BILL REQ. #: H-2163.1
State of Washington | 58th Legislature | 2003 Regular Session |
READ FIRST TIME 03/04/03.
AN ACT Relating to authorizing a county sales and use tax to fund economic development; adding a new section to chapter 82.14 RCW; creating a new section; and providing expiration dates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 (1) The legislature recognizes that it is
the public policy of the state of Washington to promote and facilitate
the orderly development and economic stability of its communities.
Local governments need the ability to raise revenue to finance economic
development efforts and fund public improvements that are designed to
encourage economic growth and development. The funding of economic
development programs and the construction of necessary public
improvements in accordance with local economic development plans will
encourage investment in job-producing private development and expand
the public tax base.
(2) It is the purpose of this act:
(a) To provide county governments with the authority to utilize
certain sales tax revenues specifically for economic development
purposes consistent with those traditionally provided by an
administrative development organization;
(b) To provide funding for those public improvements necessary to
implement a county's economic development plan;
(c) To establish a local economic development advisory committee
that will assist the county's legislative authority in identifying and
prioritizing economic development programs and public improvement
projects; and
(d) To assist counties in their ability to attract business and
encourage private investment or commercial development to promote and
facilitate orderly development and the further creation of jobs.
(3) This section expires December 31, 2008.
NEW SECTION. Sec. 2 A new section is added to chapter 82.14 RCW
to read as follows:
(1) A county legislative authority located east of the Cascades
with a population greater than four hundred thousand residents may
submit an authorizing proposition to the county voters and, if the
proposition is approved by a majority of persons voting, impose a sales
and use tax in accordance with the terms of this chapter for the
purposes designated in subsections (4) through (6) of this section.
(2) The tax authorized in this section shall be in addition to any
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 county. The rate of tax
shall equal up to one-tenth of one 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. This tax shall not be imposed on the manufacturer's base
suggested retail price of a motor vehicle when the vehicle is first
offered for sale.
(3) An economic development advisory committee, as provided in
subsection (7) of this section, shall provide the legislative body of
any county imposing the tax authorized in this section, with
recommendations on how money received shall be expended in accordance
with this section.
(4) No less than twenty-five percent of the money received from any
tax imposed under this section must be used for economic development.
For the purposes of this section:
(a) "Economic development" means economic development planning;
economic and community analysis; organizational administration; work
force training; marketing and promotion, but not to include hosting;
demographic and data collection and publication; and technical
assistance.
(b) "Technical assistance" means assistance with strategic
planning, market research, business plan development and review,
organization and management development, accounting and legal services,
grant and loan packaging, and other assistance which may be expected to
contribute directly to the economic development of a county.
(c) "Public improvement" means:
(i) Infrastructure improvements that include:
(A) Street and road construction and maintenance;
(B) Water and sewer system construction and improvements;
(C) Sidewalks and streetlights;
(D) Storm water and drainage management systems;
(ii) Incubation facilities;
(iii) Expenditures for any of the following purposes:
(A) Providing environmental analysis, professional management, and
planning;
(B) Historic preservation activities authorized under RCW
35.21.395; or
(iv) Funding for the:
(A) Design, planning, legal and other professional services,
acquisition, site preparation, construction, reconstruction,
rehabilitation, improvement, and installation of public improvements;
(B) Relocating, maintaining, and operating property pending
construction of public improvements;
(C) Relocating utilities as a result of public improvements.
(5) The remainder of the money received from the tax imposed under
this section shall be used for the construction of public improvements
that will result in additional jobs in the county. Preference shall be
given to those public improvements where other sources of funding are
available to pay for such public improvements.
(6) Before spending the receipts of the tax authorized under this
section, the expenditures must be specifically identified in the county
budget.
(7) The county legislative authority in each county imposing the
tax described in this section shall appoint members to an economic
development advisory committee consisting of no more than twelve
members. The committee members shall consist of:
(a) At least one representative from a business association within
the county;
(b) At least one elected official from a city or town within the
county;
(c) At least one representative from an associate development
organization within the county; and
(d) At least one representative from a work force training
organization located within the county.
(8) At no time shall the number of public sector members exceed the
number of private sector members on the economic development advisory
committee.
(9) The economic development advisory committee shall be chaired by
a member from the private sector, appointed by the county legislative
authority.
(10) The economic development advisory committee shall review
economic development programs and proposed public improvements related
to economic development. The committee shall make recommendations to
the county legislative authority regarding how money received from the
tax imposed in this section shall be distributed.
(11) The county legislative authority may prescribe the selection
process for the committee and specify the appointment, term, and
compensation or reimbursement of expenses for committee members.
(12) This section expires December 31, 2008.