AN
ACT Relating to downtown and neighborhood commercial districts; and adding a
new chapter to Title 35 RCW.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. (1)
The legislature finds:
(a)
The continued economic vitality of downtown and neighborhood commercial
districts in our state's cities is essential to community preservation, social
cohesion, and economic growth;
(b)
In recent years there has been a deterioration of downtown and neighborhood
commercial districts in both rural and urban communities due to a shifting
population base, changes in the marketplace, and greater competition from
suburban shopping malls, discount centers, and through the internet;
(c)
This decline has eroded the ability of businesses and property owners to
renovate and enhance their commercial and residential properties;
(d)
In many areas of the state, downtown and neighborhood commercial areas are
burdened further by deteriorating buildings, vacant building that cannot be
legally occupied, and vacant brownfield infill sites which pose significant
health and safety problems to tenants and pedestrians, and constitute a
significant blight and detrimental impact on the health, safety, and welfare of
the community, as well as its economic health;
(e)
Business owners in these districts need to maintain their local economies in
order to provide goods and services to adjacent residents, to provide
employment opportunities, to restore blighted properties, and to avoid
disinvestment and economic dislocations, and have developed downtown and
neighborhood commercial district revitalization programs to address these
problems; and
(f)
It is in the best interest of the state of Washington to stop the decay of
community areas and to promote and facilitate the orderly redevelopment of
these areas.
(2)
It is the intent of the legislature to establish a program to:
(a)
Provide for the allocation of a portion of locally imposed excise taxes to
assist local governments in the financing of needed health and safety
improvements, public improvements, and other public investments, to encourage
private development and to enhance and revitalize neighborhood business
districts and downtown areas; and
(b)
Provide technical assistance and training to local governments, business
organizations, downtown and neighborhood commercial district organizations, and
business and property owners to accomplish community and economic
revitalization and development of business districts.
NEW
SECTION. Sec. 2. The
definitions in this section apply throughout this chapter unless the context
clearly requires otherwise.
(1)
"Local retail sales and use tax" means the tax levied by a city or
town under RCW 82.14.030, excluding that portion which a county is entitled to
receive under RCW 82.14.030.
(2)
"Local retail sales and use tax increment revenue" means that portion
of the local retail sales and use tax collected in each year upon any retail
sale or any use of an article of tangible personal property within a downtown
or neighborhood commercial district that is in excess of the amount of local
retail sales and use tax collected on sales or uses within the downtown or
neighborhood commercial district in the year preceding.
(3)
"Downtown or neighborhood commercial district" means (a) an area or
areas designated by the legislative authority of a city or town with a
population over one hundred thousand and that are typically limited to the
pedestrian core area or the central commercial district and compact business
districts that serve specific neighborhoods within the city or town; or (b)
commercial areas designated as main street areas by the office of trade and
economic development.
(4)
"Community revitalization project" means:
(a)
Health and safety improvements authorized to be publicly financed under chapter
35.80 or 35.81 RCW;
(b)
Publicly owned or leased facilities within the jurisdiction of a local
government which the sponsor has authority to provide; and
(c)
Expenditure for any of the following purposes:
(i)
Providing environmental analysis, professional management, planning, and
promotion within a downtown or neighborhood commercial district including the
management and promotion of retail trade activities in the district;
(ii)
Providing maintenance and security for common or public areas in the downtown
or neighborhood commercial district;
(iii)
Historic preservation activities authorized under RCW 35.21.395; or
(iv)
Project design and planning, land acquisition, site preparation, construction,
reconstruction, rehabilitation, improvement, operation, and installation of a
public facility; the costs of financing, including interest during
construction, legal and other professional services, taxes, and insurance; the
costs of complying with this chapter and other applicable law; and the
administrative costs reasonably necessary and related to these costs.
NEW
SECTION. Sec. 3. Local
retail sales and use tax increment revenue, or any portion thereof, may be
applied as follows:
(1)
To pay downtown or neighborhood commercial district community revitalization
costs;
(2)
To pay into bond redemption funds established to pay the principal and interest
on general obligation or revenue bonds issued to finance a downtown or
neighborhood commercial district community revitalization project;
(3)
In combination with any other public or private funds available to the city or
town for the purposes provided in this section; or
(4)
To pay any combination of costs under subsection (1), (2), or (3) of this
section.
NEW
SECTION. Sec. 4. (1)
The legislative authority of a city or town may authorize the use of local
sales and use tax increment revenue for any purpose authorized in this chapter
within the boundaries of a downtown or one or more neighborhood commercial
districts.
(2)
Prior to authorizing the use of local sales and use tax increment revenue, the
legislative authority must designate the boundaries of each downtown or
neighborhood commercial district.
(3)
The legislative authority of a city or town may choose to pool the local sales
and use tax increment revenue collected in the various downtown and neighborhood
commercial districts within the city or town for the purposes authorized in
this chapter.
NEW
SECTION. Sec. 5. A
city or town shall determine at its own cost the amount of local sales and use
tax increment revenue that may be generated in the downtown and neighborhood
commercial districts it designates. The department of revenue may, at its
discretion, provide advice or other assistance to cities and towns to assist in
determining local sales and use tax increment revenue.
NEW
SECTION. Sec. 6. 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. 7.
Sections 1 through 6 of this act constitute a new chapter in Title 35 RCW.
