SENATE BILL REPORT

                   SB 6050

              As Reported By Senate Committee On:

                 Transportation, March 6, 1997

                  Ways & Means, April 3, 1997

Title:  An act relating to tax exemptions for state route number 16 corridor improvements constructed under chapter 47.46 RCW.

Brief Description:  Providing tax exemptions for state route number 16 corridor improvements constructed under chapter 47.46 RCW.

Sponsors:  Senator Oke.

Brief History:

Committee Activity:  Transportation:  3/6/97 [DP-WM].

Ways & Means:  3/27/97, 4/3/97 [DPS].

SENATE COMMITTEE ON TRANSPORTATION

Majority Report:  Do pass and be referred to Committee on Ways & Means.

  Signed by Senators Benton, Vice Chair; Wood, Vice Chair; Goings, Haugen, Heavey, Jacobsen, Morton, Oke and Patterson.

Staff:  Gene Schlatter (786-7316)

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  That Substitute Senate Bill No. 6050 be substituted therefor, and the substitute bill do pass.

  Signed by Senators West, Chair; Deccio, Vice Chair; Strannigan, Vice Chair; Bauer, Brown, Hochstatter, Rossi, Schow, Sheldon, Snyder and Winsley.

Staff:  David Schumacher (786-7474)

Background:  The leasehold excise tax is an annual tax levied on private users of publicly-owned real or personal property.  The tax is imposed at a rate of 12.84 percent of the annual contract rent paid by the user.  The revenue from this tax is distributed to the general fund and the city or county in which the property is located.

Summary of Substitute Bill:  The construction on State Route 16 corridor improvements, including the Tacoma Narrows Bridge, under the Department of Transportation=s public-private initiatives program is exempt from paying the leasehold excise tax for the use of state-owned right-of-way and other existing state facilities.

Substitute Bill Compared to Original Bill:  The original bill included a sales and use tax exemption.

Appropriation:  None.

Fiscal Note:  Requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  This project will be a public/private partnership.  We should do what we can to reduce the costs of this project.  This bill will reduce tolls for the users.

Testimony Against:  None.

Testified:  Senator Oke, prime sponsor.