HB 2442 — Providing local governments tax resources and fund flexibility.

(2) A county may not impose a rate of tax that exceeds three percent.

(3) A utility subject to tax under this section must add the tax to the rates or charges it makes for utility services and separately state the amount of tax on billings.

(4) A county may initially impose the tax authorized under this section only on the first day of a calendar quarter and no sooner than 75 days from the date the county adopts the ordinance or resolution imposing the tax.

(5) A county may provide exemptions for sales by utilities to business customers, such as manufacturing facilities, aircraft repair facilities, industrial parks, industrial facilities, farm businesses, and computer data centers.

A county may not provide a general exemption for sales by utilities to residential customers unless business customers are also exempt.

(6) A county must allow a credit against the tax imposed under the authority of this section for the amount of any similar utility tax imposed by a city or town on the same taxable event.

The credit required by this subsection may not exceed the amount of tax otherwise due.

(7) A county imposing the tax must use 0.2 percent of the revenue it receives from the tax exclusively to assist low-income residents with utility costs.

(8) Any taxes collected by a utility in compliance with this section are not subject to the public utility tax under chapter 82.16 RCW.

NEW SECTION.

Sec.

302.

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Cable service utility" means a person providing cable service as defined in the federal telecommunications act of 1996.

(2) "Electrical power utility" means a light and power business as defined in RCW 82.16.010.

(3) "Gas utility" means a gas distribution business as defined in RCW 82.16.010.

p.

6 HB 2442 (4) "Gross income" has the same meaning as provided in RCW 82.16.010.

(5) "Sewer utility" means a sewerage collection business as that term is used in chapter 82.16 RCW.

(6) "Solid waste utility" means a solid waste collection business as defined in RCW 82.18.010.

(7) "Telephone utility" means a person providing telecommunications service as defined in RCW 82.04.065.

(8) "Utility" means an electrical power utility, gas utility, telephone utility, water utility, sewer utility, solid waste utility, or cable service utility.

(9) "Water utility" means a water distribution business as defined in RCW 82.16.010.

Part IV Local Sales and Use Tax to Fund Services for Children and Families NEW SECTION.

Sec.

401.

The legislature further finds that there are many services that are not addressed through current funding options, including medicaid p.and county behavioral health programs.

3 ESHB 2442 and county behavioral health programs.

202.402.

This tax is in addition to other taxes authorized by law and must be collected from those persons who are taxable by the state underp. chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the city or county.

7 HB 2442 under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the city or county.

(3)Part IfV theLocal citySales adopts an ordinance or resolution to impose the sales and useUse taxTax under this subsection, the county in which the city is located must provide a credit against its tax under subsection (1) of this section for theHousing city tax to the extent the total county and cityRelated taxServices rateSec. under this section would exceed 0.01 percent.

Part501. III Local Sales and Use Tax for Housing and Related Services Sec.

301.

(1)(a)(i) A county legislative authority may submit an authorizing proposition to the county voters at a special or general election and, if the proposition is approved by a majority of persons voting, impose a sales and use tax in accordance with the terms of p.this chapter.

4 ESHB 2442 this chapter.

or (B)p. Impose, without a proposition approved by a majority of persons voting, the whole or remainder of the sales and use tax rate in accordance with the terms of this chapter.

8 HB 2442 (B) Impose, without a proposition approved by a majority of persons voting, the whole or remainder of the sales and use tax rate in accordance with the terms of this chapter.

(d) The taxes authorized in this subsection are in addition to any other taxes authorized by law and must be collected from persons p.who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the county for a county's tax and within a city for a city's tax.

5 ESHB 2442 who are taxable by the state under chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event within the county for a county's tax and within a city for a city's tax.

(b) The affordable housing and facilities providing housing- related programs in (a)(i) of this subsection may only be provided to persons within any of the following population groups whose income is atp. or below ((sixty)) 60 percent of the median income of the county imposing the tax:

9 HB 2442 at or below ((sixty)) 60 percent of the median income of the county imposing the tax:

(b) Among other priorities, a county that acquires a facility under subsection (2)(a) of this section must provide an opportunity p.for 15 percent of the units provided at that facility to be provided to individuals who are living in or near the city in which the facility is located, or have ties to that community.

6 ESHB 2442 for 15 percent of the units provided at that facility to be provided to individuals who are living in or near the city in which the facility is located, or have ties to that community.

(5) To carry out the purposes of subsection (2)(a) and (b) of this section, the legislative authority of the county or city imposing the tax has the authority to issue general obligation or revenue bonds within the limitations now or hereafter prescribed by thep. laws of this state, and may use, and is authorized to pledge, up to ((fifty)) 50 percent of the moneys collected under this section for repayment of such bonds, in order to finance the provision or construction of affordable housing, facilities where housing-related programs are provided, or evaluation and treatment centers described in subsection (2)(a)(iii) of this section.

10 HB 2442 the laws of this state, and may use, and is authorized to pledge, up to ((fifty)) 50 percent of the moneys collected under this section for repayment of such bonds, in order to finance the provision or construction of affordable housing, facilities where housing-related programs are provided, or evaluation and treatment centers described in subsection (2)(a)(iii) of this section.

Part VI Veterans' Assistance Property Tax Levy and the Mental Health and Developmental Disabilities Assistance Property Tax Levy Sec.

302.601.

RCW 82.14.54071.20.110 and 20242013 c 136123 s 1 are each amended to read as follows:

(1)(1)(a) TheIn definitionsorder to provide additional funds for the coordination and provision of community services for persons with developmental disabilities or mental health services, the county governing authority of each county in thisthe state must ((budget and)) levy annually a tax in a sum equal to ((the amount which would be raised by a levy of two and one-half)) 2.5 cents per ((thousand dollars)) $1,000 of assessed value against the taxable property in the county((, or as such amount is modified pursuant to subsection apply(2) throughoutor (3) of this sectionsection,)) unlessto thebe contextused clearlyfor requiressuch otherwise.purposes.

(a)((However, "Nonparticipatingall)) city"(b) isThe alevy cityrequired that does not impose a sales and use tax in accordancethis withsection themust termsbe: of this section.

(b)(i) "NonparticipatingImposed county"by isthe alegislative countyauthority thatof doesthe notcounty imposeas a salesseparate andlevy, useindependent taxof inthe accordanceregular withproperty thetax termslevy ofauthorized thisin section.RCW 84.52.043(1)(b);

p.or (ii) Imposed by the legislative authority of the county as part of its levy authorized in RCW 84.52.043(1)(b).

7(2) ESHBAll 2442or (c)part "Participatingof city"the isfunds acollected cityfrom thatthe imposestax alevied salesfor andthe usepurposes taxof inthis accordancesection withmay be transferred to the termsstate of thisWashington, section.department of social and health services, for the purpose of obtaining federal matching funds to provide and coordinate community services for persons with developmental disabilities and mental health services.

(d)In "Participatingthe county"event is a county thatelects imposesto atransfer salessuch andtax usefunds taxto inthe accordancestate withfor this purpose, the termsstate ofmust thisgrant section.these p.

(e)11 "QualifyingHB local2442 tax"moneys meansand the followingadditional taxfunds sources,received ifas matching funds to service-providing community agencies or community boards in the taxcounty sourcewhich ishas instatedmade nosuch latertransfer, thanpursuant ((twelve))to 12the monthsplan afterapproved Julyby 28,the 2019:county, as provided by chapters 71.24 and 71.28 RCW and by chapter 71A.14 RCW, all as now or hereafter amended.

(i)(((2) The affordableamount housingof a levy authorizedallocated underto RCWthe 84.52.105;purposes specified in this section may be reduced in the same proportion as the regular property tax levy of the county is reduced by chapter 84.55 RCW.

(ii)(3)(a) The salesamount andof usea taxlevy forallocated housingto andthe relatedpurposes servicesspecified authorizedin underthis RCWsection 82.14.530,may providedbe themodified cityfrom has imposed the taxamount atrequired aby minimumsubsection or(1) of atthis leastsection halfas offollows: the authorized rate;

(iii)(i) TheIf salesthe taxcertified forlevy chemicalis dependencyreduced andfrom mentalthe healthpreceding treatmentyear's servicescertified orlevy, therapeuticthe courtsamount authorizedof underthe RCWlevy 82.14.460allocated imposedto the purposes specified in this section may be reduced by ano city;more than the same percentage as the certified levy is reduced from the preceding year's certified levy;

and(ii) (iv)If Thethe certified levy authorizedis underincreased RCWfrom 84.55.050,the ifpreceding usedyear's solelycertified forlevy, affordablethe housing.amount of the levy allocated to the purposes specified in this section must be increased from the amount of the levy so allocated in the previous year by at least the same percentage as the certified levy is increased from the preceding year's certified levy.

(2)(a)However, Athe countyamount orof citythe legislativelevy authorityallocated mayto authorize,the fix,purposes andspecified imposein athis salessection anddoes usenot taxhave into accordancebe withincreased under this subsection (3)(a)(ii) for the termsportion of thisa section.certified levy increase resulting from a voter-approved increase under RCW 84.55.050 that is dedicated to a specific purpose;

(b)or The(iii) taxIf underthe thiscertified sectionlevy is assessedunchanged onfrom the sellingpreceding priceyear's incertified levy, the caseamount of athe saleslevy tax,allocated orto value of the articlepurposes used,specified in this section must be equal to or greater than the caseamount of athe uselevy tax.so allocated in the preceding year.

(c)(b) TheFor ratepurposes of this subsection, "certified levy" means the property tax underlevy thisfor sectiongeneral forcounty anpurposes individualcertified participatingto citythe andcounty anassessor individualas participatingrequired countyby mayRCW not84.52.070, exceed:excluding any amounts certified under chapters 84.69 and 84.68 RCW.

(i)(4) BeginningSubsections on(2) Julyand 28,(3) 2019,of untilthis ((twelve))section 12do monthsnot afterpreclude Julya 28,county 2019:from increasing the levy amount in subsection (1) of this section to an amount that is greater than the change in the regular county levy.)) p.

(A)12 0.0073HB percent2442 forSec. a:

(I)602. Participating city, unless the participating city levies a qualifying local tax;

and (II) Participating county, within the limits of nonparticipating cities within the county and within participating cities that do not currently levy a qualifying tax;

(B) 0.0146 percent for a:

(I) Participating city that currently levies a qualifying local tax;

(II) Participating city if the county in which it is located declares they will not levy the sales and use tax authorized under this section or does not adopt a resolution in accordance with this section;

and p.

8 ESHB 2442 (III) Participating county within the unincorporated areas of the county and any city that declares they will not levy the sales and use tax authorized under this section or does not adopt a resolution in accordance with this section;

(ii) Beginning ((twelve)) 12 months after July 28, 2019:

(A) 0.0073 percent for a:

(I) Participating city that is located within a participating county if the participating city is not levying a qualifying local tax;

and (II) Participating county, within the limits of a participating city if the participating city is not levying a qualifying local tax;

(B) 0.0146 percent within the limits of a:

(I) Participating city that is levying a qualifying local tax;

and (II) Participating county within the unincorporated area of the county and within the limits of any nonparticipating city that is located within the county.

(d) A county may not levy the tax authorized under this section within the limits of a participating city that levies a qualifying local tax.

(e)(i) In order for a county or city legislative authority to impose the tax under this section, the authority must adopt:

(A) A resolution of intent to adopt legislation to authorize the maximum capacity of the tax in this section within six months of July 28, 2019;

and (B) Legislation to authorize the maximum capacity of the tax in this section within one year of July 28, 2019.

(ii) Adoption of the resolution of intent and legislation requires simple majority approval of the enacting legislative authority.

(iii) If a county or city has not adopted a resolution of intent in accordance with the terms of this section, the county or city may not authorize, fix, and impose the tax.

(3) The tax imposed under this section must be deducted from the amount of tax otherwise required to be collected or paid to the department of revenue under chapter 82.08 or 82.12 RCW.

The department must perform the collection of such taxes on behalf of the county or city at no cost to the county or city.

(4) By December 31, 2019, or within thirty days of a county or city authorizing the tax under this section, whichever is later, the p.

9 ESHB 2442 department must calculate the maximum amount of tax distributions for each county and city authorizing the tax under this section as follows:

(a) The maximum amount for a participating county equals the taxable retail sales within the county in state fiscal year 2019 multiplied by the tax rate imposed under this section.

If a county imposes a tax authorized under this section after a city located in that county has imposed the tax, the taxable retail sales within the city in state fiscal year 2019 must be subtracted from the taxable retail sales within the county for the calculation of the maximum amount;

and (b) The maximum amount for a city equals the taxable retail sales within the city in state fiscal year 2019 multiplied by the tax rate imposed under subsection (1) of this section.

(5) The tax must cease to be distributed to a county or city for the remainder of any fiscal year in which the amount of tax exceeds the maximum amount in subsection (4) of this section.

The department must remit any annual tax revenues above the maximum to the state treasurer for deposit in the general fund.

Distributions to a county or city meeting the maximum amount must resume at the beginning of the next fiscal year.

(6)(a) The moneys collected or bonds issued under this section may only be used for the following purposes:

(i) Acquiring, rehabilitating, or constructing affordable housing, which may include new units of affordable housing within an existing structure or facilities providing supportive housing services under RCW 71.24.385;

(ii) Funding the operations and maintenance costs of new and existing units of affordable or supportive housing;

or (iii) For providing rental assistance to tenants.

(b) Administrative costs of the county or city associated with administering this section may not exceed 10 percent of the annual tax distributed to the jurisdiction under this section.

(7) The housing and services provided pursuant to subsection (6) of this section may only be provided to persons whose income is at or below 60 percent of the median income of the county or city imposing the tax, or at or below 80 percent of the median income of the county or city imposing the tax if it is supporting the development of affordable housing intended for owner occupancy, as defined in RCW 84.14.010.

p.

10 ESHB 2442 (8) In determining the use of funds under subsection (6) of this section, a county or city must consider the income of the individuals and families to be served, the leveraging of the resources made available under this section, and the housing needs within the jurisdiction of the taxing authority.

(9) To carry out the purposes of this section including, but not limited to, financing loans or grants to nonprofit organizations or public housing authorities, the legislative authority of the county or city imposing the tax has the authority to issue general obligation or revenue bonds within the limitations now or hereafter prescribed by the laws of this state, and may use, and is authorized to pledge, the moneys collected under this section for repayment of such bonds.

(10) A county or city may enter into an interlocal agreement with one or more counties, cities, or public housing authorities in accordance with chapter 39.34 RCW.

The agreement may include, but is not limited to, pooling the tax receipts received under this section, pledging those taxes to bonds issued by one or more parties to the agreement, and allocating the proceeds of the taxes levied or the bonds issued in accordance with such interlocal agreement and this section.

(11) Counties and cities imposing the tax under this section must report annually to the department of commerce on the collection and use of the revenue.

The department of commerce must adopt rules prescribing content of such reports.

By December 1, 2019, and annually thereafter, and in compliance with RCW 43.01.036, the department of commerce must submit a report annually to the appropriate legislative committees with regard to such uses.

(12) The tax imposed by a county or city under this section expires ((twenty)) 20 years after the date on which the tax is first imposed.

Part IV Property Tax Prorationing Sec.

401.

p.(1) Levies of the senior taxing districts are as follows:

11 ESHB 2442 (1) Levies of the senior taxing districts are as follows:

(c) the levy by any roadcounty districtpursuant to RCW 73.08.080(1) may not exceed $2.2527 cents per $1,000 of assessed value or be less than 1.125 cents per $1,000 of assessed value;

and (d) the levy by any cityroad ordistrict town may not exceed $3.375$2.25 per $1,000 of assessed value.value;

and (((d))) (e) the levy by any city or town may not exceed $3.375 per $1,000 of assessed value.

(i) the portions of levies by fire protection districts and regional fire protectionp. service authorities that are protected under RCW 84.52.125;

13 HB 2442 protection service authorities that are protected under RCW 84.52.125;

(n) levies for countyveterans' publicassistance health clinic operations, maintenance, and capital expenses under sectionRCW 80173.08.080(1); of p.

12(o) ESHBlevies 2442for thisdevelopmental act;disabilities or mental health services under RCW 71.20.110;

(o)(p) the portion of any levy resulting from the correction of a levy error under RCW 84.52.085(3);

and (((o))) (p)(q) levies for county hospital purposes under RCW 36.62.090.

402.603.

(c) the levy by any roadcounty districtpursuant to RCW 73.08.080(1) may not exceed $2.2527 cents per $1,000 of assessed value or be less than 1.125 cents per $1,000 of assessed value;

and (d) the levy by any cityroad ordistrict town may not exceed $3.375$2.25 per $1,000 of assessed value.value;

and (((d))) (e) the levy by any city or town may not exceed $3.375 per $1,000 of assessed value.

The term "junior taxing districts" includes all taxing districts other than the state, counties, road districts,p. cities, towns, port districts, and public utility districts.

14 HB 2442 districts, cities, towns, port districts, and public utility districts.

(i) the p.portions of levies by fire protection districts and regional fire protection service authorities that are protected under RCW 84.52.125;

13 ESHB 2442 portions of levies by fire protection districts and regional fire protection service authorities that are protected under RCW 84.52.125;

((and)) (n) levies for countyveterans' publicassistance health clinic operations, maintenance, and capital expenses under sectionRCW 80173.08.080(1); of this act;

and (o) levies for countydevelopmental hospitaldisabilities purposesor mental health services under RCW 36.62.090.71.20.110;

and (p) levies for county hospital purposes under RCW 36.62.090.

403.604.

(3)p. When a county assessor finds that the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.043 or 84.52.050, exceeds the limitations provided in either of these sections, the assessor must recompute and establish a consolidated levy in the following manner:

15 HB 2442 (3) When a county assessor finds that the aggregate rate of tax levy on any property, that is subject to the limitations set forth in RCW 84.52.043 or 84.52.050, exceeds the limitations provided in either of these sections, the assessor must recompute and establish a consolidated levy in the following manner:

If, as a result of the levies imposed under RCW 36.54.130, 36.69.145 by a park and recreation district described under (a)(viii) of this subsection (3), p.73.08.080(1), 71.20.110, 84.34.230, 84.52.069, 84.52.105, 36.62.090, the portion of the levy by a metropolitan park district that was protected under RCW 84.52.120, 84.52.125, 84.52.135, and 84.52.140, the portion of the levy by a flood control zone district that was protected under RCW 84.52.816, and any portion of a levy resulting from the correction of a levy error under RCW 84.52.085(3), the combined rate of regular property tax levies that are subject to the one percent limitation exceeds one percent of the true and fair value of any property, then these levies must be reduced as follows:

14 ESHB 2442 84.34.230, 84.52.069, 84.52.105, 36.62.090, section 801 of this act, the portion of the levy by a metropolitan park district that was protected under RCW 84.52.120, 84.52.125, 84.52.135, and 84.52.140, the portion of the levy by a flood control zone district that was protected under RCW 84.52.816, and any portion of a levy resulting from the correction of a levy error under RCW 84.52.085(3), the combined rate of regular property tax levies that are subject to the one percent limitation exceeds one percent of the true and fair value of any property, then these levies must be reduced as follows:

(iv) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of thep. true and fair value of any property, the portion of the levy by a fire protection district or regional fire protection service authority that is protected under RCW 84.52.125 must be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated;

16 HB 2442 the true and fair value of any property, the portion of the levy by a fire protection district or regional fire protection service authority that is protected under RCW 84.52.125 must be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated;

(vi) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of p.the true and fair value of any property, the levy imposed by a ferry district under RCW 36.54.130 must be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated;

15 ESHB 2442 the true and fair value of any property, the levy imposed by a ferry district under RCW 36.54.130 must be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated;

(ix) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the levies imposed under RCW 84.34.230, 84.52.105, 36.62.090, section 801 of this act, and any portion of the levy imposed under RCW 84.52.069 that is in excess of 30 cents per $1,000 of assessed value, must be reduced on a pro rata basis until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated;

and (x)p. If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the 30 cents per $1,000 of assessed value of tax levy imposed under RCW 84.52.069 must be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or eliminated.

17 HB 2442 (x) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the 30 cents per $1,000 of assessed value of tax levy imposed under RCW 84.52.069 must be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or eliminated.

(ii) Second, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of those p.junior taxing districts authorized under RCW 36.68.525, 36.69.145 except a park and recreation district described under (a)(viii) of this subsection, 35.95A.100, and 67.38.130 must be reduced on a pro rata basis or eliminated;

16 ESHB 2442 junior taxing districts authorized under RCW 36.68.525, 36.69.145 except a park and recreation district described under (a)(viii) of this subsection, 35.95A.100, and 67.38.130 must be reduced on a pro rata basis or eliminated;

and((and)) (vii)p. Seventh, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for fire protection districts under RCW 52.16.130, regional fire protection service authorities under RCW 52.26.140(1)(a), library districts, metropolitan park districts created before January 1, 2002, under their first 50 cents per $1,000 of assessed valuation levy, and public hospital districts under their first 50 cents per $1,000 of assessed valuation levy, must be reduced on a pro rata basis or eliminated.

18 HB 2442 (vii) Seventh, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for fire protection districts under RCW 52.16.130, regional fire protection service authorities under RCW 52.26.140(1)(a), library districts, metropolitan park districts created before January 1, 2002, under their first 50 cents per $1,000 of assessed valuation levy, and public hospital districts under their first 50 cents per $1,000 of assessed valuation levy, must be reduced on a pro rata basis or eliminated ;

(viii) Eighth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for veterans' assistance under RCW 73.08.080(1) must be reduced on a pro rata basis or eliminated;

and (ix) Ninth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for developmental disabilities or mental health services under RCW 71.20.110(1) must be reduced on a pro rata basis or eliminated.

404.605.

p.(2) The rate percent of all taxes for state and county purposes, and purposes of taxing districts coextensive with the county, must be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the county, as shown by the completed tax rolls of the county, and the rate percent of all taxes levied for purposes of taxing districts within any county must be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the taxing districts respectively.

17 ESHB 2442 (2) The rate percent of all taxes for state and county purposes, and purposes of taxing districts coextensive with the county, must be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the county, as shown by the completed tax rolls of the county, and the rate percent of all taxes levied for purposes of taxing districts within any county must be determined, calculated and fixed by the county assessors of the respective counties, within the limitations provided by law, upon the assessed valuation of the property of the taxing districts respectively.

(a) The full certified rates of tax levy for state, county, county road district, regional transit authority, and city or town purposesp. must be extended on the tax rolls in amounts not exceeding the limitations established by law;

19 HB 2442 purposes must be extended on the tax rolls in amounts not exceeding the limitations established by law;

If, as a result of the levies imposed under RCW 36.54.130, 73.08.080(1), 84.34.230, 84.52.069, 84.52.105, 36.62.090, section 801 of this act, the portion of the levy by a metropolitan park district that was protected under RCW 84.52.120, 84.52.125, 84.52.135, and 84.52.140, the portion of the levy by a flood control zone district that was protected under RCW 84.52.816, and the portion of any levy resulting from the correction of a levy error under RCW 84.52.085(3), the combined rate of regular property tax levies that are subject to the one percent limitation exceeds one percent of the true and fair value of any property, then these levies must be reduced as follows:

(ii) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, the portion of the levy by a flood control zone district that was protected under RCW 84.52.816 p.must be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated;

18 ESHB 2442 must be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated;

(v) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, the levy imposed by a county underp. RCW 84.52.135 must be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated;

20 HB 2442 under RCW 84.52.135 must be reduced until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated;

(viii) If the combined rate of regular property tax levies that are subject to the one percent limitation still exceeds one percent of the true and fair value of any property, then the levies imposed under RCW 84.34.230, 84.52.105, 36.62.090, section 801 of this act, and any portion of the levy imposed under RCW 84.52.069 that is in excess of 30 cents per $1,000 of assessed value, must be reduced on a p.pro rata basis until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated;

19 ESHB 2442 pro rata basis until the combined rate no longer exceeds one percent of the true and fair value of any property or must be eliminated;

(iii)p. Third, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of flood control zone districts other than the portion of a levy protected under RCW 84.52.816 must be reduced on a pro rata basis or eliminated;

21 HB 2442 (iii) Third, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates of flood control zone districts other than the portion of a levy protected under RCW 84.52.816 must be reduced on a pro rata basis or eliminated;

(vi) Sixth, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized to fire protection districts under RCW 52.16.140 and 52.16.160 and regional p.fire protection service authorities under RCW 52.26.140(1) (b) and (c) must be reduced on a pro rata basis or eliminated;

20((and)) ESHB(vii) 2442Seventh, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for fire protection districts under RCW 52.16.130, regional fire protection service authorities under RCW 52.26.140(1)52.26.140(1)(a), (b)library districts, metropolitan park districts created before January 1, 2002, under their first 50 cents per $1,000 of assessed valuation levy, and (c)public hospital districts under their first 50 cents per $1,000 of assessed valuation levy, must be reduced on a pro rata basis or eliminated;eliminated ;

and(viii) (vii)Eighth, Seventh, if the consolidated tax levy rate still exceeds these limitations, the certified property tax levy rates authorized for fireveterans' protectionassistance districts under RCW 52.16.130,73.08.080(1) regional fire protection service authorities under RCW 52.26.140(1)(a), library districts, metropolitan park districts created before January 1, 2002, under their first 50 cents per $1,000 of assessed valuation levy, and public hospital districts under their first 50 cents per $1,000 of assessed valuation levy, must be reduced on a pro rata basis or eliminated.eliminated;

Partand V(ix) ExceedingNinth, Regularif Propertythe Taxconsolidated Levytax Limitationslevy Sec.rate still exceeds these limitations, the certified property tax levy rates authorized for developmental disabilities or mental health services under RCW 71.20.110(1) must be reduced on a pro rata basis or eliminated.

501.p.

22 HB 2442 Sec.

606.

RCW 84.55.005 and 2014 c 97 s 316 are each amended to read as follows:

The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Inflation" means the percentage change in the implicit price deflator for personal consumption expenditures for the United States as published for the most recent twelve-month period by the bureau of economic analysis of the federal department of commerce by September 25th of the year before the taxes are payable;

(2) "Limit factor" means:

(a) For taxing districts with a population of less than ten thousand in the calendar year prior to the assessment year, one hundred one percent;

(b) For taxing districts for which a limit factor is authorized under RCW 84.55.0101, the lesser of the limit factor authorized under that section or one hundred one percent;

(c) For the veterans' assistance levy under RCW 73.08.080(1), the lesser of 101 percent or 100 percent plus inflation;

(d) For the developmental disabilities and mental health services levy under RCW 71.20.110(1), the lesser of 101 percent or 100 percent plus inflation;

and (e) For all other districts, the lesser of one hundred one percent or one hundred percent plus inflation;

and (3) "Regular property taxes" has the meaning given it in RCW 84.04.140.

Part VII Exceeding Regular Property Tax Levy Limitations Sec.

701.

Any election held pursuant to this section shall be held not more than 12 monthsp. prior to the date on which the proposed levy, or the first of the two consecutive levies, is to be made, except as provided in subsection (2) of this section.

23 HB 2442 months prior to the date on which the proposed levy, or the first of the two consecutive levies, is to be made, except as provided in subsection (2) of this section.

(2) Subject to statutory dollar limitations, a proposition placed before the voters under this section may authorize annual increases in levies for multiple consecutive years, up to ((six)) 10 consecutive years, during which period each year's authorized maximum legal levy shall be used as the base upon which an increased levy limit for the succeeding year is computed, but the ballot proposition must state the dollar rate proposed only for the first year of the consecutive years and must state the limit factor, or a specified p.index to be used for determining a limit factor, such as the consumer price index, which need not be the same for all years, by which the regular tax levy for the district may be increased in each of the subsequent consecutive years.

21 ESHB 2442 index to be used for determining a limit factor, such as the consumer price index, which need not be the same for all years, by which the regular tax levy for the district may be increased in each of the subsequent consecutive years.

(i)p. For the county in which the state capitol is located, the period for which the increased levies are made may not exceed 25 years;

24 HB 2442 (i) For the county in which the state capitol is located, the period for which the increased levies are made may not exceed 25 years;

p.(a) The proposition under this section had not been approved;

22 ESHB 2442 (a) The proposition under this section had not been approved;

Part VIVIII Sales Tax on Rental Cars Sec.

601.801.

or (e)p. Criminal justice purposes as defined in RCW 82.14.345.

25 HB 2442 (e) Criminal justice purposes as defined in RCW 82.14.345.

Part VII Flood Control Zone Districts Recovery Assistance Sec.

701.

RCW 86.15.080 and 2010 c 46 s 2 are each amended to read as follows:

A zone or participating zone may:

(1) Exercise all the powers and immunities vested in a county for flood water or stormwater control purposes under the provisions of chapters 86.12, 86.13, 36.89, and 36.94 RCW:

PROVIDED, That in p.

23 ESHB 2442 exercising such powers, all actions shall be taken in the name of the zone and title to all property or property rights shall vest in the zone;

(2) Plan, construct, acquire, repair, maintain, and operate all necessary equipment, facilities, improvements, and works to control, conserve, and remove flood waters and stormwaters and to otherwise carry out the purposes of this chapter including, but not limited to, protection of the quality of water sources;

(3) Take action necessary to protect life and property within the district from flood water damage, including in the context of an emergency, as defined in RCW 38.52.010, using covered volunteer emergency workers, as defined in RCW 38.52.010 and 38.52.180(5)(a), subject to and in accordance with the terms of RCW 38.52.180;

(4) Control, conserve, retain, reclaim, and remove flood waters and stormwaters, including waters of lakes and ponds within the district, and dispose of the same for beneficial or useful purposes under such terms and conditions as the board may deem appropriate, subject to the acquisition by the board of appropriate water rights in accordance with the statutes;

(5) Acquire necessary property, property rights, facilities, and equipment necessary to the purposes of the zone by purchase, gift, or condemnation:

PROVIDED, That property of municipal corporations may not be acquired without the consent of such municipal corporation;

(6) Sue and be sued in the name of the zone;

(7) Acquire or reclaim lands when incidental to the purposes of the zone and dispose of such lands as are surplus to the needs of the zone in the manner provided for the disposal of county property in chapter 36.34 RCW;

(8) Cooperate with or join with the state of Washington, United States, another state, any agency, corporation or political subdivision of the United States or any state, Canada, or any private corporation or individual for the purposes of this chapter;

(9) Accept funds or property by loan, grant, gift or otherwise from the United States, the state of Washington, or any other public or private source;

(10) Remove debris, logs, or other material which may impede the orderly flow of waters in streams or water courses:

PROVIDED, That such material shall become property of the zone and may be sold for the purpose of recovering the cost of removal:

PROVIDED FURTHER, That p.

24 ESHB 2442 valuable material or minerals removed from public lands shall remain the property of the state;

(11) Provide grant funds to political subdivisions of the state that are located within the boundaries of the zone, so long as the use of the grant funds is within the purposes authorized under this chapter;

(12) Expend funds, or transfer funds to the county legislative authority in which the zone is located, for the purpose of providing county-administered flood recovery assistance to households and businesses damaged by a flood event occurring within the zone that is the subject of an emergency proclamation issued by the governor under RCW 43.06.010.

Part VIII County Public Health Clinic Property Tax NEW SECTION.

Sec.

801.

A new section is added to chapter 84.52 RCW to read as follows:

(1) A county, at the time of levying general taxes, may levy an additional regular property tax, not to exceed five cents per $1,000 of assessed value in any one year, in accordance with this section.

(2) The legislative authority of a county imposing this levy must either:

(a) Impose the levy as a separate levy, independent of the regular property tax levy authorized in RCW 84.52.043(1)(b);

or (b) Impose the levy as part of its levy authorized in RCW 84.52.043(1)(b).

(3) Any tax imposed under this section may only be used for the operation, maintenance, and capital expenses of public health clinics.

(4) The limitations in RCW 84.52.043 do not apply to the tax levy authorized in this section and the limitation in RCW 84.55.010 does not apply to the first year the tax levy is imposed under this section.

(5) For the purposes of this section, "public health clinic" means a fixed or mobile, publicly operated site for the provision of low-barrier public health and other related services including, but not limited to:

Primary, dental, and reproductive health care;

treatment, control, and prevention of communicable diseases, substance use disorder, and other health conditions;

maternal, p.

25 ESHB 2442 infant, child, and family health and nutrition;

behavioral health care;

assistance with health plan enrollment;

and access and referrals to other community services.

Sections 201301 and 202302 of this act takeconstitute effecta Januarynew 1,chapter 2027.in Title 36 RCW.

SectionSections 401601 through 606 of this act expiresapply Januaryto 1,taxes 2027.levied for collection in 2027 and thereafter.

Section 402602 of this act takesexpires effect January 1, 2027.

Section 403603 of this act expirestakes effect January 1, 2027.

Section 404604 of this act takesexpires effect January 1, 2027.

ExceptSection for605 sections 201, 202, 402, and 404 of this act, this act takes effect JulyJanuary 1, 2026.2027.

NEW SECTION.

Sec.

907.

Except for sections 603 and 605 of this act, this act takes effect July 1, 2026.

26 ESHBHB 2442