BILL REQ. #:  S-1258.1 

Read first time 02/15/13.   Referred to Committee on Transportation.

     AN ACT Relating to the funding of enhanced public transportation zones for public transportation systems; amending RCW 82.14.045; and providing an effective date.

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

Sec. 1   RCW 82.14.045 and 2008 c 86 s 102 are each amended to read as follows:
     (1)(a) The legislative body of any city pursuant to RCW 35.92.060, of any county which has created an unincorporated transportation benefit area pursuant to RCW 36.57.100 and 36.57.110, of any public transportation benefit area pursuant to RCW 36.57A.080 and 36.57A.090, of any county transportation authority established pursuant to chapter 36.57 RCW, and of any metropolitan municipal corporation within a county with a population of one million or more pursuant to chapter 35.58 RCW, may, by resolution or ordinance 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, and in lieu of the excise taxes authorized by RCW 35.95.040, submit an authorizing proposition to the voters or include such authorization in a proposition to perform the function of public transportation or public transportation limited to persons with special needs under RCW 36.57.130 and 36.57A.180, and if approved by a majority of persons voting thereon, impose a sales and use tax in accordance with the terms of this chapter. Where an authorizing proposition is submitted by a county on behalf of an unincorporated transportation benefit area, it shall be voted upon by the voters residing within the boundaries of such unincorporated transportation benefit area and, if approved, the sales and use tax shall be imposed only within such area. Notwithstanding any provisions of this section to the contrary, any county in which a county public transportation plan has been adopted pursuant to RCW 36.57.070 and the voters of such county have authorized the imposition of a sales and use tax pursuant to the provisions of section 10, chapter 167, Laws of 1974 ex. sess., prior to July 1, 1975, shall be authorized to fix and impose a sales and use tax as provided in this section at not to exceed the rate so authorized without additional approval of the voters of such county as otherwise required by this section.
     (b)(i) The tax authorized under this section may also be imposed if the legislative body of any of the entities set forth in (a) of this subsection establishes an enhanced public transportation zone within a portion of the territory of the entity and if approved by the voters in the enhanced public transportation zone in the manner provided for in this section. An enhanced public transportation zone may include all or a portion of any city or town as long as all or a portion of the city or town is within the territory of the establishing entity. The establishing entity must consult with the department of revenue on sales tax collection methods when establishing the boundaries of the enhanced public transportation zone.
     (ii) A tax imposed pursuant to this subsection (1)(b), when combined with the existing rate of tax imposed by the establishing entity, may not exceed the rate allowed under this section, and expires either five years after imposition, unless reauthorized in the manner provided for in this section, or upon failure of a reauthorization. Prior to reauthorization, the enhanced public transportation zone boundaries must be readjusted, if necessary, to meet the definition provided for in (b)(iv) of this subsection. A tax imposed pursuant to this subsection (1)(b) must be imposed only in the territory of the enhanced public transportation zone. The revenue from the tax imposed pursuant to this subsection (1)(b) must be expended only for public transportation service within the enhanced public transportation zone and must not supplant existing revenues allocated to the enhanced public transportation zone.
     (iii) Six months prior to the voter authorization or reauthorization of the tax authorized under this subsection (1)(b), the establishing entity must determine a baseline level of fixed-route public transportation service. This baseline level of service must be publicly posted on the web site of the establishing entity. Upon the collection of the tax imposed pursuant to this subsection (1)(b), fixed-route public transportation service within the enhanced public transportation zone must increase proportionally to additional revenue generated within the enhanced public transportation zone. Service hours within the enhanced public transportation zone must increase from the baseline level in accordance with the establishing entity's most recent cost of fixed-route public transportation per service hour, as approved by the national transit database. A report on the increase in public transportation service must be publicly posted annually on the establishing entity's web site.
     (iv) For purposes of this subsection (1)(b), "enhanced public transportation zone" means a zone in which the establishing entity by resolution or ordinance finds that the zone warrants consistent and sustainable transportation service levels of passenger capacity, speed, and service frequency to serve persons within the zone that would otherwise be substantially disadvantaged if the zone were not created. An enhanced public transportation zone must include fifty-five percent or more of the population of the establishing entity designated as low income or minority for purposes of Title VI of the federal civil rights act of 1964, but may not include more than forty-nine percent of the population of the establishing entity. The boundaries of any enhanced public transportation zone must follow election precinct lines as far as practicable.
     (c) The tax authorized by this section shall be in addition to the tax authorized by RCW 82.14.030 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 such city, public transportation benefit area, county, or metropolitan municipal corporation as the case may be. The rate of such tax shall be one-tenth, two-tenths, three-tenths, four-tenths, five-tenths, six-tenths, seven-tenths, eight-tenths, or nine-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). The rate of such tax shall not exceed the rate authorized by the voters unless such increase shall be similarly approved.
     (2)(a) In the event a metropolitan municipal corporation imposes a sales and use tax pursuant to this chapter no city, county which has created an unincorporated transportation benefit area, public transportation benefit area authority, or county transportation authority wholly within such metropolitan municipal corporation shall be empowered to impose and/or collect taxes under RCW 35.95.040 or this section, but nothing herein shall prevent such city or county from imposing sales and use taxes pursuant to any other authorization.
     (b) In the event a county transportation authority imposes a sales and use tax under this section, no city, county which has created an unincorporated transportation benefit area, public transportation benefit area, or metropolitan municipal corporation, located within the territory of the authority, shall be empowered to impose or collect taxes under RCW 35.95.040 or this section.
     (c) In the event a public transportation benefit area imposes a sales and use tax under this section, no city, county which has created an unincorporated transportation benefit area, or metropolitan municipal corporation, located wholly or partly within the territory of the public transportation benefit area, shall be empowered to impose or collect taxes under RCW 35.95.040 or this section.

NEW SECTION.  Sec. 2   This act takes effect August 1, 2013.