H-3981.1 _______________________________________________
HOUSE BILL 2912
_______________________________________________
State of Washington 57th Legislature 2002 Regular Session
By Representatives Pflug, Ruderman, Anderson, Simpson, Nixon and Cairnes
Read first time 02/05/2002. Referred to Committee on Appropriations.
AN ACT Relating to municipal sales tax revenue equalization; and amending RCW 82.14.210.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 82.14.210 and 1996 c 64 s 1 are each amended to read as follows:
There is created in the
state treasury a special account to be known as the "municipal sales and
use tax equalization account." ((Into this account shall be placed
such revenues as are provided under RCW 82.44.110(1)(e).)) On July 1,
2002, the treasurer shall transfer fifteen million dollars from the state
general fund to the account. On July 1st of each fiscal year thereafter, the
treasurer shall transfer the amount transferred in the previous fiscal year,
increased by the current fiscal growth factor as calculated by the office of
financial management. Funds in this account shall be allocated by the
state treasurer according to the following procedure:
(1) Prior to January 1st of each year the department of revenue shall determine the total and the per capita levels of revenues for each city and the statewide 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) ((At such times
as distributions are made under RCW 82.44.150, the state treasurer shall
apportion to each city not imposing the sales and use tax under RCW
82.14.030(2) an amount from the municipal sales and use tax equalization
account equal to the amount distributed to the city under RCW 82.44.155,
multiplied by forty‑five fifty‑fifths.)) By May 31st of each
year, the department of revenue shall calculate the amounts that would be
apportioned and distributed to cities and towns ratably on the basis of
population as last determined by the office of financial management. The basis
for the calculation shall be the total amount transferred to the account
created in subsection (1) of this section during the current fiscal year. On
July 1st of each fiscal year after fiscal year 2002, the state treasurer shall
distribute to each city not imposing the sales and use tax under RCW
82.14.030(2) the amount calculated for the city by the department of revenue in
the preceding fiscal year.
(3) Subsequent to the
distributions under subsection (2) of this section, ((and at such times as
distributions are made under RCW 82.44.150)) on July 1st of each fiscal
year, the state treasurer shall apportion to each city imposing the sales
and use tax under RCW 82.14.030(1) at the maximum rate and receiving less than
((seventy)) fifty percent of the statewide weighted average per
capita level of revenues for all cities as determined by the department of
revenue under subsection (1) of this section, an amount from the municipal
sales and use tax equalization account sufficient, when added to the per capita
level of revenues received the previous calendar year by the city, to equal ((seventy))
fifty percent of the statewide weighted average per capita level of
revenues for all cities determined under subsection (1) of this section,
subject to reduction under subsection (6) of this section.
(4) Subsequent to the
distributions under subsection (3) of this section, ((and at such times as
distributions are made under RCW 82.44.150)) on July 1st of each fiscal
year, the state treasurer shall apportion to each city imposing the sales
and use tax under RCW 82.14.030(2) at the maximum rate and receiving a
distribution under subsection (3) of this section, a third distribution from
the municipal sales and use tax equalization account. The distribution to each
qualifying city shall be equal to the distribution to the city under subsection
(3) of this section, subject to the reduction under subsection (6) of this
section. To qualify for the distributions under this subsection, the city must
impose the tax under RCW 82.14.030(2) for the entire calendar year. Cities
imposing the tax for less than the full year shall qualify for prorated
allocations under this subsection proportionate to the number of months of the
year during which the tax is imposed.
(5) For a city with an
official incorporation date after January 1, 1990, municipal sales and use tax
equalization distributions shall be made according to the procedures in this
subsection. Municipal sales and use tax equalization distributions to eligible
new cities shall be made at the same time as distributions are made under
subsections (3) and (4) of this section. The department of revenue shall
follow the estimating procedures outlined in this subsection until the new city
has received a full year's worth of revenues under RCW 82.14.030(1) ((as of
the January municipal sales and use tax equalization distribution)).
(a) ((Whether a
newly incorporated city determined to receive funds under this subsection
receives its first equalization payment at the January, April, July, or October
municipal sales and use tax equalization distribution shall depend on the date
the city first imposes the tax authorized under RCW 82.14.030(1).
(i) A newly
incorporated city imposing the tax authorized under RCW 82.14.030(1) effective
as of January 1st shall be eligible to receive funds under this subsection
beginning with the April municipal sales and use tax equalization distribution
of that year.
(ii) A newly
incorporated city imposing the tax authorized under RCW 82.14.030(1) effective
as of February 1st, March 1st, or April 1st shall be eligible to receive funds
under this subsection beginning with the July municipal sales and use tax
equalization distribution of that year.
(iii) A newly incorporated
city imposing the tax authorized under RCW 82.14.030(1) effective as of May
1st, June 1st, or July 1st shall be eligible to receive funds under this
subsection beginning with the October municipal sales and use tax equalization
distribution of that year.
(iv) A newly
incorporated city imposing the tax authorized under RCW 82.14.030(1) effective
as of August 1st, September 1st, or October 1st shall be eligible to receive
funds under this subsection beginning with the January municipal sales and use
tax equalization distribution of the next year.
(v) A newly
incorporated city imposing the tax authorized under RCW 82.14.030(1) effective
as of November 1st or December 1st shall be eligible to receive funds under
this subsection beginning with the April municipal sales and use tax
equalization distribution of the next year.
(b))) For purposes of calculating the amount of
funds the new city should receive under this subsection, the department of
revenue 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 provided under subsection (3) of this section based on the per capita
revenues determined under (((b))) (a)(i) of this subsection;
(iii) Prorate the
amount determined under (((b))) (a)(ii) of this subsection by the
number of months the tax authorized under RCW 82.14.030(1) is imposed.
(((c))) (b)
A new city imposing the tax under RCW 82.14.030(2) at the maximum rate and
receiving a distribution calculated under (((b))) (a) of this
subsection shall receive another distribution from the municipal sales and use
tax equalization account. This distribution shall be equal to the calculation
made under (((b))) (a)(ii) of this subsection, prorated by the
number of months the city imposes the tax authorized under RCW 82.14.030(2) at
the full rate.
(((d))) (c)
The department of revenue shall advise the state treasurer of the amounts
calculated under (b) ((and (c))) of this subsection and the state
treasurer shall distribute these amounts to the new city from the municipal
sales and use tax equalization account subject to the limitations imposed in
subsection (6) of this section.
(((e))) (d)
Revenues estimated under this subsection shall not affect the calculation of
the statewide weighted average per capita level of revenues for all cities made
under subsection (1) of this section.
(6) If inadequate revenues exist in the municipal sales and use tax equalization account to make the distributions under subsection (3), (4), or (5) of this section, then the distributions under subsections (3), (4), and (5) of this section shall be reduced ratably among the qualifying cities. At such time during the year as additional funds accrue to the municipal sales and use tax equalization account, additional distributions shall be made under subsections (3), (4), and (5) of this section to the cities.
(7) If the level of revenues in the municipal sales and use tax equalization account exceeds the amount necessary to make the distributions under subsections (2) through (5) of this section, then the additional revenues shall be apportioned among the several cities within the state ratably on the basis of population as last determined by the office of financial management: PROVIDED, That no such distribution shall be made to those cities receiving a distribution under subsection (2) of this section.
--- END ---