SB 5899 — Concerning sales and use tax for public facilities in rural or border counties.

S-2048.2SUBSTITUTES-1469.1SENATE SENATE BILL 5899State of Washington66th Legislature2019 Regular SessionBySenateSessionBySenators Financial Institutions, Economic Development & Trade (originally sponsored by Senators Mullet, Walsh, Cleveland, Ericksen, Wilson, L., and Takko)READTakkoAN FIRST TIME 02/22/19.AN ACT Relating to sales and use tax for public facilities in rural or border counties;

and amending RCW 82.14.370;82.14.370.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec.

and providing an effective date.BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:Sec.

The rate of tax may not exceed 0.09 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 that for rural counties with population densities between sixty and one hundred persons per square mile, the rate ((shall))mayshall not exceed 0.04 percent before January 1, 2000.2000.(2) The tax imposed under subsection (1) of this section must be deducted from the amount of tax otherwise required to be collected or paid over to the department of revenue under chapter 82.08 or 82.12 RCW.

The tax collected by border counties must be phased in as set forth in subsection (5) of this section.(2) The tax imposed under subsection (1) of this section must be deducted from the amount of tax otherwise required to be collected or paid over to the department of revenue under chapter 82.08 or 82.12 RCW.

The proposed budget must also delineate the allocation of funds to be used as grants to fund economic development purposes to organizations other than the associate development organization.(d) The definitions in this section apply throughout this section unless the context clearly requires otherwise.(i) (("Public"Public facilities" means bridges, roads, domestic and industrial water facilities, sanitary sewer facilities, earth stabilization, storm sewer facilities, railroads, electrical facilities, natural gas facilities, research, testing, training, and incubation facilities in innovation partnership zones designated under RCW 43.330.270, buildings, structures, telecommunications infrastructure, transportation infrastructure, or commercial infrastructure, and port facilities in the state of Washington.(ii) "Economic development purposes" means those purposes which facilitate the creation or retention of businesses and jobs in a county.))"Bordercounty.(iii) county" means a county contiguous with a state or foreign country.(ii) "Economic development office" means an office of a county, port districts, or an associate development organization as defined in RCW 43.330.010, which promotes economic development purposes within the county.(iii) "Economic development purposes" means those purposes that facilitate the creation or retention of businesses and jobs in a county.(iv) "Public"Rural facilities" means bridges, roads, domestic and industrial water facilities, sanitary sewer facilities, earth stabilization, storm sewer facilities, railroads, electrical facilities, natural gas facilities, research, testing, training, and incubation facilities in innovation partnership zones designated under RCW 43.330.270, buildings, structures, telecommunications infrastructure, transportation infrastructure, or commercialborder infrastructure, and port facilities in the state of Washington.(v) "Rural county" meansmeans:(A) aA county with a population density of less than one hundred persons per square mile or a county smaller than two hundred twenty-five square miles as determined by the office of financial management and published each year by the department for the period July 1st to June 30th.(4)30th; No tax may be collected under this section before July 1, 1998.(((a) Except as provided in (b) of this subsection, no tax may be collected under this section by a county more than twenty-five years after the date that a tax is first imposed under this section.(b) For counties imposing the tax at the rate of 0.09 percent before August 1, 2009, the tax expires on the date that is twenty-five years after the date that the 0.09 percent tax rate was first imposed by that county.))(5) Collection of the tax imposed under subsection (1) of this section by border counties must be phased in as follows:(a) The rate of tax may not exceed 0.02 percent before July 1, 2021;(b) The rate of tax may not exceed 0.03 percent before July 1, 2023;(c) The rate of tax may not exceed 0.05 percent before July 1, 2025;(d) The rate of tax may not exceed 0.07 percent before July 1, 2027;

and(e)or(B) TheA ratecounty contiguous with a state or foreign country.(4) No tax may be collected under this section before July 1, 1998.(((a) Except as provided in (b) of this subsection, no tax may notbe exceedcollected under this section by a county more than twenty-five years after the date that a tax is first imposed under this section.(b) For counties imposing the tax at the rate of 0.09 percent before JulyAugust 1, 2029.(6)2009, the tax expires on the date that is twenty-five years after the date that the 0.09 percent tax rate was first imposed by that county.))(5) The tax collected under this section is authorized through December 31, 2045.NEW2045.--- SECTION.  Sec.END ---

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This act takes effect July 1, 2021.--- END ---