Passed by the House March 4, 2011 Yeas 79   FRANK CHOPP ________________________________________ Speaker of the House of Representatives Passed by the Senate April 8, 2011 Yeas 28   BRAD OWEN ________________________________________ President of the Senate | I, Barbara Baker, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 1953 as passed by the House of Representatives and the Senate on the dates hereon set forth. BARBARA BAKER ________________________________________ Chief Clerk | |
Approved May 16, 2011, 2:28 p.m. CHRISTINE GREGOIRE ________________________________________ Governor of the State of Washington | May 17, 2011 Secretary of State State of Washington |
State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 02/14/11. Referred to Committee on Ways & Means.
AN ACT Relating to county and city real estate excise taxes; amending RCW 82.46.010 and 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 82.46.010 and 1994 c 272 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 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.
(2)(a) The legislative authority of any county or any city may
impose an 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. The revenues from
this tax ((shall)) must be used by any city or county with a population
of five thousand or less and any city or county that does not plan
under RCW 36.70A.040 for any capital purpose identified in a capital
improvements plan and local capital improvements, including those
listed in RCW 35.43.040.
(b) After April 30, 1992, revenues generated from the tax imposed
under this subsection (2) in counties over five thousand population and
cities over five thousand population that are required or choose to
plan under RCW 36.70A.040 ((shall)) must be used solely for financing
capital projects specified in a capital facilities plan element of a
comprehensive plan and housing relocation assistance under RCW
59.18.440 and 59.18.450. However, revenues (((a))) (i) pledged by such
counties and cities to debt retirement prior to April 30, 1992, may
continue to be used for that purpose until the original debt for which
the revenues were pledged is retired, or (((b))) (ii) committed prior
to April 30, 1992, by such counties or cities to a project may continue
to be used for that purpose until the project is completed.
(3) In lieu of imposing the tax authorized in RCW 82.14.030(2), the
legislative authority of any county or any city 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-half of one percent of the selling price.
(4) Taxes imposed under this section ((shall)) must be collected
from persons who are taxable by the state under chapter 82.45 RCW upon
the occurrence of any taxable event within the unincorporated areas of
the county or within the corporate limits of the city, as the case may
be.
(5) Taxes imposed under this section ((shall)) must comply with all
applicable rules, regulations, laws, and court decisions regarding real
estate excise taxes as imposed by the state under chapter 82.45 RCW.
(6) 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;
parks; recreational facilities; law enforcement facilities; fire
protection facilities; trails; libraries; administrative and/
(7) From the effective date of this section until December 31,
2016, a city or county may use the greater of one hundred thousand
dollars or thirty-five percent of available funds under this section,
but not to exceed one million dollars per year, for the operations and
maintenance of existing capital projects as defined in subsection (6)
of this section.
Sec. 2 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 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.
(2) The legislative authority of any county or any city that plans
under RCW 36.70A.040(1) 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)) must be used by such counties and cities solely
for financing capital projects specified in a capital facilities plan
element of a comprehensive plan. 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))
must 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; 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.
(8) From the effective date of this section until December 31,
2016, a city or county may use the greater of one hundred thousand
dollars or thirty-five percent of available funds under this section,
but not to exceed one million dollars per year, for operations and
maintenance of existing capital projects as defined in subsection (5)
of this section, and counties may use available funds under this
section for the payment of existing debt service incurred for capital
projects as defined in RCW 82.46.010. If a county uses available funds
for payment of existing debt service under RCW 82.46.010, the total
amount used for payment of debt service and any amounts used for
operations and maintenance is subject to the limits in this subsection.
Sec. 3 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 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.
(2) The legislative authority of any county or any city that plans
under RCW 36.70A.040(1) 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)) must be used by such counties and cities solely
for financing capital projects specified in a capital facilities plan
element of a comprehensive plan. 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))
must 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.
(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) From the effective date of this section until December 31,
2016, a city or county may use the greater of one hundred thousand
dollars or thirty-five percent of available funds under this section,
but not to exceed one million dollars per year, for operations and
maintenance of existing capital projects as defined in subsection (5)
of this section, and counties may use available funds under this
section for the payment of existing debt service incurred for capital
projects as defined in RCW 82.46.010. If a county uses available funds
for payment of existing debt service under RCW 82.46.010, the total
amount used for payment of debt service and any amounts used for
operations and maintenance is subject to the limits in this subsection.
NEW SECTION. Sec. 4 Section 2 of this act expires June 30, 2012.
NEW SECTION. Sec. 5 Section 3 of this act takes effect June 30,
2012.