BILL REQ. #:  S-3767.3 

Read first time 01/20/12.   Referred to Committee on Transportation.

     AN ACT Relating to restrictions on the collection of sales tax by transportation benefit districts; amending RCW 82.14.045; adding a new section to chapter 82.14 RCW; and prescribing penalties.

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

Sec. 1   RCW 82.14.045 and 2008 c 86 s 102 are each amended to read as follows:
     (1)(a) The legislative body of any city pursuant to RCW 35.92.060, of any county which has created an unincorporated transportation benefit area pursuant to RCW 36.57.100 and 36.57.110, of any public transportation benefit area pursuant to RCW 36.57A.080 and 36.57A.090, of any county transportation authority established pursuant to chapter 36.57 RCW, and of any metropolitan municipal corporation within a county with a population of one million or more pursuant to chapter 35.58 RCW, may, by resolution or ordinance for the sole purpose of providing funds for the operation, maintenance, or capital needs of public transportation systems or public transportation limited to persons with special needs under RCW 36.57.130 and 36.57A.180, and in lieu of the excise taxes authorized by RCW 35.95.040, submit an authorizing proposition to the voters or include such authorization in a proposition to perform the function of public transportation or public transportation limited to persons with special needs under RCW 36.57.130 and 36.57A.180, and if approved by a majority of persons voting thereon, impose a sales and use tax in accordance with the terms of this chapter.
     (b) Where an authorizing proposition is submitted by a county on behalf of an unincorporated transportation benefit area, it ((shall)) must be voted upon by the voters residing within the boundaries of such unincorporated transportation benefit area and, if approved, the sales and use tax ((shall)) may be imposed only within such area.
     (c) Notwithstanding any provisions of this section to the contrary, any county in which a county public transportation plan has been adopted pursuant to RCW 36.57.070 and the voters of such county have authorized the imposition of a sales and use tax pursuant to the provisions of section 10, chapter 167, Laws of 1974 ex. sess., prior to July 1, 1975, ((shall be)) is authorized to fix and impose a sales and use tax as provided in this section at not to exceed the rate so authorized without additional approval of the voters of such county as otherwise required by this section.
     (2) The tax authorized by this section ((shall be)) is in addition to the tax authorized by RCW 82.14.030 and ((shall)) may be only collected from those persons who reside within the taxing jurisdiction and are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within such city, public transportation benefit area, county, or metropolitan municipal corporation as the case may be. The rate of such tax ((shall be)) is one-tenth, two-tenths, three-tenths, four-tenths, five-tenths, six-tenths, seven-tenths, eight-tenths, or nine-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). There is a presumption that a person making a retail purchase within the district resides in the district and the purchaser may overcome such presumption by furnishing proof of nonresidence as provided for in section 2 of this act. The rate of such tax ((shall)) may not exceed the rate authorized by the voters unless such increase ((shall be)) is similarly approved.
     (((2))) (3)(a) In the event a metropolitan municipal corporation imposes a sales and use tax pursuant to this chapter no city, county which has created an unincorporated transportation benefit area, public transportation benefit area authority, or county transportation authority wholly within such metropolitan municipal corporation ((shall be)) is empowered to impose and/or collect taxes under RCW 35.95.040 or this section, but nothing ((herein shall)) in this section prevents such city or county from imposing sales and use taxes pursuant to any other authorization.
     (b) In the event a county transportation authority imposes a sales and use tax under this section, no city, county which has created an unincorporated transportation benefit area, public transportation benefit area, or metropolitan municipal corporation, located within the territory of the authority, ((shall be)) is empowered to impose or collect taxes under RCW 35.95.040 or this section.
     (c) In the event a public transportation benefit area imposes a sales and use tax under this section, no city, county which has created an unincorporated transportation benefit area, or metropolitan municipal corporation, located wholly or partly within the territory of the public transportation benefit area, ((shall be)) is empowered to impose or collect taxes under RCW 35.95.040 or this section.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.14 RCW to read as follows:
     (1) Any person claiming that they are not subject to the portion of the retail sales tax imposed under RCW 82.14.045 must display proof of his or her current nonresident status at the time of the transaction in one of the following ways:
     (a) A person may provide the seller with one piece of identification such as a valid driver's license or identification card that has a photograph of the holder and a residential address outside of the transportation benefit district;
     (b) A person may provide the seller with an exemption certificate in compliance with subsection (2)(a)(ii) of this section.
     (2)(a) If the vendor chooses to make a sale to a nonresident without collecting the sales tax, the vendor must complete one of the following:
     (i) Examine the purchaser's proof of nonresidence, determine whether the proof is acceptable under subsection (1)(a) of this section, and maintain records for each nontaxable sale that shows the type of proof accepted, including any identification numbers where appropriate, and the expiration date, if any.
     (ii) Obtain from the purchaser a properly completed uniform exemption certificate approved by the streamlined sales and use tax agreement governing board or any other exemption certificate as may be authorized by the department and properly completed by the purchaser. A nonresident purchaser who uses an exemption certificate authorized in this subsection must include the purchaser's driver's license number or state-issued identification number and the state of issuance.
     (b) In lieu of using the methods provided in (a)(i) and (ii) of this subsection to document an exempt sale to a nonresident, a seller may capture the relevant data elements as allowed under the streamlined sales and use tax agreement.
     (3)(a) Any person making fraudulent statements, which includes the offer of fraudulent identification or fraudulently procured identification to a vendor, in order to purchase goods without paying retail sales tax is guilty of perjury under chapter 9A.72 RCW.
     (b) Any person making tax exempt purchases under this section by displaying proof of identification not his or her own, or counterfeit identification, with intent to violate the provisions of this section is guilty of a misdemeanor and, in addition, is liable for the tax and subject to a penalty equal to the greater of one hundred dollars or the tax due on such purchases.
     (4)(a) Any vendor who makes sales without collecting the tax and who fails to maintain records of sales to nonresidents as provided in this section is personally liable for the amount of tax due.
     (b) Any vendor who makes sales without collecting the retail sales tax under this section and who has actual knowledge that the purchaser's proof of identification establishing out-of-state residency is fraudulent is guilty of a misdemeanor and, in addition, is liable for the tax and subject to a penalty equal to the greater of one thousand dollars or the tax due on such sales. In addition, both the purchaser and the vendor are liable for any penalties and interest assessable under chapter 82.32 RCW.