 2.  A new section is added to chapter 82.14 RCW to read as follows:

    (1) The legislative authority of a regional transit authority 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 regional transit authority district.  The rate of the amount shall not exceed 0.065 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) 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 regional transit authority at no cost to the regional transit authority.

    (3) Moneys collected under this section shall only be used for the purpose of planning and constructing a high-capacity transportation system.

    (4) As used in this section:

    (a) "Regional transit authority" means an authority authorized under chapter 81.112 RCW; and

    (b) "High-capacity transportation system" has the same meaning as provided in RCW 81.104.015.

 

    NEW SECTION.  Sec. 3.  This act expires when the high-capacity transportation system has been completed, or January 1, 2007, whichever occurs first.

 


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