FINAL BILL REPORT
EHB 2388
C 486 L 07
Synopsis as Enacted
Brief Description: Financing regional centers with seating capacities less than ten thousand that are acquired, constructed, financed, or owned by a public facilities district.
Sponsors: By Representatives Alexander, P. Sullivan and Hunter.
Senate Committee on Ways & Means
Background:
Public facilities districts (PFDs) are municipal corporations with independent taxing authority
and are taxing districts under the State Constitution. There are two enabling statutes, one for
counties (County PFDs) and another for cities and joint arrangements between a group of
cities or a county and one or more cities (City PFDs). Governance provisions are spelled out
for these districts.
City PFDs must be located in a county with a population that is less than one million. City
PFDs are authorized to construct, improve, or remodel regional centers. A regional center is
a convention, conference, or special events center, and related parking facilities, that costs at
least $10 million. 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. The boundaries of a City PFD are
coextensive with the city. However, if the PFD has been jointly created, the boundaries are
coterminous with all cities jointly participating or the unincorporated areas of a county jointly
participating. City PFDs may be funded through a combination of: (1) charges and fees for
the use of facilities by organizations; (2) admission charges; (3) taxes on vehicle parking
charges; (4) voter-approved sales and use taxes; (5) credits against the state sales and use tax;
(6) voter-approved property taxes; and (7) bonds.
County PFDs may be created in any county. The boundaries of a County PFD are
coextensive with the boundaries of the county. Many County PFD provisions were modified
as part of the baseball stadium legislation in 1995. County PFDs may construct, improve, or
remodel sports facilities, entertainment facilities, convention facilities, or regional centers as
defined above. County PFDs may be funded through a combination of: (1) charges and fees
for the use of facilities by organizations; (2) taxes on admission charges; (3) taxes on vehicle
parking charges; (4) voter-approved sales and use taxes; (5) credits against the state sales and
use tax; (6) lodging taxes; (7) voter-approved property taxes; and (8) bonds. King County
contains one County PFD created for the purpose of the construction, maintenance, and
operation of Safeco Field, the baseball stadium.
Existing PFDs may impose a sales and use tax within the boundaries of the district. A PFD
created after June 30, 2006, may not impose the tax. The rate of tax is 0.033 percent. The
tax is a credit against the state sales and use tax.
Summary:
A City PFD or County PFD created before September 1, 2007, in a county without a PFD,
that commences construction of a new regional center before January 1, 2009, may impose a
0.033 percent sales and use tax that is credited against the state sales and use tax. The
population within the boundaries of the PFD must be greater than 70,000.
The creation of a City PFD is authorized in a county with a population that is greater than one
million. The city must have a population between 80,000 and 115,000. The construction of
the regional center must commence prior to July 1, 2008. The city PFD may impose a 0.033
percent sales and use tax that is credited against the state sales and use tax.
An additional 0.025 percent sales and use tax credited against the state sales and use tax may
be imposed by city public facility districts created prior to August 1, 2001 that has a
population between 90,000 and 100,000 and is located in a county with population that is
under 300,000. An additional 0.020 percent sales and use tax credited against the state sales
and use tax may be imposed by county public facility districts created prior to January 1,
2000 that has a population between 90,000 and 100,000. The revenue must be used for
improvement or rehabilitation of an existing regional center used for community events, and
artistic, musical, theatrical, or other cultural exhibitions.
Votes on Final Passage:
House 80 16
Senate 41 7 (Senate amended)
House (House refused to concur)
Senate 42 4 (Senate amended)
House 85 13 (House concurred)
Effective: July 22, 2007