HOUSE BILL REPORT

HB 46

BYRepresentatives May, Ferguson, Haugen, Lux, Miller, Betrozoff, Allen, Braddock, Hine, Leonard and J. Williams 

Providing for the distribution of the local watercraft excise tax to cities and towns providing marine patrol services.

House Committe on Local Government

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (9)

     Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Bumgarner, Ferguson, Madsen, Nealey, Nelson, Nutley and L. Smith.

House Staff:Steve Lundin (786-7127)

Rereferred House Committee on Ways & Means/Revenue

Majority Report:     The original bill do pass and the substitute bill by Committee on Local Government do not pass.  (9)

     Signed by Representatives Basich, Bristow, Holland, Madsen, Schoon, Taylor, Valle and Winsley.

House Staff:    Rick Wickman (786-7150)

AS REPORTED BY COMMITTEE ON WAYS & MEANS/REVENUE MARCH 7, 1987

BACKGROUND:

Counties are authorized to impose an excise tax on certain watercraft at a rate of up to 50 cents per foot per year, if the population of the unincorporated area of the county, together with the population of any city that is a party to an interlocal agreement with the county, equals at least two-thirds of the total population of the county.  The interlocal agreement may provide that the county gives some of the tax revenues to municipal corporations that are parties to the agreement and which provide boating safety services.

SUMMARY:

Each city or town providing marine patrol services must be party to the interlocal agreement authorizing a county to impose the watercraft excise tax and must receive a portion of the revenues.  Agreement on the revenue sharing arrangement must be made by April 1 of each year, or an arbitration process determines the sharing arrangement.

Fiscal Note:    Requested February 17, 1987.

House Committee ‑ Testified For:     (Local Government) Albert Anglin, City of Medina; Ronald Dickinson, City of Mercer Island; Stan Finkelstein, Association of Washington Cities; and Rep. May, Prime Sponsor.

(Ways & Means/Revenue) Ronald Dickinson, City of Mercer Island; Stan Finkelstein, Association of Washington Cities; and Rep. May, Prime Sponsor.

House Committee - Testified Against: (Local Government) Ron Main, King County; and Pete Spiller, Washington Fire Commissioners Association.

(Ways & Means/Revenue) Ron Main, King County.

House Committee - Testimony For:     (Local Government) Negotiations between Mercer Island and King County over this issue have been going on for over a year.  Mercer Island has its own patrol and does not get any of this money.  Seattle and King County divide the money.  The tax moneys are not sufficient to pay for this cost, so local general fund money is used.

(Ways & Means/Revenue) Same as Local Government.

House Committee - Testimony Against: (Local Government) Let the negotiations handle this issue.  Raising the maximum level of the tax will kill the bill.

(Ways & Means/Revenue) Same as Local Government.