2673-S2 AMH ORCU MATT 032
2SHB 2673 - H AMD 803
By Representative Orcutt
WITHDRAWN 2/14/2006
On page 2, line 24, strike all of subsection (4) and insert the following:
"(4) "Board" means the community economic revitalization board under chapter 43.160 RCW."
On page 3, line 30, after "thereof" strike all material through "it" on line 31
On p. 4, line 17, after "taxing district" strike all material through "(b)" on line 20
Correct internal references accordingly
On p. 7, line 3, after "TOOL" strike "DEMONSTRATION"
On p. 7, line 4, after "tool" strike "demonstration"
On p. 7, line 5, after "finance" strike "authorized"
On p. 7, line 22, strike all of subsection (5)
Renumber subsection consecutively and correct internal references accordingly
On p. 13, line 4, after "from the" strike "department" and insert "board"
On p. 13, line 15, after "from the" strike "department" and insert "board"
On p. 13, line 32, after "the" insert "board and the"
On p. 13, line 34, after "least" strike "seventy-five" and insert "one hundred fifty"
On p. 13, line 36, after "to the" insert "board and the"
On p. 16, line 28, after "inform the" insert "board and the"
On p. 17, line 5, after "to the" strike "department" and insert "board"
On p. 17, line 24, after "(2) The" strike "department" and insert "board"
On p. 17, line 28, after "to the" strike "department" and insert "board"
On p. 17, line 30, strike section 404 and insert the following:
"NEW SECTION. Sec. 404. A new section is added to chapter 43.160 RCW to read as follows:
(1) As a condition to imposing a sales and use tax under section 301 of this act, a city, town, or county must apply to the board at least one hundred fifty days before the effective date of any such tax. The application shall be in a form and manner prescribed by the board and shall include but is not limited to information establishing that the applicant is eligible to impose such a tax, the anticipated effective date for imposing the tax, the estimated number of years that the tax will be imposed, and the estimated amount of tax revenue to be received in each fiscal year that the tax will be imposed. For purposes of this section, "fiscal year" means the year beginning July 1st and ending the following June 30th. The board shall make available forms to be used for this purpose. As part of the application, a city, town, or county must provide to the board a copy of the ordinance creating the increment area as required in section 103 of this act. The board shall rule on completed applications within sixty days of receipt. The board may begin accepting and approving applications August 1, 2006. No new applications shall be considered by the board after the thirtieth day of September of the third year following the year in which the first application was received by the board.
(2) The board shall establish a competitive process to prioritize applications and shall approve any tax that may be imposed under section 401 of this act. The board may consult with the department of revenue in approving a proposed tax.
(3) The board shall apply the following criteria for evaluation and ranking of applications:
(a) The relative benefits provided to the community by the proposed economic or community development, including employment;
(b) The present level of economic activity in the community and the existing local financial capacity to increase economic activity in the community;
(c) The rate of return of the state's investment, that includes the expected increase in state and local tax revenues associated with the project;
(d) The lack of another timely source of funding available to finance the project which would likely prevent the proposed community or economic development, absent the financing available under this act;
(e) The ability of the project to improve the viability of existing business entities in the project area;
(f) Whether or not the project is a partnership of multiple jurisdictions;
(g) Demonstration that the requested assistance will directly stimulate community and economic development by facilitating the creation of new jobs or the retention of existing jobs; and
(h) The availability of existing assets that applicants may apply to projects.
(4)(a) A proposed tax may not be approved unless the applicant has entered into or expects to enter into a contract with a private developer relating to private investment that will result in the creation or retention of jobs upon completion of the project; and
(b) A proposed tax may not be approved if the expected development will result in the relocation of jobs from another part of the state into the revenue development area, as defined in section 102 of this act.
(5) As a part of the approval of applications under this section, the board shall approve the amount of tax under section 401 of this act that an applicant may impose. The board may consult with the department of revenue in determining the amount. The amount of tax approved by the board shall not exceed the lesser of one million dollars or the average amount of tax revenue that the applicant estimates that it will receive in all fiscal years through the imposition of a sales and use tax under section 401 of this act. A city, town, or county shall not receive, in any fiscal year, more revenues from taxes imposed under section 401 of this act than the amount approved by the board. The board shall not approve the receipt of more credit against the state sales and use tax than is authorized under subsection (6) of this section.
(6) No more than five million dollars of credit against the state sales and use tax may be received by all cities, towns, and counties in any fiscal year.
(7) The credit against the state sales and use tax shall be available to any city, town, or county imposing a tax under section 401 of this act only as long as the city, town, or county has outstanding indebtedness under section 501 of this act."
EFFECT: Removes the demonstration projects and makes eligibility to impose new state-shared tax contingent upon approval by CERB.