Bill Summary – FastDemocracy

H-2496.1
                                 HOUSE BILL 2211
     State of Washington         68th Legislature        2024 Regular Session
     By Representatives    Stearns,   Orwall,   Gregerson,   Chapman,   Hackney,
     Fosse, and Goodman
     Read first time 01/09/24.   Referred to Committee on Local Government.
      AN ACT Relating to granting local taxing authority to fund
  criminal justice; amending RCW 82.14.450 and 82.14.340; and declaring
  an emergency.
  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
     Sec. 1.   RCW 82.14.450 and 2021 c 296 s 6 are each amended to
 read as follows:
     (1)(a) A county legislative authority may submit an authorizing
 proposition to the county voters at a primary 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 this
 chapter. The title of each ballot measure must clearly state the
 purposes for which the proposed sales and use tax will be used. The
 rate of tax under this section may not exceed ((three-tenths of one))
 0.3 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.
     (b) Until January 1, 2027, a county legislative authority may by
 ordinance impose the tax provided under (a) of this subsection.
     (c) If a county does not impose the 0.3 percent rate of tax in
 part or in full as provided under this section by July 1, 2024, a
 city legislative authority may, until January 1, 2027, impose by
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 ordinance the remainder or the full rate of the sales and use tax in
 accordance with this section.
     (d) The combined total rate of the tax authorized under (b) and
 (c) of this subsection (1) may not exceed 0.3 percent.
     (2)(a) A city legislative authority may submit an authorizing
 proposition to the city voters at a primary 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 this
 chapter. The title of each ballot measure must clearly state the
 purposes for which the proposed sales and use tax will be used. The
 rate of tax under this subsection may not exceed ((one-tenth of one))
 0.1 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. ((A city may not begin
 imposing a tax approved by the voters under this subsection prior to
 January 1, 2011.))
     (b) If a county adopts an ordinance or resolution to submit a
 ballot proposition to the voters to impose the sales and use tax
 under subsection (1) of this section prior to a city within the
 county adopting an ordinance or resolution to submit a ballot
 proposition to the voters to impose the tax under this subsection,
 the rate of tax by the city under this subsection may not exceed an
 amount that would cause the total county and city tax rate under this
 section to exceed three-tenths of one percent. This subsection (2)(b)
 also applies if the county and city adopt an ordinance or resolution
 to impose sales and use taxes under this section on the same date.
     (c) If the city adopts an ordinance or resolution to submit a
 ballot proposition to the voters to impose the sales and use tax
 under this subsection prior to the county in which the city is
 located, the county must provide a credit against its tax under
 subsection (1) of this section for the city tax under this subsection
 to the extent the total county and city tax rate under this section
 would exceed three-tenths of one percent.
     (3) The tax authorized in this section is in addition to any
 other taxes authorized by law and must 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 county.
     (4) The retail sale or use of motor vehicles, and the lease of
 motor vehicles for up to the first ((thirty-six)) 36 months of the
 lease, are exempt from tax imposed under this section.
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     (5) ((One-third)) (a) If the tax authorized under this section is
 adopted by approval of an authorizing proposition by voters, one-
 third of all money received under this section must be used solely
 for criminal justice purposes, fire protection purposes, or both.
 ((For the purposes of this subsection, "criminal justice purposes"
 has the same meaning as provided in RCW 82.14.340, except that from
 May 13, 2021, through December 31, 2023, "criminal justice purposes"
 includes   local  government   programs   which  have  a   reasonable
 relationship to reducing the numbers of people interacting with the
 criminal justice system including, but not limited to, reducing
 homelessness or improving behavioral health.))
     (b) If the tax authorized under this section is imposed by
 ordinance, all money received under this section must be used for
 criminal justice purposes. The total amount of funding a county or
 city allocates to criminal justice purposes must be more than
 previously allocated for criminal justice purposes prior to the
 imposition of the tax under this section.
     (6) Money received by a county under subsection (1) of this
 section must be shared between the county and the cities as follows:
 60 percent must be retained by the county and 40 percent must be
 distributed on a per capita basis to cities in the county.
     (7) Tax proceeds received by a city imposing a tax under this
 section must be shared between the county and city as follows: 15
 percent must be distributed to the county and 85 percent is retained
 by the city.
     Sec. 2.   RCW 82.14.340 and 2021 c 296 s 5 are each amended to
 read as follows:
     (1) The legislative authority of any county may fix and impose a
 sales and use tax in accordance with the terms of this chapter,
 provided that such sales and use tax is subject to repeal by
 referendum, using the procedures provided in RCW 82.14.036. The
 referendum procedure provided in RCW 82.14.036 is the exclusive
 method for subjecting any county sales and use tax ordinance or
 resolution to a referendum vote.
     (2) The tax authorized in this section is in addition to any
 other taxes authorized by law and must be collected from those
 persons who are taxable by the state pursuant to chapters 82.08 and
 82.12 RCW upon the occurrence of any taxable event within such
 county. The rate of tax equals one-tenth of one percent of the
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 selling price (in the case of a sales tax) or value of the article
 used (in the case of a use tax).
     (3) When distributing moneys collected under this section, the
 state treasurer must distribute 10 percent of the moneys to the
 county in which the tax was collected. The remainder of the moneys
 collected under this section must be distributed to the county and
 the cities within the county ratably based on population as last
 determined by the office of financial management. In making the
 distribution based on population, the county must receive that
 proportion that the unincorporated population of the county bears to
 the total population of the county and each city must receive that
 proportion that the city incorporated population bears to the total
 county population.
     (4) Moneys received from any tax imposed under this section must
 be expended for criminal justice purposes. Criminal justice purposes
 are defined as activities that substantially assist the criminal
 justice system, ((which may include)) including coresponder and
 diversion treatment services and circumstances where ancillary
 benefit to the civil justice system occurs, and which includes
 domestic violence services such as those provided by domestic
 violence programs, community advocates, and legal advocates, as
 defined in RCW 70.123.020. After May 13, 2021, through December 31,
 2023, criminal justice purposes includes local government programs
 which have a reasonable relationship to reducing the numbers of
 people interacting with the criminal justice system including, but
 not limited to, reducing homelessness or improving behavioral health.
     (5) In the expenditure of funds for criminal justice purposes as
 provided in this section, cities and counties, or any combination
 thereof, are expressly authorized to participate in agreements,
 pursuant to chapter 39.34 RCW, to jointly expend funds for criminal
 justice purposes of mutual benefit. Such criminal justice purposes of
 mutual benefit include, but are not limited to, the construction,
 improvement, and expansion of jails, court facilities, juvenile
 justice facilities, and services with ancillary benefits to the civil
 justice system.
     NEW SECTION.  Sec. 3.  This act is necessary for the immediate
 preservation of the public peace, health, or safety, or support of
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 the state government and its existing public institutions, and takes
 effect immediately.
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Statutes affected: 
Original Bill: 82.14.450, 82.14.340