READ FIRST TIME 02/09/10.   

     AN ACT Relating to modifying local excise taxes in counties that have pledged lodging tax revenues for the payment of bonds prior to June 26, 1975; amending RCW 67.28.180, 82.14.0485, 82.14.049, 82.14.0494, 82.14.360, 36.38.010, and 36.100.220; adding a new section to chapter 67.28 RCW; and providing an effective date.

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

Sec. 1   RCW 67.28.180 and 2007 c 189 s 1 are each amended to read as follows:
     (1) Subject to the conditions set forth in subsections (2) and (3) of this section, the legislative body of any county or any city, is authorized to levy and collect a special excise tax of not to exceed two percent on the sale of or charge made for the furnishing of lodging that is subject to tax under chapter 82.08 RCW.
     (2) Any levy authorized by this section ((shall be)) is subject to the following:
     (a) Any county ordinance or resolution adopted pursuant to this section ((shall)) must contain, in addition to all other provisions required to conform to this chapter, a provision allowing a credit against the county tax for the full amount of any city tax imposed pursuant to this section upon the same taxable event.
     (b)(i) In the event that any county has levied the tax authorized by this section and has, prior to June 26, 1975, either pledged the tax revenues for payment of principal and interest on city revenue or general obligation bonds authorized and issued pursuant to RCW 67.28.150 through 67.28.160 or has authorized and issued revenue or general obligation bonds pursuant to the provisions of RCW 67.28.150 through 67.28.160, such county ((shall be)) is exempt from the provisions of (a) of this subsection, to the extent that the tax revenues are pledged for payment of principal and interest on bonds issued at any time pursuant to the provisions of RCW 67.28.150 through 67.28.160((: PROVIDED, That)). However, so much of ((such)) the pledged tax revenues, together with any investment earnings thereon, not immediately necessary for actual payment of principal and interest on such bonds may be used: (((i))) (A) In any county with a population of one million five hundred thousand or more, for repayment either of limited tax levy general obligation bonds or of any county fund or account from which a loan was made, the proceeds from the bonds or loan being used to pay for constructing, installing, improving, and equipping stadium capital improvement projects, and to pay for any engineering, planning, financial, legal and professional services incident to the development of such stadium capital improvement projects, regardless of the date the debt for such capital improvement projects was or may be incurred; (((ii))) (B) in any county with a population of one million five hundred thousand or more, for repayment or refinancing of bonded indebtedness incurred prior to January 1, 1997, for any purpose authorized by this section or relating to stadium repairs or rehabilitation, including but not limited to the cost of settling legal claims, reimbursing operating funds, interest payments on short-term loans, and any other purpose for which such debt has been incurred if the county has created a public stadium authority to develop a stadium and exhibition center under RCW 36.102.030; or (((iii))) (C) in other counties, for county-owned facilities for agricultural promotion until January 1, 2009, and thereafter for any purpose authorized in this chapter.
     (ii) A county is exempt under this subsection with respect to city revenue or general obligation bonds issued after April 1, 1991, only if such bonds mature before January 1, 2013. A county with a population of one million five hundred thousand or more is exempt under (a) of this subsection until January 1, 2021. If any county located east of the crest of the Cascade mountains has levied the tax authorized by this section and has, prior to June 26, 1975, pledged the tax revenue for payment of principal and interest on city revenue or general obligation bonds, the county is exempt under this subsection with respect to revenue or general obligation bonds issued after January 1, 2007, only if the bonds mature before January 1, 2021. Such a county may only use funds under this subsection (2)(b) for constructing or improving facilities authorized under this chapter, including county-owned facilities for agricultural promotion, and must perform an annual financial audit of organizations receiving funding on the use of the funds.
     (iii) As used in this subsection (2)(b), "capital improvement projects" may include, but not be limited to a stadium restaurant facility, restroom facilities, artificial turf system, seating facilities, parking facilities and scoreboard and information system adjacent to or within a county owned stadium, together with equipment, utilities, accessories and appurtenances necessary thereto. The stadium restaurant authorized by this subsection (2)(b) ((shall)) must be operated by a private concessionaire under a contract with the county.
     (c)(i) No city within a county exempt under ((subsection (2))) (b) of this ((section)) subsection may levy the tax authorized by this section so long as said county is so exempt.
     (ii) ((If bonds have been issued under RCW 43.99N.020 and any necessary property transfers have been made under RCW 36.102.100,)) No city within a county with a population of one million five hundred thousand or more may levy the tax authorized by this section ((before January 1, 2021)).
     (iii) However, in the event that any city in a county described in (c)(i) or (ii) of this subsection (2)(((c))) has levied the tax authorized by this section and has, prior to June 26, 1975, authorized and issued revenue or general obligation bonds pursuant to the provisions of RCW 67.28.150 through 67.28.160, such city may levy the tax so long as the tax revenues are pledged for payment of principal and interest on bonds issued at any time pursuant to the provisions of RCW 67.28.150 through 67.28.160.
     (3) Any levy authorized by this section by a county that has ((levied the tax authorized by this section and has, prior to June 26, 1975, either pledged the tax revenues for payment of principal and interest on city revenue or general obligation bonds authorized and issued pursuant to RCW 67.28.150 through 67.28.160 or has authorized and issued revenue or general obligation bonds pursuant to the provisions of RCW 67.28.150 through 67.28.160 shall be)) a population of one million five hundred thousand or more is subject to the following:
     (a) Taxes collected under this section in any calendar year before 2013 in excess of five million three hundred thousand dollars ((shall)) may only be used as follows:
     (i) ((Seventy-five percent from January 1, 1992, through December 31, 2000, and)) Seventy percent from January 1, 2001, through December 31, 2012, for art museums, heritage and preservation programs, cultural museums, heritage museums, the arts, and the performing arts. Moneys spent under this subsection (3)(a)(i) ((shall)) must be used for the purposes of this subsection (3)(a)(i) in all parts of the county.
     (ii) ((Twenty-five percent from January 1, 1992, through December 31, 2000, and)) Thirty percent from January 1, 2001, through December 31, 2012, for the following purposes and in a manner reflecting the following order of priority: Stadium purposes as authorized under subsection (2)(b) of this section; acquisition of open space lands; youth sports activities; and tourism promotion. If all or part of the debt on the stadium is refinanced, all revenues under this subsection (3)(a)(ii) ((shall)) must be used to retire the debt.
     (b) From January 1, 2013, through December 31, 2015, ((in a county with a population of one million or more,)) all revenues under this section shall be used to retire the debt on the stadium, or deposited in the stadium and exhibition center account under RCW 43.99N.060 after the debt on the stadium is retired. On and after the date the debt on the stadium is retired, and through December 31, 2015, one-half of the revenues under this section in a county of one million five hundred thousand or more must be deposited in the arts and cultural account under (d)(i) of this subsection, and the remainder of the revenues must be deposited in the affordable workforce housing account under (d)(ii) of this subsection.
     (c) From January 1, 2016, through December 31, 2020, ((in a county with a population of one million or more,)) all revenues under this section shall be deposited in the stadium and exhibition center account under RCW 43.99N.060.
     (d) ((At least seventy percent of moneys spent under (a)(i) of this subsection for the period January 1, 1992, through December 31, 2000, shall be used only for the purchase, design, construction, and remodeling of performing arts, visual arts, heritage, and cultural facilities, and for the purchase of fixed assets that will benefit art, heritage, and cultural organizations. For purposes of this subsection, fixed assets are tangible objects such as machinery and other equipment intended to be held or used for ten years or more. Moneys received under this subsection (3)(d) may be used for payment of principal and interest on bonds issued for capital projects. Qualifying organizations receiving moneys under this subsection (3)(d) must be financially stable and have at least the following:
     (i) A legally constituted and working board of directors;
     (ii) A record of artistic, heritage, or cultural accomplishments;
     (iii) Been in existence and operating for at least two years;
     (iv) Demonstrated ability to maintain net current liabilities at less than thirty percent of general operating expenses;
     (v) Demonstrated ability to sustain operational capacity subsequent to completion of projects or purchase of machinery and equipment; and
     (vi) Evidence that there has been independent financial review of the organization.)) On and after January 1, 2021, revenues under this section in a county of one million five hundred thousand or more must be deposited as follows:
     (i) At least thirty-seven and one-half percent of the revenues shall be deposited in an arts and cultural account. The account may only be used for the purposes of (a)(i) of this subsection.
     (ii) At least thirty-seven and one-half percent of the revenues shall be deposited in an affordable workforce housing account for the purposes of distributions to nonprofit organizations or public housing authorities for affordable workforce housing near or at transit stations. For the purposes of this section, "affordable workforce housing" means housing for a single person, family, or unrelated persons living together whose income is at or below eighty percent of the median income, adjusted for household size, for the county where the housing is located. These funds may only be used to fund the portions of affordable workforce housing projects that are to be occupied by households earning less than eighty percent of area median income. These funds may be used as a subsidy under the Washington works housing program created in RCW 43.180.160(2)(a) (section 2, chapter ... (ESHB 2753), Laws of 2010).
     (iii) The balance of the revenues must be deposited in a special purposes account under subsection (5) of this section.
     (e) At least forty percent of the revenues distributed pursuant to (a)(i) of this subsection for the period January 1, 2001, through ((December 31, 2012, shall be deposited in an account and shall be used to establish an endowment. Principal in the account shall remain permanent and irreducible. The earnings from investments of balances in the account may only be used for the purposes of (a)(i) of this subsection)) the effective date of this act shall be deposited in an arts and cultural account under (d)(i) of this subsection.
     (f) School districts and schools ((shall)) may not receive revenues distributed pursuant to (a)(i) of this subsection.
     (g) Moneys distributed to art museums, cultural museums, heritage museums, the arts, and the performing arts, and moneys distributed for tourism promotion ((shall be)) are in addition to and may not be used to replace or supplant any other funding by the legislative body of the county.
     (h) As used in this section, "tourism promotion" includes activities intended to attract visitors for overnight stays, arts, heritage, and cultural events, and recreational, professional, and amateur sports events. Moneys allocated to tourism promotion in a class AA county ((shall)) must be allocated to nonprofit organizations formed for the express purpose of tourism promotion in the county. Such organizations ((shall)) must use moneys from the taxes to promote events in all parts of the class AA county.
     (i) No taxes collected under this section may be used for the operation or maintenance of a public stadium that is financed directly or indirectly by bonds to which the tax is pledged. Expenditures for operation or maintenance include all expenditures other than expenditures that directly result in new fixed assets or that directly increase the capacity, life span, or operating economy of existing fixed assets.
     (j) No ad valorem property taxes may be used for debt service on bonds issued for a public stadium that is financed by bonds to which the tax is pledged, unless the taxes collected under this section are or are projected to be insufficient to meet debt service requirements on such bonds.
     (k) If a substantial part of the operation and management of a public stadium that is financed directly or indirectly by bonds to which the tax is pledged is performed by a nonpublic entity or if a public stadium is sold that is financed directly or indirectly by bonds to which the tax is pledged, any bonds to which the tax is pledged ((shall)) must be retired. This subsection (3)(k) does not apply in respect to a public stadium under chapter 36.102 RCW transferred to, owned by, or constructed by a public facilities district under chapter 36.100 RCW or a stadium and exhibition center.
     (l) The county ((shall)) may not lease a public stadium that is financed directly or indirectly by bonds to which the tax is pledged to, or authorize the use of the public stadium by, a professional major league sports franchise unless the sports franchise gives the right of first refusal to purchase the sports franchise, upon its sale, to local government. This subsection (3)(l) does not apply to contracts in existence on April 1, 1986.
     (m) Notwithstanding the distributions under (b) and (c) of this subsection, from January 1, 2013, through December 31, 2015, taxes derived from the exemption provided in subsection (2)(b)(ii) of this section for counties with a population of one million five hundred thousand or more must be used to retire the debt on the stadium as provided in (b) of this subsection and deposited in the special purposes account created in subsection (5) of this section thereafter.
     (4) If a court of competent jurisdiction declares any provision of ((this)) subsection (3) of this section invalid, then that invalid provision ((shall be)) is null and void and the remainder of this section is not affected.
     (5)(a) Except as provided in subsection (2) of this section, money deposited in a special purposes account under this section may be used only for one or more of the following purposes within the county:
     (i) Funding nonprofit organizations providing public health services;
     (ii) Funding nonprofit organizations providing human service programs;
     (iii) Funding tourism promotion as defined in RCW 67.28.080;
     (iv) Funding youth or amateur sports activities or facilities;
     (v) Funding regional centers;
     (vi) Funding performing arts centers; or
     (vii) Funding community preservation and development authorities created in chapter 43.167 RCW.
     (b) Beginning in calendar year 2012, an amount equal to one dollar for each admission to any commercial event at a stadium developed by a public facilities district under chapter 36.100 RCW or a stadium and exhibition center developed by a public stadium authority under chapter 36.102 RCW, shall be deposited into the community preservation and development authority account created in RCW 43.167.040.     
     (c) Between January 1, 2012, and January 1, 2021, eight million four hundred thousand dollars must be transferred annually to the affordable workforce housing account described in subsection (3)(d)(ii) of this section.

Sec. 2   RCW 82.14.049 and 2008 c 264 s 4 are each amended to read as follows:
     The legislative authority of any county may impose a sales and use tax, in addition to the tax authorized by RCW 82.14.030, upon retail car rentals within the county that are taxable by the state under chapters 82.08 and 82.12 RCW. The rate of tax ((shall be)) is one percent of the selling price in the case of a sales tax or rental value of the vehicle in the case of a use tax. Proceeds of the tax ((shall)) may not be used to subsidize any professional sports team and ((shall)) must be used solely for the following purposes:
     (1) Acquiring, constructing, maintaining, or operating public sports stadium facilities;
     (2) Engineering, planning, financial, legal, or professional services incidental to public sports stadium facilities;
     (3) Youth or amateur sport activities or facilities; ((or))
     (4) Debt or refinancing debt issued for the purposes of subsection (1) of this section; or
     (5) For deposit into a special purposes account under RCW 67.28.180(5).
     In a county with a population less than one million five hundred thousand, at least seventy-five percent of the tax imposed under this section shall be used for the purposes of subsections (1), (2), and (4) of this section. In a county of one million five hundred thousand or more, at least seventy-five percent of the tax imposed under this section shall be used to retire the debt on the stadium under RCW 67.28.180(2)(b)(ii), until that debt is fully retired, and at least seventy-five percent must be deposited under subsection (5) of this section after the debt is fully retired.

Sec. 3   RCW 82.14.360 and 2008 c 86 s 104 are each amended to read as follows:
     (1) The legislative authority of a county with a population of one million five hundred thousand or more may impose a special stadium sales and use tax upon the retail sale or use within the county by restaurants, taverns, and bars of food and beverages that are taxable by the state under chapters 82.08 and 82.12 RCW. The rate of the tax ((shall)) may not exceed five-tenths of one percent of the selling price in the case of a sales tax, or value of the article used in the case of a use tax. The tax authorized under this subsection is in addition to any other taxes authorized by law and ((shall)) may not be credited against any other tax imposed upon the same taxable event. As used in this section, "restaurant" does not include grocery stores, mini-markets, or convenience stores. A county may not impose the tax authorized in this subsection after December 31, 2015.
     (2) The legislative authority of a county with a population of one million five hundred thousand or more may impose a special stadium sales and use tax upon retail car rentals within the county that are taxable by the state under chapters 82.08 and 82.12 RCW. The rate of the tax ((shall)) may not exceed two percent of the selling price in the case of a sales tax, or rental value of the vehicle in the case of a use tax. The tax imposed under this subsection is in addition to any other taxes authorized by law and ((shall)) may not be credited against any other tax imposed upon the same taxable event.
     (3)(a) Except as provided in (b) of this subsection, the revenue from the taxes imposed under the authority of this section ((shall)) must be used for the purpose of principal and interest payments on bonds, issued by the county, to acquire, construct, own, remodel, maintain, equip, reequip, repair, and operate a baseball stadium. Revenues from the taxes authorized in this section may be used for design and other preconstruction costs of the baseball stadium until bonds are issued for the baseball stadium. The county ((shall)) must issue bonds, in an amount determined to be necessary by the public facilities district, for the district to acquire, construct, own, and equip the baseball stadium. The county shall have no obligation to issue bonds in an amount greater than that which would be supported by the tax revenues under this section, RCW 82.14.0485, and 36.38.010(4) (a) and (b). If the revenue from the taxes imposed under the authority of this section exceeds the amount needed for such principal and interest payments in any year, the excess shall be used solely:
     (((a))) (i) For early retirement of the bonds issued for the baseball stadium; and
     (((b))) (ii) If the revenue from the taxes imposed under this section exceeds the amount needed for the purposes in (a)(i) of this subsection in any year, the excess ((shall)) must be placed in a contingency fund which may only be used to pay unanticipated capital costs on the baseball stadium, excluding any cost overruns on initial construction.
     (b) After the bonds issued for the construction of the baseball stadium are retired, the revenue from the taxes imposed under the authority of this section must be deposited in the special purposes account under RCW 67.28.180(5).
     (4) The proceeds of any bonds issued for the baseball stadium ((shall)) must be provided to the district.
     (5) As used in this section, "baseball stadium" means "baseball stadium" as defined in RCW 82.14.0485.
     (6) The ((taxes)) tax imposed under subsection (2) of this section ((shall)) expires ((when the bonds issued for the construction of the baseball stadium are retired, but not later than twenty years after the taxes are first collected)) on the first day that the tax under RCW 82.14.390 is not imposed anywhere in the state.

Sec. 4   RCW 36.38.010 and 1999 c 165 s 20 are each amended to read as follows:
     (1) Any county may by ordinance enacted by its county legislative authority, levy and fix a tax of not more than one cent on twenty cents or fraction thereof to be paid for county purposes by persons who pay an admission charge to any place, including a tax on persons who are admitted free of charge or at reduced rates to any place for which other persons pay a charge or a regular higher charge for the same or similar privileges or accommodations; and require that one who receives any admission charge to any place ((shall)) must collect and remit the tax to the county treasurer of the county((: PROVIDED,)). However, no county ((shall)) may impose such tax on persons paying an admission to any activity of any elementary or secondary school or any public facility of a public facility district under chapter 35.57 or 36.100 RCW for which a tax is imposed under RCW 35.57.100 or 36.100.210.
     (2) As used in this chapter, the term "admission charge" includes a charge made for season tickets or subscriptions, a cover charge, or a charge made for use of seats and tables, reserved or otherwise, and other similar accommodations; a charge made for food and refreshments in any place where any free entertainment, recreation, or amusement is provided; a charge made for rental or use of equipment or facilities for purpose of recreation or amusement, and where the rental of the equipment or facilities is necessary to the enjoyment of a privilege for which a general admission is charged, the combined charges ((shall)) must be considered as the admission charge. ((It shall)) Admission charge also includes any automobile parking charge where the amount of ((such)) the charge is determined according to the number of passengers in any automobile.
     (3) Subject to subsections (4) and (5) of this section, the tax ((herein)) authorized ((shall)) in this section is not ((be)) exclusive and ((shall)) does not prevent any city or town within the taxing county, when authorized by law, from imposing within its corporate limits a tax of the same or similar kind((: PROVIDED, That)). However, whenever the same or similar kind of tax is imposed by any such city or town, no such tax ((shall)) may be levied within the corporate limits of such city or town by the county.
     (4) Notwithstanding subsection (3) of this section, the legislative authority of a county with a population of one million or more may exclusively levy taxes on events in baseball stadiums constructed on or after January 1, 1995, that are owned by a public facilities district under chapter 36.100 RCW and that have seating capacities over forty thousand at the rates of:
     (a) Not more than one cent on twenty cents or fraction thereof, to be used for the purpose of paying the principal and interest payments on bonds issued by a county to construct a baseball stadium as defined in RCW 82.14.0485. If the revenue from the tax exceeds the amount needed for that purpose, the excess ((shall)) must be placed in a contingency fund which ((may only)) must be used ((to pay unanticipated capital costs on the baseball stadium, excluding any cost overruns on initial construction)) exclusively by the public facilities district to fund repair, reequipping, and capital improvement of the baseball stadium; and
     (b) Not more than one cent on twenty cents or fraction thereof, to be used for the purpose of paying the principal and interest payments on bonds issued by a county to construct a baseball stadium as defined in RCW 82.14.0485. The tax imposed under this subsection (4)(b) ((shall)) expires when the bonds issued for the construction of the baseball stadium are retired, but not later than twenty years after the tax is first collected.
     (5) Notwithstanding subsection (3) of this section, the legislative authority of a county that has created a public stadium authority to develop a stadium and exhibition center under RCW 36.102.050 may levy and fix a tax on charges for admission to events in a stadium and exhibition center, as defined in RCW 36.102.010, constructed in the county on or after January 1, 1998, that is owned by a public stadium authority under chapter 36.102 RCW. The tax ((shall be)) is exclusive and ((shall)) precludes the city or town within which the stadium and exhibition center is located from imposing a tax of the same or similar kind on charges for admission to events in the stadium and exhibition center, and ((shall)) precludes the imposition of a general county admissions tax on charges for admission to events in the stadium and exhibition center. For the purposes of this subsection, "charges for admission to events" means only the actual admission charge, exclusive of taxes and service charges and the value of any other benefit conferred by the admission. The tax authorized under this subsection ((shall)) must be at the rate of not more than one cent on ten cents or fraction thereof. Revenues collected under this subsection ((shall)) must be deposited in the stadium and exhibition center account under RCW 43.99N.060 until the bonds issued under RCW 43.99N.020 for the construction of the stadium and exhibition center are retired. After the bonds issued for the construction of the stadium and exhibition center are retired, the tax authorized under this section ((shall)) must be used exclusively to fund repair, reequipping, and capital improvement of the stadium and exhibition center. The tax under this subsection may be levied upon the first use of any part of the stadium and exhibition center but ((shall)) may not be collected at any facility already in operation as of July 17, 1997.

Sec. 5   RCW 36.100.220 and 1999 c 165 s 18 are each amended to read as follows:
     A public facility district may levy and fix a tax on any vehicle parking charges imposed at any parking facility that is owned or leased by the public facility district as part of a regional center, as defined in RCW 35.57.020, or a baseball stadium, as defined in RCW 82.14.0485. No county ((or)), city, or town within which the regional center or baseball stadium is located may impose a tax of the same or similar kind on any vehicle parking charges at the facility. For the purposes of this section, "vehicle parking charges" means only the actual parking charges exclusive of taxes and service charges and the value of any other benefit conferred. The tax authorized under this section ((shall)) must be at the rate of not more than ten percent. The tax authorized by this section with respect to a parking facility associated with a baseball stadium must be used exclusively to fund repair, reequipping, and capital improvement of the baseball stadium, and is not subject to the requirements of RCW 36.100.010(4).

NEW SECTION.  Sec. 6   This act takes effect July 1, 2010.