AWC Legislative Bulletin - Volume 30, No. 4
January 26, 2007
(Plain Text Version)
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In this issue:
What You Need to Know Now
From the Director - State of the Cities: Economic Development Report
City Legislative Action Conference (CLAC)
Energy & Telecommunications
Environment & Water
General Local Government
Infrastructure, Transportation & Economic Development
Land Use & Housing
Law & Justice
Municipal Finance
Personnel & Labor Relations
Online Legislative Advocacy Tools
AWC Legislative Contacts & Board of Directors
Municipal Finance
AWC Priority Issue
Streamlined Sales Tax (SSB 5089/HB 1072)
HB 1072 was heard by the House Finance Committee on January 23. Thanks to AWC President Mark Foutch, Mayor of Olympia, and Jay Covington, Renton’s chief administrative officer, for testifying on behalf of cities in support of the bill. Like the Senate hearing, in addition to city representatives a diverse group of representatives from the Department of Revenue, counties, and business all testified in support of the bill. As of the writing of this Legislative Bulletin, the bill was scheduled to be passed out of the committee on January 26.
We expect this hearing was primarily for informational purposes, and that the full House will wait for SSB 5089 to pass out of the Senate before taking further action on this issue. We have been told the full Senate is likely to act on SSB 5089 in a couple of weeks.
All cities are encouraged to contact their legislators to remind them of the importance of passing streamlined sales tax legislation with full mitigation. We cannot assume the Legislature will pass the bill and we must remind them to act on it this year. Tell them that a broad coalition of 19 associations have joined together in support of this legislation. For a list of those organizations, see the factsheet at www.awcnet.org/streamlinedtax.
AWC Priority Issue
Dedicated Funding for Public Health Services
Rep. Shay Schual-Berke (D-Normandy Park), the chair of the Joint Select Committee on Public Health Financing, is proposing legislation that would create a health financing account and direct revenues from the cigarette tax to the account, to be spent after appropriation.
$5.425 million would be distributed to all local health jurisdictions. Funds would be distributed by formulas involving population, incentives for increased local funding and innovation. Monies would also be used to provide staff to address core public health functions. Funding would be contingent upon jurisdictions’ compliance with performance measures. The proposal would also utilize a public health improvement committee of sixteen members, appointed by the Governor. We expect specific legislation will be introduced sometime the week of January 29.
AWC Priority Issue
Tourism Promotion (HB 1254, HB 1342, HB 1466)
One of AWC’s legislative priorities is to expand flexibility of existing revenue sources, including the lodging tax. Three bills that address this issue are scheduled for hearing in the House Committee on Community & Economic Development & Trade on Thursday, February 1, at 10 am.
- HB 1254 would expand the definition of "tourism-related facility" to include those owned by a public entity or nonprofit organization and allow municipalities to contract with nonprofit organizations for tourism promotion activities;
- HB 1342 would also change the definition of "tourism-related facility" and redefine "tourism promotion" to include operations of special events and festivals, not just marketing of those events; and
- HB 1466 would expand "tourism promotion" to include expenditures to nonprofit organizations.
AWC supports any additional flexibility for cities with their lodging tax expenditures. HB 1342 provides for the greatest degree of flexibility, and AWC will testify accordingly.
HB 1139 and SB 5330 are companion bills modifying the local sales and use tax that is credited against the state sales and use tax when a large annexation occurs. This legislation would allow the City of Seattle to receive a tax credit currently available to other cities in King, Pierce and Snohomish counties, but at a different rate. See last week’s Bulletin for more information.
HB 1139, sponsored by Rep. Joe McDermott (D-Seattle), was heard by the House Finance Committee on Friday, January 26. SB 5330, sponsored by Sen. Erik Poulsen (D-Seattle), was heard in the Senate Committee on Government Operations & Elections on January 22 and referred to the Ways and Means Committee.
State Capital Funding Assistance for Fire Districts (HB 1470)
On Thursday, February 1, at 8 am, HB 1470 is scheduled for public hearing by the House Capital Budget Committee. The bill would expand the allowable list of public works projects for funding to include fire protection district stations in:
- Towns and cities with fewer than 10,000 residents
- Counties with fewer than 50,000 residents
- Unincorporated rural areas with a population of less than 10,000
AWC Priority Issue
Multi-Family Ten Year Property Tax Exemption (SB 5404)
Cities above 30,000 in population and the largest city in a GMA planning county have the ability to provide a ten-year exemption from all property taxes for multi-family housing in an urban center. A number of cities have found this tool very helpful in meeting downtown density goals.
SB 5404 was heard by the Senate Consumer Protection and Housing Committee on Friday, January 26. This legislation would lower the population threshold to 15,000 and require an affordability component. AWC appreciates the lowering of the population threshold but would like it reduced to 5,000. AWC also supports affordable housing but we want to insure such requirements do not make this very valuable GMA tool useless. We testified accordingly.
A House bill simply lowering the population threshold down to 5,000 will be introduced soon.
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