AN ACT
Relating to tax equalization for transit systems imposing a utility tax;
amending RCW 82.14.046; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
Sec.
1. RCW
82.14.046 and 1994 c 241 s 2 are each amended to read as follows:
Beginning
with distributions made to municipalities under RCW 82.44.150 on January 1,
1996, municipalities as defined in RCW 35.58.272 imposing local transit
taxes, which for purposes of this section include the sales and use tax
under RCW 82.14.045, the business and occupation tax under RCW 35.95.040,
and excise taxes under RCW 35.95.040, shall be eligible for sales and
use tax equalization payments from motor vehicle excise taxes distributed
under RCW 82.44.150 as follows:
(1)
Prior to January 1st of each year the department of revenue shall determine the
total and the per capita levels of revenues for each municipality imposing ((the
sales and use tax authorized under RCW 82.14.045)) local transit taxes
and the state-wide weighted average per capita level of sales and use tax
revenues imposed under chapters 82.08 and 82.12 RCW for the previous calendar
year calculated for a sales and use tax rate of one-tenth percent. For
purposes of this section, the department of revenue shall determine a local
transit tax rate for each municipality for the previous calendar year. The tax
rate shall be equivalent to the sales and use tax rate for the municipality
that would have generated an amount of revenue equal to the amount of local
transit taxes collected by the municipality.
(2)
For each tenth of one percent of ((sales and use tax imposed under RCW
82.14.045)) the local transit tax rate, the state treasurer shall
apportion to each municipality receiving less than eighty percent of the
state-wide weighted average per capita level of sales and use tax revenues
imposed under chapters 82.08 and 82.12 RCW as determined by the department of
revenue under subsection (1) of this section, an amount when added to the per
capita level of revenues received the previous calendar year by the
municipality, to equal eighty percent of the state-wide weighted average per
capita level of revenues determined under subsection (1) of this section. In
no event may the sales and use tax equalization distribution to a municipality
in a single calendar year exceed: (a) Fifty percent of the amount of ((sales
and use tax)) local transit taxes collected ((under RCW 82.14.045))
during the prior calendar year; or (b) the maximum amount of revenue that
could have been collected at a local transit tax rate of three-tenths percent
in the prior calendar year.
(3)
For a municipality established after January 1, 1995, sales and use tax
equalization distributions shall be made according to the procedures in this
subsection. Sales and use tax equalization distributions to eligible new
municipalities shall be made at the same time as distributions are made under
subsection (2) of this section. The department of revenue shall follow the
estimating procedures outlined in this subsection until the new municipality
has received a full year's worth of local transit tax revenues ((under
RCW 82.14.045)) as of the January sales and use tax equalization
distribution.
(a)
Whether a newly established municipality determined to receive funds under this
subsection receives its first equalization payment at the January, April, July,
or October sales and use tax equalization distribution shall depend on the date
the system first imposes ((the tax authorized under RCW 82.14.045)) local
transit taxes.
(i) A
newly established municipality imposing ((the tax authorized under RCW
82.14.045)) local transit taxes taking effect during the first
calendar quarter shall be eligible to receive funds under this subsection
beginning with the July sales and use tax equalization distribution of that
year.
(ii) A
newly established municipality imposing ((the tax authorized under RCW
82.14.045)) local transit taxes taking effect during the second calendar
quarter shall be eligible to receive funds under this subsection beginning with
the October sales and use tax equalization distribution of that year.
(iii)
A newly established municipality imposing ((the tax authorized under RCW
82.14.045)) local transit taxes taking effect during the third
calendar quarter shall be eligible to receive funds under this subsection
beginning with the January sales and use tax equalization distribution of the
next year.
(iv) A
newly established municipality imposing ((the tax authorized under RCW
82.14.045)) local transit taxes taking effect during the fourth
calendar quarter shall be eligible to receive funds under this subsection
beginning with the April sales and use tax equalization distribution of the
next year.
(b)
For purposes of calculating the amount of funds the new municipality should
receive under this subsection, the department of revenue shall:
(i)
Estimate the per capita amount of revenues from ((the tax authorized under
RCW 82.14.045)) local transit taxes that the new municipality would
have received had the municipality received revenues from the tax the entire
calendar year;
(ii)
Calculate the amount provided under subsection (2) of this section based on the
per capita revenues determined under (b)(i) of this subsection;
(iii)
Prorate the amount determined under (b)(ii) of this subsection by the number of
months the ((tax authorized under RCW 82.14.045 is))local transit
taxes have been imposed.
(c)
The department of revenue shall advise the state treasurer of the amounts
calculated under (b) of this subsection and the state treasurer shall
distribute these amounts to the new municipality from the motor vehicle excise
tax distributed under RCW 82.44.150(2)(d).
(((d)
Revenues estimated under this subsection shall not affect the calculation of
the state-wide weighted average per capita level of revenues for all
municipalities made under subsection (1) of this section.))
(4) ((For
an existing municipality imposing the sales and use tax authorized under RCW
82.14.045 to take effect after January 1, 1995, sales and use tax equalization
payments shall be made according to the procedures for newly established
municipalities in subsection (3) of the section.
(5))) A
municipality whose governing body implements a tax change that reduces
its ((sales and use tax rate under RCW 82.14.045)) local transit tax
rate after January 1, 1994, may not receive distributions under this
section.
NEW SECTION. Sec. 2. If
specific funding for the purpose of this act, referring to this act by bill
number, is not provided for in a transportation appropriations act in 1995 that
either becomes law under Article III, section 12 of the state Constitution or
is approved by the people of the state, this act is null and void.
