1396-S AMS PFLU BACK 061

SHB 1396 - S AMD 425

   By    Senator Pflug

NOT ADOPTED 4/10/2007

   On page 3, after line 21, insert the following:

   Sec. 3. RCW 81.104.160 and 2003 c 1 s 6 (Initiative Measure No. 776, approved November 5, 2002) are each amended to read as follows:

   An agency may impose a sales and use tax ((solely)) for the purpose of providing ((high capacity)) transportation services, including replacement, improvement, and construction of highways of statewide significance, in addition to the tax authorized by RCW 82.14.030, upon retail car rentals within the agency's jurisdiction that are taxable by the state under chapters 82.08 and 82.12 RCW. The rate of tax shall not exceed 2.172 percent. The base of the tax shall be the selling price in the case of a sales tax or the rental value of the vehicle used in the case of a use tax.

   Any motor vehicle excise tax previously imposed under the provisions of RCW 81.104.160(1) shall be repealed, terminated and expire on December 5, 2002.

   Sec. 4. RCW 81.104.170 and 1997 c 450 s 5 are each amended to read as follows:

   Cities that operate transit systems, county transportation authorities, metropolitan municipal corporations, public transportation benefit areas, and regional transit authorities may submit an authorizing proposition to the voters and if approved by a majority of persons voting, fix and impose a sales and use tax in accordance with the terms of this chapter, ((solely)) for the purpose of providing ((high capacity)) transportation services, including replacement, improvement, and construction of highways of statewide significance.

   The tax authorized pursuant to this section shall be in addition to the tax authorized by RCW 82.14.030 and shall be collected from those persons who are taxable by the state pursuant to chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the taxing district. The maximum rate of such tax shall be approved by the voters and shall not exceed one percent of the selling price (in the case of a sales tax) or value of the article used (in the case of a use tax). The maximum rate of such tax that may be imposed shall not exceed nine-tenths of one percent in any county that imposes a tax under RCW 82.14.340, or within a regional transit authority if any county within the authority imposes a tax under RCW 82.14.340. The exemptions in RCW 82.08.820 and 82.12.820 are for the state portion of the sales and use tax and do not extend to the tax authorized in this section.

   Renumber the sections consecutively and correct any internal references accordingly.

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EFFECT: Permits Sound Transit to use voter approved tax revenues for the replacement, improvement, and construction of highways of statewide significance.