CERTIFICATION OF ENROLLMENT

 

                  SUBSTITUTE SENATE BILL 5781

 

 

                   Chapter 402, Laws of 1999

 

                         (partial veto)

 

                        56th Legislature

                      1999 Regular Session

 

 

COMMUTE TRIP REDUCTION TAX CREDIT

 

 

 

                    EFFECTIVE DATE:  7/25/99

Passed by the Senate April 23, 1999

  YEAS 37   NAYS 4

 

 

               BRAD OWEN

President of the Senate

 

Passed by the House April 12, 1999

  YEAS 85   NAYS 8

             CERTIFICATE

 

I, Tony M. Cook, Secretary of the Senate of the State of Washington, do hereby certify that the attached is  SUBSTITUTE SENATE BILL 5781 as passed by the Senate and the House of Representatives on the dates hereon set forth.

 

 

             CLYDE BALLARD

Speaker of the

      House of Representatives

            TONY M. COOK

                            Secretary

 

 

 

              FRANK CHOPP

Speaker of the

      House of Representatives

 

 

Approved May 18, 1999, with the exception of 6, 7, and 8, which are vetoed.Place Style On Codes above, and Style Off Codes below.   

                                FILED          

 

 

             May 18, 1999 - 3:34 p.m.

 

 

 

              GARY LOCKE

Governor of the State of Washington

                 Secretary of State

                 State of Washington


          _______________________________________________

 

                    SUBSTITUTE SENATE BILL 5781

          _______________________________________________

 

                      AS AMENDED BY THE HOUSE

 

             Passed Legislature - 1999 Regular Session

 

State of Washington      56th Legislature     1999 Regular Session

 

By Senate Committee on Transportation (originally sponsored by Senators Eide, Swecker, Fraser and Costa; by request of Department of Ecology)

 

Read first time 03/08/99.

Extending the commute trip tax reduction credit.   


    AN ACT Relating to the commute trip reduction tax credit; amending RCW 82.04.4453, 82.16.048, 82.04.4454, 82.16.049, and 82.44.180; amending 1996 c 128 s 7 (uncodified); amending 1996 c 128 s 6 (uncodified); providing an effective date; and declaring an emergency.

 

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

 

    Sec. 1.  RCW 82.04.4453 and 1996 c 128 s 1 are each amended to read as follows:

    (1)(a) Employers in this state who are taxable under this chapter and provide financial incentives to their employees for ride sharing, for using public transportation, or for using nonmotorized commuting before June 30, ((2000)) 2006, shall be allowed a credit for amounts paid to or on behalf of employees for ride sharing in vehicles carrying two or more persons, for using public transportation, or for using nonmotorized commuting, not to exceed sixty dollars per employee per year.  The credit shall be equal to the amount paid to or on behalf of each employee multiplied by fifty percent, but may not exceed sixty dollars per employee per year.

    (b) Property managers who are taxable under this chapter and provide financial incentives to persons employed at a worksite managed by the property manager in this state for ride sharing, for using public transportation, or for using nonmotorized commuting before June 30, 2006, shall be allowed a credit for amounts paid to or on behalf of these persons for ride sharing in vehicles carrying two or more persons, for using public transportation, or for using nonmotorized commuting, not to exceed sixty dollars per person per year.  A person may not take a credit under this section for amounts claimed for credit by other persons.

    (c) For ride sharing in vehicles carrying two persons, the credit shall be equal to the amount paid to or on behalf of each employee multiplied by thirty percent, but may not exceed sixty dollars per employee per year.  The credit may not exceed the amount of tax that would otherwise be due under this chapter.

    (2) Application for tax credit under this chapter may only be made in the form and manner prescribed in rules adopted by the department.

    (3) The credit shall be taken not more than once quarterly and not less than once annually against taxes due for the same calendar year in which the amounts for which credit is claimed were paid to or on behalf of employees for ride sharing, for using public transportation, or for using nonmotorized commuting and must be claimed by the due date of the last tax return for the calendar year in which the payment is made.

    (4) The director shall on the 25th of February, May, August, and November of each year advise the state treasurer of the amount of credit taken during the preceding calendar quarter ending on the last day of December, March, June, and September, respectively.

    (5) On the first of April, July, October, and January of each year, the state treasurer based upon information provided by the department shall deposit to the general fund a sum equal to the dollar amount of the credit provided under subsection (1) of this section from the air pollution control account ((to the general fund)), the transportation account, and the public transportation systems account.  The first draw on reimbursements to the general fund must be from the air pollution control account, and reimbursements must not exceed one and one-half million dollars in any calendar year for the tax credits claimed under RCW 82.04.4453 and 82.16.048.  Reimbursements to the general fund in excess of that amount drawn from the air pollution control account must be drawn, subject to appropriation, in equal amounts from the transportation account and the public transportation systems account; but in no case may those amounts exceed three hundred seventy-five thousand dollars from each account in any calendar year

    (6) The commute trip reduction task force shall determine the effectiveness of this tax credit as part of its ongoing evaluation of the commute trip reduction law and report ((no later than December 1, 1997,)) to the legislative transportation committee and to the fiscal committees of the house of representatives and the senate.  The report shall include information on the amount of tax credits claimed to date and recommendations on future funding for the tax credit program.  The report shall be incorporated into the recommendations required in RCW 70.94.537(5).

    (7) Any person who knowingly makes a false statement of a material fact in the application for a credit under subsection (1) of this section is guilty of a gross misdemeanor.

    (8) A person may not receive credit for amounts paid to or on behalf of the same employee under both this section and RCW 82.16.048.

 

    Sec. 2.  RCW 82.16.048 and 1996 c 128 s 3 are each amended to read as follows:

    (1)(a) Employers in this state who are taxable under this chapter and provide financial incentives to their employees for ride sharing, for using public transportation, or for using nonmotorized commuting before June 30, ((2000)) 2006, shall be allowed a credit for amounts paid to or on behalf of employees for ride sharing in vehicles carrying two or more persons, for using public transportation, or for using nonmotorized commuting, not to exceed sixty dollars per employee per year.  The credit shall be equal to the amount paid to or on behalf of each employee multiplied by fifty percent, but may not exceed sixty dollars per employee per year.

    (b) Property managers who are taxable under this chapter and provide financial incentives to persons employed at a worksite managed by the property manager in this state for ride sharing, for using public transportation, or for using nonmotorized commuting before June 30, 2006, shall be allowed a credit for amounts paid to or on behalf of these persons for ride sharing in vehicles carrying two or more persons, for using public transportation, or for using nonmotorized commuting, not to exceed sixty dollars per person per year.  A person may not take a credit under this section for amounts claimed for credit by other persons.

    (c) For ride sharing in vehicles carrying two persons, the credit shall be equal to the amount paid to or on behalf of each employee multiplied by thirty percent, but may not exceed sixty dollars per employee per year.  The credit may not exceed the amount of tax that would otherwise be due under this chapter.

    (2) Application for tax credit under this chapter may only be made in the form and manner prescribed in rules adopted by the department.

    (3) The credit shall be taken not more than once quarterly and not less than once annually against taxes due for the same calendar year in which the amounts for which credit is claimed were paid to or on behalf of employees for ride sharing, for using public transportation, or for using nonmotorized commuting and must be claimed by the due date of the last tax return for the calendar year in which the payment is made.

    (4) The director shall on the 25th of February, May, August, and November of each year advise the state treasurer of the amount of credit taken during the preceding calendar quarter ending on the last day of December, March, June, and September, respectively.

    (5) On the first of April, July, October, and January of each year, the state treasurer based upon information provided by the department shall deposit to the general fund a sum equal to the dollar amount of the credit provided under subsection (1) of this section from the air pollution control account ((to the general fund)), the transportation account, and the public transportation systems account.  The first draw on reimbursements to the general fund must be from the air pollution control account, and reimbursements must not exceed one and one-half million dollars in any calendar year for the tax credits claimed under RCW 82.04.4453 and 82.16.048.  Reimbursements to the general fund in excess of that amount drawn from the air pollution control account must be drawn, subject to appropriation, in equal amounts from the transportation account and the public transportation systems account; but in no case may those amounts exceed three hundred seventy-five thousand dollars from each account in any calendar year.

    (6) The commute trip reduction task force shall determine the effectiveness of this tax credit as part of its ongoing evaluation of the commute trip reduction law and report ((no later than December 1, 1997,)) to the legislative transportation committee and to the fiscal committees of the house of representatives and the senate.  The report shall include information on the amount of tax credits claimed to date and recommendations on future funding for the tax credit program.  The report shall be incorporated into the recommendations required in RCW 70.94.537(5).

    (7) Any person who knowingly makes a false statement of a material fact in the application for a credit under subsection (1) of this section is guilty of a gross misdemeanor.

    (8) A person may not receive credit for amounts paid to or on behalf of the same employee under both this section and RCW 82.04.4453.

 

    Sec. 3.  RCW 82.04.4454 and 1996 c 128 s 2 are each amended to read as follows:

    (1) The department shall keep a running total of all credits granted under RCW 82.04.4453 and 82.16.048 during each calendar year, and shall disallow any credits that would cause the tabulation for any calendar year to exceed ((one)) two million ((five)) two hundred twenty-five thousand dollars, or the amount provided from the air pollution control account and the appropriations from the transportation account and the public transportation systems account, whichever is less.

    (2) No ((employer shall be)) person is eligible for tax credits under RCW 82.04.4453 and 82.16.048 in excess of one hundred thousand dollars in any calendar year.

    (3) No ((employer shall be)) person is eligible for tax credits under RCW 82.04.4453 in excess of the amount of tax that would otherwise be due under this chapter.

    (4) No portion of an application for credit disallowed under this section may be carried back or carried forward.

 

    Sec. 4.  RCW 82.16.049 and 1996 c 128 s 4 are each amended to read as follows:

    (1) The department shall keep a running total of all credits granted under RCW 82.04.4453 and 82.16.048 during each calendar year, and shall disallow any credits that would cause the tabulation for any calendar year to exceed ((one)) two million ((five)) two hundred twenty-five thousand dollars, or the amount provided from the air pollution control account and the appropriations from the transportation account and the public transportation systems account, whichever is less.

    (2) No ((employer shall be)) person is eligible for tax credits under RCW 82.04.4453 and 82.16.048 in excess of one hundred thousand dollars in any calendar year.

    (3) No ((employer shall be)) person is eligible for tax credits under RCW 82.16.048 in excess of the amount of tax that would otherwise be due under this chapter.

    (4) No portion of an application for credit disallowed under this section may be carried back or carried forward.

 

    Sec. 5.  RCW 82.44.180 and 1998 c 321 s 41 (Referendum Bill No. 49) are each amended to read as follows:

    (1) The transportation fund is created in the state treasury.  Revenues under RCW 82.44.110 and 82.50.510 shall be deposited into the fund as provided in those sections.

    Moneys in the fund may be spent only after appropriation.  Expenditures from the fund may be used only for transportation purposes and activities and operations of the Washington state patrol not directly related to the policing of public highways and that are not authorized under Article II, section 40 of the state Constitution.

    (2) ((There is hereby created the central Puget Sound public transportation account within the transportation fund.  Moneys deposited into the account under RCW 82.44.150(2)(b) shall be appropriated to the transportation improvement board and allocated by the transportation improvement board to public transportation projects within the region from which the funds are derived, solely for:

    (a) Planning;

    (b) Development of capital projects;

    (c) Development of high capacity transportation systems as defined in RCW 81.104.015;

    (d) Development of high occupancy vehicle lanes and related facilities as defined in RCW 81.100.020; and

    (e) Public transportation system contributions required to fund projects under federal programs and those approved by the transportation improvement board from other fund sources.

    (3))) There is hereby created the public transportation systems account within the transportation fund.  Moneys deposited into the account under RCW 82.44.150(2)(b) and (c) shall be appropriated to the transportation improvement board and allocated by the transportation improvement board to public transportation projects submitted by the public transportation systems ((from which the funds are derived)) as defined by chapters 36.56, 36.57, and 36.57A RCW and RCW 35.84.060 and 81.112.030, and the Washington state ferry system, solely for:

    (a) Planning;

    (b) Development of capital projects;

    (c) Development of high capacity transportation systems as defined in RCW 81.104.015;

    (d) Development of high occupancy vehicle lanes and related facilities as defined in RCW 81.100.020;

    (e) Other public transportation system-related roadway projects on state highways, county roads, or city streets; ((and))

    (f) Public transportation system contributions required to fund projects under federal programs and those approved by the transportation improvement board from other fund sources; and

    (g) Reimbursement to the general fund of tax credits authorized under RCW 82.04.4453 and 82.16.048, subject to appropriation.

 

    *Sec. 6. 1996 c 128 s 7 (uncodified) is amended to read as follows:

    (1) This act takes effect July 1, 1996.

    (2) This act expires December 31, ((2000)) 2006.

*Sec. 6 was vetoed.  See message at end of chapter.

 

    *Sec. 7. 1996 c 128 s 6 (uncodified) is amended to read as follows:

    This act shall expire December 31, ((2000)) 2006.

*Sec. 7 was vetoed.  See message at end of chapter.

 

    *NEW SECTION.  Sec. 8.  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 takes effect July 1, 1999.

*Sec. 8 was vetoed.  See message at end of chapter.


    Passed the Senate April 23, 1999.

    Passed the House April 12, 1999.

Approved by the Governor May 18, 1999, with the exception of certain items that were vetoed.

    Filed in Office of Secretary of State May 18, 1999.


 

    Note:  Governor's explanation of partial veto is as follows:

 

    "I am returning herewith, without my approval as to sections 6, 7, and 8, Substitute Senate Bill No. 5781 entitled:

 

"AN ACT Relating to the commute trip reduction tax credit;"

 

    Substitute Senate Bill No. 5781 extends the commute trip reduction (CTR) tax credit to June 30, 2006 and continues the current policy of using the Air Pollution Control Account (APCA) to reimburse the State General Fund for the first $1.5 million of tax credits given each year.

 

    Sections 6 and 7 of the bill would extend the entire CTR tax credit program to December 31, 2006.  Based upon the last proposed legislative transportation budget, this bill as drafted, combined with the operating budget for the 1999-2001 biennium, creates a shortfall in the APCA of between $1.3 million and $2.4 million in the next biennium.

 

    I support extension of the CTR tax credit as a means of reducing traffic congestion.  However, I cannot in good faith support the long-term implementation of the statutory changes contained in sections 1 through 5 of this bill unless the legislature also provides a solution to the projected deficit in the APCA.

 

    The deficit in the APCA could result in increases in air pollution because of reduced technical assistance, voluntary compliance, and monitoring efforts.  The state's margin of safety in healthy air standards in some areas are already in jeopardy due to our inability to adequately track and respond to changes in air pollution emissions.  In the central Puget Sound region and the city of Vancouver, for example, the margin of safety for ozone pollution is one percent of current emissions.  A return to non-attainment of the ozone standard is already extremely likely in light of the separate overall ten percent reduction in the Department of Ecology's current level of effort.  A shortfall in the APCA would exacerbate this problem.

 

    For areas that fall into non-attainment, we risk losing several million dollars of federal air pollution control grant money and hundreds of millions in federal transportation funds for expanding roadway capacity.  We could be forced to restrict business growth when air quality fails to meet federal standards.  We risk more federal intervention and less local control of air quality decisions, not to mention increasing costs to businesses to implement tighter federal controls.

 

    I am directing the Office of Financial Management to work with the Department of Ecology, Department of Transportation, Legislative Transportation Committee, Senate Ways and Means Committee, and House Appropriations Committee to develop a workable proposal for funding the APCA and the CTR tax credit program, for implementation during the 2000 regular legislative session.

 

    Section 8 of the bill is an unnecessary emergency clause that would require this bill to take effect July 1, 1999.

 

    For these reasons, I have vetoed sections 6, 7, and 8 of Substitute Senate Bill No. 5781.

 

    With the exception of sections 6, 7, and 8, Substitute Senate Bill No. 5781 is approved."