Brief Description: Extending the state sales and use tax credit for certain public facilities districts.

Sponsors: Senate Committee on Ways & Means (originally sponsored by Senators Parlette, Doumit, Zarelli, Prentice, Rasmussen and Mulliken).

Senate Committee on Ways & Means

Background: A public facilities district may be created by either a city or a county. City public facilities districts may develop and operate regional centers. A regional center is a convention, conference, or special events center, or any combination, constructed, improved, or rehabilitated at a cost of at least ten million dollars. A special events center is a facility, available to the public, used for community events, sporting events, trade shows, and artistic, musical, theatrical, or other cultural exhibitions, presentations, or performances.

County public facilities districts may develop and operate sports facilities, entertainment facilities, convention facilities, and regional centers.

Public facilities districts may levy an admissions tax not exceeding 5 percent, a vehicle parking tax not exceeding 10 percent, a voter-approved 0.2 percent sales tax, and, for a county public facilities district, a voter-approved 2 percent lodging tax.

In addition to these taxes, public facilities districts formed prior to July 31, 2002, that commenced construction on a new regional center or improvement or rehabilitation of an existing regional center before January 1, 2004, may impose a 0.033 percent sales and use tax that is credited against the state sales and use tax. The monies collected from this tax must be matched with private or other public sources equal to 33 percent of the monies collected. The public source cannot include nonvoter-approved taxes authorized by the public facilities district. If both a city public facilities district and a county public facilities district impose this tax, the city tax is credited against the county tax.

Summary: The 0.033 percent sales and use tax that is credited against the state tax for a regional center is extended to public facilities districts created before July 1, 2006, in a county or counties in which there are no other public facilities districts on the effective date of the bill and in which the total population in the public facilities district is greater than ninety thousand that commences construction of a new regional center before February 1, 2007.

Votes on Final Passage:

Senate      47   1
House      98   0

Effective: June 7, 2006