"Sec. 1303   RCW 82.08.020 and 2006 c 1 s 3 are each amended to read as follows:
     (1)(a) There is levied and there shall be collected a tax on each retail sale in this state equal to ((six and five-tenths percent of)) the selling price multiplied by the rate determined under this subsection.
     (b) The rate of tax under this subsection for taxable events occurring during a calendar year is six and five-tenths percent multiplied by a fraction. The numerator of the fraction is the baseline sales and use tax collections for the previous fiscal year. The denominator of the fraction is all sales and use tax collections for the previous fiscal year. The rate shall be rounded down to the nearest tenth of a percent. The department shall calculate the rate in effect for each calendar year by the preceding October 1.
     (c) The following definitions apply for the purposes of this subsection.
     (i) "Baseline sales and use tax collections" means all sales and use tax collections, less the amount of sales and use tax collections attributable to remote sellers.
     (ii) "Sales and use tax collections" means revenues, penalties, and interest actually collected for credit to the fiscal year under this subsection (1) and RCW 82.12.020.
     (iii) "Previous fiscal year" means the year ending on the June 30 preceding the date the rate is calculated.
     (2) There is levied and there shall be collected an additional tax on each retail car rental, regardless of whether the vehicle is licensed in this state, equal to five and nine-tenths percent of the selling price. The revenue collected under this subsection shall be deposited in the multimodal transportation account created in RCW 47.66.070.
     (3) Beginning July 1, 2003, there is levied and collected an additional tax of three-tenths of one percent of the selling price on each retail sale of a motor vehicle in this state, other than retail car rentals taxed under subsection (2) of this section. The revenue collected under this subsection shall be deposited in the multimodal transportation account created in RCW 47.66.070.
     (4) For purposes of subsection (3) of this section, "motor vehicle" has the meaning provided in RCW 46.04.320, but does not include farm tractors or farm vehicles as defined in RCW 46.04.180 and 46.04.181, off-road and nonhighway vehicles as defined in RCW 46.09.020, and snowmobiles as defined in RCW 46.10.010.
     (5) Beginning on December 8, 2005, 0.16 percent of the taxes collected under subsection (1) of this section shall be dedicated to funding comprehensive performance audits required under RCW 43.09.470. The revenue identified in this subsection shall be deposited in the performance audits of government account created in RCW 43.09.475.
     (6) The taxes imposed under this chapter shall apply to successive retail sales of the same property.
     (7) The rates provided in this section apply to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020.

NEW SECTION.  Sec. 1304   A new section is added to chapter 82.14 RCW to read as follows:
     Any local jurisdiction that imposes a tax under this chapter or under RCW 81.104.170 must adjust the tax rate on January 1 of each year by multiplying the rate that is otherwise imposed by the jurisdiction but for the limitations of this section by the fraction described in RCW 82.08.020(1)(b). The department must publish the fraction on its web site as of the preceding October 1. The local jurisdiction must round down the adjusted rate to the nearest tenth of a percent."