AN ACT Relating to a local option tax for housing, health, and human services for the poor and infirm; 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 that:

(1) Our ability to promote economic opportunity and address the needs of low-income people, now and in the future, depends in large part on our capacity to pay for needed programs;

(2) Local governments have begun to recognize that they have a major share of the responsibility for funding and operating housing, health, and human services;

(3) While local governments have addressed this responsibility to a certain extent, their ability is constrained by the revenue options currently available to local governments; and

(4) Current local revenue sources are not adequate to fund the human needs in local communities.

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

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

(2) "Taxable event" means any sale, use, or delivery of aircraft fuel.

(3) "Aircraft" and "aircraft fuel" shall have the meaning given to them in RCW 82.42.010.

NEW SECTION. Sec. 3. The governing body of any city or county may, by resolution or ordinance for the purposes authorized in this chapter, fix and impose a tax on each gallon of aircraft fuel sold, delivered, or used within the city or county. The tax shall be collected upon the occurrence of any taxable event within the city or county. The rate of the tax imposed by a city or county shall be no more than ten cents per gallon.

NEW SECTION. Sec. 4. (1) The provisions of section 3 of this act authorizing a city or county to fix and impose a tax on each gallon of aircraft fuel sold, delivered, or used within the city or county shall apply only to aircraft fuel used for the following purposes: (a) The operation of aircraft when the use is by an air carrier or supplemental air carrier operating under a certificate of public convenience and necessity under the provisions of the federal aviation act of 1958, P.L. 85-726, as amended; and (b) the operation of aircraft in the operations of a local service commuter.

(2) However, the tax shall not be imposed on aircraft fuel used for (a) the operation of aircraft for testing or experimental purposes; (b) the operation of aircraft when the operation is for the training of crews in Washington state for purchasers of aircraft who are certified air carriers; or (c) the operation of aircraft for personal, noncommercial use.

NEW SECTION. Sec. 5. A city or 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. The department of revenue shall deduct a percentage amount, as provided by contract, related to the actual cost of collecting funds but not to exceed one 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 city or county aircraft fuel tax account hereby created in the state treasury. Moneys in the city or county aircraft fuel tax account may be allocated, distributed, and spent only for the purposes set forth in section 7 of this act.

All administrative provisions, due dates, reporting requirements, and return 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 under this chapter.

NEW SECTION. Sec. 6. Monthly the state treasurer shall distribute from the city or county aircraft fuel tax account to the cities or counties and to the state housing trust fund the amount of taxes collected on behalf of each city or county, less the deduction provided in section 5 of this act, in accordance with the allocation set forth in section 7 of this act. The state treasurer shall make the distribution under this section without appropriation.

NEW SECTION. Sec. 7. (1) A city or county imposing a tax under section 3 of this act shall create a human services fund in the city or county treasury. The human services fund shall consist of moneys deposited into the fund under section 5 of this act, less amounts deducted under subsections (2) and (3) of this section. Moneys in the human services fund shall be dedicated to programs or projects which directly benefit the poor and infirm, or which promote economic opportunity for the poor, or which directly help prevent poverty. Where the fund is administered by a county, the county shall disburse moneys from the fund directly to those cities within the county with populations over thirty thousand and shall allocate the moneys to those cities according to the proportion of the population which is at one hundred percent of the federal poverty level in the cities and shall reserve the remainder of the fund for allowed uses within unincorporated areas or cities within the county whose population is less than thirty thousand. The allowed uses of the fund, whether by a city or county, shall be restricted to human services, health care, housing, community facilities, economic opportunity programs, job training and job retention programs, child care, and related services.

(2) Twenty percent of the moneys deposited into the fund under section 5 of this act shall be placed in the state housing trust fund to provide low-income housing across the state.

(3) Five percent of the moneys deposited into the fund under section 5 of this act shall be used by the city or county for tourist and convention promotion.

NEW SECTION. Sec. 8. The tax imposed under this chapter in addition to other taxes imposed by law and the funds created in this chapter shall be used in addition to, and not as a substitute for, moneys currently used by a city or county for housing, health, human services programs for the poor and infirm, or for the promotion of tourism and convention trade.

NEW SECTION. Sec. 9. Sections 1 through 8 of this act shall constitute a new chapter in Title 82 RCW.