BILL REQ. #: S-4333.1
State of Washington | 61st Legislature | 2010 Regular Session |
READ FIRST TIME 01/28/10.
AN ACT Relating to infrastructure financing for local governments; amending RCW 39.104.020, 39.104.040, 39.104.060, 39.104.100, 39.104.110, 82.14.505, 82.14.510, 82.32.765, and 82.14.475; reenacting and amending RCW 39.102.020; and providing an expiration date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 39.104.020 and 2009 c 270 s 102 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 two million five
hundred thousand dollars statewide per fiscal year ((and)), plus the
additional amounts ((designated)) approved for demonstration projects
in RCW 82.14.505.
(2) "Assessed value" means the valuation of taxable real property
as placed on the last completed assessment roll.
(3) "Bond" means a bond, a note or other evidence of indebtedness,
including but not limited to a lease-purchase agreement or an executory
conditional sales contract.
(4) "Department" means the department of revenue.
(((4))) (5) "Fiscal year" means the twelve-month period beginning
July 1st and ending the following June 30th.
(((5))) (6) "Local government" means any city, town, county, and
port district.
(((6))) (7) "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))) (8) "Local revitalization financing" means the use of
revenues from local public sources, dedicated to pay the principal and
interest on bonds authorized under RCW 39.104.110 and public
improvement costs within the revitalization area on a pay-as-you-go
basis, and revenues received from the local option sales and use tax
authorized in RCW 82.14.510, dedicated to pay the principal and
interest on bonds authorized under RCW 39.104.110.
(((8))) (9) "Local sales and use tax increment" means the estimated
annual increase in local sales and use taxes as determined 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))) (10) "Local sales and use taxes" means local revenues
derived from the imposition of sales and use taxes authorized in RCW
82.14.030.
(((10))) (11) "Ordinance" means any appropriate method of taking
legislative action by a local government.
(((11))) (12) "Participating local government" means a local
government having a revitalization area within its geographic
boundaries that has taken action as provided in RCW 39.104.070(1) 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))) (13) "Participating taxing district" means a ((local
government having)) taxing district that:
(a) Has a revitalization area wholly or partially within its
geographic boundaries ((that));
(b) Levies or has levied for it regular property taxes as defined
in this section; and
(c) Has not taken action as provided in RCW 39.104.060(2).
(((13))) (14) "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))) (15)(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))) (16) "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))) (17) "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))) (18) "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))) (19)(a) "Regular property taxes" means regular property
taxes as defined in RCW 84.04.140, except: (((a))) (i) Regular
property taxes levied by public utility districts specifically for the
purpose of making required payments of principal and interest on
general indebtedness; (((b))) (ii) regular property taxes levied by the
state for the support of common schools under RCW 84.52.065; and
(((c))) (iii) regular property taxes authorized by RCW 84.55.050 that
are limited to a specific purpose.
(b) "Regular property taxes" do not include:
(i) Excess property tax levies that are exempt from the aggregate
limits for junior and senior taxing districts as provided in RCW
84.52.043; and
(ii) Property taxes that are specifically excluded through an
interlocal agreement between the sponsoring local government and a
participating taxing district as set forth in RCW 39.104.060(3).
(((19))) (20)(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 RCW
39.104.110 or public improvement costs within the revitalization area
on a pay-as-you-go basis; and
(ii) Any other local revenues, except as provided in (b) of this
subsection, including revenues derived from federal and private sources
and amounts received by taxing districts as set forth by an interlocal
agreement as described in RCW 39.104.060(4), which are dedicated for
the payment of bonds under RCW 39.104.110 or public improvement costs
within the revitalization area on a pay-as-you-go basis.
(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))) (21) "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))) (22) "Sponsoring local government" means a city, town,
county, or any combination thereof, that adopts a revitalization area.
(((22))) (23) "State contribution" means the lesser of:
(a) Five hundred thousand dollars;
(b) The project award amount approved by the department as provided
in RCW 39.104.100 or 82.14.505; 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 RCW 39.104.110 and public
improvement costs within the revitalization area on a pay-as-you-go
basis. Revenues from local public sources dedicated in the preceding
calendar year that are in excess of the project award may be carried
forward and used in later years for the purpose of this subsection
(((22))) (23)(c).
(((23))) (24) "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 RCW 39.104.100 and updated
periodically as required in RCW 82.32.765.
(((24))) (25) "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 RCW 39.104.100 and updated periodically as required
in RCW 82.32.765.
(((25))) (26) "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 RCW 82.14.510 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))) (27) "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.
Sec. 2 RCW 39.104.040 and 2009 c 270 s 104 are each amended to
read as follows:
(1) Before adopting an ordinance creating the revitalization area,
a sponsoring local government must:
(a) Provide notice to all taxing districts that levy or have levied
for it regular property taxes 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)) one hundred twenty 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 RCW 39.104.050 and 39.104.060 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 RCW 39.104.050;
(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 participating taxing districts
((that have not adopted an ordinance as described in RCW 39.104.060 to
be removed as a participating taxing district)) and the regular
property taxes that must be used to calculate property tax allocation
revenues;
(f) Finds that all of the requirements in RCW 39.104.030 are met;
(g) Provides the anticipated rate of sales and use tax under RCW
82.14.510 that the local government will impose if awarded a state
contribution under RCW 39.104.100;
(h) Provides the anticipated date when the criteria for the sales
and use tax in RCW 82.14.510 will be met and the anticipated date when
the sales and use tax in RCW 82.14.510 will be imposed.
(3) The sponsoring local government must deliver a certified copy
of the adopted ordinance to the county treasurer, county assessor, the
governing body of each participating taxing authority and participating
taxing district within which the revitalization area is located, and
the department.
Sec. 3 RCW 39.104.060 and 2009 c 270 s 106 are each amended to
read as follows:
(1) Participating taxing districts must allow the use of all of
their local property tax allocation revenues for local revitalization
financing.
(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 RCW
39.104.040(1)(a).
(3) If a taxing district wants to become a participating taxing
district by allowing one or more but not all of its regular property
tax levies to be used for the calculation of local property tax
allocation revenues, it may do so through an interlocal agreement
specifying the regular property taxes that will be used for calculating
its local property tax allocation revenues. This subsection does not
authorize a taxing district to allow the use of only part of one or
more of its regular property tax levies by the sponsoring local
government.
(4) If a taxing district wants to participate on a partial basis by
providing a specified amount of money to a sponsoring local government
to be used for local revitalization financing for a specified amount of
time, it may do so through an interlocal agreement. However, the
taxing district must adopt an ordinance as described in subsection (2)
of this section to remove itself as a participating taxing district for
purposes of calculating property tax allocation revenues and instead
partially participate through an interlocal agreement outlining the
specifics of its participation.
Sec. 4 RCW 39.104.100 and 2009 c 270 s 401 are each amended to
read as follows:
(1) Prior to applying to the department to receive a state
contribution, a sponsoring local government shall adopt a
revitalization area within the limitations in RCW 39.104.050 and in
accordance with RCW 39.104.040.
(2)(a) As a condition to imposing a sales and use tax under RCW
82.14.510, 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))) (i) Information establishing that over the period of time
that the local sales and use tax will be imposed under RCW 82.14.510,
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))) (ii) 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))) (iii) The amount of state contribution it is requesting;
(((d))) (iv) The anticipated effective date for imposing the tax
under RCW 82.14.510;
(((e))) (v) The estimated number of years that the tax will be
imposed;
(((f))) (vi) The anticipated rate of tax to be imposed under RCW
82.14.510, subject to the rate-setting conditions in RCW 82.14.510(3),
should the sponsoring local government be approved for a project award;
and
(((g))) (vii) The anticipated date when bonds under RCW 39.104.110
will be issued.
(b) The department ((shall)) must 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 RCW
39.104.040, 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 RCW 82.14.510 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 by making
additional funds available for applicants that apply on a first-come
basis, 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)) must 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 RCW 82.14.510 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 RCW 82.14.510.
(5) The department must begin accepting applications on September
1, 2009.
Sec. 5 RCW 39.104.110 and 2009 c 270 s 701 are each amended to
read as follows:
(1) A sponsoring local government creating a revitalization area
and authorizing the use of local revitalization financing may incur
general indebtedness, ((and issue)) including issuing general
obligation bonds, to finance the public improvements and retire the
indebtedness in whole or in part from local revitalization financing it
receives, subject to the following requirements:
(a)(i) 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))) (ii) The sponsoring local government includes this
statement of ((the)) intent in all notices required by RCW 39.104.040;
or
(b) The sponsoring local government adopts a resolution, after
opportunity for public comment, that indicates an intent to incur this
indebtedness and the maximum amount of this indebtedness that is
contemplated.
(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:
(a) Annually pay into a special 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 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));
(b) Annually pay into the special fund established ((in)) pursuant
to this section a fixed proportion or a fixed amount of any revenues
derived from taxes imposed under RCW 82.14.510, such payment to
continue until all bonds payable from the fund are paid in full.
Revenues derived from taxes imposed under RCW 82.14.510 are subject to
the use restriction in RCW 82.14.515; and
(c) Issue revenue bonds payable from any or all revenues deposited
in the special fund established pursuant to this section.
(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.
Sec. 6 RCW 82.14.505 and 2009 c 270 s 402 are each amended to
read as follows:
(1) Demonstration projects are designated to determine the
feasibility of local revitalization financing. For the purpose of this
section, "annual state contribution limit" means ((two million two
hundred fifty)) four million two hundred thousand dollars statewide per
fiscal year.
(a) Notwithstanding RCW 39.104.100, the department ((shall)) must
approve each demonstration project for 2009 as follows:
(((a))) (i) The Whitman county Pullman/Moscow corridor improvement
project award ((shall)) may not exceed two hundred thousand dollars;
(((b))) (ii) The University Place improvement project award
((shall)) may not exceed five hundred thousand dollars;
(((c))) (iii) The Tacoma international financial services
area/Tacoma dome project award ((shall)) may not exceed five hundred
thousand dollars;
(((d))) (iv) The Bremerton downtown improvement project award
((shall)) may not exceed three hundred thirty thousand dollars;
(((e))) (v) The Auburn downtown redevelopment project award
((shall)) may not exceed two hundred fifty thousand dollars;
(((f))) (vi) The Vancouver Columbia waterfront/downtown project
award ((shall)) may not exceed two hundred twenty thousand dollars; and
(((g))) (vii) The Spokane University District project award
((shall)) may not exceed two hundred fifty thousand dollars.
(b) Notwithstanding RCW 39.104.100, the department must approve
each demonstration project for 2010 as follows:
(i) The Richland revitalization area for industry, science and
education project award may not exceed three hundred thirty thousand
dollars;
(ii) The Lacey gateway town center project award may not exceed
five hundred thousand dollars;
(iii) The Mill Creek east gateway planned urban village
revitalization area project award may not exceed three hundred thirty
thousand dollars;
(iv) The Puyallup river road revitalization area project award may
not exceed two hundred fifty thousand dollars;
(v) The Renton south Lake Washington project award may not exceed
five hundred thousand dollars; and
(vi) The New Castle downtown project may not exceed forty thousand
dollars.
(2)(a) Local government sponsors of demonstration projects under
subsection (1)(a) of this section must submit to the department no
later than September 1, 2009, documentation that substantiates that the
project has met the conditions, limitations, and requirements provided
in chapter 270, Laws of 2009.
(b) Sponsoring local government of demonstration projects under
subsection (1)(b) of this section must update and resubmit to the
department no later than September 1, 2010, the application already on
file with the department to substantiate that the project has met the
conditions, limitations, and requirements provided in chapter 270, Laws
of 2009 and this act and the project is substantially the same as the
project in the original application submitted to the department in
2009.
(3) Within sixty days of such submittal, the department ((shall))
must approve demonstration projects that have met these conditions,
limitations, and requirements.
(4) Local government sponsors of demonstration projects may elect
to decline the project awards as designated in this section, and may
elect instead to submit applications according to the process described
in RCW 39.104.100.
(5) If a demonstration project listed in subsection (1)(b) of this
section does not update and resubmit its application to the department
by the deadline specified in subsection (2)(b) of this section or if
the demonstration project withdraws its application, the associated
dollar amounts may not be approved for another project and may not be
considered part of the annual state contribution limit under RCW
39.104.020(1).
Sec. 7 RCW 82.14.510 and 2009 c 270 s 601 are each amended to
read as follows:
(1) Any city or county that has been approved for a project award
under RCW 39.104.100 may impose a sales and use tax under the authority
of this section in accordance with the terms of this chapter. Except
as provided in this section, the tax is in addition to 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 taxing jurisdiction of the
city or county.
(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 39.104, 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 RCW 39.104.100 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 RCW 39.104.100, it may not be increased.
(5)(a) Except as provided in (c) of this subsection, 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 RCW
39.104.100;
(iii) The state sales and use tax increment and state property tax
increment for the preceding calendar year equal or exceed the amount of
the project award approved by the department under RCW 39.104.100; and
(iv) Bonds have been issued according to RCW 39.104.110.
(b) The tax imposed under this section expires the earlier of the
date that the bonds issued under the authority of RCW 39.104.110 are
retired or twenty-five years after the tax is first imposed.
(c) For a demonstration project described in RCW 82.14.505(1)(a),
no tax may be imposed under the authority of this section before:
(i) July 1, 2010; and
(ii) Bonds have been issued according to RCW 39.104.110.
(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 RCW 82.32.765, 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 RCW 39.104.100; or
(iii) The total amount of revenues from local public sources
dedicated or, in the case of carry forward revenues, deemed dedicated
in the preceding calendar year, as reported in the required annual
report under RCW 82.32.765.
(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 RCW 39.104.020 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.
Sec. 8 RCW 82.32.765 and 2009 c 270 s 501 are each amended to
read as follows:
(1) A sponsoring local government receiving a project award under
RCW 39.104.100 must provide a report to the department by March 1st of
each year beginning March 1st after the project award has been
approved. The report must contain the following information:
(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 and other revenue from
local public sources dedicated by any participating local government
used for the payment of bonds under RCW 39.104.110 and public
improvement costs within the revitalization area on a pay-as-you-go
basis 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 RCW 39.104.110 and public improvement costs within the
revitalization area on a pay-as-you-go basis;
(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 RCW 39.104.110 or public improvement
costs within the revitalization area on a pay-as-you-go basis in the
preceding calendar year;
(f) The anticipated date when bonds under RCW 39.104.110 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
RCW 39.104.110 and the date on which the bonds are anticipated to be
retired;
(k) That the sponsoring local government is in compliance with RCW
39.104.030;
(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 RCW 39.104.100; ((and))
(m) The amount of revenues from local public sources that (i) were
expended in prior years for the payment of bonds under RCW 39.104.110
and public improvement costs within the revitalization area on a pay-as-you-go basis in prior calendar years that were in excess of the
project award amount for that year and are carried forward for
dedication in future years, (ii) are deemed dedicated to payment of
bonds or public improvement costs in the calendar year for which the
report is prepared, and (iii) remain available for dedication in future
years; and
(n) Any other information required by the department to enable the
department to fulfill its duties under this chapter and RCW 82.14.510.
(2) The department ((shall)) must make a report available to the
public and the legislature by June 1st of each year. The report
((shall)) must include a summary of the information provided to the
department by sponsoring local governments under subsection (1) of this
section.
Sec. 9 RCW 39.102.020 and 2009 c 267 s 1 are each reenacted and
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 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) "Board" means the community economic revitalization board under
chapter 43.160 RCW.
(4) "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.
(5) "Department" means the department of revenue.
(6) "Fiscal year" means the twelve-month period beginning July 1st
and ending the following June 30th.
(7) "Local excise tax allocation revenue" means an amount of local
excise taxes equal to some or all of the sponsoring local government's
local excise tax increment, amounts of local excise taxes equal to some
or all of any participating local government's excise tax increment as
agreed upon in the written agreement under RCW 39.102.080(1), or both,
and dedicated to local infrastructure financing.
(8) "Local excise tax increment" means an amount equal to the
estimated annual increase in local excise taxes in each calendar year
following the approval of the revenue development area by the board
from taxable activity within the revenue development area, as set forth
in the application provided to the board under RCW 39.102.040, and
updated in accordance with RCW 39.102.140(1)(f).
(9) "Local excise taxes" means local revenues derived from the
imposition of sales and use taxes authorized in RCW 82.14.030.
(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) "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.
(14) "Ordinance" means any appropriate method of taking legislative
action by a local government.
(15) "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.
(16) "Participating taxing district" means a ((local government
having)) taxing district that:
(a) Has a revenue development area wholly or partially within its
geographic boundaries ((that));
(b) Has a regular property tax; and
(c) 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.
(17) "Property tax allocation revenue base value" means the
assessed value of real property located within a revenue development
area less the property tax allocation revenue value.
(18)(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.
(19) "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.
(20) "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.
(21) "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.
(22) "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.
(23) "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.
(24) "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.
(25)(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.
(26) "Small business" has the same meaning as provided in RCW
19.85.020.
(27) "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.
(28) "State contribution" means the lesser of:
(a) One million dollars;
(b) 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))
(c) The amount of project award granted by the board in the notice
of approval to use local infrastructure financing under RCW 39.102.040;
or
(d) The state excise tax allocation revenue and state property tax
allocation revenue for the proceeding calendar year. This subsection
(28)(d) only applies until the state excise tax allocation revenues and
state property tax allocation revenues for the preceding calendar year
equal or exceed the amount of project award approved by the board under
RCW 39.102.040.
(29) "State excise tax allocation revenue" means an amount equal to
the annual increase in state excise taxes estimated to be received by
the state in each calendar year following the approval of the revenue
development area by the board, from taxable activity within the revenue
development area as set forth in the application provided to the board
under RCW 39.102.040 and periodically updated and reported as required
in RCW 39.102.140(1)(f).
(30) "State excise taxes" means revenues derived from 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 RCW 82.14.475 for the applicable revenue
development area, 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 property tax allocation revenue" means an amount equal
to the estimated 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, as set forth in
the application submitted to the board under RCW 39.102.040 and updated
annually in the report required under RCW 39.102.140(1)(f).
(32) "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.
Sec. 10 RCW 82.14.475 and 2009 c 267 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.
(2) The tax authorized under subsection (1) of this section shall
be 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
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) The aggregate rate of tax imposed by the sponsoring local
government, and any cosponsoring local government, must 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 this
section that are authorized to be imposed on the same taxable events
but have not yet been imposed by a sponsoring local government or
cosponsoring local government that has been approved by the department
or the community economic revitalization board to receive a state
contribution under chapter((s [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 sponsoring local government, and
any cosponsoring local government, in consultation with the department,
reasonably necessary to receive the state contribution over ten months.
(4) Sponsoring local governments that have been approved before
October 1, 2008, by the community economic revitalization board for a
state contribution must select the rate of tax under this section no
later than September 1, 2009.
(5) The department, upon request, must assist a sponsoring local
government and cosponsoring local government in establishing their tax
rate in accordance with subsection (3) of this section. Once the rate
of tax is selected, it may not be increased.
(6)(a) No tax may be imposed under the authority of this section:
(i) Before July 1, 2008; and
(ii) Before July 1st of the second calendar year following the year
approval by the board under RCW 39.102.040 was made((; and)).
(iii) Before the state excise tax allocation revenues and state
property tax allocation revenues for the preceding calendar year equal
or exceed the amount of project award approved by the board under RCW
39.102.040
(b) The tax imposed under this section shall expire when all
indebtedness issued under the authority of RCW 39.102.150 is retired
and all other contractual obligations relating to the financing of
public improvements under chapter 39.102 RCW are satisfied, but not
more than twenty-five years after the tax is first imposed.
(7) 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(28)(b).
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.
(8) If a county and city cosponsor a revenue development area, the
combined amount of distributions received by both the city and county
may not exceed the state contribution.
(9) 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 (11) 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 (7)(c) of
this section to the state treasurer who shall deposit the money in the
general fund.
(10) 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.
(11) 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(28)(b). 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 (7) of this section.
(12) 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 million
five hundred thousand dollars.
(13) The definitions in RCW 39.102.020 apply to this section unless
the context clearly requires otherwise.
(14) 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.
(15) 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.
(16) 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 indebtedness under the authority of RCW
39.102.150, and fails to commence construction on public improvements,
by June 30th of the fifth fiscal year in which the local tax authorized
under this section is imposed.
(17) 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 tax imposed in RCW
82.08.020(1) and the tax imposed in RCW 82.12.020 at the rate provided
in RCW 82.08.020(1).
NEW SECTION. Sec. 11 Sections 9 and 10 of this act expire June
30, 2039.