H-3475.3          _______________________________________________

 

                                  HOUSE BILL 2520

                  _______________________________________________

 

State of Washington              52nd Legislature             1992 Regular Session

 

By Representatives Morris, R. King, Fraser and Appelwick

 

Read first time 01/20/92.  Referred to Committee on Revenue.Abolishing the department of wildlife in-lieu tax and creating a new distribution under the county sales and use tax equalization account.


     AN ACT Relating to tax distribution to counties through the county sales and use tax equalization account; amending RCW 82.14.200; and repealing RCW 77.12.201 and 77.12.203.

 

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

 

     Sec. 1.  RCW 82.14.200 and 1991 sp.s. c 13 s 15 are each amended to read as follows:

     There is created in the state treasury a special account to be known as the "county sales and use tax equalization account."  Into this account shall be placed a portion of all motor vehicle excise tax receipts as provided in RCW 82.44.110(1)(f).  Funds in this account shall be allocated by the state treasurer according to the following procedure:

     (1) Prior to April 1st of each year the director of revenue shall inform the state treasurer of the total and the per capita levels of revenues for the unincorporated area of each county and the state-wide weighted average per capita level of revenues for the unincorporated areas of all counties imposing the sales and use tax authorized under RCW 82.14.030(1) for the previous calendar year.

     (2) At such times as distributions are made under RCW 82.44.150, ((as now or hereafter amended,)) the state treasurer shall apportion to each county imposing the sales and use tax under RCW 82.14.030(1) at the maximum rate and receiving less than one hundred fifty thousand dollars from the tax for the previous calendar year, an amount from the county sales and use tax equalization account sufficient, when added to the amount of revenues received the previous calendar year by the county, to equal one hundred fifty thousand dollars.

     The department of revenue shall establish a governmental price index as provided in this subsection.  The base year for the index shall be the end of the third quarter of 1982.  Prior to November 1, 1983, and prior to each November 1st thereafter, the department of revenue shall establish another index figure for the third quarter of that year.  The department of revenue may use the implicit price deflators for state and local government purchases of goods and services calculated by the United States department of commerce to establish the governmental price index.  Beginning on January 1, 1984, and each January 1st thereafter, the one hundred fifty thousand dollar base figure in this subsection shall be adjusted in direct proportion to the percentage change in the governmental price index from 1982 until the year before the adjustment.  Distributions made under this subsection for 1984 and thereafter shall use this adjusted base amount figure.

     (3) Subsequent to the distributions under subsection (2) of this section and at such times as distributions are made under RCW 82.44.150, ((as now or hereafter amended,)) the state treasurer shall apportion to each county imposing the sales and use tax under RCW 82.14.030(1) at the maximum rate and receiving less than seventy percent of the state-wide weighted average per capita level of revenues for the unincorporated areas of all counties as determined by the department of revenue under subsection (1) of this section, an amount from the county sales and use tax equalization account sufficient, when added to the per capita level of revenues for the unincorporated area received the previous calendar year by the county, to equal seventy percent of the state-wide weighted average per capita level of revenues for the unincorporated areas of all counties determined under subsection (1) of this section, subject to reduction under subsections (6) and (7) of this section.  When computing distributions under this section, any distribution under subsection (2) of this section shall be considered revenues received from the tax imposed under RCW 82.14.030(1) for the previous calendar year.

     (4) Subsequent to the distributions under subsection (3) of this section and at such times as distributions are made under RCW 82.44.150, ((as now or hereafter amended,)) the state treasurer shall apportion to each county imposing the sales and use tax under RCW 82.14.030(2) at the maximum rate and receiving a distribution under subsection (2) of this section, a third distribution from the county sales and use tax equalization account.  The distribution to each qualifying county shall be equal to the distribution to the county under subsection (2) of this section, subject to the reduction under subsections (6) and (7) of this section.  To qualify for the total distribution under this subsection, the county must impose the tax under RCW 82.14.030(2) for the entire calendar year.  Counties imposing the tax for less than the full year shall qualify for prorated allocations under this subsection proportionate to the number of months of the year during which the tax is imposed.

     (5) Subsequent to the distributions under subsection (4) of this section and at such times as distributions are made under RCW 82.44.150, ((as now or hereafter amended,)) the state treasurer shall apportion to each county imposing the sales and use tax under RCW 82.14.030(2) at the maximum rate and receiving a distribution under subsection (3) of this section, a fourth distribution from the county sales and use tax equalization account.  The distribution to each qualifying county shall be equal to the distribution to the county under subsection (3) of this section, subject to the reduction under subsections (6) and (7) of this section.  To qualify for the distributions under this subsection, the county must impose the tax under RCW 82.14.030(2) for the entire calendar year.  Counties imposing the tax for less than the full year shall qualify for prorated allocations under this subsection proportionate to the number of months of the year during which the tax is imposed.

     (6) Revenues distributed under this section in any calendar year shall not exceed an amount equal to seventy percent of the state-wide weighted average per capita level of revenues for the unincorporated areas of all counties during the previous calendar year.  If distributions under subsections (3) through (5) of this section cannot be made because of this limitation, then distributions under subsections (3) through (5) of this section shall be reduced ratably among the qualifying counties.

     (7) If inadequate revenues exist in the county sales and use tax equalization account to make the distributions under subsections (3) through (5) of this section, then the distributions under subsections (3) through (5) of this section shall be reduced ratably among the qualifying counties.  At such time during the year as additional funds accrue to the county sales and use tax equalization account, additional distributions shall be made under subsections (3) through (5) of this section to the counties.

     (8) If the level of revenues in the county sales and use tax equalization account exceeds the amount necessary to make the distributions under subsections (2) through (5) of this section, then an additional distribution shall be made to each county qualifying under this subsection.  To qualify under this subsection a county must either have received payments under RCW 77.12.203 in 1992 or be composed of eligible lands that consist of at least one percent of the county's area.  Eligible lands are critical habitat, natural areas, parks, trails, and other recreation lands owned in fee by the department of wildlife, the department of fisheries, the state parks and recreation commission, and the department of natural resources.  Federal lands and lands owned by federally recognized Indian tribes shall not be included in the denominator for purposes of calculating the percentage.

     The distribution under this subsection shall be as follows:

     (a) For each county that received a payment under RCW 77.12.203 in 1992, the larger of:

     (i)(A) A payment equal to the payment made in 1992 by the department of wildlife under RCW 77.12.203; plus

     (B) A payment equal to the number of acres of eligible land within the county acquired by state agencies after December 31, 1991, multiplied by the amount determined in (c) of this subsection; or

     (ii) A payment equal to the number of acres of eligible lands within the county multiplied by the amount determined in (c) of this subsection.

     (b) For the counties not receiving a payment under (a) of this subsection, a payment equal to the number of acres of eligible lands within the county multiplied by the amount determined in (c) of this subsection.

     (c) The per acre amount is the smaller of:

     (i) Fifty cents an acre; or

     (ii) The amount determined by subtracting from the revenue remaining after the payments under subsections (2) through (5) of this section, the payment made under (a)(i)(A) of this subsection and then dividing the result by the sum of the number of acres of eligible land in all the qualified counties not receiving a payment under (a)(i)(A) of this subsection and the number of acres of eligible lands acquired by state agencies after December 31, 1991, in all the counties receiving payments under (a)(i)(A) of this subsection.

     (d) If inadequate revenues exist in the county sales and use tax equalization account to make the distributions under subsection (8) of this section, then the distributions under this subsection shall be reduced ratably among the qualifying counties.  At such time during the year as additional funds accrue to the county sales and use tax equalization account, additional distributions shall be made under this subsection to the counties.

     (9) If the level of revenues in the county sales and use tax equalization account exceeds the amount necessary to make the distributions under subsections (2) through (5) and (8) of this section, then the additional revenues shall be credited and transferred to the state general fund.

 

     NEW SECTION.  Sec. 2.      The following acts or parts of acts are each repealed:

     (1) RCW 77.12.201 and 1987 c 506 s 29, 1984 c 258 s 335, 1984 c 214 s 1, 1980 c 78 s 36, 1977 ex.s. c 59 s 1, & 1965 ex.s. c 97 s 2; and

     (2) RCW 77.12.203 and 1990 1st ex.s. c 15 s 11, 1984 c 214 s 2, 1980 c 78 s 37, & 1965 ex.s. c 97 s 3.