BILL REQ. #: S-4728.2
State of Washington | 61st Legislature | 2010 Regular Session |
READ FIRST TIME 02/09/10.
AN ACT Relating to local excise tax authorities for counties and cities; amending RCW 82.14.450, 82.14.340, 9.46.113, 82.46.010, and 82.46.035; amending 2009 c 551 s 12 (uncodified); providing an effective date; and providing expiration dates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 82.14.450 and 2009 c 551 s 1 are each amended to read
as follows:
(1) A county legislative authority may submit an authorizing
proposition to the county voters at a primary or general election and,
if the proposition is approved by a majority of persons voting, impose
a sales and use tax in accordance with the terms of this chapter. The
title of each ballot measure must clearly state the purposes for which
the proposed sales and use tax will be used. ((Funds raised under this
tax shall not supplant existing funds used for these purposes, except
as follows: Up to one hundred percent may be used to supplant existing
funding in calendar year 2010; up to eighty percent may be used to
supplant existing funding in calendar year 2011; up to sixty percent
may be used to supplant existing funding in calendar year 2012; up to
forty percent may be used to supplant existing funding in calendar year
2013; and up to twenty percent may be used to supplant existing funding
in calendar year 2014. For purposes of this subsection, existing funds
means the actual operating expenditures for the calendar year in which
the ballot measure is approved by voters. Actual operating
expenditures excludes lost federal funds, lost or expired state grants
or loans, extraordinary events not likely to reoccur, changes in
contract provisions beyond the control of the county or city receiving
the services, and major nonrecurring capital expenditures.)) The rate
of tax under this section may not exceed three-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.
(2) The tax authorized in this section is in addition to any other
taxes authorized by law and must be collected from those persons who
are taxable by the state under chapters 82.08 and 82.12 RCW upon the
occurrence of any taxable event within the county.
(3) The retail sale or use of motor vehicles, and the lease of
motor vehicles for up to the first thirty-six months of the lease, are
exempt from tax imposed under this section.
(4) One-third of all money received under this section must be used
solely for criminal justice purposes, fire protection purposes, or
both. For the purposes of this subsection, "criminal justice purposes"
has the same meaning as provided in RCW 82.14.340.
(5) Money received under this section must be shared between the
county and the cities as follows: Sixty percent must be retained by
the county and forty percent must be distributed on a per capita basis
to cities in the county.
Sec. 2 RCW 82.14.340 and 1995 c 309 s 1 are each amended to read
as follows:
(1) The legislative authority of any county may fix and impose a
sales and use tax in accordance with the terms of this chapter,
provided that such sales and use tax is subject to repeal by
referendum, using the procedures provided in RCW 82.14.036. The
referendum procedure provided in RCW 82.14.036 is the exclusive method
for subjecting any county sales and use tax ordinance or resolution to
a referendum vote.
(2) The tax authorized in this section ((shall be)) is in addition
to any other taxes authorized by law and ((shall)) must be collected
from those persons who are taxable by the state pursuant to chapters
82.08 and 82.12 RCW upon the occurrence of any taxable event within
such county. The rate of tax ((shall)) equals one-tenth 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).
(3) When distributing moneys collected under this section, the
state treasurer ((shall)) must distribute ten percent of the moneys to
the county in which the tax was collected. The remainder of the moneys
collected under this section ((shall)) must be distributed to the
county and the cities within the county ratably based on population as
last determined by the office of financial management. In making the
distribution based on population, the county ((shall)) must receive
that proportion that the unincorporated population of the county bears
to the total population of the county and each city shall receive that
proportion that the city incorporated population bears to the total
county population.
(4) Moneys received from any tax imposed under this section
((shall)) must be expended exclusively for criminal justice purposes
((and shall not be used to replace or supplant existing funding)).
Criminal justice purposes are defined as activities that substantially
assist the criminal justice system, which may include circumstances
where ancillary benefit to the civil justice system occurs, and which
includes domestic violence services such as those provided by domestic
violence programs, community advocates, and legal advocates, as defined
in RCW 70.123.020. ((Existing funding for purposes of this subsection
is defined as calendar year 1989 actual operating expenditures for
criminal justice purposes. Calendar year 1989 actual operating
expenditures for criminal justice purposes exclude the following:
Expenditures for extraordinary events not likely to reoccur, changes in
contract provisions for criminal justice services, beyond the control
of the local jurisdiction receiving the services, and major
nonrecurring capital expenditures.))
(5) In the expenditure of funds for criminal justice purposes as
provided in this section, cities and counties, or any combination
thereof, are expressly authorized to participate in agreements,
pursuant to chapter 39.34 RCW, to jointly expend funds for criminal
justice purposes of mutual benefit. Such criminal justice purposes of
mutual benefit include, but are not limited to, the construction,
improvement, and expansion of jails, court facilities, and juvenile
justice facilities.
Sec. 3 RCW 9.46.113 and 1975 1st ex.s. c 166 s 11 are each
amended to read as follows:
Any county, city, or town ((which)) that collects a tax on gambling
activities authorized pursuant to RCW 9.46.110 ((shall)) must use the
revenue from such tax primarily for the purpose of ((enforcement of the
provisions of this chapter by the county, city or town law enforcement
agency)) public safety.
Sec. 4 RCW 82.46.010 and 1994 c 272 s 1 are each amended to read
as follows:
(1) The legislative authority of any county or city ((shall)) must
identify in the adopted budget the capital projects funded in whole or
in part from the proceeds of the tax authorized in this section, and
((shall)) must indicate that such tax is intended to be in addition to
other funds that may be reasonably available for such capital projects.
(2)(a) The legislative authority of any county or any city may
impose an excise tax on each sale of real property in the
unincorporated areas of the county for the county tax and in the
corporate limits of the city for the city tax at a rate not exceeding
one-quarter of one percent of the selling price. The revenues from
this tax ((shall)) must be used by any city or county with a population
of five thousand or less and any city or county that does not plan
under RCW 36.70A.040 for any capital purpose identified in a capital
improvements plan and local capital improvements, including those
listed in RCW 35.43.040. Revenues from the tax authorized in this
subsection (2)(a) may also be used for maintenance and operation of
capital projects.
(b)(i) After April 30, 1992, revenues generated from the tax
imposed under this subsection in counties over five thousand population
and cities over five thousand population that are required or choose to
plan under RCW 36.70A.040 ((shall)) must be used solely for financing
and maintenance and operation of capital projects specified in a
capital facilities plan element of a comprehensive plan and housing
relocation assistance under RCW 59.18.440 and 59.18.450.
(ii) However, revenues (((a))) (A) pledged by such counties and
cities to debt retirement prior to April 30, 1992, may continue to be
used for that purpose until the original debt for which the revenues
were pledged is retired, or (((b))) (B) committed prior to April 30,
1992, by such counties or cities to a project may continue to be used
for that purpose until the project is completed.
(3) In lieu of imposing the tax authorized in RCW 82.14.030(2), the
legislative authority of any county or any city may impose an
additional excise tax on each sale of real property in the
unincorporated areas of the county for the county tax and in the
corporate limits of the city for the city tax at a rate not exceeding
one-half of one percent of the selling price.
(4) Taxes imposed under this section ((shall)) must be collected
from persons who are taxable by the state under chapter 82.45 RCW upon
the occurrence of any taxable event within the unincorporated areas of
the county or within the corporate limits of the city, as the case may
be.
(5) Taxes imposed under this section ((shall)) must comply with all
applicable rules, regulations, laws, and court decisions regarding real
estate excise taxes as imposed by the state under chapter 82.45 RCW.
(6) ((As used)) The definitions in this section((,)) apply
throughout this section unless the context clearly requires otherwise.
(a) "City" means any city or town ((and)).
(b) "Capital project" means those public works projects of a local
government for planning, acquisition, construction, reconstruction,
repair, replacement, rehabilitation, ((or)) improvement, or maintenance
and operation of: Streets; roads; highways; sidewalks; street and road
lighting systems; traffic signals; bridges; domestic water systems;
storm and sanitary sewer systems; parks; recreational facilities; law
enforcement facilities; fire protection facilities; trails; libraries;
administrative and/
Sec. 5 RCW 82.46.035 and 2009 c 211 s 1 are each amended to read
as follows:
(1) The legislative authority of any county or city ((shall)) must
identify in the adopted budget the capital projects funded in whole or
in part from the proceeds of the tax authorized in this section, and
((shall)) must indicate that such tax is intended to be in addition to
other funds that may be reasonably available for such capital projects.
(2) The legislative authority of any county or any city that plans
under RCW 36.70A.040(1) may impose an additional excise tax on each
sale of real property in the unincorporated areas of the county for the
county tax and in the corporate limits of the city for the city tax at
a rate not exceeding one-quarter of one percent of the selling price.
Any county choosing to plan under RCW 36.70A.040(2) and any city within
such a county may only adopt an ordinance imposing the excise tax
authorized by this section if the ordinance is first authorized by a
proposition approved by a majority of the voters of the taxing district
voting on the proposition at a general election held within the
district or at a special election within the taxing district called by
the district for the purpose of submitting such proposition to the
voters.
(3)(a) Revenues generated from the tax imposed under subsection (2)
of this section ((shall)) must be used by such counties and cities
solely for financing capital projects specified in a capital facilities
plan element of a comprehensive plan. Revenues generated from the tax
authorized in this section may also be used for maintenance and
operation of capital projects.
(b) However, revenues (((a))) (i) pledged by such counties and
cities to debt retirement prior to March 1, 1992, may continue to be
used for that purpose until the original debt for which the revenues
were pledged is retired, or (((b))) (ii) committed prior to March 1,
1992, by such counties or cities to a project may continue to be used
for that purpose until the project is completed.
(4) Revenues generated by the tax imposed by this section ((shall))
must be deposited in a separate account.
(5) ((As used)) The definitions in this section((:)) apply
throughout this section unless the context clearly requires otherwise.
(a) "City" means any city or town;
(b) "Capital project" means those public works projects of a local
government for planning, acquisition, construction, reconstruction,
repair, replacement, rehabilitation, ((or)) improvement, or maintenance
and operation of: Streets, roads, highways, sidewalks, street and road
lighting systems, traffic signals, bridges, municipally owned heavy
rail short line railroads, domestic water systems, storm and sanitary
sewer systems, parks, recreational facilities, law enforcement
facilities, fire protection facilities, trails, libraries,
administrative and/or judicial facilities, and river and/or waterway
flood control facilities; and ((planning, construction, reconstruction,
repair, rehabilitation, or improvement of parks; and))
(c) "Short line railroads" means class III railroads as defined by
the United States surface transportation board.
(6) When the governor files a notice of noncompliance under RCW
36.70A.340 with the secretary of state and the appropriate county or
city, the county or city's authority to impose the additional excise
tax under this section ((shall)) must be temporarily rescinded until
the governor files a subsequent notice rescinding the notice of
noncompliance.
(7) A city or county may use revenue generated under subsection (2)
of this section for municipally owned heavy short line railroads only
if the revenue was collected prior to December 31, 2008, and may not
use more than twenty-five percent of the total revenue generated under
subsection (2) of this section for municipally owned heavy short line
railroads.
Sec. 6 RCW 82.46.035 and 1992 c 221 s 3 and 1991 sp.s. c 32 s 33
are each reenacted and amended to read as follows:
(1) The legislative authority of any county or city ((shall)) must
identify in the adopted budget the capital projects funded in whole or
in part from the proceeds of the tax authorized in this section, and
((shall)) must indicate that such tax is intended to be in addition to
other funds that may be reasonably available for such capital projects.
(2) The legislative authority of any county or any city that plans
under RCW 36.70A.040(1) may impose an additional excise tax on each
sale of real property in the unincorporated areas of the county for the
county tax and in the corporate limits of the city for the city tax at
a rate not exceeding one-quarter of one percent of the selling price.
Any county choosing to plan under RCW 36.70A.040(2) and any city within
such a county may only adopt an ordinance imposing the excise tax
authorized by this section if the ordinance is first authorized by a
proposition approved by a majority of the voters of the taxing district
voting on the proposition at a general election held within the
district or at a special election within the taxing district called by
the district for the purpose of submitting such proposition to the
voters.
(3)(a) Revenues generated from the tax imposed under subsection (2)
of this section ((shall)) must be used by such counties and cities
solely for financing capital projects specified in a capital facilities
plan element of a comprehensive plan. Revenues generated from the tax
authorized in this section may also be used for maintenance and
operation of capital projects.
(b) However, revenues (((a))) (i) pledged by such counties and
cities to debt retirement prior to March 1, 1992, may continue to be
used for that purpose until the original debt for which the revenues
were pledged is retired, or (((b))) (ii) committed prior to March 1,
1992, by such counties or cities to a project may continue to be used
for that purpose until the project is completed.
(4) Revenues generated by the tax imposed by this section ((shall))
must be deposited in a separate account.
(5) ((As used)) The definitions in this section((,)) apply
throughout this section unless the context clearly requires otherwise.
(a) "City" means any city or town ((and)).
(b) "Capital project" means those public works projects of a local
government for planning, acquisition, construction, reconstruction,
repair, replacement, rehabilitation, ((or)) improvement of: Streets,
roads, highways, sidewalks, street and road lighting systems, traffic
signals, bridges, domestic water systems, storm and sanitary sewer
systems, ((and planning, construction, reconstruction, repair,
rehabilitation, or improvement of parks)) recreational facilities, law
enforcement facilities, fire protection facilities, trails, libraries,
administrative and/or judicial facilities, and river and/or waterway
flood control facilities.
(6) When the governor files a notice of noncompliance under RCW
36.70A.340 with the secretary of state and the appropriate county or
city, the county or city's authority to impose the additional excise
tax under this section ((shall)) must be temporarily rescinded until
the governor files a subsequent notice rescinding the notice of
noncompliance.
Sec. 7 2009 c 551 s 12 (uncodified) is amended to read as
follows:
Section((s 1 and)) 2 of this act expires January 1, ((2015)) 2014.
NEW SECTION. Sec. 8 Section 6 of this act takes effect June 30,
2012.
NEW SECTION. Sec. 9 Section 5 of this act expires June 30, 2012.
NEW SECTION. Sec. 10 Sections 3, 4, and 6 of this act expire
January 1, 2014.