BILL REQ. #:  S-2002.1 

Read first time 03/11/11.   Referred to Committee on Transportation.

     AN ACT Relating to local transit revenue; amending RCW 36.73.040; adding a new chapter to Title 82 RCW; creating a new section; prescribing penalties; and providing an effective date.

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

NEW SECTION.  Sec. 1   (1) The legislature finds that local, regional and intercity public transportation provides many economical, social, and environmental benefits to the citizens of this state including, but not limited to:
     (a) Creating jobs associated with the design, construction, and operation of transit systems;
     (b) Providing transportation choices for commuters to reach their jobs, homes, and destinations;
     (c) Maintaining a competitive edge for Washington state to companies and individuals considering relocation;
     (d) Catalyzing the development of sustainable communities;
     (e) Decreasing household expenses associated with personal vehicle transportation and ownership;
     (f) Providing transportation choices for vulnerable populations and those unable to own or operate a personal vehicle;
     (g) Decreasing greenhouse gas emissions associated with the transportation sector;
     (h) Decreasing air pollution-causing congestion on our roadways; and
     (i) Decreasing water pollution associated with storm water runoff.
     (2) It is the intent of the legislature to provide robust state and local funding options for the financing of capital improvements and operations of local, regional, and intercity public transportation in order to:
     (a) Generate sufficient revenue to meet transit ridership and projected demand;
     (b) Allow diverse funding sources to withstand economic fluctuations; and
     (c) Provide local choices in revenue sources to meet the values and economic profiles of local jurisdictions.

Sec. 2   RCW 36.73.040 and 2008 c 122 s 17 are each amended to read as follows:
     (1) A transportation benefit district is a quasi-municipal corporation, an independent taxing "authority" within the meaning of Article VII, section 1 of the state Constitution, and a "taxing district" within the meaning of Article VII, section 2 of the state Constitution.
     (2) A transportation benefit district constitutes a body corporate and possesses all the usual powers of a corporation for public purposes as well as all other powers that may now or hereafter be specifically conferred by statute, including, but not limited to, the authority to hire employees, staff, and services, to enter into contracts, to acquire, hold, and dispose of real and personal property, and to sue and be sued. Public works contract limits applicable to the jurisdiction that established the district apply to the district.
     (3) To carry out the purposes of this chapter, and subject to the provisions of RCW 36.73.065, a district is authorized to impose the following taxes, fees, charges, and tolls:
     (a) A sales and use tax in accordance with RCW 82.14.0455;
     (b) A vehicle fee in accordance with RCW 82.80.140;
     (c) A fee or charge in accordance with RCW 36.73.120. However, if a county or city within the district area is levying a fee or charge for a transportation improvement, the fee or charge ((shall)) must be credited against the amount of the fee or charge imposed by the district. Developments consisting of less than twenty residences are exempt from the fee or charge under RCW 36.73.120; and
     (d) Vehicle tolls on state routes, city streets, or county roads, within the boundaries of the district((, unless otherwise prohibited by law. However, consistent with RCW 47.56.820, the vehicle toll must first be authorized by the legislature if the toll is imposed on a state route)). The department of transportation ((shall)) must administer the collection of vehicle tolls authorized on state routes, unless otherwise specified in law or by contract, and the state transportation commission, or its successor, may approve, set, and impose the tolls in amounts sufficient to implement the district's transportation improvement finance plan. The district ((shall)) must administer the collection of vehicle tolls authorized on city streets or county roads, and shall set and impose the tolls in amounts sufficient to implement the district's transportation improvement plan. ((However, consistent with RCW 47.56.850, the vehicle toll, including any change in an existing toll rate, must first be reviewed and approved by the tolling authority designated in RCW 47.56.850 if the toll, or change in toll rate, would have a significant impact, as determined by the tolling authority, on the operation of any state facility.))

NEW SECTION.  Sec. 3   (1) The governing body of any public transportation agency may submit an authorizing proposition to the voters and, if approved, for the sole purpose of providing funds for the operation, maintenance, or capital needs of a public transportation agency or public transportation limited to persons with special needs under RCW 36.57.130 and 36.57A.180, impose a vehicle license fee, which may vary according to the miles traveled by the vehicle, on each vehicle registered in the boundaries of the transportation agency subject to vehicle license fees under RCW 46.17.350(1) (a), (d), (e), (f), (g), (h), (j), (l), (n), (o), (p), or (q) and for each vehicle subject to gross weight license fees under RCW 46.17.355 with an unladen weight of six thousand pounds or less.
     (2) A public transportation agency must contract with the department as provided under subsection (6) of this section for the collection of a vehicle license fee.
     (3) A vehicle license fee imposed under this section may not be assessed until six months after approval.
     (4) A vehicle license fee imposed under this section applies only for vehicle registration renewals and is effective upon the registration renewal date as provided by the department.
     (5) The following vehicles are exempt from the vehicle license fee imposed under this section:
     (a) Farm tractors or farm vehicles as defined in RCW 46.04.180 and 46.04.181;
     (b) Off-road vehicles as defined in RCW 46.04.365;
     (c) Nonhighway vehicles as defined in RCW 46.09.310;
     (d) Vehicles registered under chapter 46.87 RCW and the international registration plan; and
     (e) Snowmobiles as defined in RCW 46.04.546.
     (6) Whenever the department enters into a contract with a public transportation agency for the collection of vehicle license fees authorized under subsection (1) of this section:
     (a) The contract must require that the public transportation agency provide any information specified by the department to identify the vehicle owners who owe the vehicle license fees, and must specify that it is the responsibility of the public transportation agency to ensure that the vehicle license fees are appropriately applied;
     (b) The department is not responsible for the collection of vehicle license fees until a date agreed to by both parties as specified in the contract;
     (c) The department must deduct a percentage amount as provided in the contract, not to exceed three percent of the fees collected, necessary to reimburse the department for the costs incurred for the collection of the vehicle license fees; and
     (d) The department must remit remaining proceeds to the custody of the state treasurer. The state treasurer must distribute the proceeds to the public transportation agency on a monthly basis.

NEW SECTION.  Sec. 4   (1) The governing body of any public transportation agency may submit an authorizing proposition to the voters and, if approved, for the sole purpose of providing funds for the operation, maintenance, or capital needs of a public transportation agency or public transportation limited to persons with special needs under RCW 36.57.130 and 36.57A.180, impose a vehicle excise tax based on fuel efficiency as measured by the estimated, combined (fifty-five percent city and forty-five percent highway) fuel economy rating for vehicles, as reported in the United States environmental protection agency and United States department of energy "fuel economy guide" since the 1978 model year.
     (2) A public transportation agency must contract with the department as provided under subsection (5) of this section for the collection of a vehicle excise tax based on fuel efficiency.
     (3) A vehicle excise tax based on fuel efficiency imposed under this section may not be assessed until six months after approval.
     (4) A vehicle excise tax based on fuel efficiency imposed under this section applies only at the time of vehicle registration renewal and is effective upon the registration renewal date as provided by the department.
     (5) Whenever the department enters into a contract with a public transportation agency for the collection of vehicle excise taxes based on fuel efficiency authorized under subsection (1) of this section:
     (a) The contract must require that the public transportation agency provide any information specified by the department to identify the vehicle owners who owe vehicle excise taxes based on fuel efficiency, and must specify that it is the responsibility of the public transportation agency to ensure that the vehicle excise tax based on fuel efficiency is appropriately applied;
     (b) The department is not responsible for the collection of vehicle excise taxes based on fuel efficiency until a date agreed to by both parties as specified in the contract;
     (c) The department must deduct a percentage amount as provided in the contract, not to exceed three percent of the taxes collected, necessary to reimburse the department for the costs incurred for the collection of the vehicle excise tax based on fuel efficiency; and
     (d) The department must remit remaining proceeds to the custody of the state treasurer. The state treasurer must distribute the proceeds to the public transportation agency on a monthly basis.

NEW SECTION.  Sec. 5   (1) The legislative authority of any county may submit an authorizing proposition to the voters and, if approved, may fix and impose a tax at up to the rate specified in the authorizing proposition on the selling price on the retail sale of motor vehicle fuel and special fuel within the applicable jurisdiction solely for the purpose of providing funds for the operation, maintenance, or capital needs of a public transportation agency or public transportation limited to persons with special needs under RCW 36.57.130 and 36.57A.180 that is located within the boundaries of the county.
     (2) An election held under this section must be held not more than twelve months before the date on which the proposed tax is to be levied. The ballot setting forth the proposition must state the tax rate that is proposed.
     (3) The tax imposed in this section must be collected and paid to the jurisdiction but once in respect to any motor vehicle fuel or special fuel. This tax is in addition to any other tax authorized or imposed by law.
     (4) For purposes of this section, the following definitions apply:
     (a) "Motor vehicle fuel" has the meaning given in RCW 82.36.010;
     (b) "Special fuel" has the meaning given in RCW 82.38.020; and
     (c) "Motor vehicle" has the meaning given in RCW 82.36.010.

NEW SECTION.  Sec. 6   (1) For the privilege of using in this state any motor vehicle, unless the motor vehicle is specifically exempted, the governing body of any public transportation agency may submit an authorizing proposition to the voters and, if approved, for the sole purpose of providing funds for the operation, maintenance, or capital needs of public transportation systems or public transportation limited to persons with special needs under RCW 36.57.130 and 36.57A.180, fix and impose a motor vehicle excise tax. The rate or rates, which may vary according to the value of the motor vehicle, of any such tax may not exceed the rate or rates specified in the authorizing proposition on the value of every motor vehicle registered within the boundaries of the public transportation agency for the privilege of using a motor vehicle. Rental cars as defined in RCW 46.04.465 are exempt from the taxes imposed by this section. Valuation of motor vehicles for purposes of any motor vehicle excise tax imposed under this section must be consistent with section 7 of this act.
     (2) A motor vehicle excise tax imposed by a public transportation agency does not take effect until at least six months after the passage of the proposition authorizing the tax. Upon passage of the proposition imposing a motor vehicle excise tax by a public transportation agency, the agency shall immediately notify the department.
     (3) If a public transportation agency imposes a motor vehicle excise tax, it must provide a credit against its tax imposed under subsection (1) of this section for any preexisting motor vehicle excise tax to the extent the total motor vehicle excise tax on a motor vehicle would exceed one percent.

NEW SECTION.  Sec. 7   (1) The tax on a truck-type power or trailing unit shall equal the latest purchase price of the truck-type power or trailing unit, excluding applicable federal excise taxes, state and local sales or use taxes, transportation or shipping costs, or preparatory or delivery costs, multiplied by the following percentage based on year of service of the vehicle since the last sale. The latest purchase year is considered the first year of service.

NEW SECTION.  Sec. 8   The department must administer and collect any motor vehicle excise tax imposed under section 6 of this act. A public transportation agency imposing a motor vehicle excise tax must enter into a contract with the department. The contract must contain provisions that fully recover the costs to the department of licensing for collection and administration of the fee and the payment of motor vehicle excise tax refunds. The department must remit remaining proceeds to the public transportation agency by the twentieth day following the end of each calendar quarter.

NEW SECTION.  Sec. 9   For the purposes of this chapter, unless the context otherwise requires:
     (1) "Department" means the department of licensing.
     (2) "Motor vehicle" means all motor vehicles, trailers and semitrailers used, or of the type designed primarily to be used, upon the public streets and highways, for the convenience or pleasure of the owner, or for the conveyance, for hire or otherwise, of persons or property, including fixed loads and facilities for human habitation.
     (3) "Motor vehicle" does not include (a) vehicles carrying exempt licenses; (b) dock and warehouse tractors and their cars or trailers, lumber carriers of the type known as spiders, and all other automotive equipment not designed primarily for use upon public streets, or highways; (c) motor vehicles or their trailers used entirely upon private property; (d) travel trailers as defined in RCW 82.50.010; (e) motor vehicles owned by nonresident military personnel of the armed forces of the United States stationed in the state of Washington provided personnel were also nonresident at the time of their entry into military service; or (f) motor vehicles registered under the provisions of the international registration plan under chapter 46.87 RCW.
     (4) "Public transportation" means the transportation of passengers and any incidental baggage by a public transportation agency or by any service provider to a public transportation agency, together with passenger terminals, access facilities, parking facilities, rights-of-way, and street and road and other improvements or facilities to provide for passenger and vehicular access to and from people-moving facilities and systems.
     (5)(a) "Public transportation agency" means any city exercising authorities pursuant to RCW 35.92.060, any county which has created an unincorporated transportation benefit area pursuant to RCW 36.57.100 and 36.57.110, any public transportation benefit area established pursuant to RCW 36.57A.080 and 36.57A.090, any county transportation authority established pursuant to chapter 36.57 RCW, and any metropolitan municipal corporation within a county with a population of one million or more established pursuant to chapter 35.58 RCW.
     (b) After January 1, 2016, "public transportation agency" also means any regional transit authority established pursuant to RCW 81.112.030.
     (6) "Truck-type power or trailing unit" means any vehicle that is subject to the fees under RCW 46.16A.455 except vehicles with an unladen weight of ten thousand pounds or less, RCW 46.16A.425.

NEW SECTION.  Sec. 10   (1)(a) For the purposes of this chapter, in addition to the motor vehicle exclusions under section 9 of this act, "motor vehicle" does not include passenger motor vehicles used primarily for commuter ride sharing and ride sharing for persons with special transportation needs, as defined in RCW 46.74.010. The registered owner of one of these vehicles must notify the department of licensing upon termination of primary use of the vehicle in commuter ride sharing or ride sharing for persons with special transportation needs and is liable for the tax imposed by this chapter, prorated on the remaining months for which the vehicle is licensed.
     (b) To qualify for the tax exemption in (a) of this subsection, those passenger motor vehicles with five or six passengers, including the driver, used for commuter ride-sharing, must be operated either within the state's eight largest counties that are required to develop commute trip reduction plans as directed by chapter 70.94 RCW or in other counties, or cities and towns within those counties, that elect to adopt and implement a commute trip reduction plan. Additionally at least one of the following conditions must apply: (i) The vehicle must be operated by a public transportation agency for the general public; or (ii) the vehicle must be used by a major employer, as defined in RCW 70.94.524 as an element of its commute trip reduction program for their employees; or (iii) the vehicle must be owned and operated by individual employees and must be registered either with the employer as part of its commute trip reduction program or with a public transportation agency serving the area where the employees live or work. Individual employee owned and operated motor vehicles require certification that the vehicle is registered with a major employer or a public transportation agency. Major employers who own and operate motor vehicles for their employees must certify that the commuter ride-sharing arrangement conforms to a carpool/vanpool element contained within their commute trip reduction program.
     (c) A public transportation agency may develop an exemption from the motor vehicle excise tax for the registered owners of vehicles residing within the boundaries of the public transportation agency who: (i) Are sixty-two years old or older at the time payment of the tax is due and whose household income for the previous calendar year is less than an amount prescribed by the public transportation agency; or (ii) have a physical disability.

NEW SECTION.  Sec. 11   Any excise tax imposed under section 6 of this act is due and payable to the department or its agents at the time of registration renewal of a motor vehicle. Whenever an application is made to the department or its agents for a license renewal for a motor vehicle there must be collected, in addition to the amount of the renewal license fee, the amount of any excise tax authorized by this chapter. The excise tax must be collected each registration year.

NEW SECTION.  Sec. 12   The county auditor or department must give to each person paying any excise tax imposed under this chapter a receipt which sufficiently designates and identifies the vehicle with respect to which the tax is paid. The receipt may be incorporated in the receipt given for the motor vehicle license fee.

NEW SECTION.  Sec. 13   (1) Whenever any person has paid a motor vehicle license fee, and any excise tax imposed under this chapter, and the director determines that the payor is entitled to a refund of the entire amount of the license fee as provided by law, then the payor is also entitled to a refund of the entire excise tax collected under the provisions of this chapter. In case the director determines that any person is entitled to a refund of only a part of the license fee so paid, the payor is entitled to a refund of the difference, if any, between the excise tax collected and that which should have been collected.
     (2) In case no claim is to be made for the refund of the license fee, but claim is made by any person that he or she has paid an erroneously excessive amount of excise tax, the department must determine in the manner generally provided in this chapter the amount of the excess, if any, that has been paid and must certify to the state treasurer that the person is entitled to a refund in such amount.
     (3) In any case where due to error, a person has been required to pay an excise tax pursuant to this chapter and a vehicle license fee pursuant to Title 46 RCW which amounts to an overpayment of ten dollars or more, the person is entitled to a refund of the entire amount of the overpayment, regardless of whether or not a refund of the overpayment has been requested. Conversely, if due to error, the department or its agents has failed to collect the full amount of the license fee and excise tax due, which underpayment is in the amount of ten dollars or more, the department must charge and collect the additional amount as will constitute full payment of the tax.
     (4) Any claim for refund of an erroneously excessive amount of excise tax or overpayment of excise tax with a motor vehicle license fee must be filed with the director within three years after the claimed erroneous payment was made.
     (5) If the department approves the claim it must notify the state treasurer to that effect, and the treasurer must make approved refunds from the account to which any motor vehicle excise taxes collected under this chapter are paid into and mail or deliver the same to the person entitled thereto.
     (6) If the department, under section 7 of this act, determines a value of a motor vehicle or a truck-type power or trailing unit, any person who pays the motor vehicle excise tax under this chapter for that vehicle may appeal the valuation to the department under chapter 34.05 RCW. If the taxpayer is successful on appeal, the department shall refund the excess tax in the manner provided in this section.
     (7) Any person making any false statement under which he or she obtains any amount of refund to which he or she is not entitled under the provisions of this section is guilty of a gross misdemeanor.

NEW SECTION.  Sec. 14   Any duties required by this chapter to be performed by the county auditor may be performed by any other person designated by the director of licensing and authorized by him or her to receive motor vehicle license fees and issue receipt therefor.

NEW SECTION.  Sec. 15   (1) A citizen advisory committee may be created at the direction of any public transportation agency submitting an authorizing proposition to the voters to implement any of the revenue options authorized by this chapter. The public transportation agency must appoint nine members to the committee, all of whom must be permanent residents of the public transportation agency's service area. Members of the committee must serve without receiving compensation.
     (2) The citizen advisory committee must serve in an advisory capacity to the public transportation agency on all matters related to the imposition of one or more revenue options authorized by this chapter including, but not limited to:
     (a) The revenue option or options selected;
     (b) The rate or amount of each revenue option; and
     (c) The feasibility of providing discounts or exemptions.
     (3) Any public transportation agency submitting an authorizing proposition to the voters to implement any of the revenue options authorized by this chapter must annually complete a report detailing the expenditures of the proceeds of any revenue option or options authorized by this chapter.

NEW SECTION.  Sec. 16   Public transportation agencies are authorized to pledge revenues from the vehicle license fee authorized in section 3 of this act, the vehicle excise tax based on fuel efficiency authorized in section 4 of this act, the sales tax authorized in section 5 of this act, and the motor vehicle excise tax authorized in section 6 of this act to the payment of general obligation and revenue bonds issued for public transportation purposes.

NEW SECTION.  Sec. 17   This chapter may be known and cited as the local transit act.

NEW SECTION.  Sec. 18   Sections 3 through 17 of this act constitute a new chapter in Title 82 RCW.

NEW SECTION.  Sec. 19   This act takes effect August 1, 2011.