Brief Description: Extending the expiration date for funding the construction of new regional centers.

Sponsors: Representatives Condotta and Armstrong.

Hearing Date: 1/18/06

Staff: Rick Peterson (786-7150).

Background:

Both cities and counties have the authority to create Public Facilities Districts (PFD). A PFD is a municipal corporation and a taxing authority. In the case of a city-created PFD, its purpose is to build or rehabilitate and operate a regional center costing at least $10 million. A regional center includes a convention center, special events center and related parking facilities.

A cities and counties may agree to create and jointly operate a PFD.

A PFD may assess a 0.033 percent sales and use tax if the PFD was formed by July 31, 2002 and construction began by January 1, 2004. This tax is deducted from the state sales tax and is not an increase to taxpayers. This tax may only be used to finance regional centers.

The combined total tax levied cannot be greater than 0.033 percent. If both a city and a county impose the tax, the city's tax is credited against the county's tax.

Summary of Bill:

A PFD formed by September 1, 2006, may impose the 0.033 percent sales tax if construction of the regional center begins by April 1, 2007.

Appropriation: None.

Fiscal Note: Requested on 1/9/2006.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.