BILL REQ. #:  H-2411.1 

READ FIRST TIME 03/10/03.   

     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 associate 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 (5) through (7) 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.
     (3) The retail sale or use of new motor vehicles, and the lease of new motor vehicles for up to three years, are exempt from tax imposed under this section.
     (4) An economic development advisory committee, as provided in subsection (8) 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.
     (5) 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) Street and road construction and maintenance;
     (ii) Water and sewer system construction and improvements;
     (iii) Sidewalks and streetlights;
     (iv) Storm water and drainage management systems;
     (v) Incubation facilities;
     (vi) Providing environmental analysis, professional management, and planning;
     (vii) Design, planning, legal and other professional services, acquisition, site preparation, construction, reconstruction, rehabilitation, improvement, and installation of public improvements;
     (viii) Relocating, maintaining, and operating property pending construction of public improvements;
     (ix) Relocating utilities as a result of public improvements.
     (6) The remainder of the money received from the tax imposed under this section shall be used for the construction of public improvements that will directly result in additional permanent 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.
     (7) Before spending the receipts of the tax authorized under this section, the expenditures must be specifically identified in the county budget.
     (8) 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.
     (9) At no time shall the number of public sector members exceed the number of private sector members on the economic development advisory committee.
     (10) The economic development advisory committee shall be chaired by a member from the private sector, appointed by the county legislative authority.
     (11) 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.
     (12) 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.
     (13) This section expires December 31, 2008.