H-2227.1  _______________________________________________


                    SUBSTITUTE HOUSE BILL 1628



State of Washington      57th Legislature     2001 Regular Session


By House Committee on Finance (originally sponsored by Representatives Barlean, Sehlin, Santos and Kagi)


Read first time .  Referred to Committee on .

Defining rural counties for purposes of sales and use tax for public facilities.

    AN ACT Relating to defining rural counties for purposes of sales and use tax for public facilities; and amending RCW 82.14.370.




    Sec. 1.  RCW 82.14.370 and 1999 c 311 s 101 are each amended to read as follows:

    (1) The legislative authority of a rural county may impose a sales and use tax in accordance with the terms of 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 not exceed 0.08 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, except that for rural counties with population densities between sixty and one hundred persons per square mile, the rate shall not exceed 0.04 percent before January 1, 2000.

    (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 of revenue under chapter 82.08 or 82.12 RCW.  The department of revenue shall perform the collection of such taxes on behalf of the county at no cost to the county.

    (3) Moneys collected under this section shall only be used for the purpose of financing public facilities in rural counties.  The public facility must be listed as an item in the officially adopted county overall economic development plan, or the economic development section of the county's comprehensive plan, or the comprehensive plan of a city or town located within the county for those counties planning under RCW 36.70A.040.  For those counties that do not have an adopted overall economic development plan and do not plan under the growth management act, the public facility must be listed in the county's capital facilities plan or the capital facilities plan of a city or town located within the county.  In implementing this section, the county shall consult with cities, towns, and port districts located within the county.  For the purposes of this section, "public facilities" means a project of a rural county for the planning, acquisition, construction, repair, reconstruction, replacement, rehabilitation, or improvement of bridges, roads, domestic and industrial water facilities, sanitary sewer facilities, earth stabilization, storm sewer facilities, railroad, electricity, natural gas, buildings, structures, telecommunications infrastructure, transportation infrastructure, or commercial infrastructure, and port facilities, all for the purpose of private sector job creation or retention in the state of Washington.

    (4) No tax may be collected under this section before July 1, 1998.  No tax may be collected under this section by a county more than twenty-five years after the date that a tax is first imposed under this section.

    (5) For purposes of this section, "rural county" means a county with a population density of less than one hundred persons per square mile or a county smaller than two hundred twenty-five square miles as determined by the office of financial management and published each year by the department for the period July 1st to June 30th.


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