House of Representatives
Office of Program Research
Local Government Committee
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 Description: Changing the definition of public facilities to include roadway, traffic, and way-finding signage.
Sponsors: Representatives Pike, Takko, Vick, Harris, Blake, Rodne and Farrell.
Hearing Date: 1/22/14
Staff: Amanda Ondrick (786-7296).
A number of local option tax programs may be used to assist local jurisdictions in carrying out a variety of county and municipal purposes. One such program, enacted in 1997, is a local sales and use tax for public facilities in rural counties. Funds collected from this tax may only be used to finance "public facilities" serving economic development purposes. For purposes of this tax, "public facilities" is defined to include bridges, roads, water facilities, railroads, research testing, building, and transportation infrastructure.
To qualify as a public facility under provisions governing the "public facilities" in local sales and use tax, the facility must be listed as an item in a city or county’s official economic development plans or capital facilities plans. The maximum allowable tax rate may not exceed 0.09 percent and is deducted from the amount of tax the state would otherwise receive in sales and use taxes. No county program can last for more than 25 years.
Summary of Bill:
The definition of "public facilities" as defined in provisions governing the local sales and use tax is expanded to include roadway, traffic, and way-finding signage.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.