READ FIRST TIME 02/07/12.   

     AN ACT Relating to local transportation revenue options; amending RCW 36.73.065, 36.73.040, 82.80.010, 82.80.140, and 82.44.065; reenacting and amending RCW 36.73.015; adding a new section to chapter 82.80 RCW; adding a new section to chapter 82.44 RCW; creating a new section; and repealing RCW 82.44.035.

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

Sec. 1   RCW 36.73.065 and 2007 c 329 s 1 are each amended to read as follows:
     (1) Except as provided in subsection (4) of this section, taxes, fees, charges, and tolls may not be imposed by a district without approval of a majority of the voters in the district voting on a proposition at a general or special election. The proposition must include a specific description of the transportation improvement or improvements proposed by the district and the proposed taxes, fees, charges, and the range of tolls imposed by the district to raise revenue to fund the improvement or improvements.
     (2) Voter approval under this section ((shall)) must be accorded substantial weight regarding the validity of a transportation improvement as defined in RCW 36.73.015.
     (3) A district may not increase any taxes, fees, charges, or range of tolls imposed under this chapter once the taxes, fees, charges, or tolls take effect, unless authorized by the district voters pursuant to RCW 36.73.160.
     (4)(a) A district that includes all the territory within the boundaries of the jurisdiction, or jurisdictions, establishing the district, but not including territory in which a fee is currently being collected under RCW 82.80.140, may impose by a majority vote of the governing board of the district the following fees and charges:
     (i) Up to ((twenty)) forty dollars of the vehicle fee authorized in RCW 82.80.140; or
     (ii) A fee or charge in accordance with RCW 36.73.120.
     (b) The vehicle fee authorized in (a) of this subsection may only be imposed for a passenger-only ferry transportation improvement if the vehicle fee is first approved by a majority of the voters within the jurisdiction of the district.
     (c)(i) A district solely comprised of a city or cities ((shall)) may not impose the fees or charges identified in (a) of this subsection within one hundred eighty days after July 22, 2007, unless the county in which the city or cities reside, by resolution, declares that it will not impose the fees or charges identified in (a) of this subsection within the one hundred eighty-day period; or
     (ii) A district solely comprised of a city or cities identified in RCW 36.73.020(6)(b) ((shall)) may not impose the fees or charges until after May 22, 2008, unless the county in which the city or cities reside, by resolution, declares that it will not impose the fees or charges identified in (a) of this subsection through May 22, 2008.
     (5) If the interlocal agreement in RCW 82.80.140(2)(a) cannot be reached, a district that includes only the unincorporated territory of a county may impose by a majority vote of the governing body of the district up to ((twenty)) forty dollars of the vehicle fee authorized in RCW 82.80.140.

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) A motor vehicle excise tax in accordance with section 3 of this act; and
     (e)(i) 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.
     (ii) 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)) must 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.
     (4) A district may only impose the vehicle fee under RCW 82.80.140 or the motor vehicle excise tax under section 3 of this act and may not impose both.

NEW SECTION.  Sec. 3   A new section is added to chapter 82.80 RCW to read as follows:
     (1) Subject to the provisions of RCW 36.73.065, a transportation benefit district under chapter 36.73 RCW may impose a motor vehicle excise tax of up to one percent annually on the value of every motor vehicle owned by a resident of the district based on the valuation schedules in section 8 of this act.
     (2) The tax under this section may not be imposed on vehicles licensed under RCW 46.17.355, except vehicles with an unladen weight of six thousand pounds or less, RCW 46.16A.425, 46.17.335, or 46.17.350(1)(c).
     (3) The department of licensing must administer and collect the tax. The department must deduct a percentage amount, as provided by contract, not to exceed one percent of the taxes collected, for administration and collection expenses incurred by the department. The department must remit the remaining proceeds to the custody of the state treasurer. The state treasurer must distribute the proceeds to the district on a monthly basis.
     (4) No tax imposed under this section may be collected until six months after approval under RCW 36.73.065.
     (5) The tax under this section applies only when renewing a vehicle registration, and is effective upon the registration renewal date as provided by the department of licensing.

Sec. 4   RCW 82.80.010 and 2003 c 350 s 1 are each amended to read as follows:
     (1) For purposes of this section:
     (a) "Distributor" means every person who imports, refines, manufactures, produces, or compounds motor vehicle fuel and special fuel as defined in RCW 82.36.010 and 82.38.020, respectively, and sells or distributes the fuel into a county;
     (b) "Person" has the same meaning as in RCW 82.04.030.
     (2) Subject to the conditions of this section, any county may levy, by approval of its legislative body and a majority of the registered voters of the county voting on the proposition at a general or special election, additional excise taxes equal to ((ten percent of the statewide motor vehicle fuel tax rate under RCW 82.36.025)) one cent, two cents, or three cents on each gallon of motor vehicle fuel as defined in RCW 82.36.010 and on each gallon of special fuel as defined in RCW 82.38.020 sold within the boundaries of the county. Vehicles paying an annual license fee under RCW 82.38.075 are exempt from the county fuel excise tax. 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 ((shall)) must state the tax rate that is proposed. The county's authority to levy additional excise taxes under this section includes the incorporated and unincorporated areas of the county. The additional excise taxes are subject to the same exceptions and rights of refund as applicable to other motor vehicle fuel and special fuel excise taxes levied under chapters 82.36 and 82.38 RCW. The proposed tax ((shall)) may not be levied less than one month from the date the election results are certified by the county election officer. The commencement date for the levy of any tax under this section ((shall be)) is the first day of January, April, July, or October.
     (3) The local option motor vehicle fuel tax on each gallon of motor vehicle fuel and on each gallon of special fuel is imposed upon the distributor of the fuel.
     (4) A taxable event for the purposes of this section occurs upon the first distribution of the fuel within the boundaries of a county to a retail outlet, bulk fuel user, or ultimate user of the fuel.
     (5) All administrative provisions in chapters 82.01, 82.03, and 82.32 RCW, insofar as they are applicable, apply to local option fuel taxes imposed under this section.
     (6) Before the effective date of the imposition of the fuel taxes under this section, a county ((shall)) must contract with the department of revenue for the administration and collection of the taxes. The contract must provide that a percentage amount, not to exceed one percent of the taxes imposed under this section, will be deposited into the local tax administration account created in the custody of the state treasurer. The department of revenue may spend money from this account, upon appropriation, for the administration of the local taxes imposed under this section.
     (7) The state treasurer ((shall)) must distribute monthly to the levying county and cities contained therein the proceeds of the additional excise taxes collected under this section, after the deductions for payments and expenditures as provided in RCW 46.68.090(1) (a) and (b) and under the conditions and limitations provided in RCW 82.80.080.
     (8) The proceeds of the additional excise taxes levied under this section ((shall)) must be used strictly for transportation purposes in accordance with RCW 82.80.070.
     (9) A county may not levy the tax under this section if they are levying the tax in RCW 82.80.110 or if they are a member of a regional transportation investment district levying the tax in RCW 82.80.120.

Sec. 5   RCW 82.80.140 and 2010 c 161 s 917 are each amended to read as follows:
     (1) Subject to the provisions of RCW 36.73.065, a transportation benefit district under chapter 36.73 RCW may fix and impose an annual vehicle fee, not to exceed one hundred dollars per vehicle registered in the district, for each vehicle subject to vehicle license fees under RCW 46.17.350(1) (a), (c), (d), (e), (g), (h), (j), or (n) through (q) and for each vehicle subject to gross weight license fees under RCW 46.17.355 with a scale weight of six thousand pounds or less.
     (2)(a) A district that includes all the territory within the boundaries of the jurisdiction, or jurisdictions, establishing the district, but not including territory in which a fee is currently being collected under this section, may impose by a majority vote of the governing board of the district up to ((twenty)) forty dollars of the vehicle fee authorized in subsection (1) of this section.
     (i) If the district is countywide, the revenues of the fee ((shall)) must be distributed to each city within the ((county)) district by interlocal agreement that must be effective prior to imposition of the fee. The interlocal agreement is effective when approved by the ((county)) district and sixty percent of the cities representing seventy-five percent of the population of the cities within the ((county)) district in which the countywide fee is collected.
     (ii) If the district is less than countywide, the revenues of the fee must be distributed to each city within the district by interlocal agreement that must be effective prior to imposition of the fee.
     (b) A district may not impose a fee under this subsection (2):
     (i) For a passenger-only ferry transportation improvement unless the vehicle fee is first approved by a majority of the voters within the jurisdiction of the district; or
     (ii) That, if combined with the fees previously imposed by another district within its boundaries under RCW 36.73.065(4)(a)(i), exceeds ((twenty)) forty dollars.
     If a district imposes or increases a fee under this subsection (2) that, if combined with the fees previously imposed by another district within its boundaries, exceeds ((twenty)) forty dollars, the district ((shall)) must provide a credit for the previously imposed fees so that the combined vehicle fee does not exceed ((twenty)) forty dollars.
     (3) The department of licensing ((shall)) must administer and collect the fee. The department ((shall)) must deduct a percentage amount, as provided by contract, not to exceed one percent of the fees collected, for administration and collection expenses incurred by it. The department shall remit remaining proceeds to the custody of the state treasurer. The state treasurer shall distribute the proceeds to the district on a monthly basis.
     (4) No fee under this section may be collected until six months after approval under RCW 36.73.065.
     (5) The vehicle fee under this section applies only when renewing a vehicle registration, and is effective upon the registration renewal date as provided by the department of licensing.
     (6) The following vehicles are exempt from the fee under this section:
     (a) Campers, as defined in RCW 46.04.085;
     (b) Farm tractors or farm vehicles, as defined in RCW 46.04.180 and 46.04.181;
     (c) Mopeds, as defined in RCW 46.04.304;
     (d) Off-road and nonhighway vehicles, as defined in RCW 46.04.365;
     (e) Private use single-axle trailer, as defined in RCW 46.04.422;
     (f) Snowmobiles, as defined in RCW 46.04.546; and
     (g) Vehicles registered under chapter 46.87 RCW and the international registration plan.

Sec. 6   RCW 36.73.015 and 2010 c 251 s 2 and 2010 c 105 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) "City" means a city or town.
     (2) "District" means a transportation benefit district created under this chapter.
     (3) "Supplemental transportation improvement" or "supplemental improvement" means any project, work, or undertaking to provide public transportation service, in addition to a district's existing or planned voter-approved transportation improvements, proposed by a participating city member of the district under RCW 36.73.180.
     (4) "Transportation improvement" means a project contained in the transportation plan of the state, a regional transportation planning organization, city, county, or eligible jurisdiction as identified in RCW 36.73.020(2). A project may include, but is not limited to, investment in new or existing highways of statewide significance, principal arterials of regional significance, high capacity transportation, public transportation, and other transportation projects and programs of local, regional, or statewide significance including transportation demand management. Projects may also include the operation, preservation, and maintenance of these facilities or programs.

NEW SECTION.  Sec. 7   If politicians impose a vehicle tax based on the value of the vehicle, vehicle owners have a right to a valuation schedule based on the vehicle's purchase price and not the manufacturer's suggested retail price.

NEW SECTION.  Sec. 8   A new section is added to chapter 82.44 RCW to read as follows:
     (1)(a) A motor vehicle excise tax must be calculated in an honest and accurate way. For the purpose of determining any motor vehicle excise tax otherwise authorized by law, any taxing district imposing a motor vehicle excise tax must set a vehicle's taxable value by using the depreciation schedule set forth in this section. The taxable value equals the product of a percentage based on a vehicle's year of service, as provided in subsection (2) of this section, and the latest purchase price of the vehicle. The purchase price for the first year of service must be determined by the bill of sale provided by buyer and seller, subject to the exemptions, exceptions, and definitions provided by this section, and must be affirmed by declaration by both parties.
     (b) The legislature intends that this section is to ensure an honest and accurate calculation of the tax. It is further the intent of the legislature that this section, when combined with the appeal process in RCW 82.44.065, will ensure that vehicle owners are taxed fairly.
     (2) For the purpose of determining the tax under this chapter, the value of a truck-type power or trailing unit, or motor vehicle, including a passenger vehicle, motorcycle, motor home, sport-utility vehicle, or light-duty truck must be the latest purchase price of the vehicle, 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 its most recent sale. The year the vehicle is offered for sale as a new vehicle must be considered the first year of service.

NEW SECTION.  Sec. 9   RCW 82.44.035 (Valuation of vehicles) and 2010 c 161 s 910 & 2006 c 318 s 1 are each repealed.

Sec. 10   RCW 82.44.065 and 2010 c 161 s 912 are each amended to read as follows:
     (1) If the department determines a value for a vehicle ((equivalent to a manufacturer's base suggested retail price)) under section 8 of this act or the value of a truck or trailer under ((RCW 82.44.035)) section 8 of this act, any person who pays a locally imposed tax 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)) must refund the excess tax in the manner provided in RCW 82.44.120.
     (2) The legislature intends for this section to ensure an honest and accurate calculation of the tax.