BILL REQ. #:  S-0607.1 

Read first time 02/07/11.   Referred to Committee on Government Operations, Tribal Relations & Elections.

     AN ACT Relating to authorizing a city utility infrastructure sales and use tax; adding a new section to chapter 82.14 RCW; and providing an expiration date.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 82.14 RCW to read as follows:
     (1) The legislative authority of a city that has a population of less than seven thousand five hundred inhabitants and that operates either a municipal water or sewer system, or both, prior to January 1, 2011, may impose a sales and use tax as provided in this chapter. The tax imposed under this section is in addition to any other taxes authorized by law and must 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 local jurisdiction. The sales and use tax may be imposed by resolution or ordinance following a public hearing before the city's governing body. The rate of tax may not exceed 0.1 percent of the selling price, in case of a sales tax, or the value of the article used in case of a use tax.
     (2) The tax imposed under subsection (1) of this section must be deducted from the amount of tax otherwise required to be collected or paid to the department under chapter 82.08 or 82.12 RCW. The department must perform the collection of tax on behalf of the city at no expense to the city.
     (3) The amounts received under this section may only be used to construct or rehabilitate improvements that are directly related to the water or sewer system operated by the city.
     (4) This section expires January 1, 2031.