H-1738              _______________________________________________

                                                   HOUSE BILL NO. 1034

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Representatives Fisher, Walk, Vekich, Madsen, Walker, Fisch, Spanel, Hine, H. Sommers, Jacobsen, Todd, Bristow, Cantwell, K. Wilson, Leonard, Lux, Unsoeld, Allen, Grimm, Winsley, Baugher, Nelson, Scott, Ebersole, Cole, Niemi, Sutherland, Brekke, Wang, Basich, Wineberry and P. King

Read first time 2/20/87 and referred to Committee on Transportation.

AN ACT Relating to establishment of a rail development account; amending RCW 82.14.050; adding a new chapter to Title 47 RCW; adding a new section to chapter 82.14 RCW; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1.  A new section is added as a new chapter to Title 47 RCW to read as follows:

          There is hereby established in the state treasury the rail development account.  Money in the account shall be used, after appropriation, for local rail passenger and rail freight purposes.  All earnings of investments of any balances in the rail development account shall be credited to the rail development account.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.14 RCW to read as follows:

          The state treasurer shall deposit in the rail development account  established under section 1 of this act an amount equal to one-sixth of the proceeds of the tax imposed under RCW 82.14.045, less the deduction provided for in RCW 82.14.050.

        Sec. 3.  Section 6, chapter 94, Laws of 1970 ex. sess. as last amended by section 81, chapter 57, Laws of 1985 and RCW 82.14.050 are each amended to read as follows:

          The counties, metropolitan municipal corporations and cities shall contract, prior to the effective date of a resolution or ordinance imposing a sales and use tax, the administration and collection to the state department of revenue, which shall deduct a percentage amount, as provided by contract, not to exceed two percent of the taxes collected for administration and collection expenses incurred by the department.   After the deposit required under section 2 of this 1987 act is made, the remainder of any portion of any tax authorized by this chapter which is collected by the department of revenue shall be deposited by the state department of revenue in the local sales and use tax account hereby created in the state treasury.  Moneys in the local sales and use tax account may be spent only for distribution to counties, metropolitan municipal corporations, and cities imposing a sales and use tax.  All administrative provisions in chapters 82.03, 82.08, 82.12, and 82.32 RCW, as they now exist or may hereafter be amended, shall, insofar as they are applicable to state sales and use taxes, be applicable to taxes imposed pursuant to this chapter.

NEW SECTION. Sec. 4.     This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1987.