BP BHEAD INT S [atlas:bill]

AN ACT Relating to city and town transportation funding; amending RCW 82.80.020, 82.80.030, 82.80.080, 84.52.010, and 84.52.120; adding a new section to chapter 82.14 RCW; adding a new chapter to Title 35 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. The legislature recognizes that cities and towns throughout the state face a crisis in their ability to meet growing local transportation needs, due in part to a 1995 decision of the state supreme court that invalidated residential street utility charges imposed under the authority of section 2, chapter 141, Laws of 1991. The legislature recognizes the need to assist cities and towns to replace the local funding that would have been available to them had RCW 82.80.050 been upheld. The legislature hereby intends to provide cities and towns the local option, with voter approval, to: Authorize a city street district levy, similar to the existing county road district levy in RCW 36.82.040, to be levied for cities under three hundred thousand in population by the county legislative authority and by larger cities for themselves, as is the case with other regular property taxes; increase the local sales and use tax; or impose a city or town gas tax of ten percent of the state rate. Additionally, cities and towns are provided the local option, subject to voter referendum, to impose a business and occupation tax on retail sales in the city or town of motor vehicle and special fuel, or to impose a vehicle license fee if that fee has not been imposed by the county in which the city or town is located. A city or town may use any combination of the five options.

NEW SECTION. Sec. 2. For the purpose of efficient administration of the streets and for other transportation purposes of each city or town, the legislative authority may establish in its respective city or town a city street district, if authorized to do so by a majority of its voters voting at a general or special election on a proposition for that purpose, and shall cause its action in so doing to be entered upon its records.

The city street district must be coterminous with the city or town. Territory later annexed into the city or town automatically becomes part of the city street district, and territory ceasing to be part of the city or town automatically ceases to be part of the city street district.

A city street district may be disestablished, effective at the start of a new calendar year, by action of the city or town legislative authority.

NEW SECTION. Sec. 3. There is created in each city or town that has established a city street district an account to be known as the city street district account. Any funds accruing to and to be deposited in the city street district account arising from a levy in a city street district must be expended for proper city street and other transportation purposes, in accordance with RCW 82.80.070.

NEW SECTION. Sec. 4. For the purpose of raising revenue for establishing, laying out, constructing, altering, repairing, improving, and maintaining city streets and bridges, and for other proper city transportation purposes in accordance with RCW 82.80.070, the county legislative authority, or the city legislative authority in a city having a population of three hundred thousand or more, shall annually at the time of making the property tax levy for general purposes make a uniform tax levy throughout each city street district of an amount not to exceed fifty cents per thousand dollars of assessed value of the last assessed valuation of the taxable property in the city street district, unless other laws of the state require a lower maximum levy, in which event the lower maximum levy controls. All funds accruing from the levy must be credited to and deposited in the city street district account. Revenues derived from the levy shall not supplant any existing transportation funding.

NEW SECTION. Sec. 5. Sections 2 through 4 of this act constitute a new chapter in Title 35 RCW.

NEW SECTION. Sec. 6. A new section is added to chapter 82.14 RCW to read as follows:

The legislative authority of any city or town may, if authorized to do so by a majority of its voters voting at a general or special election on a proposition for that purpose, fix and impose a sales and use tax in accordance with the terms of this chapter. The referendum procedure provided in RCW 82.14.036 shall not apply to any city or town sales and use tax ordinance or resolution approved by the voters as provided in this section.

The tax authorized in this section shall be in addition to any other taxes authorized by law and shall be collected from those persons who are taxable by the state pursuant to chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within such city or town. The rate of tax shall equal one-tenth of one percent of the selling price, in the case of a sales tax, or value of the article used, in the case of a use tax.

The state treasurer shall distribute the moneys collected under this section monthly to the city or town levying the tax, after making the deductions authorized in RCW 82.14.050.

Moneys received from any tax imposed under this section shall be expended exclusively for transportation purposes in accordance with RCW 82.80.070. Moneys received from any tax imposed under this section shall not supplant any existing transportation funding.

Sec. 7. RCW 82.80.020 and 1996 c 139 s 4 are each amended to read as follows:

(1)(a) Subject to (b) of this subsection, and upon approval by a majority of voters voting at a general or special election on a proposition for this purpose, the legislative authority of a county may fix and impose an additional fee, not to exceed fifteen dollars per vehicle, for each vehicle that is subject to license fees under RCW 46.16.060 and for each vehicle that is subject to RCW 46.16.070 with an unladen weight of six thousand pounds or less and is determined by the department of licensing to be registered within the boundaries of the county.

(b) The legislative authority of a county, upon the request of a city or town, may fix and impose an additional fee within less-than-county-wide boundaries adopted by the legislative authority, not to exceed fifteen dollars per vehicle, for each vehicle that is subject to license fees under RCW 46.16.060 and each vehicle subject to RCW 46.16.070 with an unladen weight of six thousand pounds or less and is determined by the department of licensing to be registered within the boundaries adopted under this subsection (1)(b). If a fee is imposed under this subsection (1)(b), the county may also impose a fee under (a) of this subsection, but may not impose the fee under (a) of this subsection within the boundaries adopted under this subsection (1)(b).

(2) The department of licensing shall administer and collect ((~~the~~)) fees adopted under this section. The department shall deduct a percentage amount, as provided by contract, not to exceed two percent of the taxes collected, for administration and collection expenses incurred by it. The remaining proceeds shall be remitted to the custody of the state treasurer for monthly distribution under RCW 82.80.080.

(3) The proceeds of ((~~this~~)) the fee imposed under subsection (1)(a) of this section shall be used strictly for transportation purposes in accordance with RCW 82.80.070. The proceeds of the fee imposed under subsection (1)(b) of this section shall be used strictly for a transportation project, properly identified by mileposts or other designations that specify the exact project parameters, or for a number of years, specified by the county legislative authority when the county legislative authority authorizes the fee, that is for transportation purposes in accordance with RCW 82.80.070. Moneys received from any fee imposed under this section shall not supplant any existing transportation funding.

(4) A county imposing ((~~this~~)) fees under this section or initiating an exemption process shall delay the effective date at least six months from the date the ordinance is enacted to allow the department of licensing to implement administration and collection of or exemption from the fee.

(5) The legislative authority of a county may develop and initiate an exemption process of the ((~~fifteen dollar~~)) fees adopted under this section for the registered owners of vehicles residing within the boundaries ((~~of the county~~)) in which the fees are imposed: (a) Who are sixty-one years old or older at the time payment of the fee is due and whose household income for the previous calendar year is less than an amount prescribed by the county, city, or town legislative authority((,)); or (b) who ((~~has~~)) have a physical disability.

(6) The legislative authority of a county shall develop and initiate an exemption process of the ((~~fifteen-dollar~~)) fees adopted under this section for vehicles registered within the boundaries ((~~of the county~~)) in which the fees are imposed that are licensed under RCW 46.16.374.

(7) The fee imposed under this section shall not apply to initial vehicle registrations.

Sec. 8. RCW 82.80.030 and 1990 c 42 s 208 are each amended to read as follows:

(1) Subject to the conditions of this section, the legislative authority of a county or city, upon approval by a majority of voters voting at a general or special election on a proposition for this purpose, may fix and impose a parking tax on all persons engaged in a commercial parking business within its respective jurisdiction. The jurisdiction of a county, for purposes of this section, includes only the unincorporated area of the county. The jurisdiction of a city includes only the area within its incorporated boundaries.

(2) In lieu of the tax in subsection (1) of this section, a city or a county in its unincorporated area may fix and impose a tax for the act or privilege of parking a motor vehicle in a facility operated by a commercial parking business.

(3) In addition to the taxes in subsections (1) and (2) of this section, a city or county in its unincorporated area may fix and impose a tax upon an employer who provides parking for his or her employees, regardless of whether the employer or the employee pays a fee for said parking.

The city or county may provide that:

(a) The tax is paid by the operator or owner of the motor vehicle or by the employer or employee who pays a fee for the right to the use of parking;

(b) The tax applies to all parking for which a fee is paid, whether paid or leased, including parking or the right to the use of parking supplied with a lease of nonresidential space;

(c) The tax is collected by the operator of the facility or the employer providing the parking privileges and remitted to the city or county;

(d) The tax is a fee per vehicle or is measured by the value of the parking ((~~charge~~));

(e) The tax rate varies with zoning or location of the facility, the duration of the parking, the time of entry or exit, the type or use of the vehicle, or other reasonable factors; and

(f) Tax exempt carpools, vehicles with handicapped decals, or government vehicles are exempt from the tax.

(3) "Commercial parking business" as used in this section, means the ownership, lease, operation, or management of a commercial parking lot in which fees are charged. "Commercial parking lot" means a covered or uncovered area with stalls or other capacity for the purpose of parking motor vehicles. "Fee" as used in this section means any form of consideration, and includes the consideration of laboring for an employer or other person who provides parking in return.

(4) The rate of the tax under subsection (1) of this section may be based either upon gross proceeds or the number of vehicle stalls available or actually used for commercial parking use. The rates charged must be uniform for the same class or type of commercial parking business.

(5) The county or city levying the tax provided for in subsection (1) ((or)), (2), or (3) of this section may provide for its ((~~payment~~)) collection on a daily, monthly, quarterly, semiannual, or annual basis, and may require the tax to be remitted to the county or city on a monthly, quarterly, semiannual, or annual basis. Each local government may develop by ordinance or resolution rules for administering the tax, including provisions for reporting by commercial parking businesses, collection, and enforcement.

(6) The proceeds of the commercial parking tax fixed and imposed under subsection (1) ((or)), (2), or (3) of this section shall be used strictly for transportation purposes in accordance with RCW 82.80.070. Moneys received from any fee or tax imposed under this section shall not supplant any existing transportation funding.

Sec. 9. RCW 82.80.080 and 1990 c 42 s 213 are each amended to read as follows:

(1) The state treasurer shall distribute revenues, less authorized deductions, generated by the local option taxes authorized in RCW 82.80.010 and 82.80.020, levied by counties to the levying counties, and cities contained in those counties, based on the relative per capita population. County population for purposes of this section is equal to one and one-half of the unincorporated population of the county. In calculating the distributions, the state treasurer shall use the population estimates prepared by the state office of financial management and shall further calculate the distribution based on information supplied by the departments of licensing and revenue, as appropriate.

(2) The state treasurer shall distribute revenues, less authorized deductions, generated by the local option taxes authorized in RCW 82.80.010 and 82.80.020 levied by cities and towns to the levying cities and towns.

Sec. 10. RCW 84.52.010 and 1995 2nd sp.s. c 13 s 4 are each amended to read as follows:

Except as is permitted under RCW 84.55.050, all taxes shall be levied or voted in specific amounts.

The rate percent of all taxes for state and county purposes, and purposes of taxing districts coextensive with the county, shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the county, as shown by the completed tax rolls of the county, and the rate percent of all taxes levied for purposes of taxing districts within any county shall be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the taxing districts respectively.

When a county assessor finds that the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.043 or 84.52.050, exceeds the limitations provided in either of these sections, the assessor shall recompute and establish a consolidated levy in the following manner:

(1) The full certified rates of tax levy for state, county, county road district, and city or town purposes shall be extended on the tax rolls in amounts not exceeding the limitations established by law; however any state levy shall take precedence over all other levies and shall not be reduced for any purpose other than that required by RCW 84.55.010. If, as a result of the levies imposed under RCW 84.52.069, 84.34.230, the portion of the levy by a metropolitan park district that was protected under RCW 84.52.120, and 84.52.105, the combined rate of regular property tax levies that are subject to the one percent limitation exceeds one percent of the true and fair value of any property, then these levies shall be reduced as follows: (a) The certified levy of a city street district shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated; (b) if the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the portion of the levy by a metropolitan park district that is protected under RCW 84.52.120 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated; ((~~(b)~~)) (c) if the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the levies imposed under RCW 84.34.230, 84.52.105, and any portion of the levy imposed under RCW 84.52.069 that is in excess of thirty cents per thousand dollars of assessed value, shall be reduced on a pro rata basis until the combined rate no longer exceeds one percent of the true and fair value of any property or shall be eliminated; and ((~~(c)~~)) (d) if the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the thirty cents per thousand dollars of assessed value of tax levy imposed under RCW 84.52.069 shall be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or eliminated.

(2) The certified rates of tax levy subject to these limitations by all junior taxing districts imposing taxes on such property shall be reduced or eliminated as follows to bring the consolidated levy of taxes on such property within the provisions of these limitations:

(a) First, the certified levy of a city street district shall be reduced or eliminated;

(b) Second, the certified property tax levy rates of those junior taxing districts authorized under RCW 36.68.525, 36.69.145, and 67.38.130 shall be reduced on a pro rata basis or eliminated;

((~~(b) Second~~)) (c) Third, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of flood control zone districts shall be reduced on a pro rata basis or eliminated;

((~~(c) Third~~)) (d) Fourth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of all other junior taxing districts, other than fire protection districts, library districts, the first fifty cent per thousand dollars of assessed valuation levies for metropolitan park districts, and the first fifty cent per thousand dollars of assessed valuation levies for public hospital districts, shall be reduced on a pro rata basis or eliminated;

((~~(d) Fourth~~)) (e) Fifth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized to fire protection districts under RCW 52.16.140 and 52.16.160 shall be reduced on a pro rata basis or eliminated; and

((~~(e) Fifth~~)) (f) Sixth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for fire protection districts under RCW 52.16.130, library districts, metropolitan park districts under their first fifty cent per thousand dollars of assessed valuation levy, and public hospital districts under their first fifty cent per thousand dollars of assessed valuation levy, shall be reduced on a pro rata basis or eliminated.

In determining whether the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.050, exceeds the limitations provided in that section, the assessor shall use the hypothetical state levy, as apportioned to the county under RCW 84.48.080, that was computed under RCW 84.48.080 without regard to the reduction under RCW 84.55.012.

Sec. 11. RCW 84.52.120 and 1995 c 99 s 1 are each amended to read as follows:

A metropolitan park district with a population of one hundred fifty thousand or more may submit a ballot proposition to voters of the district authorizing the protection of the district's tax levy from prorationing under RCW 84.52.010(2) by imposing all or any portion of the district's twenty-five cent per thousand dollars of assessed valuation tax levy outside of the five dollar and ninety cent per thousand dollar of assessed valuation limitation established under RCW 84.52.043(2), if those taxes otherwise would be prorated under RCW 84.52.010(2)((~~(c)~~)) (d), for taxes imposed in any year on or before the first day of January six years after the ballot proposition is approved. A simple majority vote of voters voting on the proposition is required for approval.