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Municipal Finance
AWC Priority
Streamlined Sales Tax (SSB 5089/SHB 1072)
Passage of streamlined sales tax legislation with full mitigation is one of AWC’s top priorities for the 2007 session. This legislation is the result of several years of work by cities, counties, the state, and the business community to level the playing field for Washington businesses, including small main street retailers.
We are pleased the Governor has advanced the SST bill again this session with full mitigation, and that the Senate took early action to pass the bill on February 2.
SSB 5089 is scheduled to be heard by the House Finance Committee on Wednesday, February 14 at 1:30 pm. AWC President Mark Foutch will lead AWC’s testimony on the 14th.
All cities are encouraged to contact their House members to remind them of city support for passage of SST legislation with full mitigation this year.
Please also thank your Senators for their early action on the bill. We are hoping the House also acts quickly. However, the three "no" votes in the Senate, which approved the bill unanimously last session, are a reminder to cities that passage of this legislation is not assured. We must continue to express our need for the legislation.
For more information, including the fact sheet from the coalition of 19 city, county, and business organizations in support of the bill and updated sourcing impact estimates, see the AWC website www.awcnet.org/streamlinedtax.
AWC Priority
Increasing Assistance to Cities and Counties (HB 2022)
HB 2022, sponsored by Rep. Jim McIntire (D-Seattle), would enhance the city-county assistance account. The bill would raise the maximum assistance a city could receive to $175,000 a year, from $100,000, plus inflation. The bill would continue to provide assistance to cities based on a sales tax and property tax equalization formula but would increase the sales tax threshold as follows:
- For cities with a population less than 5,000, from the current level of 55% of the per capita statewide average to 70%; and
- For cities with a population of 5,000 or more, from the current level of 50% of the per capita statewide average to 70%.
The bill would transfer an additional $10 million into the account annually from the state general fund. Cities would split this $10 million evenly with counties.
The bill is scheduled for public hearing in the House Committee on Appropriations on Tuesday, February 13 at 3:30 pm.
AWC Priority
Eliminating Non-Supplanting Language in Voter-Approved Funding Sources (SB 5498)
SB 5498, eliminating the non-supplanting language in the voter-approved levy lid lift and voter-approved sales tax, passed out of the Senate Government Operations & Elections Committee on Thursday, February 8. AWC appreciates the work of Sen. Debbie Regala (D-Tacoma) on this issue. For more information on this bill please see last week’s Bulletin.
AWC Priority
Providing the Authority to Impose Local Sales & Use Tax for Criminal Justice Purposes (HB 1851)
This bill would give cities councilmanic authority to levy an additional one-tenth of one percent sales and use tax to pay for:
- Increased costs of existing criminal justice services; and
- The costs of enhancements to existing criminal justice services.
Funds would not be allowed to replace or supplant criminal justice expenditures funded by other sources.
The bill is scheduled for public hearing in the House Finance Committee on Wednesday, February 14 at 1:30 pm. AWC will support this bill and encourages you to contact your legislators seeking their support of the bill.
Use of Lodging Tax Proceeds for Public Safety Activities (SB 5846)
This bill recognizes that the demands of seasonal tourists on cities and towns with a population less than 10,000 are beyond the scope of services permanent residents can fund. The bill expands the existing allowable uses of hotel/motel revenues to be used for costs, such as salaries and equipment acquisition or maintenance, of public safety activities directed towards tourism areas.
The bill will be heard by the Senate Economic Development, Trade & Management Committee on Friday, February 16 at 1:30 pm. AWC supports this legislation.
HB 2117, introduced on Thursday, February 8, reenacts Initiative 747 and limits property tax increases to one percent. The bill is similar to other bills already introduced this session. Presently, none of the bills have been scheduled for a public hearing.
The AWC Board adopted a position seeking an increase in the property tax cap to the implicit price deflator. Given the King County Superior Court’s decision invalidating the one percent cap and the belief the Supreme Court would not address the issue until after the session, some thought there may be an opportunity for a legislative solution. While we do expect legislation will be introduced by some of our friends seeking an implicit price deflator cap, most key legislators on the fiscal committees have not expressed an interest in our proposal.
Regulating House-Banked Social Card Games (HB 1477/SB 5558)
HB 1477 and SB 5558 are identical companion bills. These bills limit the number of licenses that may be issued for conducting house-banked social card games, grant local jurisdictions limited authority to determine the areas within which house-banked social card games may be conducted, and grandfather existing city moratoriums that limit the number of card rooms. Cities retain their ability to ban all card rooms. For more information about these bills and this issue, see the Municipal Finance section of last week’s Bulletin.
HB 1477 is scheduled for a hearing in the House Commerce and Labor Committee at 3:30 pm on Friday, February 16. AWC will support the bill but understands there will be refinements. Please contact Jim Justin, jimj@awcnet.org, if you have any interest in or comments on this bill.
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