H-4059.2          _______________________________________________

                                  HOUSE BILL 2728

                  _______________________________________________

State of Washington              52nd Legislature             1992 Regular Session

By Representatives Heavey, Bowman, Rasmussen, Kremen, Carlson, Hochstatter, Van Luven, Forner, P. Johnson, May, Wynne, Tate, Grant, Haugen and Wood

Read first time 01/24/92.  Referred to Committee on Commerce & Labor/Revenue.Allowing tax credits in an amount equal to that paid as impact fees as determined under the growth management act.

     AN ACT Relating to the commerce and employment resources act; adding a new section to chapter 82.08 RCW; adding a new section to chapter 43.21C RCW; and creating new sections.

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

NEW SECTION. Sec. 1.      The legislature recognizes that business development and expansion of the state's commerce creates jobs and secures the economic well-being of the state's citizens.  Employers who create jobs are a valuable resource of the state and are appreciated by the state's citizens.  To assure continued job growth and economic stability, the legislature finds that incentives to employers to invest in the state are in the state's interest and promote the public good.  Without the business expansion undertaken by employers, the state and local governments would not receive increased tax revenues generated by businesses and consumers.  Therefore, the state should balance the need for impact fees and other state regulatory activity related to development with the benefits to the state from business and job growth.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.08 RCW to read as follows:

     (1) In computing the tax due under this chapter, the department shall allow a credit against the amount of tax due for the amount of impact fees paid by the taxpayer under RCW 82.02.050 through 82.02.090.  To be eligible for a credit, the taxpayer must be a business owner who completes project improvements as defined under RCW 82.02.090.  The department shall only apply the credit against the tax due for the project improvements.  The amount of the combined credit permitted under this section shall not exceed the total of the impact fees paid under RCW 82.02.050 through 82.02.090 as a result of the project improvements. If the credit allowed under this section exceeds the tax imposed by this chapter, that portion of the credit that exceeds the taxes may be carried over to the taxes imposed by this chapter in the succeeding tax years, applying the credit first to the earliest income years possible.

     (2) The taxpayer shall submit information required by the department to evaluate the taxpayer's eligibility for the credit.

NEW SECTION. Sec. 3.  A new section is added to chapter 43.21C RCW to read as follows:

     When an environmental review is undertaken, the responsible official shall issue a threshold determination requiring an environmental impact statement within ninety days of the receipt of a substantially completed application.  Threshold determinations with a determination of nonsignificance or a mitigated determination of significance shall be issued within one hundred twenty days of the receipt of a substantially completed application.

NEW SECTION. Sec. 4.      The department of trade and economic development shall review state and local regulations affecting small businesses and shall compile a report on local government's methods and procedures used in evaluating the economic impacts of local regulations.  The department shall report its findings and recommendations on changes to the laws affecting small businesses to the appropriate committees of the legislature by January 1, 1993.

NEW SECTION. Sec. 5.      This act may be known and cited as the commerce and employment resources act.