Local tax rate changes

AN ACT Relating to standardizing notification provisions relating 1
to local tax rate changes and shared taxes administered by the 2
department; and amending RCW 82.14.055, 82.14.390, and 82.14.485.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 82.14.055 and 2016 c 46 s 1 are each amended to read 5
as follows: 6
(1) Except as provided in subsections (2), (3), and (((4))) (5) 7
of this section, a local sales and use tax change may take effect (a) 8
no sooner than ((seventy-five)) 75 days after the department 9
((receives notice)) is notified in writing of the change and (b) only 10
on the first day of January, April, or July. 11
(2) In the case of a local sales and use tax that is a credit 12
against the state sales tax or use tax, a local sales and use tax 13
change may take effect (a) no sooner than ((thirty)) 30 days after 14
the department ((receives notice )) is notified in writing of the 15
change and (b) only on the first day of a month. 16
(3)(a) A local sales and use tax rate increase imposed on 17
services applies to the first billing period starting on or after the 18
effective date of the increase. 19
Z-0249.1
SENATE BILL 5315
State of Washington 69th Legislature 2025 Regular Session
By Senators Gildon, Salomon, and Nobles; by request of Department of
Revenue
Read first time 01/16/25. Referred to Committee on Local Government.
p. 1 SB 5315
(b) A local sales and use tax rate decrease imposed on services 1
applies to bills rendered on or after the effective date of the 2
decrease. 3
(c) For the purposes of this subsection (3), "services" means 4
retail services such as installing and constructing and retail 5
services such as telecommunications, but does not include services 6
such as tattooing. 7
(4) Authorized authorities contracting with the department under 8
RCW 82.14.050(1) that make a local sales and use tax change must 9
notify the department in writing of the change and provide a copy of 10
the signed ordinance or resolution. If the local sales and use tax 11
change results from an annexation, the written notification must also 12
include a copy of the complete ordinance containing a legal 13
description, a map showing specifically the boundaries of the annexed 14
territory, and a list of all included parcel numbers in the annexed 15
territory.16
(5) For the purposes of this section, "local sales and use tax 17
change" means enactment or revision of local sales and use taxes 18
under this chapter or any other statute, including changes resulting 19
from referendum or annexation. 20
Sec. 2. RCW 82.14.390 and 2017 c 164 s 1 are each amended to 21
read as follows: 22
(1) Except as provided in subsection (7) of this section, the 23
governing body of a public facilities district (a) created before 24
July 31, 2002, under chapter 35.57 or 36.100 RCW that commenced 25
construction of at least one new regional center, or improvement or 26
rehabilitation of an existing new regional center, before January 1, 27
2004; (b) created before July 1, 2006, under chapter 35.57 RCW in a 28
county or counties in which there are no other public facilities 29
districts on June 7, 2006, and in which the total population in the 30
public facilities district is greater than ((ninety thousand)) 90,000 31
that commenced construction of a new regional center before February 32
1, 2007; (c) created under the authority of RCW 35.57.010(1)(d); or 33
(d) created before September 1, 2007, under chapter 35.57 or 36.100 34
RCW, in a county or counties in which there are no other public 35
facilities districts on July 22, 2007, and in which the total 36
population in the public facilities district is greater than 37
((seventy thousand )) 70,000, that commenced construction of a new 38
regional center before January 1, 2009, or before January 1, 2011, in 39
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the case of a new regional center in a county designated by the 1
president as a disaster area in December 2007, may impose a sales and 2
use tax in accordance with the terms of this chapter. The tax is in 3
addition to other taxes authorized by law and must be collected from 4
those persons who are taxable by the state under chapters 82.08 and 5
82.12 RCW upon the occurrence of any taxable event within the public 6
facilities district. The rate of tax may not exceed 0.033 percent of 7
the selling price in the case of a sales tax or value of the article 8
used in the case of a use tax. 9
(2)(a) The governing body of a public facilities district 10
imposing a sales and use tax under the authority of this section may 11
increase the rate of tax up to 0.037 percent if, within three fiscal 12
years of July 1, 2008, the department determines that, as a result of 13
RCW 82.14.490 and the chapter 6, Laws of 2007 amendments to RCW 14
82.14.020, a public facilities district's sales and use tax 15
collections for fiscal years after July 1, 2008, have been reduced by 16
a net loss of at least 0.50 percent from the fiscal year before July 17
1, 2008. The fiscal year in which this section becomes effective is 18
the first fiscal year after July 1, 2008. 19
(b) The department must determine sales and use tax collection 20
net losses under this section ((as provided in RCW 82.14.500 (2) and 21
(3))). The department must provide written notice of its 22
determinations to public facilities districts. Determinations by the 23
department of a public facilities district's sales and use tax 24
collection net losses as a result of RCW 82.14.490 and the chapter 6, 25
Laws of 2007 amendments to RCW 82.14.020 are final and not 26
appealable. 27
(c) A public facilities district may increase its rate of tax 28
after it has received written notice from the department as provided 29
in (b) of this subsection. The increase in the rate of tax must be 30
made in 0.001 percent increments and must be the least amount 31
necessary to mitigate the net loss in sales and use tax collections 32
as a result of RCW 82.14.490 and the chapter 6, Laws of 2007 33
amendments to RCW 82.14.020. The increase in the rate of tax is 34
subject to RCW 82.14.055. 35
(3) The tax imposed under subsection (1) of this section must be 36
deducted from the amount of tax otherwise required to be collected or 37
paid over to the department of revenue under chapter 82.08 or 82.12 38
RCW. The department of revenue must perform the collection of such 39
taxes on behalf of the county at no cost to the public facilities 40
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district. ((During the 2011-2013 fiscal biennium, distributions by 1
the state to a public facilities district based on the additional 2
rate authorized in subsection (2) of this section must be reduced by 3
3.4 percent.))4
(4)(a) No tax may be collected under this section before August 5
1, 2000. The tax imposed in this section expires when bonds issued to 6
finance or refinance the construction, improvement, rehabilitation, 7
or expansion of the regional center and related parking facilities 8
are retired, but not more than ((forty)) 40 years after the tax is 9
first collected. 10
(b) A public facilities district that imposes the tax under this 11
section must notify the department in writing of the actual date the 12
bonds will be retired.13
(c) Notification of a bond's actual retirement date must be made 14
at least 75 days before retirement.15
(5) Moneys collected under this section may only be used for the 16
purposes set forth in RCW 35.57.020 and must be matched with an 17
amount from other public or private sources equal to ((thirty-three)) 18
33 percent of the amount collected under this section; however, 19
amounts generated from nonvoter approved taxes authorized under 20
chapter 35.57 RCW or nonvoter approved taxes authorized under chapter 21
36.100 RCW do not constitute a public or private source. For the 22
purpose of this section, public or private sources includes, but is 23
not limited to cash or in-kind contributions used in all phases of 24
the development or improvement of the regional center, land that is 25
donated and used for the siting of the regional center, cash or in-26
kind contributions from public or private foundations, or amounts 27
attributed to private sector partners as part of a public and private 28
partnership agreement negotiated by the public facilities district.29
(6) The combined total tax levied under this section may not be 30
greater than 0.037 percent. If both a public facilities district 31
created under chapter 35.57 RCW and a public facilities district 32
created under chapter 36.100 RCW impose a tax under this section, the 33
tax imposed by a public facilities district created under chapter 34
35.57 RCW must be credited against the tax imposed by a public 35
facilities district created under chapter 36.100 RCW.36
(7) A public facilities district created under chapter 36.100 RCW 37
is not eligible to impose the tax under this section if the 38
legislative authority of the county where the public facilities 39
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district is located has imposed a sales and use tax under RCW 1
82.14.0485 or 82.14.0494. 2
Sec. 3. RCW 82.14.485 and 2017 c 164 s 2 are each amended to 3
read as follows: 4
(1) In a county with a population under ((three hundred 5
thousand)) 300,000, the governing body of a public facilities 6
district, which is created before August 1, 2001, under chapter 35.57 7
RCW or before January 1, 2000, under chapter 36.100 RCW, in which the 8
total population in the public facilities district is greater than 9
((ninety thousand )) 90,000 and less than ((one hundred thousand )) 10
100,000 that commences improvement or rehabilitation of an existing 11
regional center, to be used for community events, and artistic, 12
musical, theatrical, or other cultural exhibitions, presentations, or 13
performances and having ((two thousand )) 2,000 or fewer permanent 14
seats, before January 1, 2009, may impose a sales and use tax in 15
accordance with the terms of this chapter. The tax is in addition to 16
other taxes authorized by law and must be collected from those 17
persons who are taxable by the state under chapters 82.08 and 82.12 18
RCW upon the occurrence of any taxable event within the public 19
facilities district. The rate of tax for a public facilities district 20
created prior to August 1, 2001, under chapter 35.57 RCW, may not 21
exceed 0.025 percent of the selling price in the case of a sales tax 22
or value of the article used in the case of a use tax. The rate of 23
tax, for a public facilities district created prior to January 1, 24
2000, under chapter 36.100 RCW, may not exceed 0.020 percent of the 25
selling price in the case of a sales tax or the value of the article 26
used in the case of a use tax. 27
(2) The tax imposed under subsection (1) of this section must be 28
deducted from the amount of tax otherwise required to be collected or 29
paid over to the department under chapter 82.08 or 82.12 RCW. The 30
department must perform the collection of such taxes on behalf of the 31
county at no cost to the public facilities district.32
(3)(a) The tax imposed in this section expires when bonds issued 33
to finance or refinance the construction, improvement, 34
rehabilitation, or expansion of the regional center and related 35
parking facilities are retired, but not more than ((forty)) 40 years 36
after the tax is first collected. 37
(b) A public facilities district that imposes the tax under this 38
section must notify the department in writing, at least 75 days 39
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before retiring the bonds described in (a) of this subsection, of the 1
actual date the bond will be retired. 2
(4) Moneys collected under this section may only be used for the 3
purposes set forth in RCW 35.57.020 and must be matched with an 4
amount from other public or private sources equal to ((thirty-three)) 5
33 percent of the amount collected under this section, provided that 6
amounts generated from nonvoter-approved taxes authorized under 7
chapter 35.57 RCW may not constitute a public or private source. For 8
the purpose of this section, public or private sources include, but 9
are not limited to cash or in-kind contributions used in all phases 10
of the development or improvement of the regional center, land that 11
is donated and used for the siting of the regional center, cash or 12
in-kind contributions from public or private foundations, or amounts 13
attributed to private sector partners as part of a public and private 14
partnership agreement negotiated by the public facilities district.15
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