H-3763.1  _______________________________________________

                          HOUSE BILL 2849

          _______________________________________________

State of Washington      57th Legislature     2002 Regular Session

By Representative Alexander

Read first time 01/30/2002.  Referred to Committee on Trade & Economic Development.

Revising sales and use taxes for public facilities districts.

    AN ACT Relating to sales and use tax for regional centers under RCW 82.14.390; and amending RCW 82.14.390.

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

    Sec. 1.  RCW 82.14.390 and 1999 c 165 s 13 are each amended to read as follows:

    (1) Except as provided in subsection (6) of this section, the governing body of a public facilities district created under chapter 35.57 or 36.100 RCW that either:  (a) Commences construction of a new regional center, or improvement or rehabilitation of an existing new regional center, before January 1, 2003; or (b) creates a public facilities district under chapter 35.57 or 36.100 RCW before January 1, 2003, and commences construction of a new regional center or improvement rehabilitation of an existing regional center before January 1, 2004, may impose a sales and use tax in accordance with the terms of this chapter.  The tax is in addition to other taxes authorized by law and shall be collected from those persons who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the public facilities district.  The rate of tax shall not exceed 0.033 percent of the selling price in the case of a sales tax or value of the article used in the case of a use tax.

    (2) The tax imposed under subsection (1) of this section shall be deducted from the amount of tax otherwise required to be collected or paid over to the department of revenue under chapter 82.08 or 82.12 RCW.  The department of revenue shall perform the collection of such taxes on behalf of the county at no cost to the public facilities district.

    (3) No tax may be collected under this section before August 1, 2000.  The tax imposed in this section shall expire when the bonds issued for the construction of the regional center and related parking facilities are retired, but not more than twenty-five years after the tax is first collected.

    (4) Moneys collected under this section shall only be used for the purposes set forth in RCW 35.57.020 and must be matched with an amount from other public or private sources equal to thirty-three percent of the amount collected under this section, provided that amounts generated from nonvoter approved taxes authorized under chapter 35.57 RCW or nonvoter approved taxes authorized under chapter 36.100 RCW shall not constitute a public or private source.  For the purpose of this section, public or private sources includes, but is not limited to cash or in-kind contributions used in all phases of the development or improvement of the regional center, land that is donated and used for the siting of the regional center, cash or in-kind contributions from public or private foundations, or amounts attributed to private sector partners as part of a public and private partnership agreement negotiated by the public facilities district.

    (5) The combined total tax levied under this section shall not be greater than 0.033 percent.  If both a public facilities district created under chapter 35.57 RCW and a public facilities district created under chapter 36.100 RCW impose a tax under this section, the tax imposed by a public facilities district created under chapter 35.57 RCW shall be credited against the tax imposed by a public facilities district created under chapter 36.100 RCW.

    (6) A public facilities district created under chapter 36.100 RCW is not eligible to impose the tax under this section if the legislative authority of the county where the public facilities district is located has imposed a sales and use tax under RCW 82.14.0485 or 82.14.0494.

                            --- END ---