From the Director - In the Homestretch: Key Issues Still Undecided

While much of the legislative attention is directed at the resolving issues surrounding the supplemental biennial budget and elements of the transportation budget, city lobbyists are focusing a substantial effort to move the streamlined sales tax bill, derail a number of criminal justice measures, and move through passage several modest city issues. In accordance with the Legislature’s joint rules, all measures other than budgets and those necessary to implement budgets that have not passed the opposite house by 5:00 pm on Friday, March 3 are dead for the session. However, with the agreement of all four caucuses, that restriction can be overruled and matters can be brought back to life.

In the closing days the Legislature will focus on resolving conflicts between the House and the Senate on measures that have been amended in the 2nd house, and on working on the budgets. Not unlike most sessions, there are still key issues remaining to be resolved. This year, two of those issues are funding for remodeling of Key Arena and whether the Seattle viaduct will be rebuilt as a viaduct or as a tunnel.

Streamlined Sales Tax (SST)

As has been mentioned throughout the session, a major city issue is that of the streamlined sales tax. The legislation has been moving through to enactment and represents a carefully worked compromise between representatives of the positively and negatively impacted cities. The proposal calls for the state to mitigate the loss to the negatively impacted jurisdictions, and is strongly supported by the counties, the business community, and the Governor. The measure passed without a dissenting vote in the Senate, and has been languishing in the House for the past month due to concerns by majority leadership that it might be interpreted as a "tax" vote.

SST is not a tax measure. It simply puts Washington in compliance with most of the other states in apportioning sales taxes to the destination to where goods are delivered. While it is intended to ultimately allow for the imposition of state and local sales taxes on internet and catalogue purchases, that won’t occur until Congress passes legislation so authorizing. In the closing days of the session, we’re encouraging city officials to ask their House members to encourage floor action on SSB 6594. Please see the Municipal Finance section for more information.

In Closing

So far this has been a good session for cities. A number of AWC priorities have been approved, and we’ve been able to derail a number of harmful measures. Local officials have been effective in their legislative contacts and our lobbyists are told by legislators that they’ve heard from their city officials and are mindful of the city position. This will be the last of the Bulletins issued during the session. We’ll have a brief Bulletin shortly after the Legislature adjourns followed by a Final Bulletin a few weeks after the deadline for the Governor to take action on any bill passed by the Legislature.

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