BP BHEAD INT S [atlas:bill]

AN ACT Relating to funding for implementation of capital facilities plans by counties and cities under the growth management act; amending RCW 82.02.020; and adding new sections to chapter 36.70A RCW.

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

NEW SECTION. Sec. 1. A new section is added to chapter 36.70A RCW to read as follows:

(1) Subject to the conditions set forth in subsections (2) and (3) of this section, the legislative body of a county or city by ordinance or resolution may levy and collect a special excise tax of not to exceed one percent on the sale of or charge made for new construction in the county or city.

(2) A county or city may only levy and collect the excise tax authorized by subsection (1) of this section if it meets all of the following requirements:

(a) The county or city is planning under RCW 36.70A.040;

(b) The county or city is in compliance with all deadlines under this chapter;

(d) The county or city has adopted a capital facilities plan under this chapter that is consistent with its comprehensive plan; and

(e) The county or city has filed with the department of revenue a statement signed by the chief executive officer of the county or city that it meets the requirements set forth in (a) through (d) of this subsection.

(3) The special excise tax authorized by subsection (1) of this section shall only be expended for purposes of implementing a county's or city's capital facilities plan adopted under this chapter. The tax shall be used to supplement and shall not supplant any other funds expended by a county or city for the same purposes.

NEW SECTION. Sec. 2. A new section is added to chapter 36.70A RCW to read as follows:

Any seller, as defined in RCW 82.08.010, who is required to collect any tax under section 1 of this act for any county or city shall pay over such tax to the county or city as provided in section 3 of this act and such tax shall be deducted from the amount of tax such seller would otherwise be required to collect and to pay over to the department of revenue under chapter 82.08 RCW.

NEW SECTION. Sec. 3. A new section is added to chapter 36.70A RCW to read as follows:

The legislative body of a county or city authorized to impose the tax provided for by section 1 of this act, before the effective date of the resolution or ordinance imposing the tax, shall contract with the department of revenue for the administration and collection of the tax. The department of revenue shall deduct a percentage amount for administration and collection expenses incurred by the department from the tax collected, as provided by the contract, not to exceed one percent of the taxes collected. The remainder of any tax authorized by section 1 of this act collected by the department of revenue shall be deposited by the department of revenue in the local sales tax on new construction account hereby created in the state treasury. Moneys in the local sales tax on new construction account may be spent only for distribution to counties and cities imposing the tax authorized by section 1 of this act. All administrative provisions in chapters 82.03, 82.08, 82.12, and 82.32 RCW, insofar as they are applicable, apply to taxes imposed under sections 1 through 3 of this act. Except as otherwise provided in RCW 43.08.190, all earnings of investments of balances in the local sales tax on new construction account shall be credited to the local sales tax on new construction account and distributed to the counties and cities monthly.

Sec. 4. RCW 82.02.020 and 1996 c 230 s 1612 are each amended to read as follows:

Except only as expressly provided in RCW 67.28.180 ((~~and~~)), 67.28.190, section 1 of this act, section 2 of this act, and section 3 of this act and the provisions of chapter 82.14 RCW, the state preempts the field of imposing taxes upon retail sales of tangible personal property, the use of tangible personal property, parimutuel wagering authorized pursuant to RCW 67.16.060, conveyances, and cigarettes, and no county, town, or other municipal subdivision shall have the right to impose taxes of that nature. Except as provided in RCW 82.02.050 through 82.02.090, no county, city, town, or other municipal corporation shall impose any tax, fee, or charge, either direct or indirect, on the construction or reconstruction of residential buildings, commercial buildings, industrial buildings, or on any other building or building space or appurtenance thereto, or on the development, subdivision, classification, or reclassification of land. However, this section does not preclude dedications of land or easements within the proposed development or plat which the county, city, town, or other municipal corporation can demonstrate are reasonably necessary as a direct result of the proposed development or plat to which the dedication of land or easement is to apply.

This section does not prohibit voluntary agreements with counties, cities, towns, or other municipal corporations that allow a payment in lieu of a dedication of land or to mitigate a direct impact that has been identified as a consequence of a proposed development, subdivision, or plat. A local government shall not use such voluntary agreements for local off-site transportation improvements within the geographic boundaries of the area or areas covered by an adopted transportation program authorized by chapter 39.92 RCW. Any such voluntary agreement is subject to the following provisions:

(1) The payment shall be held in a reserve account and may only be expended to fund a capital improvement agreed upon by the parties to mitigate the identified, direct impact;

(2) The payment shall be expended in all cases within five years of collection; and

(3) Any payment not so expended shall be refunded with interest at the rate applied to judgments to the property owners of record at the time of the refund; however, if the payment is not expended within five years due to delay attributable to the developer, the payment shall be refunded without interest.

No county, city, town, or other municipal corporation shall require any payment as part of such a voluntary agreement which the county, city, town, or other municipal corporation cannot establish is reasonably necessary as a direct result of the proposed development or plat.

Nothing in this section prohibits cities, towns, counties, or other municipal corporations from collecting reasonable fees from an applicant for a permit or other governmental approval to cover the cost to the city, town, county, or other municipal corporation of processing applications, inspecting and reviewing plans, or preparing detailed statements required by chapter 43.21C RCW.

This section does not limit the existing authority of any county, city, town, or other municipal corporation to impose special assessments on property specifically benefitted thereby in the manner prescribed by law.

Nothing in this section prohibits counties, cities, or towns from imposing or permits counties, cities, or towns to impose water, sewer, natural gas, drainage utility, and drainage system charges: PROVIDED, That no such charge shall exceed the proportionate share of such utility or system's capital costs which the county, city, or town can demonstrate are attributable to the property being charged: PROVIDED FURTHER, That these provisions shall not be interpreted to expand or contract any existing authority of counties, cities, or towns to impose such charges.

Nothing in this section prohibits a transportation benefit district from imposing fees or charges authorized in RCW 36.73.120 nor prohibits the legislative authority of a county, city, or town from approving the imposition of such fees within a transportation benefit district.

Nothing in this section prohibits counties, cities, or towns from imposing transportation impact fees authorized pursuant to chapter 39.92 RCW.

Nothing in this section prohibits counties, cities, or towns from requiring property owners to provide relocation assistance to tenants under RCW 59.18.440 and 59.18.450.

This section does not apply to special purpose districts formed and acting pursuant to Titles 54, 57, or 87 RCW, nor is the authority conferred by these titles affected.

NEW SECTION. Sec. 5. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.