BP BHEAD INT H [atlas:bill]

AN ACT Relating to sales tax equalization; adding new sections to chapter 82.14 RCW; creating a new section; repealing RCW 82.14.200 and 82.14.210; 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) Before January 1st of each year the department 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) 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 under subsection (1) of this section may impose a sales and use tax in accordance with this chapter. The tax is in addition to other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the city. The rate of tax shall be six and one-half 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. For calendar year 2000, the tax shall take effect April 1st. For subsequent calendar years, the tax shall take effect January 1st of each year. For a city that does not impose the sales and use tax under RCW 82.14.030(2) at the maximum rate, the tax shall expire for the year when the revenue from the tax is 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, but not later than the end of the calendar year. For a city imposing the sales and use tax under RCW 82.14.030(2) at the maximum rate, the tax shall expire for the year when the revenue from the tax is sufficient, when added to the per capita level of revenues received the previous calendar year by the city, to equal one hundred forty percent of the state-wide weighted average per capita level of revenues for all cities determined under subsection (1) of this section, but not later than the end of the calendar year.

(3) Any city ordinance or resolution adopted under this section shall contain a provision allowing a credit against the tax imposed under this section for the full amount of any tax imposed upon the same taxable event under RCW 67.28.180, 82.14.0485, 82.14.0494, or 82.14.370.

(4) The tax imposed under subsection (2) 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 such taxes on behalf of the city at no cost to the city.

(5)(a) For a city with an official incorporation date after January 1st of a year, the department 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 of tax that would have been received under subsection (2) of this section based on the per capita revenues determined under (a)(i) of this subsection;

(iii) Prorate the amount determined under (a)(ii) of this subsection by the number of months the tax authorized under RCW 82.14.030(1) is imposed.

(b) If the amount determined under (a)(iii) of this subsection is greater than zero, the city may impose a tax under subsection (2) of this section, effective on or after the date of incorporation. The tax shall expire when the revenue from the tax is equal to the amount determined under (a)(iii) of this subsection, but not later than the end of the calendar year.

(c) 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.

NEW SECTION. Sec. 2. A new section is added to chapter 82.14 RCW to read as follows:

(1) Before January 1st of each year the department shall determine the total and the per capita levels of revenues for each county and the state-wide weighted average per capita level of revenues for all counties imposing the sales and use tax authorized under RCW 82.14.030(1) for the previous calendar year. For the purposes of this section, per capita calculations shall be based on the population in the unincorporated area of the county.

(2) Each county imposing the sales and use tax under RCW 82.14.030(1) at the maximum rate and receiving less than one hundred fifty thousand dollars from the tax for the previous calendar year may impose a sales and use tax in accordance with this chapter. The tax is in addition to other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the county. The rate of tax shall be six and one-half 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. For calendar year 2000, the tax shall take effect April 1st. For subsequent calendar years, the tax shall take effect January 1st of each year. For a county that does not impose the sales and use tax under RCW 82.14.030(2) at the maximum rate, the tax shall expire for the year when the revenue from the tax is sufficient, when added to revenues received the previous calendar year by the county, to equal the greater of one hundred fifty thousand dollars or seventy percent of the state-wide weighted average per capita level of revenues for all counties, but not later than the end of the calendar year. For a county imposing the sales and use tax under RCW 82.14.030(2) at the maximum rate, the tax shall expire for the year when the revenue from the tax is sufficient, when added to revenues received the previous calendar year by the county, to equal the greater of three hundred thousand dollars or one hundred forty percent of the state-wide weighted average per capita level of revenues for all counties, but not later than the end of the calendar year.

(3) The department shall establish a governmental price index as provided in this subsection. The base year for the index shall be the end of the third quarter of 1982. Before November 1st of each year, the department shall establish another index figure for the third quarter of that year. The department may use the implicit price deflators for state and local government purchases of goods and services calculated by the United States department of commerce to establish the governmental price index. On January 1st of each year, the one hundred fifty thousand dollar and three hundred thousand dollar base figures in subsection (2) of this section shall be adjusted in direct proportion to the percentage change in the governmental price index from 1982 until the year before the adjustment. Calculations made under this subsection (3) shall use this adjusted base amount figure.

(4) Any county ordinance or resolution adopted under this section shall contain a provision allowing a credit against the tax imposed under this section for the full amount of any tax imposed upon the same taxable event under RCW 67.28.180, section 1 of this act, 82.14.0485, 82.14.0494, or 82.14.370.

(5) Taxes imposed under 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 such taxes on behalf of the county at no cost to the county.

NEW SECTION. Sec. 3. Any amounts received during calendar year 2000 by a city under RCW 82.14.210 or a county under RCW 82.14.200 shall be treated as revenue received during the previous calendar year for the purposes of determining an expiration date under section 1 or 2 of this act.

NEW SECTION. Sec. 4. The following acts or parts of acts are each repealed:

(1) RCW 82.14.200 (County sales and use tax equalization account--Allocation procedure) and 1998 c 321 s 8 (Referendum Bill No. 49), 1997 c 333 s 2, 1991 sp.s. c 13 s 15, 1990 c 42 s 313, 1985 c 57 s 82, 1984 c 225 s 5, 1983 c 99 s 1, & 1982 1st ex.s. c 49 s 21; and

(2) RCW 82.14.210 (Municipal sales and use tax equalization account--Allocation procedure) and 1996 c 64 s 1, 1991 sp.s. c 13 s 16, 1990 2nd ex.s. c 1 s 701, 1990 c 42 s 314, 1985 c 57 s 83, 1984 c 225 s 2, & 1982 1st ex.s. c 49 s 22.

NEW SECTION. Sec. 5. 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 April 1, 2000.