Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Transportation Committee

ESB 6215

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Engrossed Bill

Allows a transportation benefit district that includes a city with a population of 500,000 or more to establish a rebate program for the purpose of refunding low-income individuals up to 40 percent of the actual fee, tax, or toll paid by that individual.
Requires a district that establishes a rebate program to be responsible for the development, administration, and costs associated with the program.

Background:

A transportation benefit district (TBD or district) is a quasi-municipal corporation and independent taxing authority that may be established by a county or city for the purpose of acquiring, constructing, improving, providing, and funding transportation improvements within the district. When establishing the district's area, the county or city proposing to create the TBD may only include other jurisdictions through interlocal agreements. The TBD may include areas within more than one county, city, port district, county transportation authority, or public transportation benefit area. A TBD may be comprised of less than the entire area within each participating jurisdiction.

A TBD is governed by the legislative authority of the jurisdiction proposing to create it, or by a governance structure prescribed in an interlocal agreement among multiple jurisdictions. If a TBD includes more than one jurisdiction, the governing body must have at least five members, including at least one elected official from each of the participating jurisdictions. Port districts and transit districts may participate in the establishment of a TBD but may not initiate district formation.

A TBD has independent taxing authority to implement the following revenue measures, all of which are subject to voter approval:

a local sales and use tax of up to 0.2 percent;
a local annual vehicle fee of up to $100 on vehicle license renewals, $20 of which may be imposed without voter approval;
excess property taxes, for a period of up to one year; and
tolls, subject to legislative authorization and approval by the Washington State Transportation Commission if imposed on state routes.

A TBD may impose the following revenue measures without voter approval through a majority vote of the governing body:

transportation impact fees on commercial and industrial development; and
except for passenger-only ferry improvements, up to $20 in local annual vehicle fees if the TBD includes all the territory within the boundaries of the jurisdiction(s) establishing the TBD. When imposing this fee, if the TBD is countywide the revenues must be distributed to each city within the county by interlocal agreement.

Summary of Bill:

A TBD that includes a city with a population of 500,000 or more and that imposes a vehicle fee, sales and use tax, or tolls may establish a rebate program for the purpose of refunding low-income individuals up to 40 percent of the actual fee, tax, or toll paid by that individual. Low-income is defined as household income that is at or below 45 percent of the median household income, adjusted for household size, for the district in which the fees, taxes, or tolls were imposed.

A rebate program is established as an authorized use of vehicle fee, sales and use tax, and toll revenues collected by a TBD. A TBD that establishes a rebate program is responsible for the development, administration, and costs associated with the program, and must report to the Legislature within two years regarding various aspects of the program.