ESHB 1954 -
By Senator Schlicher
NOT CONSIDERED
On page 67, after line 1, insert the following:
"Sec. 601 RCW 47.46.060 and 2012 c 77 s 1 are each amended to
read as follows:
(1) Any person, including the department of transportation and any
private entity or entities, may apply for deferral of taxes on the site
preparation for, the construction of, the acquisition of any related
machinery and equipment that becomes a part of, and the rental of
equipment for use in the state route number 16 corridor improvements
project under this chapter. Application must be made to the department
of revenue in a form and manner prescribed by the department of
revenue. The application must contain information regarding estimated
or actual costs, time schedules for completion and operation, and other
information required by the department of revenue. The department of
revenue must approve the application within sixty days if it meets the
requirements of this section.
(2) The department of revenue must issue a sales and use tax
deferral certificate for state and local sales and use taxes due under
chapters 82.08, 82.12, and 82.14 RCW on the project.
(3) The department of transportation or a private entity granted a
tax deferral under this section must begin paying the deferred taxes in
the ((eleventh)) twenty-fourth year after the date certified by the
department of revenue as the date on which the project is operationally
complete. The first payment is due on December 31st of the
((eleventh)) twenty-fourth calendar year after such certified date,
with subsequent annual payments due on December 31st of the following
nine years. Each payment must equal ten percent of the deferred tax.
The project is operationally complete under this section when the
collection of tolls is commenced for the state route number 16
improvements covered by the deferral.
(4) The department of revenue may authorize an accelerated
repayment schedule upon request of the department of transportation or
a private entity granted a deferral under this section.
(5) Interest may not be charged on any taxes deferred under this
section for the period of deferral, although all other penalties and
interest applicable to delinquent excise taxes may be assessed and
imposed for delinquent payments under this section. The debt for
deferred taxes is not extinguished by insolvency or other failure of
the private entity. Transfer of ownership does not terminate the
deferral.
(6) Applications and any other information received by the
department of revenue under this section are not confidential and are
subject to disclosure. Chapter 82.32 RCW applies to the administration
of this section.
Sec. 602 RCW 47.46.100 and 2002 c 114 s 7 are each amended to
read as follows:
(1) The commission shall fix the rates of toll and other charges
for all toll bridges built under this chapter that are financed
primarily by bonds issued by the state. Subject to RCW 47.46.090, the
commission may impose and modify toll charges from time to time as
conditions warrant. However, from the effective date of this section
forward, the commission may not increase the toll rates on the Tacoma
Narrows bridge beyond those rates adopted by the commission on May 20,
2013.
(2) In establishing toll charges, the commission shall give due
consideration to any required costs for ((operating and maintaining the
toll bridge or toll bridges, including the cost of insurance, and to))
: (a) Any amount required by law to meet the redemption of bonds and
interest payments on them and (b) beginning July 16, 2031, operating
and maintaining the toll bridge or toll bridges, including the cost of
insurance.
(3) The toll charges must be imposed in amounts sufficient to:
(a) Beginning July 16, 2031, provide annual revenue sufficient to
provide for annual operating and maintenance expenses, except as
provided in RCW 47.56.245;
(b) Make payments required under RCW 47.56.165 and 47.46.140,
including insurance costs and the payment of principal and interest on
bonds issued for any particular toll bridge or toll bridges; and
(c) Repay the motor vehicle fund under RCW 47.46.110, 47.56.165,
and 47.46.140.
(4) The bond principal and interest payments, including repayment
of the motor vehicle fund for amounts transferred from that fund to
provide for such principal and interest payments, constitute a first
direct and exclusive charge and lien on all tolls and other revenues
from the toll bridge concerned, subject to operating and maintenance
expenses beginning July 16, 2031.
Sec. 603 RCW 47.46.110 and 2002 c 114 s 8 are each amended to
read as follows:
(1) The commission shall retain toll charges on any existing and
future facilities constructed under this chapter and financed primarily
by bonds issued by the state until:
(a) All costs of investigation, financing, acquisition of property,
and construction advanced from the motor vehicle fund have been fully
repaid, except as provided in subsection (2)(b) of this section;
(b) Obligations incurred in constructing that facility have been
fully paid; and
(c) The motor vehicle fund is fully repaid under RCW 47.46.140.
(2) This section does not:
(a) Prohibit the use of toll revenues, beginning July 16, 2031, to
fund maintenance, operations, or management of facilities constructed
under this chapter except as prohibited by RCW 47.56.245;
(b) Require repayment of funds specifically appropriated as a
nonreimbursable state financial contribution to a project.
(3) Notwithstanding the provisions of subsection (2)(a) of this
section, upon satisfaction of the conditions enumerated in subsection
(1) of this section:
(a) The facility must be operated as a toll-free facility; and
(b) The operation, maintenance, upkeep, and repair of the facility
must be paid from funds appropriated for the use of the department for
the construction and maintenance of the primary state highways of the
state of Washington.
Sec. 604 RCW 47.56.245 and 2002 c 114 s 23 are each amended to
read as follows:
The department shall retain toll charges on all existing and future
facilities until all costs of investigation, financing, acquisition of
property, and construction advanced from the motor vehicle fund, and
obligations incurred under RCW 47.56.250 and chapter 16, Laws of 1945
have been fully paid.
(1) Except as provided in subsection (2) of this section, with
respect to every facility completed after March 19, 1953, costs of
maintenance and operation shall be paid periodically out of the
revenues of the facility in which such costs were incurred.
(2) Where a state toll facility is constructed under chapter 47.46
RCW adjacent to or within two miles of an existing bridge that was
constructed under this chapter, revenue from the toll facility may not
be used to pay for costs of operation, maintenance, and preservation on
the existing bridge or, until July 16, 2031, the bridge constructed
under chapter 47.46 RCW."
Renumber the remaining sections consecutively and correct any internal references accordingly.
ESHB 1954 -
By Senator Schlicher
NOT CONSIDERED
On page 1, line 6 of the title, after "47.56.894," strike "and 47.56.892" and insert "47.56.892, 47.46.060, 47.46.100, 47.46.110, and 47.56.245"
EFFECT: (1) Extends the time frame that state sales and use taxes
imposed on the Tacoma Narrows Bridge project are deferred from 11 years
to 24 years.
(2) The Transportation Commission's authority to increase toll
rates on the Tacoma Narrows Bridge is removed.
(3) Prohibits the use of toll revenue from the Tacoma Narrows
Bridge for maintenance, operation, and preservation of the bridge until
July 16, 2031.