BILL REQ. #:  H-4098.1 

READ FIRST TIME 02/07/12.   

     AN ACT Relating to the existing authority to impose a sales and use tax for public facilities districts by providing flexibility in the submittal of the sales and use tax to voters by distressed public facilities districts; amending RCW 82.14.048; and declaring an emergency.

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

Sec. 1   RCW 82.14.048 and 2009 c 533 s 3 are each amended to read as follows:
     (1)(a) The governing board of a public facilities district under chapter 36.100 or 35.57 RCW may submit an authorizing proposition to the voters of the district, 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.
     (b) The legislative authority of any city entering into an interlocal agreement under chapter 39.34 RCW to form a public facilities district under chapter 35.57 RCW that qualifies as a distressed public facilities district may submit an authorizing proposition to the voters of the city and, if the proposition is approved by a majority of the persons voting, impose a sales and use tax in accordance with the requirements of this section. To impose the tax authorized under this subsection (1)(b), the legislative body of the city must submit the authorizing proposition to the voters by July 1, 2013. The tax authorized under this subsection (1)(b) expires on December 31st of the year in which all outstanding indebtedness of the distressed public facilities district has been paid or legally defeased.
     (2) The ((tax)) taxes authorized in this section ((shall be)) are in addition to any 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 public facilities district. The rate of tax shall not exceed two-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. A public facilities district formed under RCW 35.57.010(1)(e) may not impose the tax authorized under this subsection at a rate that exceeds two-tenths of one percent minus the rate of the highest tax authorized by this subsection that is imposed by any other public facilities district within its boundaries. If a public facilities district formed under RCW 35.57.010(1)(e) has imposed a tax under this subsection and issued or incurred obligations pledging that tax, so long as those obligations are outstanding no other public facilities district within its boundaries may thereafter impose a tax under this subsection at a rate that would reduce the rate of the tax that was pledged to the repayment of those obligations. A public facilities district that imposes a tax under this subsection is responsible for the payment of any costs incurred for the purpose of administering the provisions of this subsection, RCW 35.57.010(1)(e), and 35.57.020(1)(b), including any administrative costs associated with the imposition of a tax under this subsection incurred by either the department of revenue or local government, or both.
     (3)(a) Moneys received from ((any)) a tax imposed under ((the authority)) subsection (1)(a) of this section ((shall)) must be used for the purpose of providing funds for the costs associated with the financing, design, acquisition, construction, equipping, operating, maintaining, remodeling, repairing, and reequipping of its public facilities.
     (b) A tax imposed under subsection (1)(b) of this section must be used only for the purpose of providing financial support to a distressed public facilities district.
     (4) The definitions in this subsection apply to this section.
     (a) "Distressed public facilities district" means a public facilities district under chapter 35.57 RCW that has defaulted due to an inability to pay indebtedness on or before June 30, 2012.
     (b) "Outstanding indebtedness" means indebtedness issued on or before January 1, 2014.

NEW SECTION.  Sec. 2   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.