AN ACT Relating to the
distribution of motor vehicle excise taxes to cities; amending RCW 82.14.210;
and providing an effective date.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 82.14.210 and 1991
sp.s. c 13 s 16 are each amended to read as follows:
There is created in the
state treasury a special account to be known as the "municipal sales and
use tax equalization account." Into this account shall be placed such
revenues as are provided under RCW 82.44.110(1)(e). Funds in this account
shall be allocated by the state treasurer according to the following procedure:
(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 city and the state-wide weighted average
per capita level of revenues for all cities imposing the sales and use tax
authorized under RCW 82.14.030(1) for the previous calendar year.
(2) At such times as
distributions are made under RCW 82.44.150, the state treasurer shall apportion
to each city not imposing the sales and use tax under RCW 82.14.030(2) an
amount from the municipal sales and use tax equalization account equal to the
amount distributed to the city under RCW 82.44.155, multiplied by ((thirty-five
sixty-fifths)) forty‑five fifty‑fifths.
(3) Subsequent to the
distributions under subsection (2) of this section, and at such times as
distributions are made under RCW 82.44.150, the state treasurer shall apportion
to each city imposing the sales and use tax under RCW 82.14.030(1) at the
maximum rate and receiving less than seventy percent of the state-wide weighted
average per capita level of revenues for all cities as determined by the
department of revenue under subsection (1) of this section, an amount from the
municipal sales and use tax equalization account sufficient, when added to the
per capita level of revenues received the previous calendar year by the city,
to equal seventy percent of the state-wide weighted average per capita level of
revenues for all cities determined under subsection (1) of this section,
subject to reduction under subsection (6) of this section.
(4) Subsequent to the
distributions under subsection (3) of this section, and at such times as distributions
are made under RCW 82.44.150, the state treasurer shall apportion to each city
imposing the sales and use tax under RCW 82.14.030(2) at the maximum rate and
receiving a distribution under subsection (3) of this section, a third
distribution from the municipal sales and use tax equalization account. The
distribution to each qualifying city shall be equal to the distribution to the
city under subsection (3) of this section, subject to the reduction under
subsection (6) of this section. To qualify for the distributions under this
subsection, the city must impose the tax under RCW 82.14.030(2) for the entire
calendar year. Cities imposing the tax for less than the full year shall
qualify for prorated allocations under this subsection proportionate to the
number of months of the year during which the tax is imposed.
(5) For a city with an
official incorporation date after January 1, 1990, municipal sales and use tax
equalization distributions shall be made according to the procedures in this
subsection. Municipal sales and use tax equalization distributions to eligible
new cities shall be made at the same time as distributions are made under
subsections (3) and (4) of this section. The department of revenue shall
follow the estimating procedures outlined in this subsection until the new city
has received a full year's worth of revenues under RCW 82.14.030(1) as of the
January municipal sales and use tax equalization distribution.
(a) Whether a newly
incorporated city determined to receive funds under this subsection receives
its first equalization payment at the January, April, July, or October
municipal sales and use tax equalization distribution shall depend on the date
the city first imposes the tax authorized under RCW 82.14.030(1).
(i) A newly incorporated
city imposing the tax authorized under RCW 82.14.030(1) effective as of January
1st shall be eligible to receive funds under this subsection beginning with the
April municipal sales and use tax equalization distribution of that year.
(ii) A newly
incorporated city imposing the tax authorized under RCW 82.14.030(1) effective
as of February 1st, March 1st, or April 1st shall be eligible to receive funds
under this subsection beginning with the July municipal sales and use tax
equalization distribution of that year.
(iii) A newly
incorporated city imposing the tax authorized under RCW 82.14.030(1) effective
as of May 1st, June 1st, or July 1st shall be eligible to receive funds under
this subsection beginning with the October municipal sales and use tax
equalization distribution of that year.
(iv) A newly
incorporated city imposing the tax authorized under RCW 82.14.030(1) effective
as of August 1st, September 1st, or October 1st shall be eligible to receive
funds under this subsection beginning with the January municipal sales and use
tax equalization distribution of the next year.
(v) A newly
incorporated city imposing the tax authorized under RCW 82.14.030(1) effective
as of November 1st or December 1st shall be eligible to receive funds under this
subsection beginning with the April municipal sales and use tax equalization
distribution of the next year.
(b) For purposes of
calculating the amount of funds the new city should receive under this
subsection, the department of revenue shall:
(i) Estimate the per
capita amount of revenues from the tax authorized under RCW 82.14.030(1) that
the new city would have received had the city received revenues from the tax
the entire calendar year;
(ii) Calculate the
amount provided under subsection (3) 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 82.14.030(1) is imposed.
(c) A new city imposing
the tax under RCW 82.14.030(2) at the maximum rate and receiving a distribution
calculated under (b) of this subsection shall receive another distribution from
the municipal sales and use tax equalization account. This distribution shall
be equal to the calculation made under (b)(ii) of this subsection, prorated by
the number of months the city imposes the tax authorized under RCW 82.14.030(2)
at the full rate.
(d) The department of
revenue shall advise the state treasurer of the amounts calculated under (b)
and (c) of this subsection and the state treasurer shall distribute these
amounts to the new city from the municipal sales and use tax equalization
account subject to the limitations imposed in subsection (6) of this section.
(e) Revenues estimated
under this subsection shall not affect the calculation of the state-wide
weighted average per capita level of revenues for all cities made under
subsection (1) of this section.
(6) If inadequate
revenues exist in the municipal sales and use tax equalization account to make
the distributions under subsection (3), (4), or (5) of this section, then the
distributions under subsections (3), (4), and (5) of this section shall be
reduced ratably among the qualifying cities. At such time during the year as additional
funds accrue to the municipal sales and use tax equalization account,
additional distributions shall be made under subsections (3), (4), and (5) of
this section to the cities.
(7) If the level of
revenues in the municipal sales and use tax equalization account exceeds the
amount necessary to make the distributions under subsections (2) through (5) of
this section, then the additional revenues shall be apportioned among the
several cities within the state ratably on the basis of population as last
determined by the office of financial management: PROVIDED, That no such
distribution shall be made to those cities receiving a distribution under
subsection (2) of this section.
NEW SECTION. Sec.
2. This act shall take
effect July 1, 1996.
