5585-S AMS SWEC S2557.3

SSB 5585 - S AMD 260

By Senator Swecker

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. A new section is added to chapter 36.73 RCW to read as follows:

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "District" means a transportation benefit district created under this chapter.

(2) "City" means a city or town.

(3) "Transportation improvements" means:

(a) Capital improvements relating to, or in support of, all or a portion of highways that have been designated, in whole or in part, as highways of statewide significance; or

(b) Capital improvements to a city street, county road, existing highway, or the creation of a new highway that intersects with a highway of statewide significance, but only if the cumulative transportation benefit district contribution to all projects constructed under this subsection (3)(b) does not exceed twenty percent of the revenues generated by the district, or forty percent of the revenues generated by the district for projects in rural counties. For purposes of this subsection (3)(b), "rural counties" means counties smaller than two hundred twenty-five square miles or as defined in RCW 43.168.020.

However, operations, preservation, and maintenance are excluded from the definition of transportation improvements under this subsection (3), except for operation, preservation, and maintenance costs of tolled facilities, including the costs of collecting the tolls, if toll revenues have been pledged for the payment of contracts.

Sec. 2. RCW 36.73.020 and 1989 c 53 s 1 are each amended to read as follows:

(1) Subject to subsection (6) of this section, the legislative authority of a county or city may establish ((one or more)) a transportation benefit district((s)) within the ((county)) area specified in subsection (2) of this section, for the purpose of acquiring, constructing, improving, providing, and funding ((any city street, county road, or state highway)) transportation improvements within the district that ((is (1))) are: (a) Consistent with any existing state, regional, and local transportation plans((, (2))); (b) necessitated by existing or reasonably foreseeable congestion levels attributable to economic growth((, and (3))); and (c) partially funded by local government or private developer contributions, or a combination of ((such)) these contributions. ((Such)) The transportation improvements shall be owned by the county of jurisdiction if located in an unincorporated area, by the city of jurisdiction if located in an incorporated area, or by the state in cases where the transportation improvement is or becomes a state highway((; and all such)). Transportation improvements shall be administered and maintained as other public streets, roads, ((and)) highways, and capital improvements. ((The district may not include any area within the corporate limits of a city unless the city legislative authority has agreed to the inclusion pursuant to chapter 39.34 RCW. The agreement shall specify the area and such powers as may be granted to the benefit district.))

(2) Subject to subsection (6) of this section, the district may include area within more than one county, city, port district, county transportation authority, or public transportation benefit area, if the legislative authority of each participating jurisdiction has agreed to the inclusion as provided in an interlocal agreement adopted pursuant to chapter 39.34 RCW. However, the boundaries of the district shall include all territory within the boundaries of the participating jurisdictions comprising the district.

(3) The members of the ((county)) legislative authority proposing to establish the district, acting ex officio and independently, shall ((compose)) constitute the governing body of the district: PROVIDED, That where a ((transportation benefit)) district includes ((any portion of an incorporated city, town, or another county, the district may be governed as provided in an interlocal agreement adopted pursuant to chapter 39.34 RCW)) more than one jurisdiction under subsection (2) of this section, the district shall be governed under an interlocal agreement adopted pursuant to chapter 39.34 RCW. However, the governing board shall be composed of at least five members including at least one elected official from the legislative authority of each participating jurisdiction.

(4) The ((county)) treasurer of the jurisdiction proposing to establish the district shall act as the ex officio treasurer of the district, unless an interlocal agreement states otherwise.

(5) The electors of the district shall all be registered voters residing within the district. ((For purposes of this section, the term "city" means both cities and towns.))

(6) The authority under this section, regarding the establishment of or the participation in a district, shall not apply to:

(a) Counties with a population greater than one million five hundred thousand persons and any adjoining counties with a population greater than five hundred thousand persons;

(b) Cities with any area within the counties under (a) of this subsection; and

Sec. 3. RCW 36.73.040 and 1989 c 53 s 3 are each amended to read as follows:

(1) A transportation benefit district is a quasi-municipal corporation, an independent taxing "authority" within the meaning of Article VII, section 1 of the state Constitution, and a "taxing district" within the meaning of Article VII, section 2 of the state Constitution.

(2) A transportation benefit district constitutes a body corporate and possesses all the usual powers of a corporation for public purposes as well as all other powers that may now or hereafter be specifically conferred by statute, including, but not limited to, the authority to hire employees, staff, and services, to enter into contracts, to acquire, hold, and dispose of real and personal property, and to sue and be sued. Public works contract limits applicable to the jurisdiction that established the district ((shall)) apply to the district.

(3) Subject to the provisions of section 18 of this act, a district is authorized to impose the following taxes, fees, and tolls:

(a) A sales and use tax in accordance with section 14 of this act;

(b) A local option fuel tax in accordance with section 15 of this act;

(d) An employer excise tax in accordance with section 17 of this act;

(e) A fee or charge in accordance with RCW 36.73.120. However, a district may not levy a fee or charge under RCW 36.73.120 if a county or city within the district area is levying a fee or charge under chapter 39.92 RCW. Developments consisting of less than twenty residences are exempt from the fee or charge under RCW 36.73.120; and

(f)(i) Vehicle tolls on state routes or federal highways, city streets, or county roads, within the boundaries of the district, unless otherwise prohibited by law. The department of transportation shall administer the collection of vehicle tolls on state routes or federal highways, unless otherwise specified in law or by contract, and the state transportation commission, or its successor, shall set and impose the tolls in amounts sufficient to implement the district's transportation improvement finance plan. The district shall administer the collection of vehicle tolls on city streets or county roads, and shall set and impose the tolls in amounts sufficient to implement the district's transportation improvement plan.

(ii) Tolls may only be imposed under this section on a new transportation improvement made by the district, and revenue from the tolls may only be used to support that transportation improvement.

Sec. 4. RCW 36.73.050 and 1987 c 327 s 5 are each amended to read as follows:

(1) ((A city or county)) The legislative ((authority)) authorities proposing to establish a ((transportation benefit)) district, or to modify the boundaries of an existing district, or to dissolve an existing district((,)) shall conduct a hearing at the time and place specified in a notice published at least once, not less than ten days before the hearing, in a newspaper of general circulation within the proposed district. The legislative ((authority)) authorities shall make provision for a district to be automatically dissolved when all indebtedness of the district has been retired and anticipated responsibilities have been satisfied. This notice shall be in addition to any other notice required by law to be published. The notice shall, where applicable, specify the functions or activities proposed to be provided or funded, or the additional functions or activities proposed to be provided or funded, by the district. Additional notice of the hearing may be given by mail, by posting within the proposed district, or in any manner the ((city or county)) legislative ((authority deems)) authorities deem necessary to notify affected persons. All hearings shall be public and the ((city or county)) legislative ((authority)) authorities shall hear objections from any person affected by the formation, modification of the boundaries, or dissolution of the district.

(2) Following the hearing held pursuant to subsection (1) of this section, the ((city or county)) legislative ((authority)) authorities may establish a ((transportation benefit)) district, modify the boundaries or functions of an existing district, or dissolve an existing district, if the ((city or county)) legislative ((authority finds)) authorities find the action to be in the public interest and ((adopts)) adopt an ordinance providing for the action. The ordinance establishing a district shall specify the functions or activities to be exercised or funded and establish the boundaries of the district. ((A district shall include only those areas which can reasonably be expected to benefit from improvements to be funded by the district.)) Functions or activities proposed to be provided or funded by the district may not be expanded beyond those specified in the notice of hearing, unless additional notices are made, further hearings on the expansion are held, and further determinations are made that it is in the public interest to so expand the functions or activities proposed to be provided or funded.

(((3) At any time before the city or county legislative authority establishes a transportation benefit district pursuant to this section, all further proceedings shall be terminated upon the filing of a verified declaration of termination signed by the owners of real property consisting of at least sixty percent of the assessed valuation in the proposed district.))

Sec. 5. RCW 36.73.060 and 1987 c 327 s 6 are each amended to read as follows:

(1) A ((transportation benefit)) district may levy an ad valorem property tax in excess of the one percent limitation upon the property within the district for a one-year period whenever authorized by the voters of the district pursuant to RCW 84.52.052 and Article VII, section 2(a) of the state Constitution.

(2) A district may provide for the retirement of voter-approved general obligation bonds, issued for capital purposes only, by levying bond retirement ad valorem property tax levies in excess of the one percent limitation whenever authorized by the voters of the district pursuant to Article VII, section 2(b) of the state Constitution and RCW 84.52.056.

Sec. 6. RCW 36.73.070 and 1987 c 327 s 7 are each amended to read as follows:

(1) To carry out the purpose of this chapter, a ((transportation benefit)) district may issue general obligation bonds, not to exceed an amount, together with any other outstanding nonvoter-approved general obligation indebtedness, equal to three-eighths of one percent of the value of taxable property within the district, as the term "value of taxable property" is defined in RCW 39.36.015. A district may additionally issue general obligation bonds for capital purposes only, together with any outstanding general obligation indebtedness, not to exceed an amount equal to one and one-fourth percent of the value of the taxable property within the district, as the term "value of taxable property" is defined in RCW 39.36.015, when authorized by the voters of the district pursuant to Article VIII, section 6 of the state Constitution, and to provide for the retirement thereof by excess property tax levies as provided in RCW 36.73.060(2). The district may submit a single proposition to the voters that, if approved, authorizes both the issuance of the bonds and the bond retirement property tax levies.

(2) General obligation bonds with a maturity in excess of forty years shall not be issued. The governing body of the ((transportation benefit)) district shall by resolution determine for each general obligation bond issue the amount, date, terms, conditions, denominations, maximum fixed or variable interest rate or rates, maturity or maturities, redemption rights, registration privileges, manner of execution, manner of sale, callable provisions, if any, covenants, and form, including registration as to principal and interest, registration as to principal only, or bearer. Registration may include, but not be limited to: (a) A book entry system of recording the ownership of a bond whether or not physical bonds are issued; or (b) recording the ownership of a bond together with the requirement that the transfer of ownership may only be effected by the surrender of the old bond and either the reissuance of the old bond or the issuance of a new bond to the new owner. Facsimile signatures may be used on the bonds and any coupons. Refunding general obligation bonds may be issued in the same manner as general obligation bonds are issued.

(3) Whenever general obligation bonds are issued to fund specific projects or enterprises that generate revenues, charges, user fees, or special assessments, the ((transportation benefit)) district ((which issues the bonds)) may specifically pledge all or a portion of the revenues, charges, user fees, or special assessments to refund the general obligation bonds. The district may also pledge any other revenues that may be available to the district.

(4) The issuance of bonds under this section is subject to the provisions in section 18 of this act.

Sec. 7. RCW 36.73.080 and 1987 c 327 s 8 are each amended to read as follows:

(1) A ((transportation benefit)) district may form a local improvement district to provide any transportation improvement it has the authority to provide, impose special assessments on all property specially benefited by the transportation improvements, and issue special assessment bonds or revenue bonds to fund the costs of the transportation improvement. Local improvement districts shall be created and assessments shall be made and collected pursuant to chapters 35.43, 35.44, 35.49, 35.50, 35.51, 35.53, and 35.54 RCW. Special assessments imposed under this subsection must be approved by the voters within the boundaries of the local improvement district.

(2) The governing body of a ((transportation benefit)) district shall by resolution establish for each special assessment bond issue the amount, date, terms, conditions, denominations, maximum fixed or variable interest rate or rates, maturity or maturities, redemption rights, registration privileges, if any, covenants, and form, including registration as to principal and interest, registration as to principal only, or bearer. Registration may include, but not be limited to: (a) A book entry system of recording the ownership of a bond whether or not physical bonds are issued; or (b) recording the ownership of a bond together with the requirement that the transfer of ownership may only be effected by the surrender of the old bond and either the reissuance of the old bond or the issuance of a new bond to the new owner. Facsimile signatures may be used on the bonds and any coupons. The maximum term of any special assessment bonds shall not exceed thirty years beyond the date of issue. Special assessment bonds issued pursuant to this section shall not be an indebtedness of the ((transportation benefit)) district issuing the bonds, and the interest and principal on the bonds shall only be payable from special assessments made for the improvement for which the bonds were issued and any local improvement guaranty fund that the ((transportation benefit)) district has created. The owner or bearer of a special assessment bond or any interest coupon issued pursuant to this section shall not have any claim against the ((transportation benefit)) district arising from the bond or coupon except for the payment from special assessments made for the improvement for which the bonds were issued and any local improvement guaranty fund the ((transportation benefit)) district has created. The district issuing the special assessment bonds is not liable to the owner or bearer of any special assessment bond or any interest coupon issued pursuant to this section for any loss occurring in the lawful operation of its local improvement guaranty fund. The substance of the limitations included in this subsection (2) shall be plainly printed, written, or engraved on each special assessment bond issued pursuant to this section.

(3) Assessments shall reflect any credits given by a ((transportation benefit)) district for real property or property right donations made pursuant to RCW 47.14.030.

(4) The governing body may establish and pay ((moneys)) money into a local improvement guaranty fund to guarantee special assessment bonds issued by the ((transportation benefit)) district.

Sec. 8. RCW 36.73.100 and 1987 c 327 s 10 are each amended to read as follows:

(1) The proceeds of any bond issued pursuant to RCW 36.73.070 or 36.73.080 may be used to pay costs incurred on ((such)) a bond issue related to the sale and issuance of the bonds. ((Such)) These costs include payments for fiscal and legal expenses, obtaining bond ratings, printing, engraving, advertising, and other similar activities.

(2) In addition, proceeds of bonds used to fund capital projects may be used to pay the necessary and related engineering, architectural, planning, and inspection costs.

Sec. 9. RCW 36.73.110 and 1987 c 327 s 11 are each amended to read as follows:

A ((transportation benefit)) district may accept and expend or use gifts, grants, and donations.

Sec. 10. RCW 36.73.120 and 1988 c 179 s 7 are each amended to read as follows:

(1) ((A transportation benefit)) Subject to the provisions in section 18 of this act, a district may impose a fee or charge on the construction or reconstruction of residential buildings, commercial buildings, industrial buildings, or on any other building or building space or appurtenance ((thereto)), or on the development, subdivision, classification, or reclassification of land only if done in accordance with chapter 39.92 RCW.

(2) Any fee or charge imposed under this section shall be used exclusively for transportation improvements constructed by a ((transportation benefit)) district. The fees or charges ((so)) imposed must be reasonably necessary as a result of the impact of development, construction, or classification or reclassification of land on identified transportation needs.

(3) ((When fees or charges are imposed by a district within which there is more than one city or both incorporated and unincorporated areas, the legislative authority for each city in the district and the county legislative authority for the unincorporated area must approve the imposition of such fees or charges before they take effect.)) A district may not levy a fee or charge under this section if a county or city within the district area is levying a fee or charge under chapter 39.92 RCW.

(4) Developments consisting of less than twenty residences are exempt from the fee or charge under this section.

Sec. 11. RCW 36.73.130 and 1987 c 327 s 13 are each amended to read as follows:

A ((transportation benefit)) district may exercise the power of eminent domain to obtain property for its authorized purposes in the same manner as authorized for the city or county legislative authority that established the district.

Sec. 12. RCW 36.73.140 and 1987 c 327 s 14 are each amended to read as follows:

A ((transportation benefit)) district has the same powers as a county or city to contract for street, road, or state highway improvement projects and to enter into reimbursement contracts provided for in chapter 35.72 RCW.

Sec. 13. RCW 36.73.150 and 1987 c 327 s 15 are each amended to read as follows:

The department of transportation, counties, ((and)) cities, and other jurisdictions may give funds to ((transportation benefit)) districts for the purposes of financing ((street, road, or highway)) transportation improvements ((projects)) under this chapter.

NEW SECTION. Sec. 14. A new section is added to chapter 82.14 RCW to read as follows:

(1) Subject to the provisions in section 18 of this act, a transportation benefit district under chapter 36.73 RCW may fix and impose a sales and use tax in accordance with the terms of this chapter. The tax authorized in this section is 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 boundaries of the district. The rate of tax shall not exceed five-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.

(2) Money received from the tax imposed under this section must be spent in accordance with the requirements of chapter 36.73 RCW.

NEW SECTION. Sec. 15. A new section is added to chapter 82.80 RCW to read as follows:

(1) For purposes of this section:

(a) "Distributor" means every person who imports, refines, manufactures, produces, or compounds motor vehicle fuel and special fuel as defined in RCW 82.36.010 and 82.38.020, respectively, and sells or distributes the fuel into a county;

(b) "Person" has the same meaning as in RCW 82.04.030; and

(2) A transportation benefit district under chapter 36.73 RCW, subject to the conditions of this section, may levy additional excise taxes equal to ten percent of the statewide motor vehicle fuel tax rate under RCW 82.36.025 on each gallon of motor vehicle fuel as defined in RCW 82.36.010 and on each gallon of special fuel as defined in RCW 82.38.020 sold within the boundaries of the district. Vehicles paying an annual license fee under RCW 82.38.075 are exempt from the district's fuel excise tax. The additional excise taxes are subject to the same exceptions and rights of refund as applicable to other motor vehicle fuel and special fuel excise taxes levied under chapters 82.36 and 82.38 RCW. The proposed tax may not be levied less than one month from the date the election results are certified. The commencement date for the levy of any tax under this section will be the first day of January, April, July, or October.

(3) The local option motor vehicle fuel tax under this section on each gallon of motor vehicle fuel and on each gallon of special fuel is imposed upon the distributor of the fuel.

(4) A taxable event for the purposes of this section occurs upon the first distribution of the fuel within the boundaries of the district to a retail outlet, bulk fuel user, or ultimate user of the fuel.

(5) All administrative provisions in chapters 82.01, 82.03, and 82.32 RCW, insofar as they are applicable, apply to local option fuel taxes imposed under this section.

(6) Before the effective date of the imposition of the fuel taxes under this section, a district shall contract with the department of revenue for the administration and collection of the taxes. The contract must provide that a percentage amount, not to exceed one percent of the taxes imposed under this section, will be deposited into the local tax administration account created in the custody of the state treasurer. The department of revenue may spend money from this account, upon appropriation, for the administration of the local taxes imposed under this section.

(7) The state treasurer shall distribute the proceeds of the additional taxes under this section on a monthly basis to the district levying the tax, after the deductions for payments and expenditures as provided in RCW 46.68.090(1) (a) and (b).

(8) The proceeds of the additional taxes levied by a district under this section must be used in accordance with chapter 36.73 RCW, but only for those areas that are considered "highway purposes" as that term is construed in Article II, section 40 of the state Constitution.

(9) A district may only levy the tax under this section if the district is comprised of boundaries identical to the boundaries of a county or counties. A district may not levy the tax under this section if a member county is levying the tax under RCW 82.80.010.

NEW SECTION. Sec. 16. A new section is added to chapter 82.80 RCW to read as follows:

(1) Subject to the provisions of section 18 of this act, a transportation benefit district under chapter 36.73 RCW may fix and impose an annual fee, not to exceed one hundred dollars per vehicle, for each vehicle subject to license tab fees under RCW 46.16.0621 and for each vehicle subject to gross weight fees under RCW 46.16.070 with an unladen weight of six thousand pounds or less, from registered owners whose primary place of domicile is within the boundaries of the district.

(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 one percent of the fees collected, for administration and collection expenses incurred by it. The department shall remit remaining proceeds to the custody of the state treasurer. The state treasurer shall distribute the proceeds to the district on a monthly basis.

(3) No fee under this section may be collected until six months after approval by the district.

(4) "Registered owner" has the same meaning as provided in chapter 46.04 RCW.

(5) The vehicle fee under this section applies only when renewing a vehicle registration, and is effective upon the registration renewal date as provided by the department of licensing.

(6) The following vehicles are exempt from the fee under this section:

(a) Farm tractors or farm vehicles as defined in RCW 46.04.180 and 46.04.181;

(b) Off-road and nonhighway vehicles as defined in RCW 46.09.020;

(d) Snowmobiles as defined in RCW 46.10.010.

NEW SECTION. Sec. 17. A new section is added to chapter 82.80 RCW to read as follows:

(1)(a) Subject to the provisions of section 18 of this act, a transportation benefit district under chapter 36.73 RCW may impose an excise tax, for the privilege of engaging in business, of up to two dollars per employee per month on all employers or any class or classes of employers, public and private, including the state located in the agency's jurisdiction, measured by the number of full-time equivalent employees. In no event may the total taxes imposed under this section exceed two dollars per employee per month for any single employer. The district imposing the tax authorized in this section may provide for exemptions from the tax for such educational, cultural, health, charitable, or religious organizations as it deems appropriate.

(b) Transportation benefit districts may contract with the state department of revenue or other appropriate entities for administration and collection of the tax. Such contract shall provide for deduction of an amount for administration and collection expenses, not to exceed one percent of the fees collected.

(2) The tax shall not apply to employment of a person when the employer has paid for at least half of the cost of a transit pass issued by a transit agency for that employee, valid for the period for which the tax would otherwise be owed.

(3)(a) A transportation benefit district shall adopt rules that exempt an employer, who enters into an agreement under (b) of this subsection, from all or a portion of the tax under subsection (1)(a) of this section.

(b) A transportation benefit district may enter into an agreement, designed to reduce the number of employees who drive in single-occupant vehicles during peak commuting periods, with employers subject to the tax under subsection (1)(a) of this section. The agreement shall include a list of specific actions that the employer will undertake to be entitled to the exemption. Employers having an exemption from all or part of the tax through this subsection shall annually certify to the district that the employer is fulfilling the terms of the agreement. The exemption continues as long as the employer is in compliance with the agreement.

(4) The tax under this section may be imposed only to the extent the tax has not been imposed by a county within the district area.

NEW SECTION. Sec. 18. A new section is added to chapter 36.73 RCW to read as follows:

(1) Taxes, fees, and tolls may not be imposed, nor may any debt be incurred, by a district without approval of a majority of the voters in the district voting on a proposition at a general or special election. The proposition must include a specific description of the transportation improvement or improvements proposed by the district and the proposed taxes, fees, and tolls imposed by the district to raise revenue to fund the improvement or improvements.

(2) A district may not increase any taxes, fees, or tolls imposed under this chapter once the taxes, fees, or tolls take effect.

NEW SECTION. Sec. 19. A new section is added to chapter 36.73 RCW to read as follows:

(1) If a transportation improvement cost exceeds its original cost by more than twenty percent as identified in a district's original finance plan, the district governing board shall submit to the voters in the district a ballot measure that redefines the scope of the transportation improvement, its schedule, or its costs. If the voters fail to approve the redefined transportation improvement, the district shall terminate work on the transportation improvement, except that the district may take reasonable steps to use, preserve, or connect any improvement already constructed. The remainder of any funds that would otherwise have been expended on the terminated transportation improvement must first be used to retire any outstanding debt attributable to the improvement.

(2) A district shall issue an annual report, indicating the status of transportation improvement costs, transportation improvement expenditures, revenues, and construction schedules, to the public and to newspapers of record in the district.

NEW SECTION. Sec. 20. A new section is added to chapter 36.73 RCW to read as follows:

Within thirty days of the completion of the construction of the transportation improvement or series of improvements authorized by a district, the district shall terminate day-to-day operations and exist solely as a limited entity that oversees the collection of revenue and the payment of debt service or financing still in effect, if any. The district shall accordingly adjust downward its employees, administration, and overhead expenses. Any taxes, fees, or tolls imposed by the district terminate when the financing or debt service on the transportation improvement or series of improvements constructed is completed and paid, thirty days from which point the district shall dissolve itself and cease to exist. If there is no debt outstanding, then the district shall dissolve within thirty days from completion of construction of the transportation improvement or series of improvements authorized by the district. Notice of dissolution must be published in newspapers of general circulation within the district at least three times in a period of thirty days. Creditors must file claims for payment of claims due within thirty days of the last published notice or the claim is extinguished.

Sec. 21. RCW 82.14.050 and 2002 c 56 s 406 are each amended to read as follows:

The counties, cities, and transportation authorities under RCW 82.14.045, public facilities districts under chapters 36.100 and 35.57 RCW, ((and)) regional transportation investment districts, and transportation benefit districts under chapter 36.73 RCW shall contract, prior to the effective date of a resolution or ordinance imposing a sales and use tax, the administration and collection to the state department of revenue, which 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 the department. The remainder of any portion of any tax authorized by this chapter that is collected by the department of revenue shall be deposited by the state department of revenue in the local sales and use tax account hereby created in the state treasury. Moneys in the local sales and use tax account may be spent only for distribution to counties, cities, transportation authorities, public facilities districts, ((and)) regional transportation investment districts, and transportation benefit districts imposing a sales and use tax. All administrative provisions in chapters 82.03, 82.08, 82.12, and 82.32 RCW, as they now exist or may hereafter be amended, shall, insofar as they are applicable to state sales and use taxes, be applicable to taxes imposed pursuant to this chapter. Except as provided in RCW 43.08.190, all earnings of investments of balances in the local sales and use tax account shall be credited to the local sales and use tax account and distributed to the counties, cities, transportation authorities, public facilities districts, ((and)) regional transportation investment districts, and transportation benefit districts monthly.

Sec. 22. RCW 82.14.060 and 1991 c 207 s 3 are each amended to read as follows:

Monthly the state treasurer shall make distribution from the local sales and use tax account to the counties, cities, transportation authorities, ((and)) public facilities districts, and transportation benefit districts the amount of tax collected on behalf of each taxing authority, less the deduction provided for in RCW 82.14.050. The state treasurer shall make the distribution under this section without appropriation.

In the event that any ordinance or resolution imposes a sales and use tax at a rate in excess of the applicable limits contained herein, such ordinance or resolution shall not be considered void in toto, but only with respect to that portion of the rate which is in excess of the applicable limits contained herein.

Sec. 23. RCW 35.21.225 and 1989 c 53 s 2 are each amended to read as follows:

The legislative authority of a city may establish ((one or more transportation benefit districts within a city for the purpose of acquiring, constructing, improving, providing, and funding any city street, county road, or state highway improvement that is (1) consistent with state, regional, and local transportation plans, (2) necessitated by existing or reasonably foreseeable congestion levels attributable to economic growth, and (3) partially funded by local government or private developer contributions, or a combination of such contributions. Such transportation improvements shall be owned by the city of jurisdiction if located in an incorporated area, by the county of jurisdiction if located in an unincorporated area, or by the state in cases where the transportation improvement is or becomes a state highway; and all such transportation improvements shall be administered as other public streets, roads, and highways. The district may include any area within the corporate limits of another city if that city has agreed to the inclusion pursuant to chapter 39.34 RCW. The district may include any unincorporated area if the county legislative authority has agreed to the inclusion pursuant to chapter 39.34 RCW. The agreement shall specify the area and such other powers as may be granted to the benefit district.

The members of the city legislative authority, acting ex officio and independently, shall compose the governing body of the district. The city treasurer shall act as the ex officio treasurer of the district: PROVIDED, That where a transportation benefit district includes any unincorporated area or portion of another city, the district may be governed as provided in an interlocal agreement adopted pursuant to chapter 39.34 RCW. The electors of the district shall all be registered voters residing within the district. For the purposes of this section, the term "city" means both cities and towns)) a transportation benefit district subject to the provisions of chapter 36.73 RCW.

Sec. 24. RCW 47.56.075 and 2002 c 56 s 404 are each amended to read as follows:

The department shall approve for construction only such toll roads as the legislature specifically authorizes or such toll facilities as are specifically sponsored by a regional transportation investment district, transportation benefit district, city, town, or county.

Sec. 25. RCW 82.36.440 and 1991 c 173 s 4 are each amended to read as follows:

The tax levied in this chapter is in lieu of any excise, privilege, or occupational tax upon the business of manufacturing, selling, or distributing motor vehicle fuel, and no city, town, county, township or other subdivision or municipal corporation of the state shall levy or collect any excise tax upon or measured by the sale, receipt, distribution, or use of motor vehicle fuel, except as provided in RCW 82.80.010, section 15 of this act, and 82.47.020.

Sec. 26. RCW 82.38.280 and 1991 c 173 s 5 are each amended to read as follows:

The tax levied in this chapter is in lieu of any excise, privilege, or occupational tax upon the business of manufacturing, selling, or distributing special fuel, and no city, town, county, township or other subdivision or municipal corporation of the state shall levy or collect any excise tax upon or measured by the sale, receipt, distribution, or use of special fuel, except as provided in RCW 82.80.010, section 15 of this act, and 82.47.020.

Sec. 27. RCW 82.80.030 and 2002 c 56 s 412 are each amended to read as follows:

(1) Subject to the conditions of this section, the legislative authority of a county, city, or district may fix and impose a parking tax on all persons engaged in a commercial parking business within its respective jurisdiction. A city or county may impose the tax only to the extent that it has not been imposed by the district, and a district may impose the tax only to the extent that it has not been imposed by a city or county. The jurisdiction of a county, for purposes of this section, includes only the unincorporated area of the county. The jurisdiction of a city or district includes only the area within its boundaries.

(2) In lieu of the tax in subsection (1) of this section, a city, a county in its unincorporated area, or a district may fix and impose a tax for the act or privilege of parking a motor vehicle in a facility operated by a commercial parking business.

The city, county, or district may provide that:

(a) The tax is paid by the operator or owner of the motor vehicle;

(b) The tax applies to all parking for which a fee is paid, whether paid or leased, including parking supplied with a lease of nonresidential space;

(d) The tax is a fee per vehicle or is measured by the parking charge;

(e) The tax rate varies with zoning or location of the facility, the duration of the parking, the time of entry or exit, the type or use of the vehicle, or other reasonable factors; and

(f) Tax exempt carpools, vehicles with handicapped decals, or government vehicles are exempt from the tax.

(3) "Commercial parking business" as used in this section, means the ownership, lease, operation, or management of a commercial parking lot in which fees are charged. "Commercial parking lot" means a covered or uncovered area with stalls for the purpose of parking motor vehicles.

(4) The rate of the tax under subsection (1) of this section may be based either upon gross proceeds or the number of vehicle stalls available for commercial parking use. The rates charged must be uniform for the same class or type of commercial parking business.

(5) The county, city, or district levying the tax provided for in subsection (1) or (2) of this section may provide for its payment on a monthly, quarterly, or annual basis. Each local government may develop by ordinance or resolution rules for administering the tax, including provisions for reporting by commercial parking businesses, collection, and enforcement.

(6) The proceeds of the commercial parking tax fixed and imposed by a city or county under subsection (1) or (2) of this section shall be used ((strictly)) for transportation purposes in accordance with RCW 82.80.070 or for transportation improvements in accordance with chapter 36.73 RCW. The proceeds of the parking tax imposed by a district must be used as provided in chapter 36.120 RCW.

NEW SECTION. Sec. 28. A new section is added to chapter 47.56 RCW to read as follows:

Subject to the provisions under chapter 36.73 RCW, a transportation benefit district may impose vehicle tolls on state routes or federal highways, city streets, or county roads, within the boundaries of the district, unless otherwise prohibited by law. The department of transportation shall administer the collection of vehicle tolls on state routes or federal highways, unless otherwise specified in law or by contract, and the state transportation commission, or its successor, shall set and impose the tolls in amounts sufficient to implement the district's transportation improvement finance plan. The district shall administer the collection of vehicle tolls on city streets or county roads, and shall set and impose the tolls in amounts sufficient to implement the district's transportation improvement plan."

SSB 5585 - S AMD 260

By Senator Swecker

On page 1, line 1 of the title, after "districts;" strike the remainder of the title and insert "amending RCW 36.73.020, 36.73.040, 36.73.050, 36.73.060, 36.73.070, 36.73.080, 36.73.100, 36.73.110, 36.73.120, 36.73.130, 36.73.140, 36.73.150, 82.14.050, 82.14.060, 35.21.225, 47.56.075, 82.36.440, 82.38.280, and 82.80.030; adding new sections to chapter 36.73 RCW; adding a new section to chapter 82.14 RCW; adding new sections to chapter 82.80 RCW; and adding a new section to chapter 47.56 RCW."

EFFECT: 1. Transportation benefit districts may only impose a local fuel tax if the district boundaries are identical to that of a county or counties.

2. Transportation benefit districts may not impose a commercial parking tax, however cities and counties imposing a commercial parking tax may use the revenue for transportation benefit district improvements.

3. Any special assessment imposed by a transportation benefit district forming a local improvement district must go to a vote of the people within the local improvement district.

4. A technical correction is made to allow the imposition of the local fuel tax.

5. Requires tolls to be imposed only on new transportation improvements made by the district and toll revenue must be used specifically for these transportation improvements.

6. Eliminates the option of imposing nonvoter-approved taxes, fees, tolls, or debt and instead requires all taxes, fees, tolls, or debt to be approved by the voters.

7. Eliminates referendum provisions to repeal ordinance authorizing taxes, fees, or tolls since voters are now required to approve taxes, fees, and tolls initially.

8. Requires ballot proposition submitted to voters to include a specific description of the transportation improvement and the taxes, fees, and tolls to be imposed to fund the improvement.

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