6049-S.E AMH VANL H3031.1

ESSB 6049 - H AMD 819 ADOPTED 4/13/95

By Representative Van Luven and others

    Strike everything after the enacting clause and insert the following:

    "NEW SECTION. Sec. 1.  A new section is added to chapter 67.28 RCW to read as follows:

    The legislative authority of a county with a population of one million or more may by resolution or ordinance impose a sales and use tax upon retail car rentals within the county that are taxable by the state under chapters 82.08 and 82.12 RCW.  The rate of tax shall be two percent of the selling price in the case of a sales tax or rental value of the vehicle in the case of a use tax.  Any seller, as defined in RCW 82.08.010, who is required to collect any tax under this section for any county shall pay over such tax to the county as provided in RCW 67.28.200 and such tax shall be deducted from the amount of tax such seller would otherwise be required to collect and pay over to the department of revenue under RCW 82.14.030 and 82.14.049.  All taxes levied and collected under this section shall be deposited into the baseball stadium account created in section 3 of this act.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.04 RCW to read as follows:

    In computing tax there may be deducted from the measure of tax by those engaged in banking, loan, security, or other financial businesses, amounts derived from interest received on loans for the siting, acquisition, or construction of a major league baseball stadium in a county with a population of one million or more.

NEW SECTION. Sec. 3.  A new section is added to chapter 67.28 RCW to read as follows:

    The baseball stadium account is created in the state treasury.  The account shall include revenue from the sources established by section 1 of this act, appropriations by the legislature, private contributions, and all other sources.  Expenditures from the fund may be used only for the purpose of paying all or part of the cost of the siting, acquisition, and construction of a major league baseball stadium by a county with a population of one million or more.  To be eligible to receive disbursements from the fund, a county must evidence intent to build a stadium through the adoption of a resolution and must establish that it is obligated and committed to the project.  Only the director of the office of financial management or the director's designee may authorize expenditures from the account.  The account is subject to allotment procedures under chapter 43.88 RCW, but no appropriation is required for expenditures.

NEW SECTION. Sec. 4.  Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

    (1) "Applicant" means a person applying for a tax deferral under this chapter.

    (2) "Certificate holder" means an applicant to whom a tax deferral certificate has been issued.

    (3) "Department" means the department of revenue.

    (4) "Initiation of construction" means that date upon which on-site construction commences.

    (5) "Investment project" means construction of buildings, site preparation, and the acquisition of related machinery and equipment when the buildings, machinery, and equipment are to be used in the siting, acquisition, and construction of a major league baseball stadium, including services and labor rendered and tangible personal property consumed.

    (6) "Machinery and equipment" means all fixtures, equipment, and support facilities that are an integral and necessary part of a major league baseball stadium.

    (7) "Major league baseball stadium" means a site for major league baseball that is located in a county with a population of one million or more on which construction is commenced after the effective date of this act and prior to July 1, 1999.

    (8) "Operationally complete" means constructed or improved to the point of being functionally useable for major league baseball.

    (9) "Person" has the meaning given in RCW 82.04.030.

    (10) "Recipient" means a person receiving a tax deferral under this chapter.

NEW SECTION. Sec. 5.  Application for deferral of taxes under this chapter shall be made before initiation of construction of the major league baseball stadium or acquisition of machinery and equipment.  The application shall be made to the department in a form and manner prescribed by the department.  The application shall contain information regarding the location of the investment project, estimated or actual costs, time schedules for completion and operation, and other information required by the department.  The department shall rule on the application within sixty days.

NEW SECTION. Sec. 6.  (1) The department shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW on each investment project.  The use of the certificate shall be governed by rules established by the department.

    (2) This section shall expire July 1, 1999.

NEW SECTION. Sec. 7.  (1) The recipient shall begin paying the deferred taxes in the fifth year after the date certified by the department as the date on which the investment project is operationally complete.  The first payment is due on December 31st of the fifth calendar year after such certified date, with subsequent annual payments due on December 31st of the following nine years with amounts of payment scheduled as follows:

           Repayment Year          % of Deferred Tax Repaid

               1                           10%

               2                           10%

               3                           10%

               4                           10%

               5                           10%

               6                           10%

               7                           10%

               8                           10%

               9                           10%

              10                          10%

    (2) The department may authorize an accelerated repayment schedule upon request of the recipient.

    (3) Interest shall not be charged on any taxes deferred under this chapter for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed for delinquent payments under this chapter.  The debt for deferred taxes is not extinguished by insolvency or other failure of the recipient.

NEW SECTION. Sec. 8.  Chapter 82.32 RCW applies to the administration of this chapter.

NEW SECTION. Sec. 9.  Applications and any other information received by the department under this chapter is not confidential and is subject to disclosure.

NEW SECTION. Sec. 10.  Sections 4 through 9 of this act shall constitute a new chapter in Title 82 RCW.

NEW SECTION. Sec. 11.  If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 12.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect July 1, 1995."

ESSB 6049 - H AMD

By Representative Van Luven

    On page 1, line 2 of the title, after "teams;" strike the remainder of the title and insert "adding new sections to chapter 67.28 RCW; adding a new section to chapter 82.04 RCW; adding a new chapter to Title 82 RCW; providing an effective date; and declaring an emergency."

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