2SSB 5045 -
By Committee on Community & Economic Development & Trade
NOT CONSIDERED 04/16/2009
Strike everything after the enacting clause and insert the following:
NEW SECTION. Sec. 101 The legislature recognizes that the state
as a whole benefits from investment in public infrastructure because it
promotes community and economic development. Public investment
stimulates business activity and helps create jobs, stimulates the
redevelopment of brownfields and blighted areas in the inner city,
lowers the cost of housing, and promotes efficient land use. The
legislature finds that these activities generate revenue for the state
and that it is in the public interest to invest in these projects
through a credit against the state sales and use tax to those local
governments that can demonstrate the expected returns to the state.
NEW SECTION. Sec. 102
(1) "Annual state contribution limit" means two million five
hundred thousand dollars statewide per fiscal year.
(2) "Assessed value" means the valuation of taxable real property
as placed on the last completed assessment roll.
(3) "Department" means the department of revenue.
(4) "Fiscal year" means the twelve-month period beginning July 1st
and ending the following June 30th.
(5) "Local government" means any city, town, county, and port
district.
(6) "Local property tax allocation revenue" means those tax
revenues derived from the receipt of regular property taxes levied on
the property tax allocation revenue value and used for local
revitalization financing.
(7) "Local revitalization financing" means the use of revenues from
local public sources, and revenues received from the local option sales
and use tax authorized in section 601 of this act, dedicated to pay the
principal and interest on bonds authorized under section 701 of this
act.
(8) "Local sales and use tax increment" means the estimated annual
increase in local sales and use taxes as determined and anticipated by
the local government in the calendar years following the approval of
the revitalization area by the department from taxable activity within
the revitalization area.
(9) "Local sales and use taxes" means local revenues derived from
the imposition of sales and use taxes authorized in RCW 82.14.030.
(10) "Ordinance" means any appropriate method of taking legislative
action by a local government.
(11) "Participating local government" means a local government
having a revitalization area within its geographic boundaries that has
taken action as provided in section 107(1) of this act to allow the use
of all or some of its local sales and use tax increment or other
revenues from local public sources dedicated for local revitalization
financing.
(12) "Participating taxing district" means a local government
having a revitalization area within its geographic boundaries that has
not taken action as provided in section 106(2) of this act.
(13) "Property tax allocation revenue base value" means the
assessed value of real property located within a revitalization area,
less the property tax allocation revenue value.
(14)(a)(i) "Property tax allocation revenue value" means seventy-five percent of any increase in the assessed value of real property in
a revitalization area resulting from:
(A) The placement of new construction, improvements to property, or
both, on the assessment roll, where the new construction and
improvements are initiated after the revitalization area is approved by
the department;
(B) The cost of new housing construction, conversion, and
rehabilitation improvements, when the cost is treated as new
construction for purposes of chapter 84.55 RCW as provided in RCW
84.14.020, and the new housing construction, conversion, and
rehabilitation improvements are initiated after the revitalization area
is approved by the department;
(C) The cost of rehabilitation of historic property, when the cost
is treated as new construction for purposes of chapter 84.55 RCW as
provided in RCW 84.26.070, and the rehabilitation is initiated after
the revitalization area is approved by the department.
(ii) Increases in the assessed value of real property in a
revitalization area resulting from (a)(i)(A) through (C) of this
subsection are included in the property tax allocation revenue value in
the initial year. These same amounts are also included in the property
tax allocation revenue value in subsequent years unless the property
becomes exempt from property taxation.
(b) "Property tax allocation revenue value" includes seventy-five
percent of any increase in the assessed value of new construction
consisting of an entire building in the years following the initial
year, unless the building becomes exempt from property taxation.
(c) Except as provided in (b) of this subsection, "property tax
allocation revenue value" does not include any increase in the assessed
value of real property after the initial year.
(d) There is no property tax allocation revenue value if the
assessed value of real property in a revitalization area has not
increased as a result of any of the reasons specified in (a)(i)(A)
through (C) of this subsection.
(e) For purposes of this subsection, "initial year" means:
(i) For new construction and improvements to property added to the
assessment roll, the year during which the new construction and
improvements are initially placed on the assessment roll;
(ii) For the cost of new housing construction, conversion, and
rehabilitation improvements, when the cost is treated as new
construction for purposes of chapter 84.55 RCW, the year when the cost
is treated as new construction for purposes of levying taxes for
collection in the following year; and
(iii) For the cost of rehabilitation of historic property, when the
cost is treated as new construction for purposes of chapter 84.55 RCW,
the year when such cost is treated as new construction for purposes of
levying taxes for collection in the following year.
(15) "Public improvement costs" means the costs of:
(a) Design, planning, acquisition, including land acquisition, site
preparation including land clearing, construction, reconstruction,
rehabilitation, improvement, and installation of public improvements;
(b) Demolishing, relocating, maintaining, and operating property
pending construction of public improvements;
(c) Relocating utilities as a result of public improvements;
(d) Financing public improvements, including interest during
construction, legal and other professional services, taxes, insurance,
principal and interest costs on general indebtedness issued to finance
public improvements, and any necessary reserves for general
indebtedness; and
(e) Administrative expenses and feasibility studies reasonably
necessary and related to these costs, including related costs that may
have been incurred before adoption of the ordinance authorizing the
public improvements and the use of local revitalization financing to
fund the costs of the public improvements.
(16) "Public improvements" means:
(a) Infrastructure improvements within the revitalization area that
include:
(i) Street, road, bridge, and rail construction and maintenance;
(ii) Water and sewer system construction and improvements;
(iii) Sidewalks, streetlights, landscaping, and streetscaping;
(iv) Parking, terminal, and dock facilities;
(v) Park and ride facilities of a transit authority;
(vi) Park facilities, recreational areas, and environmental
remediation;
(vii) Storm water and drainage management systems;
(viii) Electric, gas, fiber, and other utility infrastructures; and
(b) Expenditures for any of the following purposes:
(i) Providing environmental analysis, professional management,
planning, and promotion within the revitalization area, including the
management and promotion of retail trade activities in the
revitalization area;
(ii) Providing maintenance and security for common or public areas
in the revitalization area; or
(iii) Historic preservation activities authorized under RCW
35.21.395.
(17) "Real property" has the same meaning as in RCW 84.04.090 and
also includes any privately owned improvements located on publicly
owned land that are subject to property taxation.
(18) "Regular property taxes" means regular property taxes as
defined in RCW 84.04.140, except: (a) Regular property taxes levied by
public utility districts specifically for the purpose of making
required payments of principal and interest on general indebtedness;
(b) regular property taxes levied by the state for the support of
common schools under RCW 84.52.065; and (c) regular property taxes
authorized by RCW 84.55.050 that are limited to a specific purpose.
"Regular property taxes" do not include excess property tax levies that
are exempt from the aggregate limits for junior and senior taxing
districts as provided in RCW 84.52.043.
(19)(a) "Revenues from local public sources" means:
(i) The local sales and use tax amounts received as a result of
interlocal agreement, local sales and use tax amounts from sponsoring
local governments based on its local sales and use tax increment, and
local property tax allocation revenues, which are dedicated by a
sponsoring local government, participating local governments, and
participating taxing districts, for payment of bonds under section 701
of this act; and
(ii) Any other local revenues, except as provided in (b) of this
subsection, including revenues derived from federal and private
sources, which are dedicated for the payment of bonds under section 701
of this act.
(b) Revenues from local public sources do not include any local
funds derived from state grants, state loans, or any other state moneys
including any local sales and use taxes credited against the state
sales and use taxes imposed under chapter 82.08 or 82.12 RCW.
(20) "Revitalization area" means the geographic area adopted by a
sponsoring local government and approved by the department, from which
local sales and use tax increments are estimated and property tax
allocation revenues are derived for local revitalization financing.
(21) "Sponsoring local government" means a city, town, county, or
any combination thereof, that adopts a revitalization area and applies
to the department to use local revitalization financing.
(22) "State contribution" means the lesser of:
(a) Five hundred thousand dollars;
(b) The project award amount approved by the department as provided
in section 401 of this act; or
(c) The total amount of revenues from local public sources
dedicated in the preceding calendar year to the payment of principal
and interest on bonds issued under section 701 of this act.
(23) "State property tax increment" means the estimated amount of
annual tax revenues estimated to be received by the state from the
imposition of property taxes levied by the state for the support of
common schools under RCW 84.52.065 on the property tax allocation
revenue value, as determined by the sponsoring local government in an
application under section 401 of this act.
(24) "State sales and use tax increment" means the estimated amount
of annual increase in state sales and use taxes to be received by the
state from taxable activity within the revitalization area in the years
following the approval of the revitalization area by the department as
determined by the sponsoring local government in an application under
section 401 of this act.
(25) "State sales and use taxes" means state retail sales and use
taxes under RCW 82.08.020(1) and 82.12.020 at the rate provided in RCW
82.08.020(1), less the amount of tax distributions from all local
retail sales and use taxes, other than the local sales and use taxes
authorized by section 601 of this act for the applicable revitalization
area, imposed on the same taxable events that are credited against the
state retail sales and use taxes under RCW 82.08.020(1) and 82.12.020.
(26) "Taxing district" means a government entity that levies or has
levied for it regular property taxes upon real property located within
a proposed or approved revitalization area.
NEW SECTION. Sec. 103
(1) The local government has adopted an ordinance designating a
revitalization area within its boundaries and specified the public
improvements proposed to be financed in whole or in part with the use
of local revitalization financing;
(2) The public improvements proposed to be financed in whole or in
part using local revitalization financing are expected to encourage
private development within the revitalization area and to increase the
fair market value of real property within the revitalization area;
(3) The local government has entered into a contract with a private
developer relating to the development of private improvements within
the revitalization area or has received a letter of intent from a
private developer relating to the developer's plans for the development
of private improvements within the revitalization area;
(4) Private development that is anticipated to occur within the
revitalization area, as a result of the public improvements, will be
consistent with the countywide planning policy adopted by the county
under RCW 36.70A.210 and the local government's comprehensive plan and
development regulations adopted under chapter 36.70A RCW;
(5) The local government may not use local revitalization financing
to finance the costs associated with the financing, design,
acquisition, construction, equipping, operating, maintaining,
remodeling, repairing, and reequipping of public facilities funded with
taxes collected under RCW 82.14.048 or 82.14.390;
(6) The governing body of the local government must make a finding
that local revitalization financing:
(a) Will not be used for the purpose of relocating a business from
outside the revitalization area, but within this state, into the
revitalization area unless convincing evidence is provided that the
firm being relocated would otherwise leave the state;
(b) Will improve the viability of existing business entities within
the revitalization area; and
(c) Will be used exclusively in areas within the jurisdiction of
the local government deemed in need of either economic development or
redevelopment, or both, and absent the financing available under this
chapter and sections 601 and 602 of this act the proposed economic
development or redevelopment would more than likely not occur; and
(7) The governing body of the local government finds that the
public improvements proposed to be financed in whole or in part using
local revitalization financing are reasonably likely to:
(a) Increase private investment within the revitalization area;
(b) Increase employment within the revitalization area; and
(c) Generate, over the period of time that the local sales and use
tax will be imposed under section 601 of this act, increases in state
and local property, sales, and use tax revenues that are equal to or
greater than the respective state and local contributions made under
this chapter.
NEW SECTION. Sec. 104
(a) Provide notice to all taxing districts and local governments
with geographic boundaries within the proposed revitalization area of
the sponsoring local government's intent to create a revitalization
area. Notice must be provided in writing to the governing body of the
taxing districts and local governments at least thirty days in advance
of the public hearing as required by (b) of this subsection. The
notice must include at least the following information:
(i) The name of the proposed revitalization area;
(ii) The date for the public hearing as required by (b) of this
subsection;
(iii) The earliest anticipated date when the sponsoring local
government will take action to adopt the proposed revitalization area;
and
(iv) The name of a contact person with phone number of the
sponsoring local government and mailing address where a copy of an
ordinance adopted under sections 105 and 106 of this act may be sent;
and
(b) Hold a public hearing on the proposed financing of the public
improvements in whole or in part with local revitalization financing.
Notice of the public hearing must be published in a legal newspaper of
general circulation within the proposed revitalization area at least
ten days before the public hearing and posted in at least six
conspicuous public places located in the proposed revitalization area.
Notices must describe the contemplated public improvements, estimate
the costs of the public improvements, describe the portion of the costs
of the public improvements to be borne by local revitalization
financing, describe any other sources of revenue to finance the public
improvements, describe the boundaries of the proposed revitalization
area, and estimate the period during which local revitalization
financing is contemplated to be used. The public hearing may be held
by either the governing body of the sponsoring local government, or a
committee of the governing body that includes at least a majority of
the whole governing body.
(2) To create a revitalization area, a sponsoring local government
must adopt an ordinance establishing the revitalization area that:
(a) Describes the public improvements proposed to be made in the
revitalization area;
(b) Describes the boundaries of the revitalization area, subject to
the limitations in section 105 of this act;
(c) Estimates the cost of the proposed public improvements and the
portion of these costs to be financed by local revitalization
financing;
(d) Estimates the time during which local property tax allocation
revenues, and other revenues from local public sources, such as amounts
of local sales and use taxes from participating local governments, are
to be used for local revitalization financing;
(e) Provides the date when the use of local property tax allocation
revenues will commence and a list of the taxing districts that have not
adopted an ordinance as described in section 106 of this act to be
removed as a participating taxing district;
(f) Finds that all of the requirements in section 103 of this act
are met;
(g) Provides the anticipated rate of sales and use tax under
section 601 of this act that the local government will impose if
awarded a state contribution under section 401 of this act;
(h) Provides the anticipated date when the criteria for the sales
and use tax in section 601 of this act will be met and the anticipated
date when the sales and use tax in section 601 of this act will be
imposed.
(3) The sponsoring local government must deliver a certified copy
of the adopted ordinance to the county treasurer, the governing body of
each participating taxing authority and participating taxing district
within which the revitalization area is located, and the department.
NEW SECTION. Sec. 105
(1) No revitalization area may have within its geographic
boundaries any part of a hospital benefit zone under chapter 39.100
RCW, any part of a revenue development area created under chapter
39.102 RCW, any part of an increment area under chapter 39.89 RCW, or
any part of another revitalization area under this chapter;
(2) A revitalization area is limited to contiguous tracts, lots,
pieces, or parcels of land without the creation of islands of property
not included in the revitalization area;
(3) The boundaries may not be drawn to purposely exclude parcels
where economic growth is unlikely to occur;
(4) The public improvements financed through bonds issued under
section 701 of this act must be located in the revitalization area;
(5) A revitalization area cannot comprise an area containing more
than twenty-five percent of the total assessed value of the taxable
real property within the boundaries of the sponsoring local government
at the time the revitalization area is created;
(6) The boundaries of the revitalization area may not be changed
for the time period that local property tax allocation revenues, local
sales and use taxes of participating local governments, and the local
sales and use tax under section 601 of this act are used to pay bonds
issued under section 701 of this act; and
(7) A revitalization area must be geographically restricted to the
location of the public improvement and adjacent locations that the
sponsoring local government finds to have a high likelihood of
receiving direct positive business and economic impacts due to the
public improvement, such as a neighborhood or a block.
NEW SECTION. Sec. 106
(2)(a) If a taxing district does not want to allow the use of its
property tax revenues for the local revitalization financing of public
improvements in a revitalization area, its governing body must adopt an
ordinance to remove itself as a participating taxing district and must
notify the sponsoring local government.
(b) The taxing district must provide a copy of the adopted
ordinance and notice to the sponsoring local government creating the
revitalization area before the anticipated date that the sponsoring
local government proposes to adopt the ordinance creating the
revitalization area as provided in the notice required by section
104(1)(a) of this act.
NEW SECTION. Sec. 107
(2)(a) If a local government that imposes a sales and use tax under
RCW 82.14.030 does not want to participate in the local revitalization
financing of public improvements in a revitalization area, its
governing body must adopt an ordinance and notify the sponsoring local
government that the taxing authority will not be a participating local
government.
(b) The local government must provide a copy of the adopted
ordinance and the notice to the sponsoring local government creating
the revitalization area before the anticipated date that the sponsoring
local government proposes to adopt an ordinance creating the
revitalization area as provided in the notice required by section
104(1)(a) of this act.
NEW SECTION. Sec. 201
(a) Each participating taxing district and the sponsoring local
government must receive that portion of its regular property taxes
produced by the rate of tax levied by or for the taxing district on the
property tax allocation revenue base value for that local
revitalization financing project in the taxing district; and
(b) The sponsoring local government must receive an additional
portion of the regular property taxes levied by it and by or for each
participating taxing district upon the property tax allocation revenue
value within the revitalization area. However, if there is no property
tax allocation revenue value, the sponsoring local government may not
receive any additional regular property taxes under this subsection
(1)(b). The sponsoring local government may agree to receive less than
the full amount of the additional portion of regular property taxes
under this subsection (1)(b) as long as bond debt service, reserve, and
other bond covenant requirements are satisfied, in which case the
balance of these tax receipts shall be allocated to the participating
taxing districts that levied regular property taxes, or have regular
property taxes levied for them, in the revitalization area for
collection that year in proportion to their regular tax levy rates for
collection that year. The sponsoring local government may request that
the treasurer transfer this additional portion of the property taxes to
its designated agent. The portion of the tax receipts distributed to
the sponsoring local government or its agent under this subsection
(1)(b) may only be expended to finance public improvement costs
associated with the public improvements financed in whole or in part by
local revitalization financing.
(2) The county assessor shall determine the property tax allocation
revenue value and property tax allocation revenue base value. This
section does not authorize revaluations of real property by the
assessor for property taxation that are not made in accordance with the
assessor's revaluation plan under chapter 84.41 RCW or under other
authorized revaluation procedures.
(3) The distribution of local property tax allocation revenue to
the sponsoring local government must cease when local property tax
allocation revenues are no longer obligated to pay the costs of the
public improvements. Any excess local property tax allocation
revenues, and earnings on the revenues, remaining at the time the
distribution of local property tax allocation revenue terminates, must
be returned to the county treasurer and distributed to the
participating taxing districts that imposed regular property taxes, or
had regular property taxes imposed for it, in the revitalization area
for collection that year, in proportion to the rates of their regular
property tax levies for collection that year.
(4) The allocation to the revitalization area of that portion of
the sponsoring local government's and each participating taxing
district's regular property taxes levied upon the property tax
allocation revenue value within that revitalization area is declared to
be a public purpose of and benefit to the sponsoring local government
and each participating taxing district.
(5) The distribution of local property tax allocation revenues
under this section may not affect or be deemed to affect the rate of
taxes levied by or within any sponsoring local government and
participating taxing district or the consistency of any such levies
with the uniformity requirement of Article VII, section 1 of the state
Constitution.
NEW SECTION. Sec. 301
(2) The department must assist sponsoring local governments in
estimating sales and use tax revenues from estimated taxable activity
in the proposed or adopted revitalization area. The sponsoring local
government must provide the department with accurate information
describing the geographical boundaries of the revitalization area in an
electronic format or in a manner as otherwise prescribed by the
department.
NEW SECTION. Sec. 401
(2) As a condition to imposing a sales and use tax under section
601 of this act, a sponsoring local government must apply to the
department and be approved for a project award amount. The application
must be in a form and manner prescribed by the department and include,
but not be limited to:
(a) Information establishing that over the period of time that the
local sales and use tax will be imposed under section 601 of this act,
increases in state and local property, sales, and use tax revenues as
a result of public improvements in the revitalization area will be
equal to or greater than the respective state and local contributions
made under this chapter;
(b) Information demonstrating that the sponsoring local government
will meet the requirements necessary to receive the full amount of
state contribution it is requesting on an annual basis;
(c) The amount of state contribution it is requesting;
(d) The anticipated effective date for imposing the tax under
section 601 of this act;
(e) The estimated number of years that the tax will be imposed;
(f) The anticipated rate of tax to be imposed under section 601 of
this act, subject to the rate-setting conditions in section 601(3) of
this act, should the sponsoring local government be approved for a
project award; and
(g) The anticipated date when bonds under section 701 of this act
will be issued.
The department shall make available electronic forms to be used for
this purpose. As part of the application, each applicant must provide
to the department a copy of the adopted ordinance creating the
revitalization area as required in section 104 of this act, copies of
any adopted interlocal agreements from participating local governments,
and any notices from taxing districts that elect not to be a
participating taxing district.
(3)(a) Project awards must be determined on:
(i) A first-come basis for applications completed in their entirety
and submitted electronically;
(ii) The availability of a state contribution;
(iii) Whether the sponsoring local government would be able to
generate enough tax revenue under section 601 of this act to generate
the amount of project award requested.
(b) The total of all project awards may not exceed the annual state
contribution limit.
(c) If the level of available state contribution is less than the
amount requested by the next available applicant, the applicant must be
given the first opportunity to accept the lesser amount of state
contribution but only if the applicant produces a new application
within sixty days of being notified by the department and the
application describes the impact on the proposed project as a result of
the lesser award in addition to new application information outlined in
subsection (2) of this section.
(d) Applications that are not approved for a project award due to
lack of available state contribution must be retained on file by the
department in order of the date of their receipt.
(e) Once total project awards reach the amount of annual state
contribution limit, no more applications will be accepted.
(f) If the annual contribution limit is increased, applications
will be accepted again beginning sixty days after the effective date of
the increase. However, in the time period before any new applications
are accepted, all sponsoring local governments with a complete
application already on file with the department must be provided an
opportunity to either withdraw their application or update the
information in the application. The updated application must be for a
project that is substantially the same as the project in the original
application. The department must consider these applications, in the
order originally submitted, for project awards prior to considering any
new applications.
(4) The department shall notify the sponsoring local government of
approval or denial of a project award within sixty days of the
department's receipt of the sponsoring local government's application.
Determination of a project award by the department is final.
Notification must include the earliest date when the tax authorized
under section 601 of this act may be imposed, subject to conditions in
chapter 82.14 RCW. The project award notification must specify the
rate requested in the application and any adjustments to the rate that
would need to be made based on the project award and rate restrictions
in section 601 of this act.
(5) The department must begin accepting applications on September
1, 2009.
NEW SECTION. Sec. 501 A new section is added to chapter 82.32
RCW to read as follows:
(a) The amounts of local property tax allocation revenues received
in the preceding calendar year broken down by sponsoring local
government and participating taxing district;
(b) The amount of state property tax allocation revenues estimated
to have been received by the state in the preceding calendar year;
(c) The amount of local sales and use tax or other revenue from
local public sources dedicated by any participating local government
used for the payment of bonds under section 701 of this act in the
preceding calendar year;
(d) The amount of local sales and use tax dedicated by the
sponsoring local government, as it relates to the sponsoring local
government's local sales and use tax increment, used for the payment of
bonds under section 701 of this act;
(e) The amounts, other than those listed in (a) through (d) of this
subsection, from local public sources, broken down by type or source,
used for payment of bonds under section 701 of this act in the
preceding calendar year;
(f) The anticipated date when bonds under section 701 of this act
are expected to be retired;
(g) The names of any businesses locating within the revitalization
area as a result of the public improvements undertaken by the
sponsoring local government and financed in whole or in part with local
revitalization financing;
(h) An estimate of the cumulative number of permanent jobs created
in the revitalization area as a result of the public improvements
undertaken by the sponsoring local government and financed in whole or
in part with local revitalization financing;
(i) An estimate of the average wages and benefits received by all
employees of businesses locating within the revitalization area as a
result of the public improvements undertaken by the sponsoring local
government and financed in whole or in part with local revitalization
financing;
(j) A list of public improvements financed by bonds issued under
section 701 of this act and the date on which the bonds are anticipated
to be retired;
(k) That the sponsoring local government is in compliance with
section 103 of this act and the date on which the bonds are anticipated
to be retired;
(l) At least once every three years, updated estimates of the
amounts of state and local sales and use tax increments estimated to
have been received since the approval by the department of the project
award under section 401 of this act; and
(m) Any other information required by the department to enable the
department to fulfill its duties under this chapter and section 601 of
this act.
(2) The department shall make a report available to the public and
the legislature by June 1st of each year. The report shall include a
summary of the information provided to the department by sponsoring
local governments under subsection (1) of this section.
NEW SECTION. Sec. 601
(2) The tax authorized under subsection (1) of this section is
credited against the state taxes imposed under RCW 82.08.020(1) and
82.12.020 at the rate provided in RCW 82.08.020(1). The department
must perform the collection of such taxes on behalf of the city or
county at no cost to the city or county. The taxes must be distributed
to cities and counties as provided in RCW 82.14.060.
(3) The rate of tax imposed by a city or county may not exceed the
lesser of:
(a) The rate provided in RCW 82.08.020(1), less:
(i) The aggregate rates of all other local sales and use taxes
imposed by any taxing authority on the same taxable events;
(ii) The aggregate rates of all taxes under RCW 82.14.465 and
82.14.475 and this section that are authorized but have not yet been
imposed on the same taxable events by a city or county that has been
approved to receive a state contribution by the department or the
community economic revitalization board under chapter 39.-- RCW (the
new chapter created in section 905 of this act) or chapter 39.100 or
39.102 RCW; and
(iii) The percentage amount of distributions required under RCW
82.08.020(5) multiplied by the rate of state taxes imposed under RCW
82.08.020(1); and
(b) The rate, as determined by the city or county in consultation
with the department, reasonably necessary to receive the project award
under section 401 of this act over ten months.
(4) The department, upon request, must assist a city or county in
establishing its tax rate in accordance with subsection (3) of this
section. Once the rate of tax is selected through the application
process and approved under section 401 of this act, it may not be
increased.
(5)(a) No tax may be imposed under the authority of this section
before:
(i) July 1, 2011;
(ii) July 1st of the second calendar year following the year in
which the department approved the application made under section 401 of
this act;
(iii) The state sales and use tax increment for the preceding
calendar year equals or exceeds the amount of the project award
approved by the department under section 401 of this act; and
(iv) Bonds have been issued according to section 701 of this act.
(b) The tax imposed under this section expires the earlier of the
date that the bonds issued under the authority of section 701 of this
act are retired or twenty-five years after the tax is first imposed.
(6) An ordinance or resolution adopted by the legislative authority
of the city or county imposing a tax under this section must provide
that:
(a) The tax will first be imposed on the first day of a fiscal
year;
(b) The cumulative amount of tax received by the city or county, in
any fiscal year, may not exceed the amount approved by the department
under subsection (10) of this section;
(c) The department must cease distributing the tax for the
remainder of any fiscal year in which either:
(i) The amount of tax received by the city or county equals the
amount of distributions approved by the department for the fiscal year
under subsection (10) of this section; or
(ii) The amount of revenue from taxes imposed under this section by
all cities and counties equals the annual state contribution limit;
(d) The tax will be distributed again, should it cease to be
distributed for any of the reasons provided in (c) of this subsection,
at the beginning of the next fiscal year, subject to the restrictions
in this section; and
(e) The state is entitled to any revenue generated by the tax in
excess of the amounts specified in (c) of this subsection.
(7) If a city or county receives approval for more than one
revitalization area within its jurisdiction, the city or county may
impose a sales and use tax under this section for each revitalization
area.
(8) The department must determine the amount of tax receipts
distributed to each city and county imposing a sales and use tax under
the authority of this section and must advise a city or county when tax
distributions for the fiscal year equal the amount determined by the
department in subsection (10) of this section. Determinations by the
department of the amount of tax distributions attributable to a city or
county are not appealable. The department must remit any tax receipts
in excess of the amounts specified in subsection (6)(c) of this section
to the state treasurer who must deposit the money in the general fund.
(9) If a city or county fails to comply with section 501 of this
act, no tax may be distributed in the subsequent fiscal year until such
time as the city or county complies and the department calculates the
state contribution amount according to subsection (10) of this section
for the fiscal year.
(10)(a) For each fiscal year that a city or county imposes the tax
under the authority of this section, the department must approve the
amount of taxes that may be distributed to the city or county. The
amount approved by the department under this subsection is the lesser
of:
(i) The state contribution;
(ii) The amount of project award granted by the department as
provided in section 401 of this act; or
(iii) The total amount of revenues from local public sources
dedicated in the preceding calendar year, as reported in the required
annual report under section 501 of this act.
(b) A city or county may not receive, in any fiscal year, more
revenues from taxes imposed under the authority of this section than
the amount approved annually by the department.
(11) The amount of tax distributions received from taxes imposed
under the authority of this section by all cities and counties is
limited annually to not more than the amount of annual state
contribution limit.
(12) The definitions in section 102 of this act apply to this
section subject to subsection (13) of this section and unless the
context clearly requires otherwise.
(13) For purposes of this section, the following definitions apply:
(a) "Local sales and use taxes" means sales and use taxes imposed
by cities, counties, public facilities districts, and other local
governments under the authority of this chapter, chapter 67.28 or 67.40
RCW, or any other chapter, and that are credited against the state
sales and use taxes.
(b) "State sales and use taxes" means the taxes imposed in RCW
82.08.020(1) and 82.12.020(1).
(c) "Initiation of construction" means the date that a building
permit is issued under the building code adopted under RCW 19.27.031.
NEW SECTION. Sec. 602
NEW SECTION. Sec. 701
(a) The ordinance adopted by the sponsoring local government
creating the revitalization area and authorizing the use of local
revitalization financing indicates an intent to incur this indebtedness
and the maximum amount of this indebtedness that is contemplated; and
(b) The sponsoring local government includes this statement of the
intent in all notices required by RCW 39.89.050.
(2) The general indebtedness incurred under subsection (1) of this
section may be payable from other tax revenues, the full faith and
credit of the sponsoring local government, and nontax income, revenues,
fees, and rents from the public improvements, as well as contributions,
grants, and nontax money available to the local government for payment
of costs of the public improvements or associated debt service on the
general indebtedness.
(3) In addition to the requirements in subsection (1) of this
section, a sponsoring local government creating a revitalization area
and authorizing the use of local revitalization financing may require
any nonpublic participants to provide adequate security to protect the
public investment in the public improvement within the revitalization
area.
(4) Bonds issued under this section must be authorized by ordinance
of the sponsoring local government and may be issued in one or more
series and must bear a date or dates, be payable upon demand or mature
at a time or times, bear interest at a rate or rates, be in a
denomination or denominations, be in a form either coupon or registered
as provided in RCW 39.46.030, carry conversion or registration
privileges, have a rank or priority, be executed in a manner, be
payable in a medium of payment, at a place or places, and be subject to
terms of redemption with or without premium, be secured in a manner,
and have other characteristics, as may be provided by an ordinance or
trust indenture or mortgage issued pursuant thereto.
(5) The sponsoring local government may annually pay into a fund to
be established for the benefit of bonds issued under this section a
fixed proportion or a fixed amount of any local property tax allocation
revenues derived from property or business activity within the
revitalization area containing the public improvements funded by the
bonds, the payment to continue until all bonds payable from the fund
are paid in full. The local government may also annually pay into the
fund established in this section a fixed proportion or a fixed amount
of any revenues derived from taxes imposed under section 601 of this
act, such payment to continue until all bonds payable from the fund are
paid in full. Revenues derived from taxes imposed under section 601 of
this act are subject to the use restriction in section 602 of this act.
(6) In case any of the public officials of the sponsoring local
government whose signatures appear on any bonds or any coupons issued
under this chapter cease to be the officials before the delivery of the
bonds, the signatures must, nevertheless, be valid and sufficient for
all purposes, the same as if the officials had remained in office until
the delivery. Any provision of any law to the contrary
notwithstanding, any bonds issued under this chapter are fully
negotiable.
(7) Notwithstanding subsections (4) through (6) of this section,
bonds issued under this section may be issued and sold in accordance
with chapter 39.46 RCW.
NEW SECTION. Sec. 702
NEW SECTION. Sec. 703
Sec. 801 RCW 82.14.475 and 2007 c 229 s 8 are each amended to
read as follows:
(1) A sponsoring local government, and any cosponsoring local
government, that has been approved by the board to use local
infrastructure financing may impose a sales and use tax in accordance
with the terms of this chapter and subject to the criteria set forth in
this section. Except as provided in this section, 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 taxing
jurisdiction of the sponsoring local government or cosponsoring local
government. The rate of tax shall not exceed the rate provided in RCW
82.08.020(1), less the aggregate rates of any other local sales and use
taxes imposed on the same taxable events that are credited against the
state sales and use taxes imposed under chapters 82.08 and 82.12 RCW.
The rate of tax may be changed only on the first day of a fiscal year
as needed. Notice of rate changes must be provided to the department
on the first day of March to be effective on July 1st of the next
fiscal year.
(2) The tax authorized under subsection (1) of this section shall
be credited against the state taxes imposed under chapter 82.08 or
82.12 RCW. The department shall perform the collection of such taxes
on behalf of the sponsoring local government or cosponsoring local
government at no cost to the sponsoring local government or
cosponsoring local government and shall remit the taxes as provided in
RCW 82.14.060.
(3)(a) No tax may be imposed under the authority of this section:
(i) Before July 1, 2008;
(ii) Before approval by the board under RCW 39.102.040; and
(iii) Before the sponsoring local government has received local
excise tax allocation revenues, local property tax allocation revenues,
or both, during the preceding calendar year.
(b) The tax imposed under this section shall expire when the bonds
issued under the authority of RCW 39.102.150 are retired, but not more
than twenty-five years after the tax is first imposed.
(4) An ordinance adopted by the legislative authority of a
sponsoring local government or cosponsoring local government imposing
a tax under this section shall provide that:
(a) The tax shall first be imposed on the first day of a fiscal
year;
(b) The cumulative amount of tax received by the sponsoring local
government, and any cosponsoring local government, in any fiscal year
shall not exceed the amount of the state contribution;
(c) The tax shall cease to be distributed for the remainder of any
fiscal year in which either:
(i) The amount of tax received by the sponsoring local government,
and any cosponsoring local government, equals the amount of the state
contribution;
(ii) The amount of revenue from taxes imposed under this section by
all sponsoring and cosponsoring local governments equals the annual
state contribution limit; or
(iii) The amount of tax received by the sponsoring local government
equals the amount of project award granted in the approval notice
described in RCW 39.102.040;
(d) Neither the local excise tax allocation revenues nor the local
property tax allocation revenues may constitute more than eighty
percent of the total local funds as described in RCW 39.102.020(29)(c).
This requirement applies beginning January 1st of the fifth calendar
year after the calendar year in which the sponsoring local government
begins allocating local excise tax allocation revenues under RCW
39.102.110;
(e) The tax shall be distributed again, should it cease to be
distributed for any of the reasons provided in (c) of this subsection,
at the beginning of the next fiscal year, subject to the restrictions
in this section; and
(f) Any revenue generated by the tax in excess of the amounts
specified in (c) of this subsection shall belong to the state of
Washington.
(5) If a county and city cosponsor a revenue development area, the
combined rates of the city and county tax shall not exceed the rate
provided in RCW 82.08.020(1), less the aggregate rates of any other
local sales and use taxes imposed on the same taxable events that are
credited against the state sales and use taxes imposed under chapters
82.08 and 82.12 RCW. The combined amount of distributions received by
both the city and county may not exceed the state contribution.
(6) The department shall determine the amount of tax receipts
distributed to each sponsoring local government, and any cosponsoring
local government, imposing sales and use tax under this section and
shall advise a sponsoring or cosponsoring local government when tax
distributions for the fiscal year equal the amount of state
contribution for that fiscal year as provided in subsection (8) of this
section. Determinations by the department of the amount of tax
distributions attributable to each sponsoring or cosponsoring local
government are final and shall not be used to challenge the validity of
any tax imposed under this section. The department shall remit any tax
receipts in excess of the amounts specified in subsection (4)(c) of
this section to the state treasurer who shall deposit the money in the
general fund.
(7) If a sponsoring or cosponsoring local government fails to
comply with RCW 39.102.140, no tax may be distributed in the subsequent
fiscal year until such time as the sponsoring or cosponsoring local
government complies and the department calculates the state
contribution amount for such fiscal year.
(8) Each year, the amount of taxes approved by the department for
distribution to a sponsoring or cosponsoring local government in the
next fiscal year shall be equal to the state contribution and shall be
no more than the total local funds as described in RCW
39.102.020(29)(c). The department shall consider information from
reports described in RCW 39.102.140 when determining the amount of
state contributions for each fiscal year. A sponsoring or cosponsoring
local government shall not receive, in any fiscal year, more revenues
from taxes imposed under the authority of this section than the amount
approved annually by the department. The department shall not approve
the receipt of more distributions of sales and use tax under this
section to a sponsoring or cosponsoring local government than is
authorized under subsection (4) of this section.
(9) The amount of tax distributions received from taxes imposed
under the authority of this section by all sponsoring and cosponsoring
local governments is limited annually to not more than ((seven)) ten
million ((five hundred thousand)) dollars.
(10) The definitions in RCW 39.102.020 apply to this section unless
the context clearly requires otherwise.
(11) If a sponsoring local government is a federally recognized
Indian tribe, the distribution of the sales and use tax authorized
under this section shall be authorized through an interlocal agreement
pursuant to chapter 39.34 RCW.
(12) Subject to RCW 39.102.195, the tax imposed under the authority
of this section may be applied either to provide for the payment of
debt service on bonds issued under RCW 39.102.150 by the sponsoring
local government or to pay public improvement costs on a pay-as-you-go
basis, or both.
(13) The tax imposed under the authority of this section shall
cease to be imposed if the sponsoring local government or cosponsoring
local government fails to issue bonds under the authority of RCW
39.102.150 by June 30th of the fifth fiscal year in which the local tax
authorized under this section is imposed.
(14) This section expires June 30, 2044.
Sec. 802 RCW 39.102.020 and 2008 c 209 s 1 are each amended to
read as follows:
The definitions in this section apply throughout this chapter
unless the context clearly requires otherwise.
(1) "Annual state contribution limit" means ((seven)) ten million
((five hundred thousand)) dollars statewide per fiscal year.
(2) "Assessed value" means the valuation of taxable real property
as placed on the last completed assessment roll.
(3) "Base year" means the first calendar year following the
calendar year in which a sponsoring local government, and any
cosponsoring local government, receives approval by the board for a
project award, provided that the approval is granted before October
15th. If approval by the board is received on or after October 15th
but on or before December 31st, the "base year" is the second calendar
year following the calendar year in which a sponsoring local
government, and any cosponsoring local government, receives approval by
the board for a project award.
(4) "Board" means the community economic revitalization board under
chapter 43.160 RCW.
(5) "Demonstration project" means one of the following projects:
(a) Bellingham waterfront redevelopment project;
(b) Spokane river district project at Liberty Lake; and
(c) Vancouver riverwest project.
(6) "Department" means the department of revenue.
(7) "Fiscal year" means the twelve-month period beginning July 1st
and ending the following June 30th.
(8) "Local excise taxes" means local revenues derived from the
imposition of sales and use taxes authorized in RCW 82.14.030 at the
tax rate that was in effect at the time the revenue development area
was approved by the board, except that if a local government reduces
the rate of such tax after the revenue development area was approved by
the board, "local excise taxes" means the local revenues derived from
the imposition of the sales and use taxes authorized in RCW 82.14.030
at the lower tax rate.
(9) "Local excise tax allocation revenue" means the amount of local
excise taxes received by the local government during the measurement
year from taxable activity within the revenue development area over and
above the amount of local excise taxes received by the local government
during the base year from taxable activity within the revenue
development area, except that:
(a) If a sponsoring local government adopts a revenue development
area and reasonably determines that no activity subject to tax under
chapters 82.08 and 82.12 RCW occurred within the boundaries of the
revenue development area in the twelve months immediately preceding the
approval of the revenue development area by the board, "local excise
tax allocation revenue" means the entire amount of local excise taxes
received by the sponsoring local government during a calendar year
period beginning with the calendar year immediately following the
approval of the revenue development area by the board and continuing
with each measurement year thereafter;
(b) For revenue development areas approved by the board in calendar
years 2006 and 2007 that do not meet the requirements in (a) of this
subsection and if legislation is enacted in this state during the 2007
legislative session that adopts the sourcing provisions of the
streamlined sales and use tax agreement, "local excise tax allocation
revenue" means the amount of local excise taxes received by the
sponsoring local government during the measurement year from taxable
activity within the revenue development area over and above an amount
of local excise taxes received by the sponsoring local government
during the 2007 or 2008 base year, as the case may be, adjusted by the
department for any estimated impacts from retail sales and use tax
sourcing changes effective in 2008. The amount of base year adjustment
determined by the department is final; and
(c) If the sponsoring local government of a revenue development
area related to a demonstration project reasonably determines that no
local excise tax distributions were received between August 1, 2008,
and December 31, 2008, from within the boundaries of the revenue
development area, "local excise tax allocation revenue" means the
entire amount of local excise taxes received by the sponsoring local
government during a calendar year period beginning with 2009 and
continuing with each measurement year thereafter.
(10) "Local government" means any city, town, county, port
district, and any federally recognized Indian tribe.
(11) "Local infrastructure financing" means the use of revenues
received from local excise tax allocation revenues, local property tax
allocation revenues, other revenues from local public sources, and
revenues received from the local option sales and use tax authorized in
RCW 82.14.475, dedicated to pay either the principal and interest on
bonds authorized under RCW 39.102.150 or to pay public improvement
costs on a pay-as-you-go basis subject to RCW 39.102.195, or both.
(12) "Local property tax allocation revenue" means those tax
revenues derived from the receipt of regular property taxes levied on
the property tax allocation revenue value and used for local
infrastructure financing.
(13)(a) "Revenues from local public sources" means:
(i) Amounts of local excise tax allocation revenues and local
property tax allocation revenues, dedicated by sponsoring local
governments, participating local governments, and participating taxing
districts, for local infrastructure financing; and
(ii) Any other local revenues, except as provided in (b) of this
subsection, including revenues derived from federal and private
sources.
(b) Revenues from local public sources do not include any local
funds derived from state grants, state loans, or any other state moneys
including any local sales and use taxes credited against the state
sales and use taxes imposed under chapter 82.08 or 82.12 RCW.
(14) "Low-income housing" means residential housing for low-income
persons or families who lack the means which is necessary to enable
them, without financial assistance, to live in decent, safe, and
sanitary dwellings, without overcrowding. For the purposes of this
subsection, "low income" means income that does not exceed eighty
percent of the median family income for the standard metropolitan
statistical area in which the revenue development area is located.
(15) "Measurement year" means a calendar year, beginning with the
calendar year following the base year and each calendar year
thereafter, that is used annually to measure state and local excise tax
allocation revenues.
(16) "Ordinance" means any appropriate method of taking legislative
action by a local government.
(17) "Participating local government" means a local government
having a revenue development area within its geographic boundaries that
has entered into a written agreement with a sponsoring local government
as provided in RCW 39.102.080 to allow the use of all or some of its
local excise tax allocation revenues or other revenues from local
public sources dedicated for local infrastructure financing.
(18) "Participating taxing district" means a local government
having a revenue development area within its geographic boundaries that
has entered into a written agreement with a sponsoring local government
as provided in RCW 39.102.080 to allow the use of some or all of its
local property tax allocation revenues or other revenues from local
public sources dedicated for local infrastructure financing.
(19)(a)(i) "Property tax allocation revenue value" means
seventy-five percent of any increase in the assessed value of real
property in a revenue development area resulting from:
(A) The placement of new construction, improvements to property, or
both, on the assessment roll, where the new construction and
improvements are initiated after the revenue development area is
approved by the board;
(B) The cost of new housing construction, conversion, and
rehabilitation improvements, when such cost is treated as new
construction for purposes of chapter 84.55 RCW as provided in RCW
84.14.020, and the new housing construction, conversion, and
rehabilitation improvements are initiated after the revenue development
area is approved by the board;
(C) The cost of rehabilitation of historic property, when such cost
is treated as new construction for purposes of chapter 84.55 RCW as
provided in RCW 84.26.070, and the rehabilitation is initiated after
the revenue development area is approved by the board.
(ii) Increases in the assessed value of real property in a revenue
development area resulting from (a)(i)(A) through (C) of this
subsection are included in the property tax allocation revenue value in
the initial year. These same amounts are also included in the property
tax allocation revenue value in subsequent years unless the property
becomes exempt from property taxation.
(b) "Property tax allocation revenue value" includes seventy-five
percent of any increase in the assessed value of new construction
consisting of an entire building in the years following the initial
year, unless the building becomes exempt from property taxation.
(c) Except as provided in (b) of this subsection, "property tax
allocation revenue value" does not include any increase in the assessed
value of real property after the initial year.
(d) There is no property tax allocation revenue value if the
assessed value of real property in a revenue development area has not
increased as a result of any of the reasons specified in (a)(i)(A)
through (C) of this subsection.
(e) For purposes of this subsection, "initial year" means:
(i) For new construction and improvements to property added to the
assessment roll, the year during which the new construction and
improvements are initially placed on the assessment roll;
(ii) For the cost of new housing construction, conversion, and
rehabilitation improvements, when such cost is treated as new
construction for purposes of chapter 84.55 RCW, the year when such cost
is treated as new construction for purposes of levying taxes for
collection in the following year; and
(iii) For the cost of rehabilitation of historic property, when
such cost is treated as new construction for purposes of chapter 84.55
RCW, the year when such cost is treated as new construction for
purposes of levying taxes for collection in the following year.
(20) "Taxing district" means a government entity that levies or has
levied for it regular property taxes upon real property located within
a proposed or approved revenue development area.
(21) "Public improvements" means:
(a) Infrastructure improvements within the revenue development area
that include:
(i) Street, bridge, and road construction and maintenance,
including highway interchange construction;
(ii) Water and sewer system construction and improvements,
including wastewater reuse facilities;
(iii) Sidewalks, traffic controls, and streetlights;
(iv) Parking, terminal, and dock facilities;
(v) Park and ride facilities of a transit authority;
(vi) Park facilities and recreational areas, including trails; and
(vii) Storm water and drainage management systems;
(b) Expenditures for facilities and improvements that support
affordable housing as defined in RCW 43.63A.510.
(22) "Public improvement costs" means the cost of: (a) Design,
planning, acquisition including land acquisition, site preparation
including land clearing, construction, reconstruction, rehabilitation,
improvement, and installation of public improvements; (b) demolishing,
relocating, maintaining, and operating property pending construction of
public improvements; (c) the local government's portion of relocating
utilities as a result of public improvements; (d) financing public
improvements, including interest during construction, legal and other
professional services, taxes, insurance, principal and interest costs
on general indebtedness issued to finance public improvements, and any
necessary reserves for general indebtedness; (e) assessments incurred
in revaluing real property for the purpose of determining the property
tax allocation revenue base value that are in excess of costs incurred
by the assessor in accordance with the revaluation plan under chapter
84.41 RCW, and the costs of apportioning the taxes and complying with
this chapter and other applicable law; (f) administrative expenses and
feasibility studies reasonably necessary and related to these costs;
and (g) any of the above-described costs that may have been incurred
before adoption of the ordinance authorizing the public improvements
and the use of local infrastructure financing to fund the costs of the
public improvements.
(23) "Regular property taxes" means regular property taxes as
defined in RCW 84.04.140, except: (a) Regular property taxes levied by
public utility districts specifically for the purpose of making
required payments of principal and interest on general indebtedness;
(b) regular property taxes levied by the state for the support of the
common schools under RCW 84.52.065; and (c) regular property taxes
authorized by RCW 84.55.050 that are limited to a specific purpose.
"Regular property taxes" do not include excess property tax levies that
are exempt from the aggregate limits for junior and senior taxing
districts as provided in RCW 84.52.043.
(24) "Property tax allocation revenue base value" means the
assessed value of real property located within a revenue development
area for taxes levied in the year in which the revenue development area
is adopted for collection in the following year, plus one hundred
percent of any increase in the assessed value of real property located
within a revenue development area that is placed on the assessment
rolls after the revenue development area is adopted, less the property
tax allocation revenue value.
(25) "Relocating a business" means the closing of a business and
the reopening of that business, or the opening of a new business that
engages in the same activities as the previous business, in a different
location within a one-year period, when an individual or entity has an
ownership interest in the business at the time of closure and at the
time of opening or reopening. "Relocating a business" does not include
the closing and reopening of a business in a new location where the
business has been acquired and is under entirely new ownership at the
new location, or the closing and reopening of a business in a new
location as a result of the exercise of the power of eminent domain.
(26) "Revenue development area" means the geographic area adopted
by a sponsoring local government and approved by the board, from which
local excise and property tax allocation revenues are derived for local
infrastructure financing.
(27) "Small business" has the same meaning as provided in RCW
19.85.020.
(28) "Sponsoring local government" means a city, town, or county,
and for the purpose of this chapter a federally recognized Indian tribe
or any combination thereof, that adopts a revenue development area and
applies to the board to use local infrastructure financing.
(29) "State contribution" means the lesser of:
(a) One million dollars;
(b) The state excise tax allocation revenue and state property tax
allocation revenue received by the state during the preceding calendar
year;
(c) The total amount of local excise tax allocation revenues, local
property tax allocation revenues, and other revenues from local public
sources, that are dedicated by a sponsoring local government, any
participating local governments, and participating taxing districts, in
the preceding calendar year to the payment of principal and interest on
bonds issued under RCW 39.102.150 or to pay public improvement costs on
a pay-as-you-go basis subject to RCW 39.102.195, or both; or
(d) The amount of project award granted by the board in the notice
of approval to use local infrastructure financing under RCW 39.102.040.
(30) "State excise taxes" means revenues derived from state retail
sales and use taxes under chapters 82.08 and 82.12 RCW, less the amount
of tax distributions from all local retail sales and use taxes, other
than the local sales and use taxes authorized by RCW 82.14.475, imposed
on the same taxable events that are credited against the state retail
sales and use taxes under chapters 82.08 and 82.12 RCW.
(31) "State excise tax allocation revenue" means the amount of
state excise taxes received by the state during the measurement year
from taxable activity within the revenue development area over and
above the amount of state excise taxes received by the state during the
base year from taxable activity within the revenue development area,
except that:
(a) If a sponsoring local government adopts a revenue development
area and reasonably determines that no activity subject to tax under
chapters 82.08 and 82.12 RCW occurred within the boundaries of the
revenue development area in the twelve months immediately preceding the
approval of the revenue development area by the board, "state excise
tax allocation revenue" means the entire amount of state excise taxes
received by the state during a calendar year period beginning with the
calendar year immediately following the approval of the revenue
development area by the board and continuing with each measurement year
thereafter;
(b) For revenue development areas approved by the board in calendar
years 2006 and 2007 that do not meet the requirements in (a) of this
subsection and if legislation is enacted in this state during the 2007
legislative session that adopts the sourcing provisions of the
streamlined sales and use tax agreement, "state excise tax allocation
revenue" means the amount of state excise taxes received by the state
during the measurement year from taxable activity within the revenue
development area over and above an amount of state excise taxes
received by the state during the 2007 or 2008 base year, as the case
may be, adjusted by the department for any estimated impacts from
retail sales and use tax sourcing changes effective in 2008. The
amount of base year adjustment determined by the department is final;
and
(c) If the sponsoring local government of a revenue development
area related to a demonstration project reasonably determines that no
local excise tax distributions were received between August 1, 2008,
and December 31, 2008, from within the boundaries of the revenue
development area, "state excise tax allocation revenue" means the
entire amount of state excise taxes received by the state during a
calendar year period beginning with 2009 and continuing with each
measurement year thereafter.
(32) "State property tax allocation revenue" means those tax
revenues derived from the imposition of property taxes levied by the
state for the support of common schools under RCW 84.52.065 on the
property tax allocation revenue value.
(33) "Real property" has the same meaning as in RCW 84.04.090 and
also includes any privately owned improvements located on publicly
owned land that are subject to property taxation.
Sec. 803 RCW 39.102.040 and 2007 c 229 s 2 are each amended to
read as follows:
(1) Prior to applying to the board to use local infrastructure
financing, a sponsoring local government shall:
(a) Designate a revenue development area within the limitations in
RCW 39.102.060;
(b) Certify that the conditions in RCW 39.102.070 are met;
(c) Complete the process in RCW 39.102.080;
(d) Provide public notice as required in RCW 39.102.100; and
(e) Pass an ordinance adopting the revenue development area as
required in RCW 39.102.090.
(2) Any local government that has created an increment area under
chapter 39.89 RCW and has not issued bonds to finance any public
improvement may apply to the board and have its increment area
considered for approval as a revenue development area under this
chapter without adopting a new revenue development area under RCW
39.102.090 and 39.102.100 if it amends its ordinance to comply with RCW
39.102.090(1) and otherwise meets the conditions and limitations under
this chapter.
(3) As a condition to imposing a sales and use tax under RCW
82.14.475, a sponsoring local government, including any cosponsoring
local government seeking authority to impose a sales and use tax under
RCW 82.14.475, must apply to the board and be approved for a project
award amount. The application shall be in a form and manner prescribed
by the board and include but not be limited to information establishing
that the applicant is an eligible candidate to impose the local sales
and use tax under RCW 82.14.475, the anticipated effective date for
imposing the tax, the estimated number of years that the tax will be
imposed, and the estimated amount of tax revenue to be received in each
fiscal year that the tax will be imposed. The board shall make
available forms to be used for this purpose. As part of the
application, each applicant must provide to the board a copy of the
ordinance or ordinances creating the revenue development area as
required in RCW 39.102.090. A notice of approval to use local
infrastructure financing shall contain a project award that represents
the maximum amount of state contribution that the applicant, including
any cosponsoring local governments, can earn each year that local
infrastructure financing is used. The total of all project awards
shall not exceed the annual state contribution limit. The
determination of a project award shall be made based on information
contained in the application and the remaining amount of annual state
contribution limit to be awarded. Determination of a project award by
the board is final.
(4)(a) Sponsoring local governments, and any cosponsoring local
governments, applying in calendar year 2007 for a competitive project
award, must submit completed applications to the board no later than
July 1, 2007. By September 15, 2007, in consultation with the
department of revenue and the department of community, trade, and
economic development, the board shall approve competitive project
awards from competitive applications submitted by the 2007 deadline.
No more than two million five hundred thousand dollars in competitive
project awards shall be approved in 2007. For projects not approved by
the board in 2007, sponsoring and cosponsoring local governments may
apply again to the board in 2008 for approval of a project.
(b) Sponsoring local governments, and any cosponsoring local
governments, applying in calendar year 2008 for a competitive project
award, must submit completed applications to the board no later than
July 1, 2008. By September 18, 2008, in consultation with the
department of revenue and the department of community, trade, and
economic development, the board shall approve competitive project
awards from competitive applications submitted by the 2008 deadline.
For projects not approved by the board in 2008, sponsoring and
cosponsoring local governments may apply again to the board in 2009 for
approval of a project.
(c) Sponsoring local governments, and any cosponsoring local
governments, applying in calendar year 2009 for a competitive project
award, must submit completed applications to the board no later than
July 1, 2009. By September 30, 2009, in consultation with the
department of revenue and the department of community, trade, and
economic development, the board shall approve competitive project
awards from competitive applications submitted by the 2009 deadline.
(d) Except as provided in RCW 39.102.050(2), a total of no more
than ((five)) seven million five hundred thousand dollars in
competitive project awards shall be approved for local infrastructure
financing.
(((d))) (e) The project selection criteria and weighting developed
prior to July 22, 2007, for the application evaluation and approval
process shall apply to applications received prior to November 1, 2007.
In evaluating applications for a competitive project award after
November 1, 2007, the board shall, in consultation with the Washington
state economic development commission, develop the relative weight to
be assigned to the following criteria:
(i) The project's potential to enhance the sponsoring local
government's regional and/or international competitiveness;
(ii) The project's ability to encourage mixed use and transit-oriented development and the redevelopment of a geographic area;
(iii) Achieving an overall distribution of projects statewide that
reflect geographic diversity;
(iv) The estimated wages and benefits for the project is greater
than the average labor market area;
(v) The estimated state and local net employment change over the
life of the project;
(vi) The current economic health and vitality of the proposed
revenue development area and the contiguous community and the estimated
impact of the proposed project on the proposed revenue development area
and contiguous community;
(vii) The estimated state and local net property tax change over
the life of the project;
(viii) The estimated state and local sales and use tax increase
over the life of the project;
(ix) An analysis that shows that, over the life of the project,
neither the local excise tax allocation revenues nor the local property
tax allocation revenues will constitute more than eighty percent of the
total local funds as described in RCW 39.102.020(29)(c); and
(x) If a project is located within an urban growth area, evidence
that the project utilizes existing urban infrastructure and that the
transportation needs of the project will be adequately met through the
use of local infrastructure financing or other sources.
(((e)(i) Except as provided in this subsection (4)(e), the board
may not approve the use of local infrastructure financing within more
than one revenue development area per county.))
(ii) In a county in which the board has approved the use of local
infrastructure financing, the use of such financing in additional
revenue development areas may be approved, subject to the following
conditions:
(A) The sponsoring local government is located in more than one
county; and
(B) The sponsoring local government designates a revenue
development area that comprises portions of a county within which the
use of local infrastructure financing has not yet been approved.
(iii) In a county where the local infrastructure financing tool is
authorized under RCW 39.102.050, the board may approve additional use
of the local infrastructure financing tool.
(f) At least one project awarded in 2009 must be for a downtown
redevelopment project in a city: (i) With less than one hundred
thousand population; (ii) fully planning under RCW 36.70A.040 of the
growth management act; and (iii) receiving funds from the streamlined
sales and use tax mitigation account created in RCW 82.14.495.
(g) No project may be awarded in 2009 for a project located in a
city with greater than three hundred thousand population.
(5) Once the board has approved the sponsoring local government,
and any cosponsoring local governments, to use local infrastructure
financing, notification must be sent by the board to the sponsoring
local government, and any cosponsoring local governments, authorizing
the sponsoring local government, and any cosponsoring local
governments, to impose the local sales and use tax authorized under RCW
82.14.475, subject to the conditions in RCW 82.14.475.
Sec. 804 RCW 43.160.030 and 2008 c 327 s 3 are each amended to
read as follows:
(1) The community economic revitalization board is hereby created
to exercise the powers granted under this chapter.
(2) The board shall consist of one member from each of the two
major caucuses of the house of representatives to be appointed by the
speaker of the house and one member from each of the two major caucuses
of the senate to be appointed by the president of the senate. The
board shall also consist of the following members appointed by the
governor: A recognized private or public sector economist; one port
district official; one county official; one city official; one urban
planner; one representative of a federally recognized Indian tribe; one
representative of the public; one person representing organized labor;
one representative of small businesses each from: (a) The area west of
Puget Sound, (b) the area east of Puget Sound and west of the Cascade
range, (c) the area east of the Cascade range and west of the Columbia
river, and (d) the area east of the Columbia river; one executive from
large businesses each from the area west of the Cascades and the area
east of the Cascades. The appointive members shall initially be
appointed to terms as follows: Three members for one-year terms, three
members for two-year terms, and three members for three-year terms
which shall include the chair. Thereafter each succeeding term shall
be for three years. The chair of the board shall be selected by the
governor. The members of the board shall elect one of their members to
serve as vice-chair. The director of community, trade, and economic
development, the director of revenue, the commissioner of employment
security, and the secretary of transportation shall serve as nonvoting
advisory members of the board.
(3) Management services, including fiscal and contract services,
shall be provided by the department to assist the board in implementing
this chapter.
(4) Members of the board shall be reimbursed for travel expenses as
provided in RCW 43.03.050 and 43.03.060.
(5) If a vacancy occurs by death, resignation, or otherwise of
appointive members of the board, the governor shall fill the same for
the unexpired term. Members of the board may be removed for
malfeasance or misfeasance in office, upon specific written charges by
the governor, under chapter 34.05 RCW.
(6) A member appointed by the governor may not be absent from more
than fifty percent of the regularly scheduled meetings in any one
calendar year. Any member who exceeds this absence limitation is
deemed to have withdrawn from the office and may be replaced by the
governor.
(7) A majority of members currently appointed constitutes a quorum.
Sec. 805 RCW 39.102.904 and 2006 c 181 s 707 are each amended to
read as follows:
This ((act)) chapter expires June 30, ((2039)) 2044.
NEW SECTION. Sec. 806 The following acts or parts are each
repealed:
(1) 2008 c 209 s 2 (uncodified); and
(2) 2007 c 229 s 17 (uncodified).
NEW SECTION. Sec. 901
NEW SECTION. Sec. 902
NEW SECTION. Sec. 903
NEW SECTION. Sec. 904
NEW SECTION. Sec. 905 Sections 101 through 401 and 701 through
804 of this act constitute a new chapter in Title
NEW SECTION. Sec. 906 Sections 601 and 602 of this act are each
added to chapter
NEW SECTION. Sec. 907 Section 803 of 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 immediately."
Correct the title.
EFFECT: Requires that local revitalization financing applications
not approved for a project award due to lack of available state
contribution be retained on file by the DOR in the order received.
Requires that if the state contribution limit is increased, the DOR
provide an opportunity for sponsoring local governments to withdraw or
update these retained applications before considering new applications.
An updated application must be for substantially the same project as
contained in the original application.
Increases the state contribution for Local Infrastructure Financing
Tool (LIFT) competitive projects by $2.5 million per year for a total
of $10 million. Authorizes a LIFT competitive application process for
calendar year 2009. Requires approval of at least one award in 2009
for a downtown redevelopment project in a city that meets certain
population, planning, and funding criteria. Prohibits any award in
2009 for a project in a city exceeding 300,000 population. Removes the
general restriction on approval of LIFT use in more than one revenue
development area per county. Adds an urban planner and representative
of organized labor to the Community Economic Revitalization Board.