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Municipal Finance
AWC Priority
Streamlined Sales Tax (SSB 5089/SHB 1072)
SSB 5089 was heard in the House Finance Committee on February 14. We appreciate that House Finance Committee Chair Rep. Ross Hunter (D-48th Dist.) scheduled the hearing on SSB 5089 to coincide with the AWC legislative conference this week. This allowed a number of city officials to attend the hearing. Thanks to AWC President Mark Foutch, Olympia Mayor; Mayor Suzette Cooke, Kent; and Mayor Don Gough, Lynnwood for testifying on behalf of cities in support of this AWC priority bill for the 2007 session.
Thanks as well to the city officials who attended the hearing and signed up in support of the bill. The Chair noted during the hearing that there were more than six pages of individuals signed up in support. We appreciate this impressive show of support for the bill. We hope that all city officials attending the conference had an opportunity to discuss and express support for streamlined sales tax legislation with full mitigation with their representatives and senators during their meetings this week.
All cities are encouraged to contact their House members to remind them of city support for passage of SSB 5089 streamlined sales legislation with full mitigation this year.
Providing Consistency between Code Cities and Noncode Cities in the Apportionment of Investment Funds (HB 2161)
It recently came to our attention that the provisions regarding interest income from commingled investments for code cities are different from all other cities, and the State Auditor has interpreted this to limit the options available to code cities as a result. All cities are allowed to commingle various funds including utility funds for investment purposes. This bill would allow code cities the same options available to other cities regarding the distribution of the investment earnings. The councils of code cities would be allowed to choose to allocate their investment income to their general fund, instead of apportioning it back as initially invested. HB 2161 is scheduled to be heard in the House Local Government Committee on Thursday, February 22 at 8 am. AWC appreciates the efforts of Rep. Geoff Simpson (D-Covington) to introduce this legislation and schedule it for a hearing.
HB 1254 is scheduled for executive session on Monday, February 19. This bill would expand the definition of "tourism-related facility" to property that is owned by a public entity or a nonprofit organization and allow municipalities to contract with a nonprofit organization for tourism promotion activities. While this bill would provide some additional assistance for cities, it is not AWC’s preferred bill.
Companion bills HB 1342 and SB 5647 would change the definition of "tourism-related facility," like HB 1254, and additionally redefine "tourism promotion" to include operations of special events and festivals, not just the marketing of those events.
City officials are encouraged to call their legislators asking for their support of HB 1342 and SB 5647. It is important to call today – it is uncertain if either bill will move.
Limiting the Power of Cities and Towns to License Businesses (SB 5471)
This bill is scheduled for public hearing on Tuesday, February 20 at 1:30 pm in the Senate Government Operations & Elections Committee. The bill would limit cities’ ability to require business licenses to those businesses located within the city. Because this bill amends the statute that also gives cities taxing authority, it could impact a city’s ability to levy other taxes. AWC opposes this bill and will testify accordingly.
AWC Priority
Increasing Assistance to Small Cities and Counties (HB 2022)
HB 2022 was heard by the House Appropriations Committee on Tuesday, February 13. See last week’s Bulletin for more information. Thank you to Art Tackett, city administrator from Connell and Michael Echanove, mayor of Palouse, for testifying in support of this bill. The hearing went quite well with some legislators clearly in support. We do not yet know how the Chair of the Committee feels about the bill.
AWC Priority
Providing the Authority to Impose Local Sales & Use Tax for Criminal Justice Purposes (HB 1851)
This bill was heard in the House Finance Committee on Wednesday, February 14. See last week’s Bulletin for more information. Thank you to Mayor Dave Edler of Yakima for testifying in support of this bill. Again, the hearing went quite well and while the bill faces an uphill battle, key legislators have indicated support for the bill. We will attempt to move the bill out of the Finance Committee.
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 February 8. The bill is now scheduled for public hearing in the Senate Ways and Means Committee at 3:30 pm on Monday, February 19.
Please contact your senator and encourage his or her support of this bill.
Hearings on Property Tax Exemptions
On Thursday, February 15, the Senate Ways and Means Committee held a work session and public hearing on bills concerning property tax exemptions. On Tuesday, February 20 at 10 am the House Finance Committee will hear a number property tax bills.
AWC testified during the Ways and Means hearing outlining the importance of property taxes to the city revenue stream. We noted that while exemptions only result in a shift of the tax burden at the state level, many cities will lose money with adoption of those exemptions. AWC plans to testify with the same message during the Finance Committee hearing on the 20th.
Limiting Property Tax Increases to One Percent (HB 2117)
HB 2117, which would reenact Initiative 747 and limit property tax increases to one percent, is scheduled for public hearing on Tuesday, February 20, in the House Committee on Finance at 10 am. See last week’s Bulletin for more information.
AWC does not support this legislation and expects legislation will be introduced next week that will tie annual property tax increases to the implicit price deflator for local governments.
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