Z-0774.1 _______________________________________________
SENATE BILL 5746
_______________________________________________
State of Washington 57th Legislature 2001 Regular Session
By Senators Haugen, Horn and Kohl‑Welles; by request of The Blue Ribbon Commission on Transportation
Read first time 02/01/2001. Referred to Committee on Transportation.
AN ACT Relating to transportation financing; amending RCW 46.16.0621, 46.16.070, 46.68.035, 47.60.326, 82.08.020, 82.08.0255, 82.80.020, 82.80.070, and 82.03.130; reenacting and amending RCW 82.36.025; adding a new section to chapter 84.55 RCW; adding new sections to chapter 82.32 RCW; adding a new section to chapter 82.14 RCW; adding a new section to chapter 82.80 RCW; adding a new section to chapter 82.44 RCW; adding a new section to chapter 82.04 RCW; adding a new chapter to Title 47 RCW; repealing RCW 39.88.010, 39.88.020, 39.88.030, 39.88.040, 39.88.050, 39.88.060, 39.88.070, 39.88.080, 39.88.090, 39.88.100, 39.88.110, 39.88.120, 39.88.130, 39.88.900, 39.88.905, 39.88.910, 39.88.915, and 84.55.080; providing an effective date; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 46.16.0621 and 2000 1st sp.s. c 1 s 1 are each amended to read as follows:
(1) License tab fees shall be thirty dollars per year for motor vehicles, regardless of year, value, make, or model, beginning January 1, 2000.
(2) For the purposes of
this section, "license tab fees" are defined as the general fees paid
annually for licensing motor vehicles, including cars, sport utility vehicles,
motorcycles, ((and)) motor homes, and nonmotorized vehicles including
trailers as defined in RCW 46.04.620. Trailers licensed under RCW 46.16.065,
46.16.068, or 46.16.085 shall not be required to pay license tab fees under
this section.
Sec. 2. RCW 46.16.070 and 1994 c 262 s 8 are each amended to read as follows:
(1) In lieu of all
other vehicle licensing fees, unless specifically exempt, and in addition to
the excise tax prescribed in chapter 82.44 RCW and the mileage fees prescribed
for buses and stages in RCW 46.16.125, there shall be paid and collected
annually for each ((truck, motor truck, truck tractor, road tractor,
tractor, bus, auto stage, or for hire vehicle with seating capacity of more
than six)) motor vehicle, based upon the declared combined gross
weight or declared gross weight ((thereof)) pursuant to the provisions
of chapter 46.44 RCW, the following licensing fees by such gross weight:
DECLARED GROSS WEIGHT SCHEDULE A SCHEDULE B
Less than 4,000 lbs. $ 36.00 $ 30.00
4,000 lbs...... $ ((37.00)) $ 37.00
43.00
6,000 lbs...... $ ((44.00)) $ 44.00
50.00
8,000 lbs...... $ ((55.00)) $ 55.00
61.00
10,000 lbs..... $ ((62.00)) $ 62.00
68.00
12,000 lbs..... $ ((72.00)) $ 72.00
78.00
14,000 lbs..... $ ((82.00)) $ 82.00
88.00
16,000 lbs..... $ ((92.00)) $ 92.00
98.00
18,000 lbs..... $ ((137.00)) $ 137.00
143.00
20,000 lbs..... $ ((152.00)) $ 152.00
158.00
22,000 lbs..... $ ((164.00)) $ 164.00
170.00
24,000 lbs..... $ ((177.00)) $ 177.00
183.00
26,000 lbs..... $ ((187.00)) $ 187.00
193.00
28,000 lbs..... $ ((220.00)) $ 220.00
226.00
30,000 lbs..... $ ((253.00)) $ 253.00
259.00
32,000 lbs..... $ ((304.00)) $ 304.00
310.00
34,000 lbs..... $ ((323.00)) $ 323.00
329.00
36,000 lbs..... $ ((350.00)) $ 350.00
356.00
38,000 lbs..... $ ((384.00)) $ 384.00
390.00
40,000 lbs..... $ ((439.00)) $ 439.00
445.00
42,000 lbs..... $ ((456.00)) $ 546.00
462.00
44,000 lbs..... $ ((466.00)) $ 556.00
472.00
46,000 lbs..... $ ((501.00)) $ 591.00
507.00
48,000 lbs..... $ ((522.00)) $ 612.00
528.00
50,000 lbs..... $ ((566.00)) $ 656.00
572.00
52,000 lbs..... $ ((595.00)) $ 685.00
601.00
54,000 lbs..... $ ((642.00)) $ 732.00
648.00
56,000 lbs..... $ ((677.00)) $ 767.00
683.00
58,000 lbs..... $ ((704.00)) $ 794.00
710.00
60,000 lbs..... $ ((750.00)) $ 840.00
756.00
62,000 lbs..... $ ((804.00)) $ 894.00
810.00
64,000 lbs..... $ ((822.00)) $ 912.00
828.00
66,000 lbs..... $ ((915.00)) $ 1,005.00
921.00
68,000 lbs..... $ ((954.00)) $ 1,044.00
960.00
70,000 lbs..... $ ((1,027.00)) $ 1,117.00
1,033.00
72,000 lbs..... $ ((1,098.00)) $ 1,188.00
1,104.00
74,000 lbs..... $ ((1,193.00)) $ 1,283.00
1,199.00
76,000 lbs..... $ ((1,289.00)) $ 1,379.00
1,295.00
78,000 lbs..... $ ((1,407.00)) $ 1,497.00
1,413.00
80,000 lbs..... $ ((1,518.00)) $ 1,608.00
1,524.00
82,000 lbs..... $ ((1,623.00)) $ 1,713.00
1,629.00
84,000 lbs..... $ ((1,728.00)) $ 1,818.00
1,734.00
86,000 lbs..... $ ((1,833.00)) $ 1,923.00
1,839.00
88,000 lbs..... $ ((1,938.00)) $ 2,028.00
1,944.00
90,000 lbs..... $ ((2,043.00)) $ 2,133.00
2,049.00
92,000 lbs..... $ ((2,148.00)) $ 2,238.00
2,154.00
94,000 lbs..... $ ((2,253.00)) $ 2,343.00
2,259.00
96,000 lbs..... $ ((2,358.00)) $ 2,448.00
2,364.00
98,000 lbs..... $ ((2,463.00)) $ 2,553.00
2,469.00
100,000 lbs.... $ ((2,568.00)) $ 2,658.00
2,574.00
102,000 lbs.... $ ((2,673.00)) $ 2,763.00
2,679.00
104,000 lbs.... $ ((2,778.00)) $ 2,868.00
2,784.00
105,500 lbs.... $ ((2,883.00)) $ 2,973.00
2,889.000
Schedule A applies to vehicles either used exclusively for hauling logs or that do not tow trailers. Schedule B applies to vehicles that tow trailers and are not covered under Schedule A.
(2) Every truck, motor truck, truck tractor, and tractor exceeding 6,000 pounds empty scale weight registered under chapter 46.16, 46.87, or 46.88 RCW shall be licensed for not less than one hundred fifty percent of its empty weight unless the amount would be in excess of the legal limits prescribed for such a vehicle in RCW 46.44.041 or 46.44.042, in which event the vehicle shall be licensed for the maximum weight authorized for such a vehicle or unless the vehicle is used only for the purpose of transporting any well drilling machine, air compressor, rock crusher, conveyor, hoist, donkey engine, cook house, tool house, bunk house, or similar machine or structure attached to or made a part of such vehicle.
(3) Beginning with all motor vehicle registrations that are due or become due on November 1, 2002, and thereafter, there shall be paid and collected annually a twenty-five percent surcharge on the gross weight portion of the current combined licensing fees for all trucks, motor trucks, truck tractors, and tractors. The proceeds from the surcharge shall be deposited into the motor vehicle fund for use on projects dealing with freight mobility.
(4) The following provisions apply when increasing gross or combined gross weight for a vehicle licensed under this section:
(a) The new license fee will be one-twelfth of the fee listed above for the new gross weight, multiplied by the number of months remaining in the period for which licensing fees have been paid, including the month in which the new gross weight is effective.
(b) Upon surrender of the current certificate of registration or cab card, the new licensing fees due shall be reduced by the amount of the licensing fees previously paid for the same period for which new fees are being charged.
(((2))) (5)
The proceeds from the fees collected under subsections (1), (2), and
(4) of this section shall be distributed in accordance with RCW 46.68.035.
Sec. 3. RCW 46.68.035 and 2000 2nd sp.s. c 4 s 8 are each amended to read as follows:
All proceeds from combined vehicle licensing fees received by the director for vehicles licensed under RCW 46.16.070 and 46.16.085 shall be forwarded to the state treasurer to be distributed into accounts according to the following method:
(1) The sum of two dollars for each vehicle shall be deposited into the multimodal transportation account, except that for each vehicle registered by a county auditor or agent to a county auditor pursuant to RCW 46.01.140, the sum of two dollars shall be credited to the current county expense fund.
(2) The remainder shall be distributed as follows, except the twenty-five percent surcharge:
(a) 23.677 percent shall be deposited into the state patrol highway account of the motor vehicle fund;
(b) 1.521 percent shall be deposited into the Puget Sound ferry operations account of the motor vehicle fund; and
(c) The remaining proceeds shall be deposited into the motor vehicle fund.
(3) The proceeds from the twenty-five percent surcharge on the gross weight of trucks, motor trucks, truck trailers, and tractors shall be deposited into the motor vehicle fund pursuant to RCW 46.16.070(3).
Sec. 4. RCW 47.60.326 and 1999 c 94 s 27 are each amended to read as follows:
(1) In order to maintain an adequate, fair, and economically sound schedule of charges for the transportation of passengers, vehicles, and commodities on the Washington state ferries, the department of transportation each year shall conduct a full review of such charges.
(2) Prior to February 1st of each odd-numbered year the department shall transmit to the transportation commission a report of its review together with its recommendations for the revision of a schedule of charges for the ensuing biennium. The commission on or before July 1st of that year shall adopt as a rule, in the manner provided by the Washington administrative procedure act, a schedule of charges for the Washington state ferries for the ensuing biennium commencing July 1st. The schedule may initially be adopted as an emergency rule if necessary to take effect on, or as near as possible to, July 1st.
(3) The department in making its review and formulating recommendations and the commission in adopting a schedule of charges may consider any of the following factors:
(a) The amount of subsidy available to the ferry system for maintenance and operation;
(b) The time and distance of ferry runs;
(c) The maintenance and operation costs for ferry runs with a proper adjustment for higher costs of operating outmoded or less efficient equipment;
(d) The efficient distribution of traffic between cross-sound routes;
(e) The desirability of reasonable commutation rates for persons using the ferry system to commute daily to work;
(f) The effect of proposed fares in increasing walk-on and vehicular passenger use;
(g) The effect of proposed fares in promoting all types of ferry use during nonpeak periods;
(h) Such other factors as prudent managers of a major ferry system would consider.
(4) The commission shall adopt a schedule of charges that will produce revenues equal to or greater than:
(a) Eighty percent of the total cost of maintenance and operation of the Washington state ferries by July 1, 2007; and
(b) Ninety percent of the total cost of maintenance and operation of the Washington state ferries by July 1, 2021.
(5) The commission's adoption of a schedule of charges sufficient to meet the revenue targets of subsection (4) of this section is subject to the following conditions:
(a) Increases to the schedule of charges shall be phased in over time to mitigate the impact to ferry dependant communities while still ensuring that the revenue targets are met by the deadline established in subsection (4) of this section;
(b) The department shall annually evaluate the impact on the volume of ridership of any increases to the schedule of charges. The department and commission shall consider revising future increases in the schedule of charges based upon that impact; and
(c) The commission may incorporate changes to its schedule of charges designed to meet other policy goals as allowed under subsection (3) of this section as part of the changes to the schedule of charges implemented under subsection (4) of this section.
(6) If at any time during the biennium it appears that projected revenues from the Puget Sound ferry operations account and any other operating subsidy available to the Washington state ferries will be less than the projected total cost of maintenance and operation of the Washington state ferries for the biennium, the department shall forthwith undertake a review of its schedule of charges to ascertain whether or not the schedule of charges should be revised. The department shall, upon completion of its review report, submit its recommendation to the transportation commission which may in its sound discretion revise the schedule of charges as required to meet necessary maintenance and operation expenditures of the ferry system for the biennium or may defer action until the regular annual review and revision of ferry charges as provided in subsection (2) of this section.
(((5))) (7)
The provisions of RCW 47.60.330 relating to public participation shall apply to
the process of revising ferry tolls under this section.
(8) Under RCW 43.135.055, the transportation commission may increase ferry tolls included in the schedule of charges adopted under this section by a percentage that exceeds the fiscal growth factor.
Sec. 5. RCW 82.08.020 and 2000 2nd sp.s. c 4 s 1 are each amended to read as follows:
(1) There is levied and there shall be collected a tax on each retail sale in this state equal to six and five-tenths percent of the selling price.
(2) The tax on motor vehicle fuel shall be based upon the commodity price of the fuel up to a cap of eighty cents and shall be collected at the rack as that term is defined in RCW 82.36.010(23).
(3) There is levied and there shall be collected an additional tax on each retail car rental, regardless of whether the vehicle is licensed in this state, equal to five and nine-tenths percent of the selling price. The revenue collected under this subsection shall be deposited in the multimodal transportation account created in RCW 47.66.070.
(((3))) (4)
The taxes imposed under this chapter shall apply to successive retail sales of
the same property.
(((4))) (5)
The rates provided in this section apply to taxes imposed under chapter 82.12
RCW as provided in RCW 82.12.020.
Sec. 6. RCW 82.08.0255 and 1998 c 176 s 4 are each amended to read as follows:
(1) The tax levied by RCW 82.08.020 shall not apply to sales of:
(a) Motor vehicle fuel
used in aircraft by the manufacturer ((thereof)) for research,
development, and testing purposes; and
(b) Motor vehicle and special fuel if:
(i) The fuel is purchased for the purpose of public transportation and the purchaser is entitled to a refund or an exemption under RCW 82.36.275 or 82.38.080(3); or
(ii) The fuel is
purchased by a private, nonprofit transportation provider certified under
chapter 81.66 RCW and the purchaser is entitled to a refund or an exemption
under RCW 82.36.285 or 82.38.080(1)(h)((; or
(iii) The fuel is
taxable under chapter 82.36 or 82.38 RCW)).
(2) Any person who has paid the tax imposed by RCW 82.08.020 on the sale of special fuel delivered in this state shall be entitled to a credit or refund of such tax with respect to fuel subsequently established to have been actually transported and used outside this state by persons engaged in interstate commerce. The tax shall be claimed as a credit or refunded through the tax reports required under RCW 82.38.150.
Sec. 7. RCW 82.36.025 and 1999 c 269 s 16 and 1999 c 94 s 29 are each reenacted and amended to read as follows:
(1) A motor vehicle fuel tax rate of twenty-three cents per gallon shall apply to the sale, distribution, or use of motor vehicle fuel.
(2) Beginning July 1, 2001, an additional motor fuel tax rate of six cents per gallon shall apply to the sale, distribution, or use of motor vehicle fuel, and the proceeds from this additional tax rate shall be deposited in the motor vehicle account of the motor vehicle fund.
Sec. 8. RCW 82.80.020 and 2000 c 103 s 20 are each amended to read as follows:
(1) The legislative
authority of a county, or ((subject to subsection (7) of this section,))
a ((qualifying)) city or town located in a county that has not imposed
((a fifteen-dollar)) the maximum fee under this section, may fix
and impose an additional fee, not to exceed ((fifteen)) fifty
dollars per vehicle, for each vehicle that is subject to license fees under RCW
46.16.060 and for each vehicle that is subject to RCW 46.16.070 with an unladen
weight of six thousand pounds or less, and that is determined by the department
of licensing to be registered within the boundaries of the county.
(2) The department of licensing shall administer and collect the fee. The department shall deduct a percentage amount, as provided by contract, not to exceed two percent of the taxes collected, for administration and collection expenses incurred by it. The remaining proceeds shall be remitted to the custody of the state treasurer for monthly distribution under RCW 82.80.080.
(3) The proceeds of this fee shall be used strictly for transportation purposes in accordance with RCW 82.80.070.
(4) A county ((or
qualifying)), city, or town imposing this fee or initiating
an exemption process shall delay the effective date at least six months from
the date the ordinance is enacted to allow the department of licensing to
implement administration and collection of or exemption from the fee.
(5) The legislative
authority of a county ((or qualifying)), city, or town may
develop and initiate an exemption process of the ((fifteen dollar)) fee
for the registered owners of vehicles residing within the boundaries of the
county ((or qualifying)), city, or town: (a) Who are
sixty-one years old or older at the time payment of the fee is due and whose
household income for the previous calendar year is less than an amount prescribed
by the county ((or qualifying)), city, or town legislative
authority; or (b) who have a physical disability.
(6) The legislative
authority of a county ((or qualifying)), city, or town
shall develop and initiate an exemption process of the ((fifteen-dollar))
fee for vehicles registered within the boundaries of the county that are
licensed under RCW 46.16.374.
(7) ((For purposes
of this section, a "qualifying city or town" means a city or town
residing within a county having a population of greater than seventy-five
thousand in which is located all or part of a national monument.)) A ((qualifying))
city or town may impose the fee authorized in subsection (1) of this section
subject to the following conditions and limitations:
(a) The city or town
may impose the fee only if authorized to do so by a majority ((of voters
voting at a general or special election on a proposition for that purpose. At
a minimum, the ballot measure shall contain: (i) A description of the
transportation project proposed for funding, properly identified by mileposts
or other designations that specify the project parameters; (ii) the proposed number
of months or years necessary to fund the city or town's share of the project
cost; and (iii) the amount of fee to be imposed for the project)) vote
of the legislative authority.
(b) The city or town
may not impose a fee that, if combined with the county fee, exceeds ((fifteen))
fifty dollars. If a county imposes or increases a fee under this
section that, if combined with the fee imposed by a city or town, exceeds ((fifteen))
fifty dollars, the city or town fee shall be reduced or eliminated as
needed so that in no city or town does the combined fee exceed ((fifteen))
fifty dollars. All revenues from county-imposed fees shall be
distributed as called for in RCW 82.80.080.
(((c) Any fee
imposed by a city or town under this section shall expire at the end of the
term of months or years provided in the ballot measure, or when the city or
town's bonded indebtedness on the project is retired, whichever is sooner.))
(8) The fee imposed under subsection (7) of this section shall apply only to renewals and shall not apply to ownership transfer transactions.
Sec. 9. RCW 82.80.070 and 1991 c 141 s 4 are each amended to read as follows:
(1) The proceeds
collected pursuant to the exercise of the local option authority of RCW 82.80.010,
82.80.020, 82.80.030, ((and)) 82.80.050, and section 8 of this act
(hereafter called "local option transportation revenues") shall be
used for transportation purposes only, including but not limited to the
following: The operation and preservation of roads, streets, and other
transportation improvements; new construction, reconstruction, and expansion of
city streets, county roads, and state highways and other transportation
improvements; development and implementation of public transportation and high-capacity
transit improvements and programs; and planning, design, and acquisition of
right of way and sites for such transportation purposes. The proceeds
collected from excise taxes on the sale, distribution, or use of motor vehicle
fuel and special fuel under RCW 82.80.010 shall be used exclusively for
"highway purposes" as that term is construed in Article II, section
40 of the state Constitution.
(2) The local option transportation revenues shall be expended for transportation uses consistent with the adopted transportation and land use plans of the jurisdiction expending the funds and consistent with any applicable and adopted regional transportation plan for metropolitan planning areas.
(3) Each local government with a population greater than eight thousand that levies or expends local option transportation funds, is also required to develop and adopt a specific transportation program that contains the following elements:
(a) The program shall identify the geographic boundaries of the entire area or areas within which local option transportation revenues will be levied and expended.
(b) The program shall be based on an adopted transportation plan for the geographic areas covered and shall identify the proposed operation and construction of transportation improvements and services in the designated plan area intended to be funded in whole or in part by local option transportation revenues and shall identify the annual costs applicable to the program.
(c) The program shall indicate how the local transportation plan is coordinated with applicable transportation plans for the region and for adjacent jurisdictions.
(d) The program shall include at least a six-year funding plan, updated annually, identifying the specific public and private sources and amounts of revenue necessary to fund the program. The program shall include a proposed schedule for construction of projects and expenditure of revenues. The funding plan shall consider the additional local tax revenue estimated to be generated by new development within the plan area if all or a portion of the additional revenue is proposed to be earmarked as future appropriations for transportation improvements in the program.
(4) Local governments with a population greater than eight thousand exercising the authority for local option transportation funds shall periodically review and update their transportation program to ensure that it is consistent with applicable local and regional transportation and land use plans and within the means of estimated public and private revenue available.
(5) In the case of expenditure for new or expanded transportation facilities, improvements, and services, priorities in the use of local option transportation revenues shall be identified in the transportation program and expenditures shall be made based upon the following criteria, which are stated in descending order of weight to be attributed:
(a) First, the project serves a multijurisdictional function;
(b) Second, it is necessitated by existing or reasonably foreseeable congestion;
(c) Third, it has the greatest person-carrying capacity;
(d) Fourth, it is partially funded by other government funds, such as from the state transportation improvement board, or by private sector contributions, such as those from the local transportation act, chapter 39.92 RCW; and
(e) Fifth, it meets such other criteria as the local government determines is appropriate.
(6) It is the intent of
the legislature that as a condition of levying, receiving, and expending local
option transportation revenues, no local government agency use the revenues to
replace, divert, or loan any revenues currently being used for transportation
purposes to nontransportation purposes. ((The association of Washington
cities and the Washington state association of counties, in consultation with
the legislative transportation committee, shall study the issue of nondiversion
and make recommendations to the legislative transportation committee for
language implementing the intent of this section by December 1, 1990.))
(7) Local governments are encouraged to enter into interlocal agreements to jointly develop and adopt with other local governments the transportation programs required by this section for the purpose of accomplishing regional transportation planning and development.
(8) Local governments may use all or a part of the local option transportation revenues for the amortization of local government general obligation and revenue bonds issued for transportation purposes consistent with the requirements of this section.
NEW SECTION. Sec. 10. It is declared to be the public policy of the state of Washington to encourage and facilitate the improvement of transportation infrastructure. The construction of necessary transportation improvements in accordance with local community planning will encourage investment in job-producing economic development and will expand the public tax base.
It is the purpose of this chapter to allocate a portion of regular property taxes for limited periods of time to assist in the financing of transportation improvements which are needed to encourage economic development of urban areas; to improve transportation mobility in congested urban areas due to the inability of existing financing methods to provide needed transportation improvements; to encourage local taxing districts to cooperate in the allocation of future tax revenues arising in urban areas in order to facilitate the long-term growth of their common tax base; and to encourage private investment within congested urban areas.
NEW SECTION. Sec. 11. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Apportionment district" means the geographic area, within an urban area, from which regular property taxes are to be apportioned to finance a transportation improvement contained therein.
(2) "Assessed value of real property" means the valuation of real property as placed on the last completed assessment roll of the county.
(3) "City" means any city or town.
(4) "Ordinance" means any appropriate method of taking a legislative action by a county or city, whether known as a statute, resolution, ordinance, or otherwise.
(5) "Transportation improvement" means an undertaking to provide transportation facilities in an urban area which the sponsor has authority to provide.
(6) "Transportation improvement costs" means the costs of design, planning, right of way acquisition, site preparation, construction, reconstruction, rehabilitation, maintenance, preservation, and installation of the transportation improvement; costs of relocation, maintenance, and operation of property pending construction of the transportation improvement; costs of utilities relocated as a result of the transportation improvement; costs of financing, including interest during construction, legal and other professional services, taxes, and insurance; costs incurred by the assessor to revalue real property for the purpose of determining the tax allocation base value that are in excess of costs incurred by the assessor in accordance with his or her revaluation plan under chapter 84.41 RCW, and the costs of apportioning the taxes and complying with this chapter and other applicable law; and administrative costs reasonably necessary and related to these costs. These costs may include costs incurred prior to the adoption of the transportation improvement ordinance, but subsequent to the effective date of this section.
(7) "Transportation improvement ordinance" means the ordinance passed under section 13(4) of this act.
(8) "Regular property taxes" means regular property taxes as now or hereafter defined in RCW 84.04.140, except: (a) Regular property taxes levied by port districts or public utility districts specifically for the purpose of making required payments of principal and interest on general indebtedness; and (b) regular property taxes levied by the state for the support of the common schools under RCW 84.52.065.
(9) "Sponsor" means the legislative authority of any county or city initiating and undertaking a transportation improvement.
(10) "Tax allocation base value of real property" means the true and fair value of real property within an apportionment district for the year in which the apportionment district was established.
(11) "Tax allocation bonds" means any bonds, notes, or other obligations issued by a sponsor under section 19 of this act.
(12) "Tax allocation revenues" means those tax revenues allocated to a sponsor under section 16(1)(b) of this act.
(13) "Taxing districts" means any governmental entity which levies or has levied for it regular property taxes upon real property located within a proposed or approved apportionment district.
(14) "Vacant land" means land that is not used for any purpose. "Vacant land" does not include paved or unpaved revenue-generating motor vehicle parking lots.
(15) "Value of taxable property" means value of taxable property as defined in RCW 39.36.015.
(16) "Urban area" means an urban growth area designated under RCW 36.70A.110, a new fully contained community designated under RCW 36.70A.350, a major industrial development designated under RCW 36.70A.365, or a master planned location for major industrial developments designated under RCW 36.70A.367.
NEW SECTION. Sec. 12. (1) Only transportation improvements which are determined by the legislative authority of the sponsor to meet the following criteria are eligible to be financed under this chapter:
(a) The transportation improvement is located within an urban area;
(b) The transportation improvement will stimulate economic development within the apportionment district;
(c) The economic development within the apportionment district will increase the assessed value of the apportionment district;
(d) The economic development which is anticipated to occur within the apportionment district as a result of the transportation improvement is consistent with an existing comprehensive land use plan and approved growth policies of the jurisdiction within which it is located;
(e) A transportation improvement located within a city has been approved by the legislative authority of such city; and
(f) A transportation improvement located within an urban area in an unincorporated area has been approved by the legislative authority of the county within whose boundaries the area lies.
(2) Apportionment of regular property tax revenues to finance the transportation improvements is subject to the following limitations:
(a) No apportionment of regular property tax revenues may take place within a previously established apportionment district where regular property taxes are still apportioned to finance public or transportation improvements without the concurrence of the sponsor which established the district;
(b) No apportionment district may be established which includes any geographic area included within a previously established apportionment district which has outstanding bonds payable in whole or in part from tax allocation revenues;
(c) The total amount of outstanding bonds payable in whole or in part from tax allocation revenues arising from property located within a city shall not exceed two percent of the value of taxable property within the city, and the total amount of outstanding bonds payable in whole or in part from tax allocation revenues arising from property located within the unincorporated areas of a county shall not exceed two percent of the value of taxable property within the entire unincorporated area of the county; and
(d) No taxes other than regular property taxes may be apportioned under this chapter.
(3) Transportation improvements may be undertaken and coordinated with other programs or efforts undertaken by the sponsor or others and may be funded in whole or in part from sources other than those provided by this chapter.
NEW SECTION. Sec. 13. Transportation improvements funded by tax allocation revenues may only be located within an urban area. In order to secure an allocation of regular property taxes to finance a transportation improvement, a sponsor shall:
(1) Propose by ordinance a plan for the transportation improvement which includes a description of the contemplated transportation improvement, the estimated cost thereof, the boundaries of the apportionment district, the estimated period during which tax revenue apportionment is contemplated, and the ways in which the sponsor plans to use tax allocation revenues to finance the transportation improvement, and which sets at least three public hearings thereon before the legislative authority of the sponsor or a committee thereof: PROVIDED, That public hearings for the transportation improvement that is undertaken in combination or coordination by two or more sponsors may be held jointly; and public hearings, held before the legislative authority or a committee of a majority thereof may be combined with public hearings held for other purposes;
(2) At least fifteen days in advance of the hearing:
(a) Deliver notice of the hearing to all taxing districts, the county treasurer, and the county assessor, which notice includes a map or drawing showing the location of the contemplated transportation improvement and the boundaries of the proposed apportionment district, a brief description of the transportation improvement, the estimated cost thereof, the anticipated increase in property values within the apportionment district, the location of the sponsor's principal business office where it will maintain information concerning the transportation improvement for public inspection, and the date and place of hearing; and
(b) Post notice in at least six public places located in the proposed apportionment district and publish notice in a legal newspaper of general circulation within the sponsor's jurisdiction briefly describing the transportation improvement, the proposed apportionment, the boundaries of the proposed apportionment district, the location where additional information concerning the transportation improvement may be inspected, and the date and place of hearing;
(3) At the time and place fixed for the hearing under subsection (1) of this section, and at such times to which the hearing may be adjourned, receive and consider all statements and materials as may be submitted, and objections and letters filed before or within ten days thereafter;
(4) Within one hundred twenty days after completion of the public hearings, pass an ordinance establishing the apportionment district and authorizing the proposed transportation improvement, including any modifications which in the sponsor's opinion the hearings indicated should be made, which includes the boundaries of the apportionment district, a description of the transportation improvement, the estimated cost thereof, the portion of the estimated cost thereof to be reimbursed from tax allocation revenues, the estimated time during which regular property taxes are to be apportioned, the date upon which apportionment of the regular property taxes will commence, and a finding that the transportation improvement meets the conditions of section 12 of this act.
NEW SECTION. Sec. 14. Within fifteen days after enactment of the public improvement ordinance, the sponsor shall publish notice in a legal newspaper circulated within the designated apportionment district summarizing the final transportation improvement, including a brief description of the transportation improvement, the boundaries of the apportionment district, and the location where the transportation improvement ordinance and any other information concerning the transportation improvement may be inspected.
Within fifteen days after enactment of the transportation improvement ordinance, the sponsor shall deliver a certified copy thereof to each taxing district, the county treasurer, and the county assessor.
NEW SECTION. Sec. 15. (1) Any taxing district that objects to the apportionment district, the duration of the apportionment, the manner of apportionment, or the propriety of cost items established by the transportation improvement ordinance of the sponsor may, within thirty days after mailing of the ordinance, petition for review thereof by the state board of tax appeals. The state board of tax appeals shall meet within a reasonable time, hear all the evidence presented by the parties on matters in dispute, and determine the issues upon the evidence as may be presented to it at the hearing. The board may approve or deny the transportation improvement ordinance as enacted or may grant approval conditioned upon modification of the ordinance by the sponsor. The decision by the state board of tax appeals shall be final and conclusive but shall not preclude modification or discontinuation of the transportation improvement.
(2) If the sponsor modifies the transportation improvement ordinance as directed by the board, the transportation improvement ordinance shall be effective without further hearings or findings and shall not be subject to any further appeal. If the sponsor modifies the transportation improvement ordinance in a manner other than as directed by the board, the transportation improvement ordinance shall be subject to the procedures established under sections 13 and 14 of this act.
NEW SECTION. Sec. 16. (1) Upon the date established in the transportation improvement ordinance, but not sooner than the first day of the calendar year following the passage of the ordinance, the regular property taxes levied upon the assessed value of real property within the apportionment district shall be divided as follows:
(a) That portion of the regular property taxes produced by the rate of tax levied each year by or for each of the taxing districts upon the tax allocation base value of real property, or upon the assessed value of real property in each year, whichever is smaller, shall be allocated to and paid to the respective taxing districts; and
(b) That portion of the regular property taxes levied each year by or for each of the taxing districts upon the assessed value of real property within an apportionment district which is in excess of the tax allocation base value of real property shall be allocated and paid to the sponsor, or the sponsor's designated agent, until all transportation improvement costs to be paid from the tax allocation revenues have been paid, except that the sponsor may agree to receive less than the full amount of such portion as long as bond debt service, reserve, and other bond covenant requirements are satisfied, in which case the balance of the taxes shall be allocated to the respective taxing districts as the sponsor and the taxing districts may agree.
(2) The county assessor shall revalue the real property within the apportionment district for the purpose of determining the tax allocation base value for the apportionment district and shall certify to the sponsor the tax allocation base value as soon as practicable after the assessor receives notice of the transportation improvement ordinance and shall certify to the sponsor the total assessed value of real property within thirty days after the property values for each succeeding year have been established. Nothing in this section authorizes revaluations of real property by the assessor for property taxation that are not made in accordance with the assessor's revaluation plan under chapter 84.41 RCW.
(3) The date upon which the apportionment district was established shall be considered the date upon which the transportation improvement ordinance was enacted by the sponsor.
(4) The apportionment of regular property taxes under this section shall cease when tax allocation revenues are no longer necessary or obligated to pay transportation improvement costs or to pay principal of and interest on bonds issued to finance transportation improvement costs and payable in whole or in part from tax allocation revenues. At the time of termination of the apportionment, any excess money and any earnings thereon held by the sponsor shall be returned to the county treasurer and distributed to the taxing districts which were subject to the allocation in proportion to their regular property tax levies due for the year in which the funds are returned.
NEW SECTION. Sec. 17. Tax allocation revenues may be applied as follows:
(1) To pay transportation improvement costs;
(2) To pay principal of and interest on, and to fund any necessary reserves for, tax allocation bonds;
(3) To pay into bond funds established to pay the principal of and interest on general obligation bonds issued pursuant to law to finance transportation facilities that are specified in the transportation improvement ordinance and constructed following the establishment of and within the apportionment district; or
(4) To pay any combination of the foregoing.
NEW SECTION. Sec. 18. General obligation bonds which are issued to finance transportation facilities that are specified in the transportation improvement ordinance, and for which part or all of the principal or interest is paid by tax allocation revenues, shall be subject to the following requirements:
(1) The intent to issue such bonds and the maximum amount which the sponsor contemplates issuing are specified in the transportation improvement ordinance; and
(2) A statement of the intent of the sponsor to issue such bonds is included in all notices required by sections 13 and 14 of this act.
In addition, the ordinance or resolution authorizing the issuance of such general obligation bonds shall be subject to potential referendum approval by the voters of the issuing entity when the bonds are part of the nonvoter approved indebtedness limitation established under RCW 39.36.020. If the voters of the county or city issuing such bonds otherwise possess the general power of referendum on county or city matters, the ordinance or resolution shall be subject to that procedure. If the voters of the county or city issuing such bonds do not otherwise possess the general power of referendum on county or city matters, the referendum shall conform to the requirements and procedures for referendum petitions provided for code cities in RCW 35A.11.100.
NEW SECTION. Sec. 19. (1) A sponsor may issue such tax allocation bonds as it may deem appropriate for the financing of transportation improvement costs and a reasonable bond reserve and for the refunding of any outstanding tax allocation bonds.
(2) The principal and interest of tax allocation bonds may be made payable from:
(a) Tax allocation revenues;
(b) Project revenues which may include: (i) Nontax income, revenues, fees, and rents from the transportation improvement financed with the proceeds of the bonds, or portions thereof; and (ii) contributions, grants, and nontax money available to the sponsor for payment of costs of the transportation improvement or the debt service of the bonds issued therefor;
(c) Any combination of the revenues under (a) and (b) of this subsection.
(3) Tax allocation bonds shall not be the general obligation of or guaranteed by all or any part of the full faith and credit of the sponsor or any other state or local government, or any tax revenues other than tax allocation revenues, and shall not be considered a debt of the sponsor or other state or local government for general indebtedness limitation purposes.
(4) The terms and conditions of tax allocation bonds may include provisions for the following matters, among others:
(a) The date of issuance, maturity date or dates, denominations, form, series, negotiability, registration, rank or priority, place of payment, interest rate or rates which may be fixed or may vary over the life of the tax allocation bonds, bond reserve, coverage, and such other terms related to repayment of the tax allocation bonds;
(b) The application of tax allocation bond proceeds; the use, sale, or disposition of property acquired; consideration or rents and fees to be charged in the sale or lease of property acquired; consideration or rents and fees to be charged in the sale or lease of property within a transportation improvement; the application of rents, fees, and revenues within a transportation improvement; the maintenance, insurance, and replacement of property within a transportation improvement; other encumbrances, if any, upon all or part of property within a transportation improvement, then existing or thereafter acquired; and the type of debts that may be incurred;
(c) The creation of special funds; the money to be so applied; and the use and disposition of the money;
(d) The securing of the tax allocation bonds by a pledge of property and property rights, by assignment of income generated by the transportation improvement, or by pledging such additional specifically described resources other than tax revenues as are available to the sponsor;
(e) The terms and conditions for redemption;
(f) The replacement of lost and destroyed bond instruments;
(g) Procedures for amendment of the terms and conditions of the tax allocation bonds;
(h) The powers of a trustee to enforce covenants and take other actions in event of default; the rights, liabilities, powers, and duties arising upon the breach of any covenant, condition, or obligation; and
(i) When consistent with this chapter, such other terms, conditions, and provisions which may make the tax allocation bonds more marketable and further the purposes of this chapter.
(5) Tax allocation bonds may be issued and sold in such manner as the legislative authority of the sponsor shall determine.
(6) The sponsor may also issue or incur obligations in anticipation of the receipt of tax allocation bond proceeds or other money available to pay transportation improvement costs.
NEW SECTION. Sec. 20. Tax allocation bonds authorized in this chapter shall be legal investments for any of the funds of the state and of municipal corporations, for trustees, and for other fiduciaries.
NEW SECTION. Sec. 21. Whenever notice is required to be given to the state, notice shall be given to the director of revenue.
NEW SECTION. Sec. 22. No direct or collateral attack on any transportation improvement, transportation improvement ordinance, or apportionment district purported to be authorized or created in conformance with applicable legal requirements, including the requirements of this chapter, may be commenced more than thirty days after publication of notice as required by section 14 of this act.
NEW SECTION. Sec. 23. This chapter supplements and neither restricts nor limits any powers which the state or any municipal corporation might otherwise have under any laws of this state.
NEW SECTION. Sec. 24. This chapter may be known and cited as the transportation infrastructure financing act.
Sec. 25. RCW 82.03.130 and 1998 c 54 s 1 are each amended to read as follows:
(1) The board shall have jurisdiction to decide the following types of appeals:
(a) Appeals taken pursuant to RCW 82.03.190.
(b) Appeals from a county board of equalization pursuant to RCW 84.08.130.
(c) Appeals by an assessor or landowner from an order of the director of revenue made pursuant to RCW 84.08.010 and 84.08.060, if filed with the board of tax appeals within thirty days after the mailing of the order, the right to such an appeal being hereby established.
(d) Appeals by an assessor or owner of an intercounty public utility or private car company from determinations by the director of revenue of equalized assessed valuation of property and the apportionment thereof to a county made pursuant to chapter 84.12 and 84.16 RCW, if filed with the board of tax appeals within thirty days after mailing of the determination, the right to such appeal being hereby established.
(e) Appeals by an assessor, landowner, or owner of an intercounty public utility or private car company from a determination of any county indicated ratio for such county compiled by the department of revenue pursuant to RCW 84.48.075: PROVIDED, That
(i) Said appeal be filed after review of the ratio under RCW 84.48.075(3) and not later than fifteen days after the mailing of the certification; and
(ii) The hearing before the board shall be expeditiously held in accordance with rules prescribed by the board and shall take precedence over all matters of the same character.
(f) Appeals from the decisions of sale price of second class shorelands on navigable lakes by the department of natural resources pursuant to RCW 79.94.210.
(g) Appeals from urban
redevelopment property tax apportionment district proposals established by
governmental ordinances pursuant to ((RCW 39.88.060)) section 15 of
this act.
(h) Appeals from interest rates as determined by the department of revenue for use in valuing farmland under current use assessment pursuant to RCW 84.34.065.
(i) Appeals from revisions to stumpage value tables used to determine value by the department of revenue pursuant to RCW 84.33.091.
(j) Appeals from denial of tax exemption application by the department of revenue pursuant to RCW 84.36.850.
(k) Appeals pursuant to RCW 84.40.038(3).
(2) Except as otherwise specifically provided by law hereafter, the provisions of RCW 1.12.070 shall apply to all notices of appeal filed with the board of tax appeals.
NEW SECTION. Sec. 26. A new section is added to chapter 84.55 RCW to read as follows:
Pursuant to chapter 47.-- RCW (sections 10 through 24 of this act), any increase in the assessed value of real property within an apportionment district resulting from new construction, improvements to property, or any increase in the assessed value of state-assessed property shall not be included in the increase in assessed value resulting from new construction, improvements, or any increase in the assessed value of state-assessed property for purposes of calculating any limitations upon regular property taxes under this chapter until the termination of apportionment as set forth in section 16(4) of this act, except to the extent a taxing district actually will receive the taxes levied upon this value. Tax allocation revenues, as defined in section 11 of this act, shall not be deemed to be "regular property taxes" for purposes of this chapter.
NEW SECTION. Sec. 27. The following acts or parts of acts are each repealed:
(1) RCW 39.88.010 (Declaration) and 1982 1st ex.s. c 42 s 2;
(2) RCW 39.88.020 (Definitions) and 1982 1st ex.s. c 42 s 3;
(3) RCW 39.88.030 (Authority--Limitations) and 1982 1st ex.s. c 42 s 4;
(4) RCW 39.88.040 (Procedure for adoption of public improvement) and 1982 1st ex.s. c 42 s 5;
(5) RCW 39.88.050 (Notice of public improvement) and 1982 1st ex.s. c 42 s 6;
(6) RCW 39.88.060 (Disagreements between taxing districts) and 1989 c 378 s 1 & 1982 1st ex.s. c 42 s 7;
(7) RCW 39.88.070 (Apportionment of taxes) and 1982 1st ex.s. c 42 s 8;
(8) RCW 39.88.080 (Application of tax allocation revenues) and 1982 1st ex.s. c 42 s 9;
(9) RCW 39.88.090 (General obligation bonds) and 1982 1st ex.s. c 42 s 10;
(10) RCW 39.88.100 (Tax allocation bonds) and 1982 1st ex.s. c 42 s 11;
(11) RCW 39.88.110 (Legal investments) and 1982 1st ex.s. c 42 s 13;
(12) RCW 39.88.120 (Notice to state) and 1982 1st ex.s. c 42 s 14;
(13) RCW 39.88.130 (Conclusive presumption of validity) and 1982 1st ex.s. c 42 s 15;
(14) RCW 39.88.900 (Supplemental nature of chapter) and 1982 1st ex.s. c 42 s 16;
(15) RCW 39.88.905 (Short title) and 1982 1st ex.s. c 42 s 1;
(16) RCW 39.88.910 (Captions not part of law--1982 1st ex.s. c 42) and 1982 1st ex.s. c 42 s 17;
(17) RCW 39.88.915 (Severability--1982 1st ex.s. c 42) and 1982 1st ex.s. c 42 s 18; and
(18) RCW 84.55.080 (Adjustment to tax limitation) and 1982 1st ex.s. c 42 s 12.
NEW SECTION. Sec. 28. Sections 10 through 24 of this act constitute a new chapter in Title 47 RCW.
NEW SECTION. Sec. 29. A new section is added to chapter 82.32 RCW to read as follows:
It is the intent of the legislature to direct revenue collected from sales and use taxes paid on transportation-related activities into the multimodal transportation account.
NEW SECTION. Sec. 30. A new section is added to chapter 82.32 RCW to read as follows:
The department shall deposit into the multimodal transportation account all revenue received from taxes imposed under chapters 82.08 and 82.12 RCW upon the sale of, use of, repair of, lease of, or any charge made for:
(1) Building, repairing, or improving of, or ingredients, including all materials, labor, equipment, contracts, and components used for, any publicly owned street, place, road, highway, easement, right of way, mass public transportation terminal or parking facility, bridge, signing, tunnel, or trestle as described in RCW 82.04.050; and
(2) Construction, improvement, equipment, components, or repair of a ferry, ferry terminal, or other facility operated by the Washington state ferries or a local government, or for the repair, overhaul, or dry-docking of any ferry operated by Washington state ferries or a local government.
NEW SECTION. Sec. 31. Sections 29 and 30 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect July 1, 2001.
NEW SECTION. Sec. 32. A new section is added to chapter 82.14 RCW to read as follows:
(1) The legislative authority of a county that is a member of the Puget Sound regional council may submit an authorizing proposition to its voters, and if approved by a majority of persons voting, fix and impose a sales and use tax in accordance with the terms of this section for the purposes designated in subsection (3) of this section.
(2) The tax authorized in this section shall be in addition to any 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 equal two-tenths of one 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.
(3) Moneys received from any tax imposed under this section shall be used solely for transportation purposes as that term is used in RCW 82.80.070.
NEW SECTION. Sec. 33. A new section is added to chapter 82.80 RCW to read as follows:
(1) The legislative authority of a county, city, or town may impose a charge based upon the vehicle miles traveled by a person within a congested region.
(2) For purposes of this section, "congested region" means King, Pierce, or Snohomish counties.
(3) Charges imposed against a vehicle owner shall not exceed two cents per mile driven and shall be paid and collected annually by the department of licensing upon registration of the vehicle. Only the miles traveled in a congested region are subject to the charge.
(4) During the first year after the charge is in effect, the number of vehicle miles traveled shall be those reported by the vehicle owner. Each year thereafter, there shall be odometer checks verifying the number of vehicle miles traveled and the charge shall be based upon the number of miles traveled pursuant to the odometer check.
NEW SECTION. Sec. 34. A new section is added to chapter 82.44 RCW to read as follows:
There shall be paid and collected annually upon registration a traffic mitigation excise tax of twenty dollars for each motor vehicle and noncommercial truck. The excise tax shall be collected by the department of licensing. The proceeds from the excise tax collected under this section shall be deposited into the multimodal transportation account.
NEW SECTION. Sec. 35. A new section is added to chapter 82.04 RCW to read as follows:
(1) An additional tax is imposed on any person selling in this state motor vehicles and motor vehicle accessories at wholesale; as to such persons, the amount of the additional tax with respect to such business shall be equal to the gross proceeds of sales of the business, multiplied by the rate of two percent.
(2) "Motor vehicle" has the same meaning as in RCW 46.04.320.
(3) "Motor vehicle accessories" means items of tangible personal property which become a component part affixed to motor vehicles.
(4) Moneys collected under this section shall be deposited in the multimodal transportation account.
NEW SECTION. Sec. 36. 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.
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