H-1569.1  _______________________________________________

                          HOUSE BILL 2062

          _______________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Representative Carrell

Read first time 02/13/2001.  Referred to Committee on Finance.

Allocating incremental gains in state sales tax revenue to low sales tax revenue jurisdictions.

    AN ACT Relating to providing incremental gains in state sales tax revenues to municipal jurisdictions with low sales tax revenues; and adding a new section to chapter 82.14 RCW.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 82.14 RCW to read as follows:

    (1) The department shall determine before January 1st of each year the total and the per capita amount of revenues for each city imposing the sales and use tax authorized under RCW 82.14.030(1) for the previous calendar year.  For a city with an official incorporation date after January 1st of the previous calendar year, the department shall estimate the total and per capita amount of revenues from the tax authorized under RCW 82.14.030(1) that the new city would have received had the city received revenues from the tax the entire calendar year.

Based on these calculations, the department shall determine before January 1st of each year the statewide weighted average per capita level of revenues for all cities imposing the sales and use tax authorized under RCW 82.14.030(1) for the previous calendar year.

    (2) Except as provided in subsections (3) and (4) of this section, for the taxes imposed under chapter 82.08 or 82.12 RCW, the treasurer shall distribute to eligible cities no later than January 1st of each year the portion of the tax that is collected during the previous calendar year within the taxing jurisdiction of an eligible city that is in excess of the amount collected in the year prior to the previous calendar year, less the amount of growth in collections attributable to inflation and to population growth within the taxing jurisdiction.

    (3) For an eligible city with an incorporation date after January 1st of the year prior to the previous calendar year, for the taxes imposed under chapter 82.08 or 82.12 RCW, the treasurer shall distribute no later than January 1st of the year the portion of the tax that is collected within the taxing jurisdiction during the previous calendar year after the anniversary date of incorporation that is in excess of the amount collected in the year prior to the previous calendar year, less the amount of growth in collections attributable to inflation and to population growth within the taxing jurisdiction.

    (4) If the full amount of the distribution provided in this section, when added to the total revenue collected by the jurisdiction for the tax imposed under RCW 82.14.030(1), would result in a per capita level of revenue that exceeds seventy percent of the statewide weighted average per capita revenue as provided in subsection (1) of this section, the treasurer shall reduce the distribution so that, when added to the total revenue collected by the jurisdiction for the tax imposed under RCW 82.14.030(1), the total equals seventy percent of the statewide weighted average per capita revenue as provided in subsection (1) of this section.

    (5) For the purposes of this section, "eligible city" means a city imposing the sales and use tax under RCW 82.14.030(1) at the maximum rate and receiving less than seventy percent of the statewide weighted average per capita level of revenues for all cities for the previous calendar year as determined by the department under subsection (1) of this section.  "Eligible city" does not include a city with an official incorporation date after January 1st of the previous calendar year.

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