AWC Legislative Bulletin - Volume 31, No. 8
February 29, 2008  (Plain Text Version)

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In this issue:
What You Need to Know Now
Creating "Cooler" Communities – Municipal Responses to Climate Change
From the Director: Budgets Take Center Stage
Energy & Telecommunications
General Local Government
Infrastructure, Transportation & Economic Development
Land Use & Housing
Law & Justice
Municipal Finance
Personnel & Labor Relations
Online Legislative Advocacy Tools
AWC Legislative Contacts & Officers

Municipal Finance

Revenues for Public Safety (ESSB 6573)

ESSB 6573 is awaiting public hearing by the House Appropriations committee. The bill would provide revenues to cities, counties and fire districts for public safety purposes.

ESSB 6573 would appropriate up to $50 million by 2017 to a public safety account. Fifty percent of the distributions would be made to local jurisdictions based upon their specific number of LEOFF 2 members compared to all LEOFF 2 members – approximately 16,000. The other half would be used for a LEOFF 2 retirement system benefit enhancement. See last week’s Legislative Bulletin for more detailed information.

This bill must be heard and approved by the Appropriations committee by Monday, March 3, the cut-off date for fiscal committees in the opposite house. If your Representative is a member of this committee, please ask him/her to support this bill.

Streamlined Sales Tax Issues for 2008 – Additional Business Assistance for SST Implementation (SHB 2380)

SHB 2380 is scheduled to be heard in the Senate Ways & Means Committee on Friday, February 29, at 3:30 pm. This legislation expands the assistance approved in SSB 5089 last session for businesses to implement the destination-based sourcing provisions of SST.

SHB 2380 ensures assistance to business with higher levels of gross revenues. The assistance is a state tax credit up to $1000 or two-years of free use of a certified service provider to report sales tax based on destination sourcing.

AWC supports this bill to ensure businesses adopt destination sourcing accurately and on-time.

Streamlined Sales Tax & Business Licenses (SHB 3126)

This bill would clarify that registration or compliance with the streamlined sales tax agreement does not by itself subject a business to business license or tax requirements. The bill was heard in the Senate Ways & Means Committee on February 25. AWC has worked with the business community and supports this clarification.

SST Florist Exemption (SB 6799)

SB 6799 passed out of the House Finance Committee on February 27. This Department of Revenue request bill implements an exemption in the national agreement for florist wire-transfer flower deliveries, continuing the current origin based sourcing practice.

Lodging Tax Economic Impact Report (SHB 3206)

SHB 3206 was passed by the Senate Committee on Economic Development and Trade & Management on February 22 and now awaits action by the Rules Committee. This bill would modify the reporting requirements included in last year’s legislation which provided cities additional flexibility regarding the use of hotel/motel tax proceeds. The expanded purposes for use of the tax "sunsets" in 2013.

It is AWC’s hope that these reports will outline the value of the additional flexibility in using lodging tax revenues, and the sunset clause will be repealed. Reporting requirements are scheduled to conclude in 2012.

Property Tax Relief for Flood Victims (EHB 3137)

This bill would provide a three-year exemption from state and local property taxes for farm and agricultural property damaged in the December 2007 floods. The exemption would apply to taxes levied in 2008, 2009 and 2010. The total local government impact for the 2007-09 biennium is $179,000 and $30,000 for the 2009-11 biennium. EHB 3137 is scheduled for public hearing the Senate Ways & Means Committee on February 29.

Property Tax Exemptions in Senate Budget (SB 6912, SB 6389, SSB 5256)

The Senate budget assumes passage of several bills that would provide additional property tax exemptions.

  • SB 6912 provides property tax relief for senior citizens and people retired due to physical disability by increasing the income thresholds. The fiscal impact on local government is $2.6 million in CY 2009, increasing to $4.7 million in CY 2013.
  • SB 6389 exempts certain military housing from property and leasehold excise taxes. The fiscal impact on local government is $111,000 to 150,000 between calendar years 2009 and 2013.
  • SSB 5256 would require that veterans’ benefits be excluded from the income calculation for the retired property tax relief program. The fiscal impact on local governments is $106,000 in CY 2009, increasing to $194,000 in CY 2013.

Requiring Annual Property Revaluations (SHB 2611)

This bill would require that by 2012 all counties revalue taxable property annually and physically inspect property every six years. The mandate is conditional upon the Department of Revenue providing guidance and financial assistance to counties not yet on an annual revaluation cycle.

This bill was heard in the Senate Ways & Means Committee on February 25. A number of legislators have indicated they support the bill, but don’t want to pass it without an appropriation. Different ways of providing the financial support for this bill are being discussed.

AWC supports this legislation to ensure new construction is placed on the tax rolls in a timely fashion.

Voter-Approved Increases in Property Tax Levy Limitations (SHB 2554, ESB 6641)

These two bills address ESSB 5498 of 2007, which unintentionally changed how levy rates are calculated at the end of a temporary lid lift.

Both these bills allow for permanent or temporary lid lifts. Either type of lid lift would require that the title of the lid lift proposition placed before the voters "expressly state" that the final levy will serve as the base from which subsequent levies are to be calculated. If this is not expressly stated, then the levy rate will rebase as if the lid lift had never happened.

SHB 2554 passed out of the Senate Ways & Means Committee on February 25. ESB 6641 passed out of the House Finance Committee on February 27. As stated in last week’s Bulletin, AWC supports this fix.