SENATE BILL REPORT

                            SB 6245

                    AS OF JANUARY 31, 1994

Brief Description:  Modifying distribution of public transportation benefit transit sales tax revenues.

SPONSORS: Senators Haugen and Vognild

SENATE COMMITTEE ON TRANSPORTATION

Staff:  Gene Baxstrom (786‑7303)

Hearing Dates: January 31, 1994

BACKGROUND:

County legislative authorities may establish county unincorporated transportation benefit areas (UTBAs) within unincorporated areas when those areas are not in any other transit jurisdiction.  The county may impose taxes to support UTBA activities which may include a utility tax, a household tax, or with voter approval, an up to .6% sales tax.  Local taxes revenues, except those from the sales tax, may be used to qualify the UTBA for the motor vehicle excise tax.  To date, no UTBAs have been created.

Many Camano Island residents are seeking public transportation services.  Though a part of Island County, Camano Island is more closely linked, both economically and physically, to Snohomish County.  There is limited retail activity on Camano Island, and most shopping is done on the mainland, including at Stanwood, the nearest incorporated area.

SUMMARY:

If an unincorporated transportation benefit area is established on Camano Island, the abutting public transportation benefit area (PTBA) in Snohomish County must remit from its sales tax proceeds to Island County, for use by the unincorporated transportation benefit area, an amount equal to the sales tax collected within the PTBA multiplied by the ratio of one half the population in the unincorporated benefit area on Camano Island divided by the population within the PTBAs boundaries.  To qualify, the county must match any revenues from the PTBA with locally generated taxes imposed for transit purposes, including the motor vehicle excise tax.

Appropriation:  none

Revenue:  none

Fiscal Note:  available