FINAL BILL REPORT

                  HB 2110

                        C 10 L 95 E 2

                     Synopsis as Enacted

Brief Description:  Authorizing the imposition of taxes by counties for correctional facilities and juvenile detention facilities.

Sponsors:  Representatives Campbell, Smith, Talcott, Morris, Conway, Huff, Costa, Scott, Casada, McMahan, Brumsickle and Ebersole.

Background:  The retail sales tax is imposed on sales of most articles of tangible personal property and some services.  The sales tax is paid by the purchaser and collected by the seller.  The state sales tax rate is 6.5 percent of the selling price.  Local governments may levy additional sales taxes.  The total state and local rate varies from 7 percent to 8.2 percent, depending on the location.

The use tax is imposed on the use of articles of tangible personal property when the sale of the property was not subject to sales tax.  The use tax applies when property is acquired from out of state.  It also applies when property is acquired from an in-state person who does not collect sales tax.  Use tax is equal to the sales tax rate multiplied by the value of the property used.  Sales and use taxes are often described as a single tax.

Summary:  The legislative authority of a county with a population less than one million may impose an additional sales and use tax of 0.1 percent, if approved by the county voters.  Revenue from this tax may be used solely for costs associated with constructing and operating juvenile detention facilities and jails.

Counties are authorized to develop joint ventures to collocate juvenile detention facilities and to collocate jails.

Votes on Final Passage:

First Special Session

House     95 2

Second Special Session

House     90 2

House     91 2 (House reconsidered)

Senate    36 11

Effective:  August 24, 1995