BILL REQ. #:  S-0969.1 

Read first time 01/24/2007.   Referred to Committee on Economic Development, Trade & Management.

     AN ACT Relating to authorizing counties to impose additional sales and use taxes for construction or improvements for economic development facilities; adding a new section to chapter 82.14 RCW; providing an effective date; and declaring an emergency.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 82.14 RCW to read as follows:
     (1) The legislative authority of a county may impose a sales and use tax in accordance with the terms of this chapter. The tax is in addition to other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the county. The rate of tax shall be applied to the selling price in the case of a sales tax or value of the article used in the case of a use tax and shall not exceed:
     (a) .06 percent in a county with a population density of less than one hundred persons per square mile or a county smaller than two hundred twenty-five square miles as determined by the office of financial management and published each year by the department for the period July 1st to June 30th;
     (b) .03 percent in a county with a population greater than one million six hundred thousand persons; and
     (c) .04 percent in all other counties.
     (2) The tax imposed under subsection (1) of this section shall be deducted from the amount of tax otherwise required to be collected or paid over to the department of revenue under chapter 82.08 or 82.12 RCW. The department of revenue shall perform the collection of such taxes on behalf of the county at no cost to the county.
     (3)(a) Moneys collected under this section shall only be used to finance the construction of, or improvements to, facilities intended to further economic development in the county.
     (b) The legislative authorities of two or more contiguous counties may enter into an agreement under chapter 39.34 RCW to use moneys collected under this section for a mutually beneficial project.
     (4) No tax may be collected under this section by a county more than twenty-five years after the date that a tax is first imposed under this section.

NEW SECTION.  Sec. 2   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2007.