ENGROSSED SUBSTITUTE HOUSE BILL 1333
State of Washington 67th Legislature 2021 Regular Session
By House Finance (originally sponsored by Representatives Tharinger,
Steele, Hackney, and Lekanoff)
READ FIRST TIME 02/22/21.
1 AN ACT Relating to providing an extension to the local sales and
2 use tax for public facilities in rural counties; and amending RCW
3 82.14.370.
4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
5 Sec. 1. RCW 82.14.370 and 2012 c 225 s 4 are each amended to
6 read as follows:
7 (1) The legislative authority of a rural county may impose a
8 sales and use tax in accordance with the terms of this chapter. The
9 tax is in addition to other taxes authorized by law and must be
10 collected from those persons who are taxable by the state under
11 chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event
12 within the county. The rate of tax may not exceed 0.09 percent of the
13 selling price in the case of a sales tax or value of the article used
14 in the case of a use tax, except that for rural counties with
15 population densities between sixty and one hundred persons per square
16 mile, the rate shall not exceed 0.04 percent before January 1, 2000.
17 (2) The tax imposed under subsection (1) of this section must be
18 deducted from the amount of tax otherwise required to be collected or
19 paid over to the department of revenue under chapter 82.08 or 82.12
20 RCW. The department of revenue must perform the collection of such
21 taxes on behalf of the county at no cost to the county.
p. 1 ESHB 1333
1 (3)(a) Moneys collected under this section may only be used to
2 finance public facilities serving economic development purposes in
3 rural counties and finance personnel in economic development offices.
4 The public facility must be listed as an item in the officially
5 adopted county overall economic development plan, or the economic
6 development section of the county's comprehensive plan, or the
7 comprehensive plan of a city or town located within the county for
8 those counties planning under RCW 36.70A.040. For those counties that
9 do not have an adopted overall economic development plan and do not
10 plan under the growth management act, the public facility must be
11 listed in the county's capital facilities plan or the capital
12 facilities plan of a city or town located within the county.
13 (b) In implementing this section, the county must consult with
14 cities, towns, and port districts located within the county and the
15 associate development organization serving the county to ensure that
16 the expenditure meets the goals of chapter 130, Laws of 2004 and the
17 requirements of (a) of this subsection. Each county collecting money
18 under this section must report, as follows, to the office of the
19 state auditor, within one hundred fifty days after the close of each
20 fiscal year: (i) A list of new projects begun during the fiscal year,
21 showing that the county has used the funds for those projects
22 consistent with the goals of chapter 130, Laws of 2004 and the
23 requirements of (a) of this subsection; and (ii) expenditures during
24 the fiscal year on projects begun in a previous year. Any projects
25 financed prior to June 10, 2004, from the proceeds of obligations to
26 which the tax imposed under subsection (1) of this section has been
27 pledged may not be deemed to be new projects under this subsection.
28 No new projects funded with money collected under this section may be
29 for justice system facilities.
30 (c) The definitions in this section apply throughout this
31 section.
32 (i) "Public facilities" means bridges, roads, domestic and
33 industrial water facilities, sanitary sewer facilities, earth
34 stabilization, storm sewer facilities, railroads, electrical
35 facilities, natural gas facilities, research, testing, training, and
36 incubation facilities in innovation partnership zones designated
37 under RCW 43.330.270, buildings, structures, telecommunications
38 infrastructure, transportation infrastructure, or commercial
39 infrastructure, and port facilities in the state of Washington.
p. 2 ESHB 1333
1 (ii) "Economic development purposes" means those purposes which
2 facilitate the creation or retention of businesses and jobs in a
3 county.
4 (iii) "Economic development office" means an office of a county,
5 port districts, or an associate development organization as defined
6 in RCW 43.330.010, which promotes economic development purposes
7 within the county.
8 (4) No tax may be collected under this section before July 1,
9 1998.
10 (a) Except as provided in (b) of this subsection, no tax may be
11 collected under this section by a county more than twenty-five years
12 after the date that a tax is first imposed under this section.
13 (b) For counties imposing the tax ((at the rate of 0.09 percent))
14 before August 1, 2009, and meeting the definition of a rural county
15 as of August 1, 2009, the tax expires on ((the date that is twenty-
16 five years after the date that the 0.09 percent tax rate was first
17 imposed by that county)) December 31, 2054.
18 (5) For purposes of this section, "rural county" means a county
19 with a population density of less than one hundred persons per square
20 mile or a county smaller than two hundred twenty-five square miles as
21 determined by the office of financial management ((and published each
22 year by the department for the period July 1st to June 30th))
23 pursuant to RCW 43.62.035.
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p. 3 ESHB 1333
Statutes affected: Original Bill: 82.14.370
Substitute Bill: 82.14.370
Engrossed Substitute: 82.14.370
Bill: 82.14.370