H-0381.1  _______________________________________________

                          HOUSE BILL 1334

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Representative Dunn

Read first time 01/21/1999.  Referred to Committee on Finance.

Authorizing local excise taxes on new residential facilities.

    AN ACT Relating to a sales tax on new residential construction; adding a new section to chapter 82.14 RCW; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 82.14 RCW to read as follows:

    (1) The legislative body of any county or any city is authorized to levy and collect a special excise tax not to exceed six and one-half percent on the sale of materials used in the construction of new residential dwelling units, or to sales or charges made for labor and services rendered in respect to installing such materials in new residential dwelling units.

    (2) The tax imposed under subsection (1) of this section shall be deducted from the amount of tax otherwise required to be collected or paid over to the department under chapter 82.08 or 82.12 RCW.  The department shall perform the collection of the taxes on behalf of the county or city at no cost to the county or city.

    (3) Moneys collected under this section shall only be used for the purpose of financing public facilities in the county or city where it was collected.

    (4) Any county ordinance or resolution adopted under this section shall contain a provision allowing a credit against the county tax for the full amount of any city tax imposed under this section upon the same taxable event.

    (5) As used in this section:

    (a) "Residential dwelling units" means a structure that consists of one or more dwellings that contain living facilities, including provisions for sleeping, eating, cooking, and sanitation.

    (b) "Public facilities" has the same meaning as in RCW 36.70A.030.

NEW SECTION. Sec. 2.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 1999.

                            --- END ---