AWC Priority
Revising Voter-Approved Funding Sources (ESB 5498)

As mentioned in last week’s Bulletin, SB 5498, which was originally intended to remove non-supplanting language in the voter approved levy lid lift and three-tenths percent sales and use tax statutes, was referenced in the Senate budget, implying the bill was still alive. On Monday, April 2, the bill passed the Senate, 46-0-3, with amendments.

The amended bill does not remove non-supplanting requirements in the two voter-approved taxes as the original bill did. However, it allows supplanting when there is a loss of certain funds or specific events impacting expenditures. This includes lost federal funds or state grants or loans, extraordinary events not likely to reoccur, changes in contract provisions beyond the control of the jurisdiction receiving services, and major nonrecurring capital expenditures. Like the original bill, ESB 5498 extends the six year levy lid lift authority to special purpose districts, not just counties, cities and towns.

ESB 5498 was sent to the House on Wednesday, April 4 and is scheduled to be heard by the Finance Committee on Friday, April 6. AWC continues to support the bill. While we preferred the removal of the non-supplant language, this new language is better that the current statute.

AWC Priority
Lodging Tax Revenues (SSB 5647)

SSB 5647 would give cities greater flexibility when using the hotel/motel tax. A substitute bill passed out of the House Community & Economic Development & Trade Committee on Thursday, March 29. See last week’s Bulletin for a more detailed description of the substitute bill. The bill is now in the House Rules Committee awaiting movement to the House calendar.

AWC preferred the Senate bill but this is the vehicle in play now. We support SSB 5647 given the improvement over current law and are working to pass the bill. We need your help! Please contact your representatives and ask them to support the bill.

State Operating Budget (SHB 1128)

On Saturday, March 31, the Senate operating budget passed 30-17-2 and negotiations between the two houses and the Governor’s Office have begun. As noted in last week’s Bulletin, we do not expect significant budget battles as the end of session nears.

One area of concern in both the House and Senate budgets is the level of funding for Basic Law Enforcement Academies. AWC is supportive of the Governor’s request for $3.646 million in additional funds to the Criminal Justice Training Commission for this purpose. Please see the Law & Justice section for more information on this topic.

AWC Priority
Multi-Family Property Tax Exemption (E2SHB 1910)

E2SHB 1910 was passed out of the Senate Rules Committee and placed on the Senate calendar on April 4. Cities above 15,000 in population; cities above 5,000 in population in the six buildable lands counties (King, Pierce, Snohomish, Clark, Kitsap and Thurston); and the largest city in a GMA planning county should contact their Senators and urge their support for this bill.

E2SHB 1910 allows those cities outlined above to:

Provide an eight-year property tax exemption for multi-family housing in an urban area with no required state or local affordability component, and or;
Provide up to a twelve-year property tax exemption with a state required 20% affordability component – 20% of the units must be affordable as defined in the bill.

The bill also outlines a number of reporting requirements so the Legislature knows how this tool is being used. AWC supports this bill and the expansion of this property tax abatement tool to other cities. Again, we encourage you to contact your Senator today and seek their support of the bill. The Senate may act on this bill at any time. If approved by the Senate we expect the House to concur in the Senate amendments.

Please contact Jim Justin, jimj@awcnet.org, if you have any comments or questions on this bill.

AWC Priority
Providing Dedicated Public Health Financing (E2SHB 1825)

E2SHB 1825 still remains in the Senate Ways & Means committee. In addition to ongoing backfill funds, $20 million is budgeted for local public health jurisdictions in both the House and Senate budgets. While the bill is not needed to allocate the money we prefer passage of the bill in addition to the money. We will continue to seek a bill that does not impose unnecessary reporting burdens on local health departments.

Streamlined Sales Tax Compliance Assistance (SHB 2380)

SHB 2380 would expand the state assistance to businesses for implementing the destination-based sourcing provisions in SSB 5089, the streamlined sales tax legislation approved earlier this session. This bill would provide state B&O tax credits up to $1000 to businesses with revenues between $500,000 and $3 million, if deliveries were at least 95% of their sales revenues, to assist with the costs of compliance. This expands the businesses eligible to receive a share of the $11.8 million provided to small businesses under $500,000 annual revenues, with 5% of sales from deliveries, in SSB 5089.

The bill has passed the House and awaits Senate action.

Providing Consistency between Code and Non-code Cities (HB 2161)

HB 2161 would give code cities the same authority currently granted to non-code cities regarding the allocation of interest income from commingled investments. The bill passed the Senate on Tuesday, April 3, 49-0. AWC is pleased to see that the bill has moved so quickly. We hope the bill will be signed by the Governor soon.

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AWC Priority Revising Voter-Approved Funding Sources (ESB 5498)

AWC Priority Lodging Tax Revenues (SSB 5647)