AN ACT Relating to a county tax for housing assistance for alcoholics; amending RCW 66.08.120 and 82.02.020; adding a new section to chapter 70.96 RCW; and adding a new chapter to Title 82 RCW.

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

NEW SECTION. Sec. 1. The legislature finds:

(1) In adopting the alcoholism and drug addiction treatment and support act of 1987, the legislature affirmed that shelter assistance is an essential service necessary to prevent homelessness and meet the basic needs of indigent alcoholics and drug abusers;

(2) Affordable, alcohol-free housing is an integral part of support to recovering low-income alcohol and substance abusers and should be combined with treatment and programs such as job training to help people regain independence;

(3) For low-income alcohol and substance abusers, low-cost housing is difficult to find and to afford in many parts of the state;

(4) Counties have the authority and responsibility to provide alcohol and substance abuse treatment, including raising additional local funds to support programs;

(5) Sales of beer, wine, and spirits are rationally related to alcohol addiction, and revenue from these sales should be available as a source of funds for housing assistance.

NEW SECTION. Sec. 2. For purposes of this chapter:

(1) A sale consisting of the sale of spirits, wine, beer, and strong beer shall be deemed to have occurred at the state liquor store or agency at or from which delivery is made to the consumer or the class H licensee.

(2) A wholesale sale of beer and wine shall be deemed to have occurred at the retail outlet to which the beer and wine is delivered and shall include sales direct to consumers on the winery or brewery premises.

(3) The meaning ascribed to words and phrases in chapters 82.04 and 82.08 RCW, insofar as applicable, shall have full force and effect with respect to taxes imposed under this chapter.

(4) "Taxable event" means any sale of spirits, wine, beer, or strong beer by a state liquor store or agency and any wholesale sale of beer or wine.

(5) "Spirits," "wine," "beer," and "strong beer" shall have the meanings ascribed to them in chapter 66.04 RCW.

NEW SECTION. Sec. 3. The governing body of any county may, by resolution or ordinance for the purposes authorized by this chapter, fix and impose a tax on the sale of spirits, wine, beer, and strong beer by state liquor stores and agencies and on the wholesale sale of beer and wine. The tax shall be collected from the buyer upon the occurrence of any taxable event within the county. The rate of such tax imposed by a county shall be five percent of the selling price.

NEW SECTION. Sec. 4. A county shall contract, prior to the effective date of a resolution or ordinance imposing a tax under this chapter, for the administration and collection of the tax by the 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. The remainder of any portion of any tax authorized by this chapter which is collected by the department shall be deposited by the department in the county liquor tax account hereby created in the state treasury. Moneys in the county liquor tax account may be spent only for distribution to counties imposing a tax under this chapter.

All administrative provisions in chapters 82.03, 82.08, and 82.32 RCW shall, insofar as they are applicable to state sales taxes, be applicable to taxes imposed pursuant to this chapter. The tax due dates, reporting periods, and return requirements applicable to chapter 82.08 RCW apply equally to the tax imposed in this chapter. In applying RCW 82.08.050 and 82.08.060 to the tax on the wholesale sale of beer and wine, "seller" shall mean the person making sales at wholesale.

NEW SECTION. Sec. 5. Monthly the state treasurer shall distribute from the county liquor tax account to the counties the amount of tax collected on behalf of each county, less the deduction provided in section 4 of this act. The state treasurer shall make the distribution under this section without appropriation.

Amounts received by the county shall be deposited in the county's housing fund created under section 7 of this act.

NEW SECTION. Sec. 6. The tax imposed under this chapter is in addition to any other taxes imposed by law.

NEW SECTION. Sec. 7. A new section is added to chapter 70.96 RCW to read as follows:

(1) A county imposing a tax under section 3 of this act shall create a housing fund in the county treasury. The housing fund shall consist of moneys deposited into the fund under section 5 of this act and shall be administered by the county alcoholism program coordinator. Moneys in the housing fund may be spent only for the purpose of paying all or part of eligible housing costs or to pay or secure the payment of all or any portion of the principal and interest on general obligation bonds or revenue bonds issued for such purposes. The county legislative authority shall allocate moneys to eligible housing projects. Eligible housing costs include:

(a) New construction;

(b) Acquisition of land and/or buildings;

(d) Lease payments;

(e) Rental assistance;

(f) Maintenance and repair expenses;

(g) Support services to be provided as part of a new housing development, to a maximum of twenty percent of the cost of each housing project. Support services are eligible for continuing funding in subsequent years. Examples of such services include but are not limited to employment and training programs, child care, and transportation; and

(h) Support services funding to existing housing serving eligible individuals, but with a lower priority until a supply of housing has been developed which is considered adequate by the county alcoholism program coordinator.

(2) Housing developed or acquired using moneys in the housing fund shall serve individuals with incomes below fifty percent of the area median household income. Eligible individuals include:

(a) Alcoholics or substance abusers who have completed assessment through the county alcoholism program and have been determined to be in need of services; and

(b) Other low-income individuals with alcohol-related problems, such as homeless or other troubled youth, or persons with mental illness, who are also alcohol or substance abusers.

(3) Reasonable costs of administering the eligible housing activities defined in this section may be paid from the housing fund, to a maximum of twenty percent of the tax revenues received by the county each year.

Sec. 8. Section 29, chapter 62, Laws of 1933 ex. sess. and RCW 66.08.120 are each amended to read as follows:

Except as provided in chapter 82.-- RCW (sections 1 through 6 of this 1989 act), no municipality or county shall have power to license the sale of, or impose an excise tax upon, liquor as defined in this title, or to license the sale or distribution thereof in any manner; and any power not conferred by law on any municipality or county to license premises which may be licensed under this section, or to impose an excise tax upon liquor, or to license the sale and distribution thereof, as defined in this title, shall be suspended and shall be of no further effect: PROVIDED, That municipalities and counties shall have power to adopt police ordinances and regulations not in conflict with this title or with the regulations made by the board.

Sec. 9. Section 82.02.020, chapter 15, Laws of 1961 as last amended by section 6, chapter 179, Laws of 1988 and RCW 82.02.020 are each amended to read as follows:

Except only as expressly provided in RCW 67.28.180 and 67.28.190 and the provisions of chapters 82.14 and 82.-- RCW (sections 1 through 6 of this 1989 act), the state preempts the field of imposing taxes upon retail sales of tangible personal property, the use of tangible personal property, parimutuel wagering authorized pursuant to RCW 67.16.060, conveyances, and cigarettes, and no county, town, or other municipal subdivision shall have the right to impose taxes of that nature. No county, city, town, or other municipal corporation shall impose any tax, fee, or charge, either direct or indirect, on the construction or reconstruction of residential buildings, commercial buildings, industrial buildings, or on any other building or building space or appurtenance thereto, or on the development, subdivision, classification, or reclassification of land. However, this section does not preclude dedications of land or easements pursuant to RCW 58.17.110 within the proposed development or plat which the county, city, town, or other municipal corporation can demonstrate are reasonably necessary as a direct result of the proposed development or plat to which the dedication of land or easement is to apply.

This section does not prohibit voluntary agreements with counties, cities, towns, or other municipal corporations that allow a payment in lieu of a dedication of land or to mitigate a direct impact that has been identified as a consequence of a proposed development, subdivision, or plat. A local government shall not use such voluntary agreements for local off-site transportation improvements within the geographic boundaries of the area or areas covered by an adopted transportation program authorized by chapter 39.92 RCW. Any such voluntary agreement is subject to the following provisions:

(1) The payment shall be held in a reserve account and may only be expended to fund a capital improvement agreed upon by the parties to mitigate the identified, direct impact;

(2) The payment shall be expended in all cases within five years of collection; and

(3) Any payment not so expended shall be refunded with interest at the rate applied to judgments to the property owners of record at the time of the refund; however, if the payment is not expended within five years due to delay attributable to the developer, the payment shall be refunded without interest.

No county, city, town, or other municipal corporation shall require any payment as part of such a voluntary agreement which the county, city, town, or other municipal corporation cannot establish is reasonably necessary as a direct result of the proposed development or plat.

Nothing in this section prohibits cities, towns, counties, or other municipal corporations from collecting reasonable fees from an applicant for a permit or other governmental approval to cover the cost to the city, town, county, or other municipal corporation of processing applications, inspecting and reviewing plans, or preparing detailed statements required by chapter 43.21C RCW.

This section does not limit the existing authority of any county, city, town, or other municipal corporation to impose special assessments on property specifically benefitted thereby in the manner prescribed by law.

Nothing in this section prohibits counties, cities, or towns from imposing or permits counties, cities, or towns to impose water, sewer, natural gas, drainage utility, and drainage system charges: PROVIDED, That no such charge shall exceed the proportionate share of such utility or system's capital costs which the county, city, or town can demonstrate are attributable to the property being charged: PROVIDED FURTHER, That these provisions shall not be interpreted to expand or contract any existing authority of counties, cities, or towns to impose such charges.

Nothing in this section prohibits a transportation benefit district from imposing fees or charges authorized in RCW 36.73.120 nor prohibits the legislative authority of a county, city, or town from approving the imposition of such fees within a transportation benefit district.

Nothing in this section prohibits counties, cities, or towns from imposing transportation impact fees authorized pursuant to chapter 39.92 RCW.

This section does not apply to special purpose districts formed and acting pursuant to Titles 54, 56, 57, or 87 RCW, nor is the authority conferred by these titles affected.

NEW SECTION. Sec. 10. Sections 1 through 6 of this act shall constitute a new chapter in Title 82 RCW.