CERTIFICATION OF ENROLLMENT
HOUSE BILL 1590
Chapter 222, Laws of 2020
66TH LEGISLATURE
2020 REGULAR SESSION
AFFORDABLE HOUSING SALES AND USE TAX--COUNCILMANIC AUTHORITY
EFFECTIVE DATE: June 11, 2020
Passed by the House March 9, 2020
  Yeas 52  Nays 44
LAURIE JINKINS

Speaker of the House of Representatives
Passed by the Senate March 6, 2020
  Yeas 27  Nays 21
CYRUS HABIB

President of the Senate
CERTIFICATE
I, Bernard Dean, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 1590 as passed by the House of Representatives and the Senate on the dates hereon set forth.
BERNARD DEAN

Chief Clerk
Chief Clerk
Approved March 31, 2020 10:44 AM
FILED
March 31, 2020
JAY INSLEE

Governor of the State of Washington
Secretary of State
State of Washington

HOUSE BILL 1590

AS AMENDED BY THE SENATE
Passed Legislature - 2020 Regular Session
State of Washington
66th Legislature
2019 Regular Session
ByRepresentatives Doglio, Dolan, Macri, Cody, Gregerson, Wylie, Appleton, Robinson, Ormsby, Frame, and Davis
Read first time 01/24/19.Referred to Committee on Housing, Community Development & Veterans.
AN ACT Relating to allowing the local sales and use tax for affordable housing to be imposed by a councilmanic authority; and amending RCW 82.14.530.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 82.14.530 and 2015 3rd sp.s. c 24 s 701 are each amended to read as follows:
(1)(a)(i) A county legislative authority may submit an authorizing proposition to the county voters at a special or general election and, if the proposition is approved by a majority of persons voting, impose a sales and use tax in accordance with the terms of this chapter. The title of each ballot measure must clearly state the purposes for which the proposed sales and use tax will be used. The rate of tax under this section may not exceed one-tenth of one 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.
(ii) As an alternative to the authority provided in (a)(i) of this subsection, a county legislative authority may impose, without a proposition approved by a majority of persons voting, a sales and use tax in accordance with the terms of this chapter. The rate of tax under this section may not exceed one-tenth of one 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)(i) If a county ((with a population of one million five hundred thousand or less has not imposed))does not impose the full tax rate authorized under (a) of this subsection ((within two years of October 9, 2015))by September 30, 2020, any city legislative authority located in that county may ((submit)):
(A) Submit an authorizing proposition to the city voters at a special or general election and, if the proposition is approved by a majority of persons voting, impose the whole or remainder of the sales and use tax rate in accordance with the terms of this chapter. The title of each ballot measure must clearly state the purposes for which the proposed sales and use tax will be used;
(B) Impose, without a proposition approved by a majority of persons voting, the whole or remainder of the sales and use tax rate in accordance with the terms of this chapter.
(ii) The rate of tax under this section may not exceed one-tenth of one 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.
(((ii) If a))(iii) A county with a population of greater than one million five hundred thousand ((has not imposed the full))may impose the tax authorized under (a)(ii) of this subsection ((within three years of October 9, 2015, any city legislative authority))only if the county plans to spend at least thirty percent of the moneys collected under this section that are attributable to taxable activities or events within any city with a population greater than sixty thousand located in that county ((may submit an authorizing proposition to the city voters at a special or general election and, if the proposition is approved by a majority of persons voting, impose the whole or remainder of the sales and use tax rate in accordance with the terms of this chapter. The title of each ballot measure must clearly state the purposes for which the proposed sales and use tax will be used. The rate of tax under this section may not exceed one-tenth of one 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))within that city's boundaries.
(c) If a county imposes a tax authorized under (a) of this subsection after a city located in that county has imposed the tax authorized under (b) of this subsection, the county must provide a credit against its tax for the full amount of tax imposed by a city.
(d) The taxes authorized in this subsection are in addition to any other taxes authorized by law and must be collected from 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 for a county's tax and within a city for a city's tax.
(2)(a) Notwithstanding subsection (4) of this section, a minimum of sixty percent of the moneys collected under this section must be used for the following purposes:
(i) Constructing affordable housing, which may include new units of affordable housing within an existing structure, and facilities providing housing-related services; or
(ii) Constructing mental and behavioral health-related facilities; or
(iii) Funding the operations and maintenance costs of new units of affordable housing and facilities where housing-related programs are provided, or newly constructed evaluation and treatment centers.
(b) The affordable housing and facilities providing housing-related programs in (a)(i) of this subsection may only be provided to persons within any of the following population groups whose income is at or below sixty percent of the median income of the county imposing the tax:
(i) Persons with ((mental illness))behavioral health disabilities;
(ii) Veterans;
(iii) Senior citizens;
(iv) Homeless, or at-risk of being homeless, families with children;
(v) Unaccompanied homeless youth or young adults;
(vi) Persons with disabilities; or
(vii) Domestic violence survivors.
(c) The remainder of the moneys collected under this section must be used for the operation, delivery, or evaluation of mental and behavioral health treatment programs and services or housing-related services.
(3) A county that imposes the tax under this section must consult with a city before the county may construct any of the facilities authorized under subsection (2)(a) of this section within the city limits.
(4) A county that has not imposed the tax authorized under RCW 82.14.460 prior to October 9, 2015, but imposes the tax authorized under this section after a city in that county has imposed the tax authorized under RCW 82.14.460 prior to October 9, 2015, must enter into an interlocal agreement with that city to determine how the services and provisions described in subsection (2) of this section will be allocated and funded in the city.
(5) To carry out the purposes of subsection (2)(a) and (b) of this section, the legislative authority of the county or city imposing the tax has the authority to issue general obligation or revenue bonds within the limitations now or hereafter prescribed by the laws of this state, and may use, and is authorized to pledge, up to fifty percent of the moneys collected under this section for repayment of such bonds, in order to finance the provision or construction of affordable housing, facilities where housing-related programs are provided, or evaluation and treatment centers described in subsection (2)(a)(iii) of this section.
(6)(a) Moneys collected under this section may be used to offset reductions in state or federal funds for the purposes described in subsection (2) of this section.
(b) No more than ten percent of the moneys collected under this section may be used to supplant existing local funds.
Passed by the House March 9, 2020.
Passed by the Senate March 6, 2020.
Approved by the Governor March 31, 2020.
Filed in Office of Secretary of State March 31, 2020.
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