Modifying local option taxes (SHB 1147/2SSB 5433, SHB 2249) – AWC priority

2SSB 5433, modifying provisions of local option taxes, passed out of the Senate on March 11 by a vote of 31-16. This bill removes non-supplant language from the 0.3% sales tax and multi-year levy lid lift, as well as expands the allowable uses of the 0.3% sales tax to include fire protection purposes and a broader definition of public safety.

As noted in the lead Bulletin article, SHB 1147, the companion to 2SSB 5433, did not pass out of the House. Numerous amendments were proposed for this bill while it was on the House calendar. One proposed amendment would have attached much of SHB 2249 onto the bill. SHB 2249, which is also now “dead,” would have provided incentives and additional revenue options for King County and the cities within that annex proposed annexation areas by 2012. See last week’s Bulletin for a more complete description of SHB 2249.

Taxation of brokered natural and manufactured gas (HB 1422) – AWC priority

This AWC priority bill clarifies the definition of “use” for taxation of natural/manufactured gas. This bill was “pulled” out of House Rules and placed on the calendar on Wednesday, March 11, but did not move. Several legislators voiced concerns about the retroactivity clause in the bill.

Providing sales and use tax exemptions (SHB 2275, ESHB 2278)

In last week’s Bulletin, these two bills were outlined including the negative fiscal impact they could have on cities, particularly those cities in rural areas.

SHB 2275, providing a sales and use tax exemption for the nonhighway use of propane by farmers, passed the House 92-4.

ESHB 2278, concerning the sales and use tax exemption for livestock nutrient management equipment and facilities, passed the House 92-2.

Both bills are scheduled for public hearing by the Senate Committee on Agriculture & Rural Economic Development on Thursday, March 19.

Annual county property valuations for property tax purposes (SSB 5368) – AWC Priority

An AWC priority is to assist the counties in obtaining state resources so every county can conduct annual valuations for property tax purposes. This bill passed out of the Senate by a vote of 40-5 on Thursday, March 5, and is now scheduled for a hearing in the House Finance Committee on Tuesday, March 17.

This bill would require that by January 1, 2014 all counties revalue real property annually. The Department of Revenue is directed to provide guidance and financial assistance to counties converting to annual revaluations.

Changes affecting the city-county assistance account (HB 1667/SB 5511)

These bills would make changes to the distribution formula of the city-county assistance account, as well as the calendar year by which distributions are made (see the February 13 Bulletin for more information). SB 5511 passed out of the Senate 46-0 on Thursday, March 5, and is now scheduled for a public hearing in the House Finance Committee on Tuesday, March 17.

The House companion bill, HB 1667, did not move out of the Rules Committee and therefore is dead.

Concerning the annexation sales and use tax credit (HB 1710, ESSB 5321)

These bills would make changes to the sales and use tax credit that most cities in King, Pierce and Snohomish counties are currently eligible for when there is a large annexation.

ESSB 5321 passed the Senate 41-6 on Tuesday, March 10. Please see last week’s Bulletin for more information on this bill. HB 1710 did not make it out of the Rules Committee by Thursday’s cutoff.

Allowing cities to conduct raffles (HB 1273, SB 5645)

These two bills would allow cities to conduct raffles.

HB 1273 would allow counties, cities, and towns to conduct raffles under certain terms and conditions. This bill passed the House on Monday, February 23 and is now scheduled for a public hearing in the Senate Committee on Labor and Commerce & Consumer Protection on Monday, March 16.

SB 5645 would have designated counties, cities and towns as bona fide nonprofit organizations for the purpose of conducting raffles. This bill did not make it out of the Senate by the cutoff.

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