BILL REQ. #:  Z-0826.1 

Read first time 01/14/08.   Referred to Committee on Transportation.

     AN ACT Relating to funding certain transportation benefit district highway projects; amending RCW 82.14.0455; and adding a new section to chapter 82.32 RCW.

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

Sec. 1   RCW 82.14.0455 and 2006 c 311 s 16 are each amended to read as follows:
     (1) Subject to the provisions in RCW 36.73.065, a transportation benefit district under chapter 36.73 RCW may fix and impose a sales and use tax in accordance with the terms of this chapter. The tax authorized in this section is 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 boundaries of the district. The rate of tax shall not exceed two-tenths 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. The tax may not be imposed for a period exceeding ten years. This tax may be extended for a period not exceeding ten years with an affirmative vote of the voters voting at the election. If the transportation benefit district is located in a county that borders another state and has a population of more than four hundred thousand, and a portion of the sales tax is used to fund initial construction on a highway of statewide significance within the county, the sales tax may be imposed for more than ten years.
     (2) Money received from the tax imposed under this section must be spent in accordance with the requirements of chapter 36.73 RCW.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.32 RCW to read as follows:
     (1) The tax imposed and collected under chapters 82.08 and 82.12 RCW, less any credits allowed under chapter 82.14 RCW, on initial construction for a highway of statewide significance to be constructed under chapter 36.73 RCW in a county that borders another state and has a population of more than four hundred thousand, must be transferred to the highway project to defray the costs or pay debt service on that project. In the case of a toll project, this transfer or credit must be used to lower the overall cost of the project and thereby the corresponding tolls.
     (2) This transaction is exempt from the requirements in RCW 43.135.035(4).
     (3) Government entities constructing highway projects under chapter 36.73 RCW shall report to the department the amount of state sales or use tax covered under this section.