Public facilities districts

AN ACT Relating to public facilities districts; and amending RCW 1
82.14.390 and 82.14.485. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
Sec. 1. RCW 82.14.390 and 2017 c 164 s 1 are each amended to 4
read as follows: 5
(1) Except as provided in subsection (7) of this section, the 6
governing body of a public facilities district (a) created before 7
July 31, 2002, under chapter 35.57 or 36.100 RCW that commenced 8
construction of at least one new regional center, or improvement or 9
rehabilitation of an existing new regional center, before January 1, 10
2004; (b) created before July 1, 2006, under chapter 35.57 RCW in a 11
county or counties in which there are no other public facilities 12
districts on June 7, 2006, and in which the total population in the 13
public facilities district is greater than ninety thousand that 14
commenced construction of a new regional center before February 1, 15
2007; (c) created under the authority of RCW 35.57.010(1)(d); or (d) 16
created before September 1, 2007, under chapter 35.57 or 36.100 RCW, 17
in a county or counties in which there are no other public facilities 18
districts on July 22, 2007, and in which the total population in the 19
public facilities district is greater than seventy thousand, that 20
commenced construction of a new regional center before January 1, 21
H-0291.1
HOUSE BILL 1109
State of Washington 69th Legislature 2025 Regular Session
By Representatives Ryu, Cortes, Peterson, and Volz
Prefiled 12/20/24. Read first time 01/13/25. Referred to Committee
on Finance.
p. 1 HB 1109
2009, or before January 1, 2011, in the case of a new regional center 1
in a county designated by the president as a disaster area in 2
December 2007, may impose a sales and use tax in accordance with the 3
terms of this chapter. The tax is in addition to other taxes 4
authorized by law and must be collected from those persons who are 5
taxable by the state under chapters 82.08 and 82.12 RCW upon the 6
occurrence of any taxable event within the public facilities 7
district. The rate of tax may not exceed 0.033 percent of the selling 8
price in the case of a sales tax or value of the article used in the 9
case of a use tax. 10
(2)(a) The governing body of a public facilities district 11
imposing a sales and use tax under the authority of this section may 12
increase the rate of tax up to 0.037 percent if, within three fiscal 13
years of July 1, 2008, the department determines that, as a result of 14
RCW 82.14.490 and the chapter 6, Laws of 2007 amendments to RCW 15
82.14.020, a public facilities district's sales and use tax 16
collections for fiscal years after July 1, 2008, have been reduced by 17
a net loss of at least 0.50 percent from the fiscal year before July 18
1, 2008. The fiscal year in which this section becomes effective is 19
the first fiscal year after July 1, 2008. 20
(b) The department must determine sales and use tax collection 21
net losses under this section ((as provided in RCW 82.14.500 (2) and 22
(3))). The department must provide written notice of its 23
determinations to public facilities districts. Determinations by the 24
department of a public facilities district's sales and use tax 25
collection net losses as a result of RCW 82.14.490 and the chapter 6, 26
Laws of 2007 amendments to RCW 82.14.020 are final and not 27
appealable. 28
(c) A public facilities district may increase its rate of tax 29
after it has received written notice from the department as provided 30
in (b) of this subsection. The increase in the rate of tax must be 31
made in 0.001 percent increments and must be the least amount 32
necessary to mitigate the net loss in sales and use tax collections 33
as a result of RCW 82.14.490 and the chapter 6, Laws of 2007 34
amendments to RCW 82.14.020. The increase in the rate of tax is 35
subject to RCW 82.14.055. 36
(3) The tax imposed under subsection (1) of this section must be 37
deducted from the amount of tax otherwise required to be collected or 38
paid over to the department of revenue under chapter 82.08 or 82.12 39
RCW. The department of revenue must perform the collection of such 40
p. 2 HB 1109
taxes on behalf of the county at no cost to the public facilities 1
district. During the 2011-2013 fiscal biennium, distributions by the 2
state to a public facilities district based on the additional rate 3
authorized in subsection (2) of this section must be reduced by 3.4 4
percent. 5
(4) No tax may be collected under this section before August 1, 6
2000. The tax imposed in this section expires when bonds issued to 7
finance or refinance the construction, improvement, rehabilitation, 8
or expansion of ((the)) a regional center and related parking 9
facilities are retired, but not more than ((forty)) 65 years after 10
the tax is first collected. 11
(5) Moneys collected under this section may only be used for the 12
purposes set forth in RCW 35.57.020 and must be matched with an 13
amount from other public or private sources equal to thirty-three 14
percent of the amount collected under this section; however, amounts 15
generated from nonvoter approved taxes authorized under chapter 35.57 16
RCW or nonvoter approved taxes authorized under chapter 36.100 RCW do 17
not constitute a public or private source. For the purpose of this 18
section, public or private sources includes, but is not limited to 19
cash or in-kind contributions used in all phases of the development 20
or improvement of the regional center, land that is donated and used 21
for the siting of the regional center, cash or in-kind contributions 22
from public or private foundations, or amounts attributed to private 23
sector partners as part of a public and private partnership agreement 24
negotiated by the public facilities district. 25
(6) The combined total tax levied under this section may not be 26
greater than 0.037 percent. If both a public facilities district 27
created under chapter 35.57 RCW and a public facilities district 28
created under chapter 36.100 RCW impose a tax under this section, the 29
tax imposed by a public facilities district created under chapter 30
35.57 RCW must be credited against the tax imposed by a public 31
facilities district created under chapter 36.100 RCW.32
(7) A public facilities district created under chapter 36.100 RCW 33
is not eligible to impose the tax under this section if the 34
legislative authority of the county where the public facilities 35
district is located has imposed a sales and use tax under RCW 36
82.14.0485 or 82.14.0494. 37
Sec. 2. RCW 82.14.485 and 2017 c 164 s 2 are each amended to 38
read as follows: 39
p. 3 HB 1109
(1) In a county with a population under three hundred thousand, 1
the governing body of a public facilities district, which is created 2
before August 1, 2001, under chapter 35.57 RCW or before January 1, 3
2000, under chapter 36.100 RCW, in which the total population in the 4
public facilities district is greater than ninety thousand and less 5
than one hundred thousand that commences improvement or 6
rehabilitation of an existing regional center, to be used for 7
community events, and artistic, musical, theatrical, or other 8
cultural exhibitions, presentations, or performances and having two 9
thousand or fewer permanent seats, before January 1, 2009, may impose 10
a sales and use tax in accordance with the terms of this chapter. The 11
tax is in addition to other taxes authorized by law and must be 12
collected from those persons who are taxable by the state under 13
chapters 82.08 and 82.12 RCW upon the occurrence of any taxable event 14
within the public facilities district. The rate of tax for a public 15
facilities district created prior to August 1, 2001, under chapter 16
35.57 RCW, may not exceed 0.025 percent of the selling price in the 17
case of a sales tax or value of the article used in the case of a use 18
tax. The rate of tax, for a public facilities district created prior 19
to January 1, 2000, under chapter 36.100 RCW, may not exceed 0.020 20
percent of the selling price in the case of a sales tax or the value 21
of the article used in the case of a use tax. 22
(2) The tax imposed under subsection (1) of this section must be 23
deducted from the amount of tax otherwise required to be collected or 24
paid over to the department under chapter 82.08 or 82.12 RCW. The 25
department must perform the collection of such taxes on behalf of the 26
county at no cost to the public facilities district.27
(3) The tax imposed in this section expires when bonds issued to 28
finance or refinance the construction, improvement, rehabilitation, 29
or expansion of ((the)) a regional center and related parking 30
facilities are retired, but not more than ((forty)) 65 years after 31
the tax is first collected. 32
(4) Moneys collected under this section may only be used for the 33
purposes set forth in RCW 35.57.020 and must be matched with an 34
amount from other public or private sources equal to thirty-three 35
percent of the amount collected under this section, provided that 36
amounts generated from nonvoter-approved taxes authorized under 37
chapter 35.57 RCW may not constitute a public or private source. For 38
the purpose of this section, public or private sources include, but 39
are not limited to cash or in-kind contributions used in all phases 40
p. 4 HB 1109
of the development or improvement of the regional center, land that 1
is donated and used for the siting of the regional center, cash or 2
in-kind contributions from public or private foundations, or amounts 3
attributed to private sector partners as part of a public and private 4
partnership agreement negotiated by the public facilities district.5
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p. 5 HB 1109