BILL REQ. #:  H-1252.1 

Read first time 02/04/2005.   Referred to Committee on Appropriations.

     AN ACT Relating to the sharing of state sales and use tax revenue with local governments; adding a new section to chapter 82.32 RCW; creating a new section; and providing an effective date.

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

NEW SECTION.  Sec. 1   The legislature finds that local governments in the state of Washington face significant challenges in providing services mandated by federal and state law, or desired by their constituents. It is the intent of the legislature to provide ongoing funding assistance to local governments to meet these challenges without increasing the overall tax burden on the citizens of the state of Washington.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.32 RCW to read as follows:
     (1) The following sales and use taxes collected under chapters 82.08 and 82.12 RCW shall be deposited into the local government assistance account created under subsection (3) of this section:
     (a) 30.8 percent of taxes collected within a rural county with a population less than one hundred thousand;
     (b) 23.1 percent of taxes collected within a rural county with a population of at least one hundred thousand, but less than two hundred thousand;
     (c) 15.4 percent of taxes collected within a rural county with a population of at least two hundred thousand, but less than three hundred thousand; and
     (d) 15.4 percent of taxes collected within any county with a population of at least four hundred thousand, but less than six hundred thousand.
     (2) "Rural county" for the purposes of this section shall have the same meaning as in RCW 82.14.370.
     (3) The local government assistance account is created in the custody of the state treasurer. All taxes identified in subsection (1) of this section shall be deposited into the account. The account is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures. The state treasurer shall distribute monthly the money in the account as follows:
     (a) One hundred percent of the money collected from taxable events in the unincorporated areas of the county and fifteen percent of the money collected from taxable events within any cities located within the county shall be distributed to the county.
     (b) Eighty-five percent of the money collected from taxable events within the city shall be distributed to the city.

NEW SECTION.  Sec. 3   This act takes effect August 1, 2005.