H-3887.1          _______________________________________________

                                  HOUSE BILL 2700

                  _______________________________________________

State of Washington              52nd Legislature             1992 Regular Session

By Representatives Wilson, Zellinsky, Bowman, Wood and Wynne

Read first time 01/24/92.  Referred to Committee on Local Government.Placing limitations on a county's or city's ability to impose and use of a REET tax for capital facilities.

     AN ACT Relating to a real estate excise tax imposed for the purposes of financing capital improvements included in a growth management plan; and amending RCW 82.46.035.

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

     Sec. 1.  RCW 82.46.035 and 1991 sp.s. c 32 s 33 are each amended to read as follows:

     (1) The governing body of any county or any city that plans under RCW 36.70A.040(1) may impose an additional excise tax on each sale of real property in the unincorporated areas of the county for the county tax and in the corporate limits of the city for the city tax at a rate not exceeding one-quarter of one percent of the selling price.  Any county choosing to plan under RCW 36.70A.040(2) and any city within such a county may only adopt an ordinance imposing the excise tax authorized by this section if the ordinance is first authorized by a proposition approved by a majority of the voters of the taxing district voting on the proposition at a general election held within the district or at a special election within the taxing district called by the district for the purpose of submitting such proposition to the voters.  However, a county and city may not adopt an ordinance imposing the excise tax until the county or city has adopted an ordinance implementing the comprehensive plan developed under chapter 36.70A RCW that includes a capital facilities plan.

     (2) Revenues generated from the tax imposed under subsection (1) of this section shall be used by such counties and cities solely for financing capital projects specified in a capital facilities plan element of a comprehensive plan.

     (3) Revenues generated by the tax imposed by this section shall be deposited in a separate account.

     (4) Revenues deposited into a separate account under subsection (3) of this section may not be replaced or substituted by revenues generated by another tax subsequently imposed in order to use the revenues currently in the account for a purpose other than that specified in this section.

(5) As used in this section, "city" means any city or town.

     (((5))) (6) When the governor files a notice of noncompliance under RCW 36.70A.340 with the secretary of state and the appropriate county or city, the county or city's authority to impose the additional excise tax under this section shall be temporarily rescinded until the governor files a subsequent notice rescinding the notice of noncompliance.