BILL REQ. #:  S-1894.1 

Read first time 02/19/2007.   Referred to Committee on Transportation.

     AN ACT Relating to the sales and use tax funding of certain high-capacity transportation systems; amending RCW 81.104.170; and adding a new section to chapter 81.112 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 81.112 RCW to read as follows:
     As part of the proposition to support additional implementation phases of the regional transit authority's system and financing plan submitted to voters at the 2007 general election under RCW 81.112.030(10), the authority shall issue general obligation bonds or other evidences of indebtedness, the term of which must be forty years. The plan must provide funding sufficient to complete a regional transit authority light rail transit link from SeaTac airport to the Tacoma Dome in Pierce county, which project must be started as soon as practicable, but no later than 2010, with a project completion date of 2015. If bond proceeds received under this section, in conjunction with all other revenues generated under the plan, are not sufficient to fully fund the project identified in this section, the authority may impose an additional sales and use tax of up to 0.1 percent, as provided under RCW 81.104.170(3).

Sec. 2   RCW 81.104.170 and 1997 c 450 s 5 are each amended to read as follows:
     (1) Cities that operate transit systems, county transportation authorities, metropolitan municipal corporations, public transportation benefit areas, and regional transit authorities may submit an authorizing proposition to the voters and if approved by a majority of persons voting, fix and impose a sales and use tax in accordance with the terms of this chapter, solely for the purpose of providing high capacity transportation service.
     (2) The tax authorized pursuant to this section shall be in addition to the tax authorized by RCW 82.14.030 and shall be collected from those persons who are taxable by the state pursuant to chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the taxing district. The maximum rate of such tax shall be approved by the voters and shall not exceed 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). The maximum rate of such tax that may be imposed shall not exceed nine-tenths of one percent in any county that imposes a tax under RCW 82.14.340, or within a regional transit authority if any county within the authority imposes a tax under RCW 82.14.340. The exemptions in RCW 82.08.820 and 82.12.820 are for the state portion of the sales and use tax and do not extend to the tax authorized in this section.
     (3) If regional transit authority bond proceeds received under section 1 of this act, in conjunction with all other revenues generated under the plan submitted to voters at the 2007 general election under RCW 81.112.030(10), are not sufficient to fully fund the project identified in section 1 of this act, the authority may impose an additional sales and use tax under this section of up to 0.1 percent.