BILL REQ. #: H-1892.1
State of Washington | 63rd Legislature | 2013 Regular Session |
READ FIRST TIME 03/01/13.
AN ACT Relating to extending the expiration dates of the local infrastructure financing tool program; amending RCW 82.14.475 and 39.102.150; adding a new section to chapter 39.102 RCW; repealing RCW 39.102.904; and providing expiration dates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 A new section is added to chapter 39.102 RCW
to read as follows:
This chapter expires June 30, 2044.
NEW SECTION. Sec. 2 RCW 39.102.904 (Expiration date -- 2006 c 181)
and 2006 c 181 s 707 are each repealed.
Sec. 3 RCW 82.14.475 and 2010 c 164 s 12 are each amended to read
as follows:
(1) A sponsoring local government, and any cosponsoring local
government, that has been approved by the board to use local
infrastructure financing may impose a sales and use tax in accordance
with the terms of this chapter and subject to the criteria set forth in
this section. Except as provided in this section, the tax is in
addition to other taxes authorized by law and is 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 taxing jurisdiction
of the sponsoring local government or cosponsoring local government.
(2) The tax authorized under subsection (1) of this section is
credited against the state taxes imposed under RCW 82.08.020(1) and
82.12.020 at the rate provided in RCW 82.08.020(1). The department
must perform the collection of such taxes on behalf of the sponsoring
local government or cosponsoring local government at no cost to the
sponsoring local government or cosponsoring local government and must
remit the taxes as provided in RCW 82.14.060.
(3) The aggregate rate of tax imposed by the sponsoring local
government, and any cosponsoring local government, must not exceed the
lesser of:
(a) The rate provided in RCW 82.08.020(1) less:
(i) The aggregate rates of all other local sales and use taxes
imposed by any taxing authority on the same taxable events;
(ii) The aggregate rates of all taxes under RCW 82.14.465 and this
section that are authorized to be imposed on the same taxable events
but have not yet been imposed by a sponsoring local government or
cosponsoring local government that has been approved by the department
or the community economic revitalization board to receive a state
contribution under chapter 39.100 or 39.102 RCW; and
(iii) The percentage amount of distributions required under RCW
82.08.020(5) multiplied by the rate of state taxes imposed under RCW
82.08.020(1); and
(b) The rate, as determined by the sponsoring local government, and
any cosponsoring local government, in consultation with the department,
reasonably necessary to receive the state contribution over ten months.
(4) Sponsoring local governments that have been approved before
October 1, 2008, by the community economic revitalization board for a
state contribution must select the rate of tax under this section no
later than September 1, 2009.
(5) The department, upon request, must assist a sponsoring local
government and cosponsoring local government in establishing their tax
rate in accordance with subsection (3) of this section. Once the rate
of tax is selected, it may not be increased.
(6)(a) No tax may be imposed under the authority of this section:
(i) Before July 1st of the second calendar year following the year
approval by the board under RCW 39.102.040 was made; and
(ii) Until a sponsoring local government reports to the board and
the department as required by RCW 39.102.140 that the state has
benefited through the receipt of state excise tax allocation revenues
or state property tax allocation revenues, or both.
(b) The tax imposed under this section expires when all
indebtedness issued under the authority of RCW 39.102.150 is retired
and all other contractual obligations relating to the financing of
public improvements under chapter 39.102 RCW are satisfied, but not
more than twenty-five years after the tax is first imposed.
(7) An ordinance adopted by the legislative authority of a
sponsoring local government or cosponsoring local government imposing
a tax under this section must provide that:
(a) The tax is first imposed on the first day of a fiscal year;
(b) The cumulative amount of tax received by the sponsoring local
government, and any cosponsoring local government, in any fiscal year
may not exceed the amount of the state contribution;
(c) The tax will cease to be distributed for the remainder of any
fiscal year in which either:
(i) The amount of tax received by the sponsoring local government,
and any cosponsoring local government, equals the amount of the state
contribution;
(ii) The amount of revenue from taxes imposed under this section by
all sponsoring and cosponsoring local governments equals the annual
state contribution limit; or
(iii) The amount of tax received by the sponsoring local government
equals the amount of project award granted in the approval notice
described in RCW 39.102.040;
(d) Neither the local excise tax allocation revenues nor the local
property tax allocation revenues may constitute more than eighty
percent of the total local funds as described in RCW 39.102.020(28)(b).
This requirement applies beginning January 1st of the fifth calendar
year after the calendar year in which the sponsoring local government
begins allocating local excise tax allocation revenues under RCW
39.102.110;
(e) The tax must be distributed again, should it cease to be
distributed for any of the reasons provided in (c) of this subsection,
at the beginning of the next fiscal year, subject to the restrictions
in this section; and
(f) Any revenue generated by the tax in excess of the amounts
specified in (c) of this subsection belongs to the state of Washington.
(8) If a county and city cosponsor a revenue development area, the
combined amount of distributions received by both the city and county
may not exceed the state contribution.
(9) The department must determine the amount of tax receipts
distributed to each sponsoring local government, and any cosponsoring
local government, imposing sales and use tax under this section and
shall advise a sponsoring or cosponsoring local government when tax
distributions for the fiscal year equal the amount of state
contribution for that fiscal year as provided in subsection (11) of
this section. Determinations by the department of the amount of tax
distributions attributable to each sponsoring or cosponsoring local
government are final and may not be used to challenge the validity of
any tax imposed under this section. The department must remit any tax
receipts in excess of the amounts specified in subsection (7)(c) of
this section to the state treasurer who must deposit the money in the
general fund.
(10) If a sponsoring or cosponsoring local government fails to
comply with RCW 39.102.140, no tax may be distributed in the subsequent
fiscal year until such time as the sponsoring or cosponsoring local
government complies and the department calculates the state
contribution amount for such fiscal year.
(11) Each year, the amount of taxes approved by the department for
distribution to a sponsoring or cosponsoring local government in the
next fiscal year must be equal to the state contribution and may be no
more than the total local funds as described in RCW 39.102.020(28)(b).
The department must consider information from reports described in RCW
39.102.140 when determining the amount of state contributions for each
fiscal year. A sponsoring or cosponsoring local government may not
receive, in any fiscal year, more revenues from taxes imposed under the
authority of this section than the amount approved annually by the
department. The department may not approve the receipt of more
distributions of sales and use tax under this section to a sponsoring
or cosponsoring local government than is authorized under subsection
(7) of this section.
(12) The amount of tax distributions received from taxes imposed
under the authority of this section by all sponsoring and cosponsoring
local governments is limited annually to not more than seven million
five hundred thousand dollars.
(13) The definitions in RCW 39.102.020 apply to this section unless
the context clearly requires otherwise.
(14) If a sponsoring local government is a federally recognized
Indian tribe, the distribution of the sales and use tax authorized
under this section must be authorized through an interlocal agreement
pursuant to chapter 39.34 RCW.
(15) Subject to RCW 39.102.195, the tax imposed under the authority
of this section may be applied either to provide for the payment of
debt service on bonds issued under RCW 39.102.150 by the sponsoring
local government or to pay public improvement costs on a pay-as-you-go
basis, or both.
(16) The tax imposed under the authority of this section must cease
to be imposed if the sponsoring local government or cosponsoring local
government ((fails to issue indebtedness under the authority of RCW
39.102.150, and)) fails to commence construction on public
improvements((,)) by June ((30th of the fifth fiscal year in which the
local tax authorized under this section is imposed)) 30, 2017.
(17) For purposes of this section, the following definitions apply:
(a) "Local sales and use taxes" means sales and use taxes imposed
by cities, counties, public facilities districts, and other local
governments under the authority of this chapter, chapter 67.28 or 67.40
RCW, or any other chapter, and that are credited against the state
sales and use taxes.
(b) "State sales and use taxes" means the tax imposed in RCW
82.08.020(1) and the tax imposed in RCW 82.12.020 at the rate provided
in RCW 82.08.020(1).
(18) This section expires June 30, 2044.
Sec. 4 RCW 39.102.150 and 2009 c 267 s 6 are each amended to read
as follows:
(1) A sponsoring local government that has designated a revenue
development area and instead of paying public improvement costs on a
pay-as-you-go basis has been authorized the use of local infrastructure
financing may incur general indebtedness, including issuing general
obligation bonds, to finance the public improvements and retire the
indebtedness in whole or in part from local excise tax allocation
revenues, local property tax allocation revenues, and sales and use
taxes imposed under the authority of RCW 82.14.475 that it receives,
subject to the following requirements:
(a)(i) The ordinance adopted by the sponsoring local government and
authorizing the use of local infrastructure financing indicates an
intent to incur this indebtedness and the maximum amount of this
indebtedness that is contemplated; and
(ii) The sponsoring local government includes this statement of the
intent in all notices required by RCW 39.102.100; or
(b) The sponsoring local government adopts a resolution, after
opportunity for public comment, that indicates an intent to incur this
indebtedness and the maximum amount of this indebtedness that is
contemplated.
(2)(a) Except as provided in (b) of this subsection, the general
indebtedness incurred under subsection (1) of this section may be
payable from other tax revenues, the full faith and credit of the local
government, and nontax income, revenues, fees, and rents from the
public improvements, as well as contributions, grants, and nontax money
available to the local government for payment of costs of the public
improvements or associated debt service on the general indebtedness.
(b) A sponsoring local government that issues bonds under this
section ((shall)) may not pledge any money received from the state of
Washington for the payment of such bonds, other than the local sales
and use taxes imposed under the authority of RCW 82.14.475 and
collected by the department.
(3) In addition to the requirements in subsection (1) of this
section, a sponsoring local government designating a revenue
development area and authorizing the use of local infrastructure
financing may require the nonpublic participant to provide adequate
security to protect the public investment in the public improvement
within the revenue development area.
(4) Bonds issued under this section ((shall)) must be authorized by
ordinance of the governing body of the sponsoring local government and
may be issued in one or more series and ((shall)) must bear such date
or dates, be payable upon demand or mature at such time or times, bear
interest at such rate or rates, be in such denomination or
denominations, be in such form either coupon or registered as provided
in RCW 39.46.030, carry such conversion or registration privileges,
have such rank or priority, be executed in such manner, be payable in
such medium of payment, at such place or places, and be subject to such
terms of redemption with or without premium, be secured in such manner,
and have such other characteristics, as may be provided by such
ordinance or trust indenture or mortgage issued pursuant thereto.
(5) The sponsoring local government may annually pay into a fund to
be established for the benefit of bonds issued under this section a
fixed proportion or a fixed amount of any local excise tax allocation
revenues and local property tax allocation revenues derived from
property or business activity within the revenue development area
containing the public improvements funded by the bonds, such payment to
continue until all bonds payable from the fund are paid in full. The
local government may also annually pay into the fund established in
this section a fixed proportion or a fixed amount of any revenues
derived from taxes imposed under RCW 82.14.475, such payment to
continue until all bonds payable from the fund are paid in full.
Revenues derived from taxes imposed under RCW 82.14.475 are subject to
the use restriction in RCW 39.102.130.
(6) In case any of the public officials of the sponsoring local
government whose signatures appear on any bonds or any coupons issued
under this chapter ((shall)) cease to be such officials before the
delivery of such bonds, such signatures ((shall)), nevertheless, ((be))
are valid and sufficient for all purposes, the same as if such
officials had remained in office until such delivery. Any provision of
any law to the contrary notwithstanding, any bonds issued under this
chapter are fully negotiable.
(7) Notwithstanding subsections (4) through (6) of this section,
bonds issued under this section may be issued and sold in accordance
with chapter 39.46 RCW.