BILL REQ. #:  H-0778.1 

Read first time 01/26/11.   Referred to Committee on Local Government.

     AN ACT Relating to county and city additional real estate excise tax authority; amending RCW 82.46.035; reenacting and amending RCW 82.46.035; providing an effective date; and providing an expiration date.

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

Sec. 1   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, maintenance and operation expenditures, or both, 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)) these purposes.
     (2) The legislative authority of any county or any city that plans under RCW 36.70A.040 (1) or (2) 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) Revenues generated from the tax imposed under subsection (2) of this section shall be used by such counties and cities solely for financing capital projects specified in a capital facilities plan element of a comprehensive plan, and, at the option of the city or county, maintenance and operation expenditures. However, revenues (a) 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) 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 be deposited in a separate account.
     (5) As used in this section: (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 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, ((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 projects; 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 be)) is 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. 2   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, maintenance and operation expenditures, or both, 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)) these purposes.
     (2) The legislative authority of any county or any city that plans under RCW 36.70A.040 (1) or (2) 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) Revenues generated from the tax imposed under subsection (2) of this section shall be used by such counties and cities solely for financing capital projects specified in a capital facilities plan element of a comprehensive plan, and, at the option of the city or county, maintenance and operation expenditures. However, revenues (a) 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) 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 be deposited in a separate account.
     (5) As used in this section, "city" means any city or town and "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 projects.
     (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 be)) is temporarily rescinded until the governor files a subsequent notice rescinding the notice of noncompliance.

NEW SECTION.  Sec. 3   Section 1 of this act expires June 30, 2012.

NEW SECTION.  Sec. 4   Section 2 of this act takes effect June 30, 2012.