SB 5802 — Rebalancing statutory fund transfers and revenue dedications for transportation.

S-2645.3S-2333.6 SUBSTITUTE SENATE BILL 5802 State of Washington 69th Legislature 2025 Regular Session By Senate Transportation (originally sponsored by Senators Liias and King)King READRead FIRSTfirst TIMEtime 04/05/25.03/28/25.

Referred to Committee on Transportation.

amending RCW 82.32.385, 47.56.165, 82.21.030, 82.08.020, 82.12.020, 47.46.060, and 47.01.412;82.12.020;

1 SSBSB 5802 (4)(4))) Beginning September 2023 and ending June 2025, by the last day of September, December, March, and June of each year, the state treasurer must transfer from the general fund to the connecting Washington account created in RCW 46.68.395 $13,987,000.

(5)))(((5))) (2) Beginning September 2025 and ending June 2027, by the last day of September, December, March, and June of each year, the state treasurer must transfer from the general fund to the connecting Washington account created in RCW 46.68.395 $11,658,000.

(((6))) (2)(3) Beginning September 2027 and ending June 2029, by the last day of September, December, March, and June of each year, the state treasurer must transfer from the general fund to the connecting Washington account created in RCW 46.68.395 $7,564,000.

(((7))) (3)(4) Beginning September 2029 and ending June 2031, by the last day of September, December, March, and June of each year, the state treasurer must transfer from the general fund to the connecting Washington account created in RCW 46.68.395 $4,056,000.

(((8))) (4)(5) For fiscal year 2026 through fiscal year 2038, the state treasurer must transfer from the general fund to the move ahead WA flexible account created in RCW 46.68.520 $31,000,000 each fiscal year in four equal quarterly transfers.

(((9)(((9))) (6) For fiscal year 2024 through((through fiscal year 2038,2038)) and 2025, the state treasurer must transfer from the general fund to the move ahead WA flexible account created in RCW 46.68.520 $57,000,000 each fiscal year in four equal quarterly transfers.))transfers. Sec.

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2 SSBSB 5802 transferred to the move ahead WA account to provide support of public works projects funded in the move ahead WA program.

3 SSBSB 5802 (2) For fiscal year 2024 ((through fiscal year 2038)) and 2025, the state treasurer must transfer from the public works assistance account to the move ahead WA account created in RCW 46.68.510 $57,000,000 each fiscal year in four equal quarterly transfers.

4 SSBSB 5802 (4) Toll charges, other revenues, and interest may not be used to pay for costs that do not contribute directly to the financing, operation, maintenance, management, and necessary repairs of the tolled facility, as determined by rule by the transportation commission.

5 SSBSB 5802 (iii) Fifteen percent to the model toxics control stormwater account created under RCW 70A.305.200.

6 SSBSB 5802 (b) Digital goods, digital codes, and digital automated services, if the sale is included within the RCW 82.04.050 definition of retail sale;

7 SSBSB 5802 (((7))) (8) The rates provided in this section apply to taxes imposed under chapter 82.12 RCW as provided in RCW 82.12.020.

8 SSBSB 5802 consumer has a right of permanent use or is obligated to make continued payment as a condition of use.

9 SSBSB 5802 (4)(a) Except as provided in (b) of this subsection (4), the tax is levied and must be collected in an amount equal to the value of the article used, value of the digital good or digital code used, value of the extended warranty used, or value of the service used by the taxpayer, multiplied by the applicable rates in effect for the retail sales tax under RCW 82.08.020.

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7.

RCW 47.46.060 and 2015 3rd sp.s.

c 44 s 405 are each amended to read as follows:

(1) Any person, including the department of transportation and any private entity or entities, may apply for deferral of taxes on the site preparation for, the construction of, the acquisition of any related machinery and equipment that becomes a part of, and the rental of equipment for use in the state route number 16 corridor improvements project under this chapter.

Application must be made to the department of revenue in a form and manner prescribed by the department of revenue.

The application must contain information regarding estimated or actual costs, time schedules for completion and operation, and other information required by the department of revenue.

The department of revenue must approve the application within ((sixty)) 60 days if it meets the requirements of this section.

(2) The department of revenue must issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW on the project.

(3) The department of transportation or a private entity granted a tax deferral under this section must ((begin)) complete paying the p.

10 SSB 5802 deferred taxes ((in the twenty-fourth year after the date certified by the department of revenue as the date on which the project is operationally complete.

The first payment is due on December 31st of the twenty-fourth calendar year after such certified date, with subsequent annual payments due on December 31st of the following nine years.

Each payment must equal ten percent of the deferred tax.

The project is operationally complete under this section when the collection of tolls is commenced for the state route number 16 improvements covered by the deferral)) by June 30, 2026.

It is the intent of the legislature that any nontoll accounts used to pay the deferred sales and use taxes will be reimbursed by toll revenues no later than December 31, 2032, which reflects prior legislative intent regarding the use of toll revenues for this purpose.

(4) The department of revenue may authorize an accelerated repayment schedule upon request of the department of transportation or a private entity granted a deferral under this section.

(5) Interest may not be charged on any taxes deferred under this section for the period of deferral, although all other penalties and interest applicable to delinquent excise taxes may be assessed and imposed for delinquent payments under this section.

The debt for deferred taxes is not extinguished by insolvency or other failure of the private entity.

Transfer of ownership does not terminate the deferral.

(6) Applications and any other information received by the department of revenue under this section are not confidential and are subject to disclosure.

Chapter 82.32 RCW applies to the administration of this section.

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