SENATE BILL REPORT

SB 6193

BYSenators von Reichbauer, Owen, Craswell, Patterson, Conner and Hansen

Providing additional funds for the Puget Sound ferry operations account.

Senate Committee on Transportation

Senate Hearing Date(s):January 19, 1988

Majority Report:  Do pass.

      Signed by Senators Patterson, Chairman; von Reichbauer, Vice Chairman; Bender, Conner, Garrett, Hansen, McMullen, Metcalf, Owen, Sellar.

Senate Staff:Gene Schlatter (786-7316)

                  January 20, 1988

AS REPORTED BY COMMITTEE ON TRANSPORTATION, JANUARY 19, 1988

BACKGROUND:

Transit districts are eligible to receive up to one-half of 98 percent of the basic 2.0 percent rate of state motor vehicle excise taxes (MVET) collected within their transit districts.  In order to receive any of these monies, the transit district must levy a local option transit tax.  Usually, the local option tax is a sales tax, although in some transit districts the utilities tax is applied.

Revenues generated by the local option transit tax must be budgeted exclusively for public transportation in order to receive their share of state collected MVET.  The state matches dollar for dollar, up to one-half of 98 percent of the basic 2.0 percent MVET collected within each transit district.

Any of the transit MVET revenues not matched by local option taxes are retained in the general fund.

SUMMARY:

Beginning January 1, 1990, 97 percent of any transit MVET revenues not matched by the local option transit tax shall be transferred to the Puget Sound ferry operations account.  The remaining 3 percent shall be held in reserve to make any required accounting adjustments.  If adjustments are less than the 3 percent reserve, the balance is transferred to the Puget Sound operations account.  Should the adjustments exceed the reserve amount, distributions to the Puget Sound operations account will be decreased accordingly in the next accounting period.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested January 18, 1988

Senate Committee - Testified: Ben Dysart, Washington State Ferry Riders Coalition; Blacky Lloyd, Washington State Ferry Riders Coalition; Steve Lindstrom, Washington State Transit Association