BILL REQ. #:  S-3087.3 

Read first time 01/17/14.   Referred to Committee on Trade & Economic Development.

     AN ACT Relating to dedicating a portion of state sales tax revenues derived from certain short-term major public events for county economic development use; adding a new chapter to Title 82 RCW; and providing an expiration date.

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

NEW SECTION.  Sec. 1   The legislature finds that the state benefits substantially from additional tax revenues generated from certain short-term major public events. Local governments incur significant costs in attracting, staging, and maintaining the venues for such events. The legislature further finds that the current distribution of additional temporary increased sales tax revenue from such events fails to recognize the significant local government costs necessary to maintain and improve the venues to attract and host such events. The legislature therefore finds it appropriate to share a portion of the temporary new revenue derived from the event with the local government responsible for providing and maintaining the event venues in order to continue to attract such events.

NEW SECTION.  Sec. 2   A county special events tax program is created. An eligible county may apply to receive a temporary additional portion of the state sales tax imposed under chapter 82.08 RCW, as provided in this chapter.

NEW SECTION.  Sec. 3   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Eligible county" means a county that is host to a paid admission public event:
     (a) For which venue selection is made independently of the county;
     (b) For which preparation requirements extend beyond the normal use of the existing venue support facilities and include event support costs borne by the county; and
     (c) That is eligible under the provisions of section 4(4) of this act.
     (2) "Event period" means the fiscal quarter in which the event occurs.

NEW SECTION.  Sec. 4   (1) Not later than ninety days prior to the first day of the event, the executive authority of a county expecting to be eligible under this chapter must provide the department with a statement indicating the county's expectation that it will be eligible for selective temporary shared revenue from this event under the provisions of this chapter. Accompanying this notification, the county must provide supporting documentation and applicable metrics demonstrating the extent of the anticipated additional tax income generated from the event.
     (2) Tax collection and remission proceeds normally during the event period, except that the department will ensure that it has the means to track collections in the eligible county for validation after the event.
     (3) Within ninety days following the end of the fiscal year in which the event occurred, the department must compute the sales tax revenue derived from the eligible county during the event period. The department must then compare that amount to an average for the same period in the same county for the three previous years.
     (4) If the department finds that revenue during the event period exceeds the average for the three previous years by an amount greater than two million dollars it must declare the county eligible to receive a temporary share of the additional revenues subject to the provisions of this chapter. The department must notify the eligible county of its findings within ninety days.
     (5)(a) The state must make disbursements under this chapter to the economic development endowment account of the eligible county as follows: Forty percent of state sales tax revenue collected in the eligible county from the event period in excess of the average for the same period in the preceding three years. Such disbursements must be treated as a one-time occurrence establishing no entitlement to any future disbursement unless specifically authorized by law.
     (b) In addition to any disbursements from state sales tax revenue under (a) of this subsection, an eligible county may also accept funds from other public or private sources into its economic development endowment account, if those funds are used exclusively for the purposes specified in section 5 of this act.

NEW SECTION.  Sec. 5   (1) An eligible county that has applied to receive tax revenue under this section must agree to create and maintain an economic development endowment account. Any funds deposited in the account may only be used for the support of venues suitable for hosting eligible events under this section.
     (2) An eligible county may receive additional funds from other public or private sources for deposit into the economic development endowment account; however, such funds may only be spent for the purposes specified in subsection (1) of this section.

NEW SECTION.  Sec. 6   Sections 1 through 5 of this act constitute a new chapter in Title 82 RCW.

NEW SECTION.  Sec. 7   This act expires December 31, 2016.