FINAL BILL REPORT

ESB 5288

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Authorizing certain public transportation benefit areas to impose a sales and use tax increase approved by voters.

Background: Public Transportation Benefit Area (PTBA). A PTBA is a special-purpose district authorized to provide public transportation service within all or a portion of a county or counties. Cities must be wholly included or excluded. The PTBA is the most common type of district providing public transportation service in the state, with 21 currently in existence. A PTBA may collect fares for service and, with approval of the majority of the voters within the area, impose a sales and use tax within the area. Currently all but one PTBA may impose a sales and use tax up to a 0.9 percent. One PTBA operating in Snohomish County meets the population threshold required to implement an additional 0.3 percent, for a total of 1.2 percent voter approved sales and use tax.

Summary: Added population requirements allow PTBAs that meet these new requirements to impose an additional 0.3 percent sales and use tax with voter approval, for a total of 1.2 percent sales and use tax. Currently, the PTBA operating in Thurston County would meet the new requirement of being a PTBA in a county with a population of more than 250,000, but less than 400,000, and also containing two or more cities with a population of over 40,000.

Votes on Final Passage:

Senate	34	14
House	57	41