SSB 5184

SENATE BILL REPORT
SSB 5184

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Passed Senate, April 2, 2007

Brief Description: Modifying sales and use tax provisions for public facilities districts.

Sponsors: Senate Committee on Economic Development, Trade & Management (originally sponsored by Senators Hatfield, Clements and Rasmussen).

Committee Activity: Economic Development, Trade & Management: 1/26/07, 2/07/07[DPS-WM].

Majority Report: That Substitute Senate Bill No. 5184 be substituted therefor, and the substitute bill do pass and be referred to Committee on Ways & Means.Signed by Senators Kastama, Chair; Kilmer, Vice Chair; Zarelli, Ranking Minority Member; Clements, Kauffman and Shin.

Majority Report: That Substitute Senate Bill No. 5184 as recommended by Committee on Economic Development, Trade & Management be substituted therefor, and the substitute bill do pass.Signed by Senators Prentice, Chair; Zarelli, Ranking Minority Member; Brandland, Carrell, Hatfield, Hewitt, Hobbs, Honeyford, Keiser, Oemig, Rasmussen, Regala and Schoesler.

Background: A public facilities district (PFD) may be created by a city or county. A PFD is authorized to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate sports facilities, entertainment facilities, convention facilities, or regional centers, together with contiguous parking facilities.

The PFDs formed prior to July 31, 2002, or in certain small PFDs prior to July 1, 2006, may impose a 0.033 percent sales tax that is deducted from the state sales tax and is not an increase to taxpayers.

If both a city-created and a county-created PFD assess this sales tax, the city-created PFD tax is credited against the county-created PFD tax, and the combined total may not be greater than 0.033 percent.

Summary of Substitute Bill: In a county with a population under 300,000 persons, a city public facility district created prior to August 1, 2001, and a county public facility district created prior to January 1, 2000, in which the total population of the public facility district is greater than 90,000 and less than 100,000 persons, may impose an additional sales and use tax at the rate of 0.033 percent. The tax is credited against the state portion of the sales and use tax, and thus does not increase the tax for consumers. The tax may only be imposed for the improvement or rehabilitation of an existing regional center to be used for community events, and artistic, theatrical, or other cultural exhibitions. The facility must have fewer than 2,000 permanent seats and the improvements must commence prior to January 1, 2009.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony on Original Bill (Economic Development, Trade & Management): PRO: This bill is directed at providing funds to renovate and add on to the Columbia Theatre of Longview and the Capitol Theatre of Yakima. These theaters are both integral parts of downtown revitalization in their respective cities. Studies have shown that the culture and arts life of a city is an important factor in attracting a skilled workforce.

The fiscal note for this bill is high because there was an error in the language of the bill. The 300,000 population requirement was meant to apply to not only rehabilitation projects but also to new projects. An amendment should make it so that this bill only applies to the Columbia Theatre in Longview and the Capitol Theatre in Yakima.

Persons Testifying (Economic Development, Trade & Management): PRO: Sarah Koss, Columbia Theatre Board Member; Dennis Weber, Mayor, City of Longview; Steve Cafferty, Ex-Director Capital Theatre; Barbra Greco, For a Better Tomorrow.

Staff Summary of Public Testimony on Recommended Substitute (Ways & Means): PRO: This bill will help the arts and economic development in Longview and Yakima. This legislation will authorize a partnership to renovate our Columbia Theatre in Longview. We have faced mill closures and have moved ahead in diversifying our economy. This is a combination renovation and expansion. This will also be a small conference center. This will help redevelop Longview core business district. The Capitol Theatre is a catalyst for downtown economic development. The capitol Theatre is the only thing that can bring economic vitality back. It is a proven economic tool.

Persons Testifying (Ways & Means): PRO: Senator Hatfield, prime sponsor; Senator Clements, co-sponsor; Mayor Dennis Weber, City of Longview; Joan Landau, Columbia Theatre Board; Rick Winsman, Kelso-Longview Chamber of Commerce; Steve Cafferty, Betty Ingham, Capitol Theatre.