BILL REQ. #:  H-1435.1 

Read first time 02/06/09.   Referred to Committee on Local Government & Housing.

     AN ACT Relating to creating a capitol city district; adding a new section to chapter 43.34 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that for more than one hundred fifty years the capital of the state and its capitol campus, the seat of state government, has been located in one city. That city, and the core of its downtown area, has been host to the millions of state citizens that have visited the state capital, lived in the city during its sixty legislatures, and has housed many of the state's office buildings and workers. The legislature also finds that it is in the state's interest to help insure that the core of its host city is maintained as a vibrant and desirable capital location and that the city can and does provide adequate parking, temporary and permanent housing, transportation, markets, arts, tourism, and dining opportunities for the city's citizens and workers, including state employees, tourists, and visitors to the state capital and its host city.
     (2) The legislature further finds that while the state has made periodic payments to the city for fire service coverage of the capitol campus and the approximately forty percent of the core city that is owned or used by state government, no payment or revenue sharing in lieu of the lost tax base has been regularly provided to compensate the capitol city for its lost revenue. In recognition of this oversight, it is the intent of the legislature to create a capital city district to share revenue generated in the core city and on the capitol campus. These revenues must be used by the city to provide capital investment amenities that will enhance the core city and capitol campus area for the citizens of the city as well as for all visitors to our beautiful capitol campus and its grounds and buildings.

NEW SECTION.  Sec. 2   A new section is added to chapter 43.34 RCW to read as follows:
     (1) A city in which the state capitol is located may designate by ordinance one capitol city district that includes the capitol campus, along with the core downtown retail and service areas and traffic corridors that are most impacted by the location of the capitol campus and state buildings adjacent to the capitol campus.
     (2) A capitol city district may levy a sales and use tax of one percent, that must be a credit against the state's portion of the sales and use tax, levied and collected within the capitol city district upon recognition of the district by a majority vote of the capitol committee created in RCW 43.34.010. Any such levy may not become effective prior to July 1, 2011.
     (3) The revenues generated from the levy authorized in subsection (2) of this section may be utilized by the city only for capital improvements within the designated boundaries of the capitol city district. The capital improvements may include, but are not limited to, the acquisition and enhancement of public spaces and transportation corridors, signage and tourism enhancements, parking structures, district beautification, public walkways, waterfront access, lighting, and safety amenities.
     (4) As of July, 2013, the city must provide the capitol committee, created in RCW 43.34.010, with an annual accounting of: The use of the funds; the amount of funds pledged to match the district funds, by the city or other parties, for projects paid for in part from the levy; and a proposed capitol city district development plan for the ensuing year wherein it is the intent of the city to use the levy moneys.
     (5) For the purposes of this section:
     (a) "District" means a "capitol city district" created in subsection (2) of this section; and
     (b) "City" means the city in which the capitol city district is located.