S-4122

AN ACT Relating to sales of water rights; amending RCW 82.45.180; adding new sections to chapter 82.45 RCW; adding new sections to chapter 90.03 RCW; creating a new section; and providing effective dates.

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

NEW SECTION. Sec. 1. A new section is added to chapter 82.45 RCW to read as follows:

The legislature recognizes that water rights are appurtenant to land and can be transferred along with the land or can be transferred separately, becoming appurtenant to other land. The legislature also recognizes that the department of ecology administers water rights records and counties administer real property records. It is the intent of this act to establish a source of funds to help improve and integrate records relating to water rights ownership that the department of ecology and counties each administer. Revenue collected by the state from that portion of the existing real estate excise tax that is attributable to sales of water rights is dedicated to this purpose. Use of the revenue by the departments of ecology and revenue and counties to develop and implement improvements in administration of records relating to water rights ownership is authorized.

Sec. 2. RCW 82.45.180 and 1998 c 106 s 11 are each amended to read as follows:

(1) For taxes collected by the county under this chapter, the county treasurer shall collect a two-dollar fee on all transactions required by this chapter where the transaction does not require the payment of tax. A total of two dollars shall be collected in the form of a tax and fee, where the calculated tax payment is less than two dollars. The county treasurer shall place one percent of the proceeds of the tax imposed by this chapter and the treasurer's fee in the county current expense fund to defray costs of collection and shall pay over to the state treasurer and account to the department of revenue for the remainder of the proceeds at the same time the county treasurer remits funds to the state under RCW 84.56.280. The state treasurer shall deposit the proceeds in the general fund for the support of the common schools, except that the proceeds of taxes upon sales identified in section 3 of this act shall be deposited to the water rights records account created in section 4 of this act.

(2) For taxes collected by the department of revenue under this chapter, the department shall remit the tax to the state treasurer who shall deposit the proceeds of any state tax in the general fund for the support of the common schools, except that the proceeds of taxes upon sales identified in section 3 of this act shall be deposited to the water rights records account created in section 4 of this act. The state treasurer shall deposit the proceeds of any local taxes imposed under chapter 82.46 RCW in the local real estate excise tax account hereby created in the state treasury. Moneys in the local real estate excise tax account may be spent only for distribution to counties, cities, and towns imposing a tax under chapter 82.46 RCW. Except as provided in RCW 43.08.190, all earnings of investments of balances in the local real estate excise tax account shall be credited to the local real estate excise tax account and distributed to the counties, cities, and towns monthly. Monthly the state treasurer shall make distribution from the local real estate excise tax account to the counties, cities, and towns the amount of tax collected on behalf of each taxing authority. The state treasurer shall make the distribution under this subsection without appropriation.

NEW SECTION. Sec. 3. A new section is added to chapter 82.45 RCW to read as follows:

The real estate excise tax affidavit form prescribed and furnished by the department pursuant to RCW 82.45.150 shall provide for separate identification of sales subject to this chapter that are solely the sale of a water right or an interest in a water right. The department and counties each shall separately identify proceeds of taxes collected upon such sales when paying such proceeds over to the state treasurer as provided in RCW 82.45.180.

NEW SECTION. Sec. 4. A new section is added to chapter 90.03 RCW to read as follows:

The water rights records account is created in the state treasury. All receipts from proceeds identified in section 3 of this act must be deposited in the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used for improving and integrating the administration of such records relating to ownership of water rights as are administered by the department and counties respectively. From amounts appropriated, the department may make grants to counties to assist with this purpose.

NEW SECTION. Sec. 5. A new section is added to chapter 90.03 RCW to read as follows:

The departments of ecology and revenue shall work with county treasurers, auditors, and assessors, as appropriate, to develop and implement procedures for improving and integrating state and local administration of records relating to ownership of water rights.

NEW SECTION. Sec. 6. By November 1, 2004, the department of ecology shall report to the appropriate standing committees of the senate and house of representatives regarding implementation of this act and make recommendations for administrative and legislative actions to improve records and information management regarding water rights ownership.

NEW SECTION. Sec. 7. Sections 2 and 3 of this act take effect January 1, 2003.

NEW SECTION. Sec. 8. Sections 5 and 6 of this act take effect July 1, 2003.