Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Finance Committee

HB 1653

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Bill

Increases the maximum rate for the voter approved local sales and use tax for emergency communications systems and facilities from 0.1% to 0.2%.
Allows counties to increase their tax rate with voter approval.

Background:

Emergency Communications System and Facilities Local Sales and Use Tax.

Counties may levy a sales and use tax to fund costs associated with emergency communication systems and facilities (emergency communications sales and use tax) with voter approval. The maximum tax rate is 0.1 percent. The funds may be used for costs associated with financing, design, acquisition, construction, equipping, operating, maintaining, remodeling, repairing, reequipping, and improvement of emergency communication systems and facilities.

Counties are authorized to develop joint ventures to collocate emergency communication systems and facilities. If a county provides emergency communication services to a governmental agency pursuant to a contract, the parties to the contract must review and negotiate the terms prior to submitting the tax authorization to voters. If a county has a population of more than 500,000 in which any city with a population over 50,000 operates emergency communication system and facilities, the county must enter an inter-local agreement with the city to determine distribution of revenue prior to submitting the authorizing ballot to the voters.

Summary of Bill:

The maximum rate for the emergency communications sales and use tax is increased from 0.1 percent to 0.2 percent. In order for counties to increase the tax rate, they must receive voter approval.