BILL REQ. #:  H-3310.2 

Read first time 01/21/14.   Referred to Committee on Transportation.

     AN ACT Relating to local transit revenue; amending RCW 82.45.090, 82.45.150, 82.80.---, and 82.14.0455; adding new sections to chapter 82.80 RCW; adding new chapters to Title 82 RCW; creating a new section; prescribing penalties; providing effective dates; 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 82.80 RCW to read as follows:
     (1) The legislative body of a city transit system under RCW 35.58.2721 or chapter 35.95A RCW, a county transportation authority under chapter 36.57 RCW, a metropolitan municipal corporation transit system under chapter 36.56 RCW, a public transportation benefit area under chapter 36.57A RCW, an unincorporated transportation benefit area under RCW 36.57.100, a regional transit authority under chapter 81.112 RCW, or any special purpose district formed to operate a public transportation system may impose by a majority vote of the legislative body a local motor vehicle excise tax of up to one and one-half percent annually on the value of every motor vehicle registered to a person residing within the boundaries of the entity imposing the tax based on any guidebook, report, or compendium of recognized standing in the automotive industry, such as the Kelley Blue Book or the National Automobile Dealers' Association Guide. A motor vehicle excise tax may not be imposed on vehicles licensed under RCW 46.17.355, except for motor vehicles with an unladen weight of six thousand pounds or less, RCW 46.16A.425, 46.17.335, or 46.17.350(1)(c).
     (2) An entity imposing a tax under this section must contract, before the effective date of the resolution or ordinance imposing the local motor vehicle excise tax, administration and collection to the department of licensing, as appropriate, which must deduct an amount, as provided by contract, for administration and collection expenses incurred by the department.
     (3) If the department of licensing determines a value for a vehicle pursuant to subsection (1) of this section, any person who pays a locally imposed motor vehicle excise tax for that vehicle may appeal the valuation to the department of licensing under chapter 34.05 RCW. If the taxpayer is successful on appeal, the department must refund the excess tax.
     (4) The tax imposed under this section applies only when renewing a vehicle registration, and is effective upon the registration renewal date as provided by the department of licensing.

NEW SECTION.  Sec. 2   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Developer" means an individual, group of individuals, partnership, corporation, association, municipal corporation, state agency, or other person undertaking development, and its successors and assigns.
     (2) "Development" means the subdivision or short platting of land or the construction or reconstruction of residential, commercial, industrial, public, or any other building, building space, or land.
     (3) "Direct result of the proposed development" means those quantifiable transit impacts that are caused by vehicles or pedestrians whose trip origin or destination is the proposed development.
     (4) "Fair market value" means the price in terms of money that a property will bring in a competitive and open market under all conditions of a fair sale, the buyer and seller each prudently knowledgeable, and assuming the price is not affected by undue stimulus, measured at the time of the dedication to local government of land or improved transportation facilities.
     (5) "Local public transit providers" means a city transit system under RCW 35.58.2721 or chapter 35.95A RCW, a county transportation authority under chapter 36.57 RCW, a metropolitan municipal corporation transit system under chapter 36.56 RCW, a public transportation benefit area under chapter 36.57A RCW, an unincorporated transportation benefit area under RCW 36.57.100, a regional transit authority under chapter 81.112 RCW, or any special purpose district formed to operate a public transportation system in the state of Washington.
     (6) "Off-site transit improvements" means those transit capital improvements designated in the local plan adopted under this chapter that are authorized to be undertaken by local public transit providers and that serve the transit needs of more than one development.
     (7) "Transit impact fee" means a monetary charge imposed on new development for the purpose of mitigating off-site transit impacts that are a direct result of the proposed development.

NEW SECTION.  Sec. 3   Local public transit providers may develop and adopt programs for the purpose of jointly funding, from public and private sources, transit improvements necessitated in whole or in part by economic development and growth within their respective jurisdictions. Local public transit providers must adopt the programs by ordinance after notice and public hearing. Each program must contain the elements described in this section.
     (1) The program must identify the geographic boundaries of the entire area or areas generally benefited by the proposed off-site transit improvements and within which transit impact fees will be imposed under this chapter.
     (2) The program must be based on an adopted comprehensive, long-term transit plan (a) identifying the proposed off-site transit improvements reasonable and necessary to meet the future growth needs of the designated plan area and intended to be covered by this joint funding program, including acquisition of right-of-way, construction and reconstruction of transit capital improvements, and (b) identifying design standards, levels of service, capacities, and costs applicable to the program. The program must also indicate how the transit plan is coordinated with applicable plans for the region and for adjacent jurisdictions. The program must also indicate how public transportation and ride-sharing improvements and services will be used to reduce off-site transit impacts from development.
     (3) The program must include at least a six-year capital funding program, updated annually, identifying the specific public sources and amounts of revenue necessary to pay for that portion of the cost of all off-site transit improvements contained in the transit plan that will not foreseeably be funded by transit impact fees. The program must include a proposed schedule for construction and expenditures of funds. The funding program must consider the additional local tax revenue estimated to be generated by new development within the plan area if all or a portion of the additional revenue is proposed to be earmarked as future appropriations for such off-site transit improvements.
     (4) The program must authorize transit impact fees to be imposed on new development within the plan area for the purpose of providing a portion of the funding for reasonable and necessary off-site transit improvements to solve the cumulative impacts of planned growth and development in the plan area. Off-site transit impacts must be measured as a pro rata share of the capacity of the off-site transit improvements being funded under the program. The fees must not exceed the amount that the local public transit provider can demonstrate is reasonably necessary as a direct result of the proposed development.
     (5) The program must provide that the funds collected as a result of a particular new development must be used in substantial part to pay for improvements mitigating the impacts of the development or be refunded to the property owners of record. Fees paid toward more than one transit improvement may be pooled and expended on any one of the improvements mitigating the impact of the development. The funds must be expended, in all cases, within six years of collection by the local public transit provider or the unexpended funds must be refunded.
     (6) The program must also describe the formula, timing, security, credits, and other terms and conditions affecting the amount and method of payment of the transit impact fees as further provided for in RCW 39.92.040. In calculating the amount of the fee, local public transit providers must consider and give credit for the developer's participation in public transportation and ride-sharing improvements and services.
     (7) The administrative element of the program must include: An opportunity for administrative appeal by the developer and hearing before an independent examiner of the amount of the transit impact fee imposed; the establishment of a designated account for the public and private funds appropriated or collected for the transit improvements identified in the plan; methods to enforce collection of the public and private funds identified in the program; the designation of the administrative departments or other entities responsible for administering the program, including determination of fee amounts, transit planning, and construction; and provisions for future amendment of the program, including the addition of other off-site transit improvements. The program may not be amended in a manner to relieve local public transit providers of any contractual obligations made to prior developers.
     (8) The program must provide that private transit impact fees must not be collected for any off-site transit improvement that is incapable of being reasonably carried out because of lack of public funds or other foreseeable impediment.
     (9) The program must provide that a transit impact fee may not be imposed on a development by local public transit providers pursuant to this program when mitigation of the same off-site transit impacts for the development is being required by any government agency pursuant to any other local, state, or federal law.

NEW SECTION.  Sec. 4   (1) The program must describe the formula or method for calculating the amount of the transit impact fees to be imposed on new development within the plan area. The program may require developers to pay a transit impact fee for off-site transit improvements not yet constructed and for those jointly funded improvements constructed since the commencement of the program.
     (2) The program must define the event in the development approval process that triggers a determination of the amount of the transit impact fees and the event that triggers the obligation to make actual payment of the fees. However, the payment obligation may not commence before the date the developer has obtained a building permit for the new development or, in the case of residential subdivisions or short plats, at the time of final plat approval, at the developer's option. If the developer of a residential subdivision or short plat elects to pay the fee at the date a building permit has been obtained, the option to pay the transit impact fee by installments as authorized under this section is deemed to have been waived by the developer. The developer must be given the option to pay the transit impact fee in a lump sum, without interest, or by installment with reasonable interest over a period of five years or more as specified by the local government.
     (3) The local public transit provider must require security for the obligation to pay the transit impact fee, in the form of a recorded agreement, deed of trust, letter of credit, or other instrument determined satisfactory by the local government. The developer must also be given credit against its obligations for the transit impact fee, for the fair market value of off-site land or for the cost of constructing off-site transit improvements dedicated to the local public transit provider, or both. If the value of the dedication exceeds the amount of transit impact fee obligation, the developer is entitled to reimbursement from transit impact fees attributable to the dedicated improvements and paid by subsequent developers within the plan area.
     (4) Payment of the transit impact fee entitles the developer and its successors and assigns to credit against any other fee, local improvement district assessment, or other monetary imposition made specifically for the designated off-site transit improvements intended to be covered by the transit impact fee imposed under this program. The program must also define the criteria for establishing periodic fee increases attributable to construction and related cost increases for the improvements designated in the program.

NEW SECTION.  Sec. 5   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise. Any term used in this chapter has the same meaning as when used in a comparable context in the internal revenue code unless provided otherwise.
     (1) "Capital assets" has the same meaning as provided in section 1221 of the internal revenue code.
     (2) "Capital gains" means the excess of the gains from sales or exchanges of capital assets over the losses from such sales or exchanges received by a person.
     (3) "Department" means the state department of revenue.
     (4) "Internal revenue code" means the United States internal revenue code of 1986 and amendments thereto, as existing and in effect as of the effective date of this section.
     (5) "Nonresident" means a person whose domicile is not in this state and who does not reside in this state for more than one hundred eighty-three days during the tax year.
     (6) "Person" means a natural person.
     (7)(a) "Resident" means a person whose domicile is in this state or whose domicile is not in this state but who resides in this state for more than one hundred eighty-three days during the tax year.
     (b) For purposes of this subsection, once a person is a resident, residency continues for three years, notwithstanding changes in domicile.
     (8) "Taxable year" means the taxpayer's taxable year as defined under the internal revenue code.
     (9) "Taxpayer" means a person receiving capital gains subject to tax under this chapter.

NEW SECTION.  Sec. 6   (1) The legislative body of a city transit system under RCW 35.58.2721 or chapter 35.95A RCW, a county transportation authority under chapter 36.57 RCW, a metropolitan municipal corporation transit system under chapter 36.56 RCW, a public transportation benefit area under chapter 36.57A RCW, an unincorporated transportation benefit area under RCW 36.57.100, a regional transit authority under chapter 81.112 RCW, or any special purpose district formed to operate a public transportation system may impose by a majority vote of the legislative body a tax on every person residing within the boundaries of the entity imposing the tax for the privilege of selling or exchanging capital assets. The tax equals two percent multiplied by a person's capital gains for each taxable year.
     (2) For resident persons, all capital gains must be allocated to this state.
     (3) For nonresident persons, capital gains must be derived from sources within this state and allocated to this state.
     (4) The following threshold exemptions are allowed in determining the tax under subsection (1) of this section:
     (a) Fifty thousand dollars; or
     (b) One hundred thousand dollars for persons filing joint returns under section 9 of this act.
     (5) Capital gains must be reported in the taxable year they are received. Losses from the sale or exchange of capital assets may only be used to offset gains from other sales or exchanges of capital assets in the same taxable year.
     (6) Receipts from this tax must be deposited into the education legacy trust account created in RCW 83.100.230.

NEW SECTION.  Sec. 7   This chapter does not apply to gain from the sale of a principal residence.

NEW SECTION.  Sec. 8   This chapter does not apply to amounts received by any person for the sale or exchange of property as authorized under the condemnation proceedings as provided by law for the exercise of the power of eminent domain under Title 8 RCW, regardless of whether the parties have settled the matter prior to filing an action.

NEW SECTION.  Sec. 9   (1) The intent of this section is to prevent the multiple taxation of capital gains in both Washington and another taxing jurisdiction.
     (2) As used in this section, "taxing jurisdiction" means any of the states, the District of Columbia, or any territory or possession of the United States; any municipality, city, county, township, parish, transportation district, or assessment jurisdiction; or other political subdivision within the territorial limits of the United States with the authority to impose a tax, charge, or fee.
     (3) A resident person is allowed a credit against the tax imposed in section 6 of this act equal to the amount of tax paid to another taxing jurisdiction on capital gains derived from sources within the other taxing jurisdiction.
     (4) The amount of tax credits received by any resident person under this section may not exceed the total amount of tax due under this chapter, and there may be no carryback or carryforward of any unused credits.

NEW SECTION.  Sec. 10   (1) Any person who knowingly attempts to evade the tax imposed under this chapter or payment of the tax is guilty of a class C felony as provided in chapter 9A.20 RCW.
     (2) Any person who knowingly fails to pay tax, make returns, keep records, or supply information, as required under this chapter, is guilty of a gross misdemeanor as provided in chapter 9A.20 RCW.

NEW SECTION.  Sec. 11   (1) All taxpayers residing within the boundaries of an entity imposing the tax under section 6 of this act must file with the department, on forms prescribed by the department, a capital gains tax return for each taxable year. A person owing no tax for a taxable year is not required to file a return for that year. Each person required to file a return under this chapter must, without assessment, notice, or demand, pay any tax due thereon to the department on or before the date fixed for the filing of the return.
     (2) The department may by rule require that certain taxpayers file, on forms prescribed by the department, informational returns for any period.

NEW SECTION.  Sec. 12   The due date of a return required to be filed with the department must be the due date of the federal income tax return or informational return for federal income tax purposes, except as otherwise required by the department. The department may grant extensions of times by which returns required to be filed by this title may be submitted. The department may grant extensions of time to pay tax with regard to taxes imposed by this chapter. Interest at the rate as specified in RCW 82.32.050 must accrue during any extension period and the interest and penalty provisions under chapter 82.32 RCW apply to late payments and deficiencies.

NEW SECTION.  Sec. 13   (1) If the federal income tax liabilities of both spouses are determined on a joint federal return for the taxable year, they must file a joint return under this chapter.
     (2) If neither spouse is required to file a federal income tax return for the taxable year, a joint return is required to be filed under this title under the same conditions under which a joint return may be filed for purposes of the federal income tax.
     (3) Except as provided in subsection (5) of this section, if the federal income tax liability of either spouse is determined on a separate federal return for the taxable year, they must file separate returns under this chapter.
     (4) In any case in which a joint return is filed under this section, the liability of the husband and wife or partners is joint and several, unless the spouse or partner is relieved of liability under 26 U.S.C. Sec. 6013 of the internal revenue code.
     (5) Partners in a state registered domestic partnership or who have a marriage licensed under chapter 26.04 RCW may file a joint return under this chapter.

NEW SECTION.  Sec. 14   (1) Every person required to pay the tax imposed under this chapter must keep records, render statements, make returns, file reports, and perform other acts as the department requires by rule. Each return must be made under penalty of perjury and on forms prescribed by the department. The department may require other statements and reports be made under penalty of perjury and on forms prescribed by the department. The department may require any taxpayer to furnish to the department a correct copy of any return or document that the taxpayer has filed with the internal revenue service or received from the internal revenue service.
     (2) All books and records and other papers and documents required to be kept under this chapter are subject to inspection by the department at all times during business hours of the day.

NEW SECTION.  Sec. 15   (1) To the extent possible without being inconsistent with this chapter, all of the provisions of the internal revenue code relating to the time and manner of making returns, extensions of time for filing returns, verification of returns, and the time when a return is deemed filed apply to this chapter.
     (2) The department by rule may provide modifications and exceptions to the requirements specified under subsection (1) of this section if reasonably necessary to facilitate the prompt, efficient, and equitable collection of tax under this chapter.

NEW SECTION.  Sec. 16   (1) The department must refund all taxes improperly paid or collected.
     (2) The following sections apply to the administration of taxes imposed under this title: RCW 82.32.050, 82.32.055, 82.32.060, 82.32.070, 82.32.080, 82.32.085, 82.32.090, 82.32.100, 82.32.105, 82.32.110, 82.32.117, 82.32.120, 82.32.130, 82.32.135, 82.32.145, 82.32.150, 82.32.160, 82.32.170, 82.32.180, 82.32.190, 82.32.200, 82.32.210, 82.32.212, 82.32.220, 82.32.230, 82.32.235, 82.32.237, 82.32.240, 82.32.245, 82.32.265, 82.32.300, 82.32.310, 82.32.320, 82.32.330, 82.32.340, 82.32.350, 82.32.360, 82.32.380, and 82.32.410.

NEW SECTION.  Sec. 17   The department may adopt rules under chapter 34.05 RCW for the administration and enforcement of this chapter. The rules, to the extent possible without being inconsistent with this chapter, must follow the internal revenue code and the regulations and rulings of the United States treasury department with respect to the federal income tax. The department may adopt as a part of these rules any portions of the internal revenue code and treasury department regulations and rulings, in whole or in part.

NEW SECTION.  Sec. 18   (1) An authorized agent providing closing and settlement services in a conveyance is required to withhold from consideration payable to a transferor an amount equal to the tax due imposed under section 6 of this act.
     (2) An authorized agent is not required to withhold amounts under this section if:
     (a) The conveyance is in lieu of foreclosure of a mortgage, trust deed, or other security instrument or a land sale contract with no additional monetary consideration;
     (b) The transferor is a personal representative, executor, conservator, bankruptcy trustee, or other person acting under judicial review;
     (c) The transferor delivers to the authorized agent a written assurance that the sale or exchange qualifies for the exclusion of gain under section 7 or 8 of this act.
     (3)(a) An authorized agent must electronically report the tax withheld on forms prescribed by the department and remit electronic payment of the tax to the department under the methods provided in RCW 82.32.080. An authorized agent must electronically file and make payment under this subsection within twenty-five days after the end of the month in which the conveyance occurred.
     (b) The amount of tax due is a specific lien upon each parcel of real property located in this state that is sold by a transferor. The lien attached from the time of sale until the tax is withheld and paid as provided under this section. The lien may be enforced in the manner prescribed for the foreclosure of mortgages.
     (c) Amounts withheld under this section are held in trust. If an authorized agent fails to remit an amount withheld by the agent under this section by the time remittance is required, the department may recover from the authorized agent the amount withheld, plus interest and penalties as provided in chapter 82.32 RCW. The tax collection provisions of chapter 82.32 RCW apply to the collection of amounts withheld pursuant to this section but not remitted to the department as required under this section.
     (4) A transferor may claim the amount withheld by an authorized agent on the transferor's tax return.
     (5) An authorized agent may withhold funds under this section without written instructions to withhold from the transferor.
     (6) A written affidavit must be executed by the transferor or the transferor's tax advisor under penalty of perjury and must contain the transferor's taxpayer identification number. The authorized agent must retain for six years from the date of the closing of the conveyance any written affirmation obtained by the agent in connection with the conveyance. The department must prescribe by rule the form and content of the written affidavit.
     (7) It is a defense to any claim by the department or by a transferor against an agent that the agent has acted in reasonable reliance upon representations made by the transferor or the transferor's tax advisor.
     (8) For the purposes of this section, the following definitions apply unless the context clearly requires otherwise:
     (a) "Authorized agent" means an agent who is responsible for closing and settlement services in a conveyance;
     (b) "Closing and settlement services" means services that are provided by:
     (i) A licensed escrow agent in a real estate closing escrow; or
     (ii) An attorney for the benefit of a transferor or a transferee in a conveyance, if, simultaneously with the conveyance, the attorney deposits the unpaid purchase price into the attorney's client trust account for disbursal pursuant to the written instructions of, or the agreement between, the transferor and transferee;
     (c) "Consideration" includes the amount of cash paid for a conveyance and the amount of any lien, mortgage, contract, indebtedness, or other encumbrance existing against the property conveyed to which the property remains subject or which the purchaser agrees to pay or assume;
     (d) "Conveyance" means a sale or exchange of any real estate located in Washington;
     (e) "Net proceeds" means the net amount to be disbursed to the transferor, prior to reduction for withholding, as shown on the transferor's settlement statement for the conveyance; and
     (f) "Transferor" means a person, as defined in section 5 of this act, on the closing date of the conveyance.

Sec. 19   RCW 82.45.090 and 2009 c 350 s 8 are each amended to read as follows:
     (1) Except for a sale of a beneficial interest in real property ((where)) when no instrument evidencing the sale is recorded in the official real property records of the county in which the property is located, the tax imposed ((by)) under this chapter ((shall)) and the tax withheld under section 18 of this act must be paid to and collected by the treasurer of the county within which is located the real property which was sold.
     (2) In collecting the tax under this section, the treasurer ((shall)) must act as agent for the state.
     (a) The county treasurer ((shall)) must cause a verification of payment evidencing satisfaction of the lien to be affixed to the instrument of sale or conveyance prior to its recording or to the real estate excise tax affidavit in the case of used mobile home sales and used floating home sales.
     (i) A receipt issued by the county treasurer for the payment of the tax imposed under this chapter ((shall be)) is evidence of the satisfaction of the lien imposed hereunder and may be recorded in the manner prescribed for recording satisfactions of mortgages.
     ((No)) (ii) An instrument of sale or conveyance evidencing a sale subject to the tax ((shall)) may not be accepted by the county auditor for filing or recording until the tax ((shall have)) has been paid and the verification of payment affixed thereto; in case the tax is not due on the transfer, the instrument ((shall)) may not be so accepted until suitable notation of such fact has been made on the instrument by the treasurer.
     (iii) Any time there is a sale of a used mobile home, used manufactured home, used park model, or used floating home that has not been title eliminated, property taxes must be current in order to complete the processing of the real estate excise tax affidavit or other documents transferring title.
     (iv) Verification that the property taxes are current must be noted on the mobile home real estate excise tax affidavit or on a form approved by the county treasurer.
     (b) For the purposes of this subsection (2), "mobile home," "manufactured home," and "park model" have the same meaning as provided in RCW 59.20.030.
     (((2))) (3) For a sale of a beneficial interest in real property ((where)) when a tax is due under this chapter and ((where)) when no instrument is recorded in the official real property records of the county in which the property is located, the sale ((shall)) must be reported to the department of revenue within five days from the date of the sale on such returns or forms and according to such procedures as the department may prescribe. Such forms or returns ((shall)) must be signed by both the transferor and the transferee and shall be accompanied by payment of the tax due.
     (((3))) (4) Any person who intentionally makes a false statement on any return or form required to be filed with the department under this chapter is guilty of perjury under chapter 9A.72 RCW.

Sec. 20   RCW 82.45.150 and 1996 c 149 s 6 are each amended to read as follows:
     (1) All of chapter 82.32 RCW, except RCW 82.32.030, 82.32.050, 82.32.140, 82.32.270, and 82.32.090 (1) and (((8))) (10), applies to the tax imposed ((by)) under this chapter, in addition to any other provisions of law for the payment and enforcement of the tax imposed ((by)) under this chapter. The department of revenue ((shall)) must by rule provide for the effective administration of this chapter. The rules ((shall)) must prescribe and furnish a real estate excise tax affidavit form verified by both the seller and the buyer, or agents of each, to be used by each county, or the department, as the case may be, in the collection of the tax imposed by this chapter, except that an affidavit given in connection with grant of an easement or right-of-way to a gas, electrical, or telecommunications company, as defined in RCW 80.04.010, or to a public utility district or cooperative that distributes electricity, need be verified only on behalf of the company, district, or cooperative. The department of revenue ((shall)) must annually conduct audits of transactions and affidavits filed under this chapter.
     (2) The department may combine the form required in section 11 of this act with the real estate excise tax affidavit form required in this section.

NEW SECTION.  Sec. 21   A new section is added to chapter 82.80 RCW to read as follows:
     (1) The legislative authority of any county may submit an authorizing proposition to the voters and, if approved, may fix and impose a tax at up to the rate specified in the authorizing proposition on the selling price on the retail sale of motor vehicle fuel and special fuel within the applicable jurisdiction solely for the purpose of providing funds for the operation, maintenance, or capital needs of a public transportation agency or public transportation limited to persons with special needs under RCW 36.57.130 and 36.57A.180 that is located within the boundaries of the county.
     (2) An election held under this section must be held not more than twelve months before the date on which the proposed tax is to be levied. The ballot setting forth the proposition must state the tax rate that is proposed.
     (3) The tax imposed under this section must be collected and paid to the jurisdiction only once in respect to any motor vehicle fuel or special fuel. This tax is in addition to any other tax authorized or imposed by law.
     (4) An entity imposing a tax under this section must contract, before the effective date of the resolution or ordinance imposing the local motor vehicle fuel and special fuel tax, administration and collection of the tax to the department of licensing, as appropriate, which must deduct an amount, as provided by contract, for the administration and collection expenses incurred by the department.
     (5) For purposes of this section:
     (a) "Motor vehicle fuel" has the meaning as provided in RCW 82.36.010;
     (b) "Special fuel" has the meaning as provided in RCW 82.38.020; and
     (c) "Motor vehicle" has the meaning as provided in RCW 82.36.010.

Sec. 22   RCW 82.80.--- and 2014 c ... (this act) s 21 are each amended to read as follows:
     (1) The legislative authority of any county may submit an authorizing proposition to the voters and, if approved, may fix and impose a tax at up to the rate specified in the authorizing proposition on the selling price on the retail sale of ((motor vehicle fuel and special)) fuel within the applicable jurisdiction solely for the purpose of providing funds for the operation, maintenance, or capital needs of a public transportation agency or public transportation limited to persons with special needs under RCW 36.57.130 and 36.57A.180 that is located within the boundaries of the county.
     (2) An election held under this section must be held not more than twelve months before the date on which the proposed tax is to be levied. The ballot setting forth the proposition must state the tax rate that is proposed.
     (3) The tax imposed under this section must be collected and paid to the jurisdiction only once in respect to any ((motor vehicle fuel or special)) fuel. This tax is in addition to any other tax authorized or imposed by law.
     (4) An entity imposing a tax under this section must contract, before the effective date of the resolution or ordinance imposing the local ((motor vehicle fuel and special)) fuel tax, administration and collection of the tax to the department of licensing, as appropriate, which must deduct an amount, as provided by contract, for the administration and collection expenses incurred by the department.
     (5) For purposes of this section:
     (a) (("Motor vehicle fuel" has the meaning as provided in RCW 82.36.010;
     (b) "Special)) Fuel" has the meaning as provided in RCW 82.38.020; and
     (((c))) (b) "Motor vehicle" has the meaning as provided in RCW ((82.36.010)) 82.38.020.

NEW SECTION.  Sec. 23   A new section is added to chapter 82.80 RCW to read as follows:
     (1) The legislative body of a city transit system under RCW 35.58.2721 or chapter 35.95A RCW, a county transportation authority under chapter 36.57 RCW, a metropolitan municipal corporation transit system under chapter 36.56 RCW, a public transportation benefit area under chapter 36.57A RCW, an unincorporated transportation benefit area under RCW 36.57.100, a regional transit authority under chapter 81.112 RCW, or any special purpose district formed to operate a public transportation system may impose by a majority vote of the legislative body an excise tax of up to:
     (a) One-tenth of one percent of the total payroll of an employer with forty-nine or fewer employees, measured by the number of full-time equivalent employees;
     (b) Two-tenths of one percent of the total payroll of an employer with more than forty-nine employees but less than two hundred fifty-one employees, measured by the number of full-time equivalent employees; and
     (c) Three-tenths of one percent of the total payroll of an employer with two hundred fifty-one or more employees, measured by the number of full-time equivalent employees.
     (2) The entity imposing the tax authorized in this section may provide for exemptions from the tax to such educational, cultural, health, charitable, or religious organizations as it deems appropriate.

Sec. 24   RCW 82.14.0455 and 2010 c 105 s 3 are each amended to read as follows:
     (1) Subject to the provisions in RCW 36.73.065, a transportation benefit district under chapter 36.73 RCW may fix and impose a sales and use tax in accordance with the terms of this chapter. The tax authorized in this section is in addition to any other taxes authorized by law and shall 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 boundaries of the district. The rate of tax shall not exceed two-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. Except as provided in subsection (2) of this section, the tax may not be imposed for a period exceeding ten years. This tax, if not imposed under the conditions of subsection (2) of this section, may be extended for a period not exceeding ten years with an affirmative vote of the voters voting at the election.
     (2) The voter-approved sales tax initially imposed under this section after July 1, 2010, may be imposed for a period exceeding ten years if the moneys received under this section are dedicated for the repayment of indebtedness incurred in accordance with the requirements of chapter 36.73 RCW.
     (3) Money received from the tax imposed under this section must be spent in accordance with the requirements of chapter 36.73 RCW.
     (4) The tax authorized under this section may not be imposed by a county that is imposing a tax or fee under section 1, 3, 6, or 21 of this act.

NEW SECTION.  Sec. 25   Sections 2 through 4 of this act constitute a new chapter in Title 82 RCW.

NEW SECTION.  Sec. 26   Sections 5 through 18 of this act constitute a new chapter in Title 82 RCW.

NEW SECTION.  Sec. 27   This act, being necessary for the welfare of the state and its inhabitants, must be liberally construed.

NEW SECTION.  Sec. 28   If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION.  Sec. 29   Except for section 22 of this act, this act takes effect July 1, 2014.

NEW SECTION.  Sec. 30   Section 22 of this act takes effect July 1, 2015.

NEW SECTION.  Sec. 31   Section 21 of this act expires July 1, 2015.