BILL REQ. #:  S-1518.1 

Read first time 02/18/2005.   Referred to Committee on Ways & Means.

     AN ACT Relating to the taxation of contracts to administer parking and business improvement areas; amending RCW 35.87A.110; adding a new section to chapter 82.04 RCW; adding a new section to chapter 35.21 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 82.04 RCW to read as follows:
     This chapter does not apply to amounts received by a chamber of commerce or other similar business association for administering the operation of a parking and business improvement area as defined in RCW 35.87A.110.

NEW SECTION.  Sec. 2   A new section is added to chapter 35.21 RCW to read as follows:
     (1) A city shall not impose a gross receipts tax on amounts received by a chamber of commerce or other similar business association for administering the operation of a parking and business improvement area within the meaning of RCW 35.87A.110.
     (2) For the purposes of this section, the following definitions apply:
     (a) "Gross receipts tax" means a tax measured by gross proceeds of sales, gross income of the business, or value proceeding or accruing.
     (b) "City" includes cities, code cities, and towns.

Sec. 3   RCW 35.87A.110 and 1971 ex.s. c 45 s 11 are each amended to read as follows:
     (1) The legislative authority of each city or town or county shall have sole discretion as to how the revenue derived from the special assessments is to be used within the scope of the purposes; however, the legislative authority may appoint existing advisory boards or commissions to make recommendations as to its use, or the legislative authority may create a new advisory board or commission for the purpose.
     (2) The legislative authority may contract with a chamber of commerce or other similar business association operating primarily within the boundaries of the legislative authority to administer the operation of a parking and business improvement area, including any funds derived pursuant thereto: PROVIDED, That such administration must comply with all applicable provisions of law including this chapter, with all county, city, or town resolutions and ordinances, and with all regulations lawfully imposed by the state auditor or other state agencies.
     (3) Amounts paid by the legislative authority of a city, town, or county to a chamber of commerce or other similar business association operating primarily within the boundaries of the city, town, or county pursuant to a contract to operate a parking and business improvement area are not subject to taxation under chapter 82.04, 82.08, or 82.12 RCW, or city gross receipts taxes, as defined in RCW 35.21.855.

NEW SECTION.  Sec. 4   Sections 1 through 3 of this act apply retroactively to December 31, 1999.