BILL REQ. #:  S-4470.1 

Read first time 01/23/08.   Referred to Committee on Transportation.

     AN ACT Relating to funding certain transportation benefit district highway projects; amending RCW 82.14.0455 and 82.80.120; 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 either a county that borders another state and has a population of more than four hundred thousand or a county with a population of more than seven hundred thousand persons and less than one million persons, 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 either a county that borders another state and has a population of more than four hundred thousand or a county that has a population of more than seven hundred thousand persons and less than one million persons, 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.

Sec. 3   RCW 82.80.120 and 2006 c 311 s 18 are each amended to read as follows:
     (1) For purposes of this section:
     (a) "Distributor" means every person who imports, refines, manufactures, produces, or compounds motor vehicle fuel and special fuel as defined in RCW 82.36.010 and 82.38.020, respectively, and sells or distributes the fuel into a county;
     (b) "Person" has the same meaning as in RCW 82.04.030;
     (c) "District" means a transportation benefit district under chapter 36.73 RCW that is authorized to fix and impose a sales and use tax under RCW 82.14.0455 or a regional transportation investment district under chapter 36.120 RCW.
     (2) ((A regional transportation investment district under chapter 36.120 RCW,)) Subject to the conditions of this section, a transportation benefit district under chapter 36.73 RCW that is authorized to fix and impose a sales and use tax under RCW 82.14.0455 or a regional transportation investment district under chapter 36.120 RCW, may levy additional excise taxes equal to ten percent of the statewide motor vehicle fuel tax rate under RCW 82.36.025 on each gallon of motor vehicle fuel as defined in RCW 82.36.010 and on each gallon of special fuel as defined in RCW 82.38.020 sold within the boundaries of the district. The additional excise tax is subject to the approval of a majority of the voters within the district boundaries. Vehicles paying an annual license fee under RCW 82.38.075 are exempt from the district's fuel excise tax. The additional excise taxes are subject to the same exceptions and rights of refund as applicable to other motor vehicle fuel and special fuel excise taxes levied under chapters 82.36 and 82.38 RCW. The proposed tax may not be levied less than one month from the date the election results are certified. The commencement date for the levy of any tax under this section will be the first day of January, April, July, or October.
     (3) The local option motor vehicle fuel tax on each gallon of motor vehicle fuel and on each gallon of special fuel is imposed upon the distributor of the fuel.
     (4) A taxable event for the purposes of this section occurs upon the first distribution of the fuel within the boundaries of the district to a retail outlet, bulk fuel user, or ultimate user of the fuel.
     (5) All administrative provisions in chapters 82.01, 82.03, and 82.32 RCW, insofar as they are applicable, apply to local option fuel taxes imposed under this section.
     (6) Before the effective date of the imposition of the fuel taxes under this section, a district shall contract with the department of licensing for the administration and collection of the taxes. The contract must provide that a percentage amount, not to exceed one percent of the taxes imposed under this section, will be deposited into the local tax administration account created in the custody of the state treasurer. The department of licensing may spend money from this account, upon appropriation, for the administration of the local taxes imposed under this section.
     (7) The state treasurer shall distribute monthly to the district levying the tax as part of the regional transportation investment district plan or the plan of a transportation benefit district under chapter 36.73 RCW that is authorized to fix and impose a sales and use tax under RCW 82.14.0455, after the deductions for payments and expenditures as provided in RCW 46.68.090(1) (a) and (b).
     (8) The proceeds of the additional taxes levied by a district in this section, to be used as a part of a regional transportation investment district plan or the plan of a transportation benefit district under chapter 36.73 RCW that is authorized to fix and impose a sales and use tax under RCW 82.14.0455, must be used in accordance with chapter 36.120 RCW, but only for those areas that are considered "highway purposes" as that term is construed in Article II, section 40 of the state Constitution.
     (9) A district may only levy the tax under this section if the district is comprised of boundaries identical to the boundaries of a county or counties. A district may not levy the tax in this section if a member county is levying the tax in RCW 82.80.010 or 82.80.110.