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Home My WebLink About1590 billCERTIFICATION OF ENROLLMENT HOUSE BILL 1590 Chapter 222, Laws of 2020 66th Legislature 2020 Regular Session AFFORDABLE HOUSING SALES AND USE TAX--COUNCILMANIC AUTHORITY EFFECTIVE DATE: June 11, 2020 Passed by the House March 9, 2020 Yeas 52 Nays 44 LAURIE JINKINS Speaker of the House of Representatives Passed by the Senate March 6, 2020 Yeas 27 Nays 21 CYRUS HABIB President of the Senate CERTIFICATE I, Bernard Dean, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 1590 as passed by the House of Representatives and the Senate on the dates hereon set forth. BERNARD DEAN Chief Clerk Approved March 31, 2020 10:44 AM FILED March 31, 2020 JAY INSLEE Governor of the State of Washington Secretary of State State of Washington AN ACT Relating to allowing the local sales and use tax for1 affordable housing to be imposed by a councilmanic authority; and2 amending RCW 82.14.530.3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4 Sec. 1. RCW 82.14.530 and 2015 3rd sp.s. c 24 s 701 are each5 amended to read as follows:6 (1)(a)(i) A county legislative authority may submit an7 authorizing proposition to the county voters at a special or general8 election and, if the proposition is approved by a majority of persons9 voting, impose a sales and use tax in accordance with the terms of10 this chapter. The title of each ballot measure must clearly state the11 purposes for which the proposed sales and use tax will be used. The12 rate of tax under this section may not exceed one-tenth of one13 percent of the selling price in the case of a sales tax, or value of14 the article used, in the case of a use tax.15 (ii) As an alternative to the authority provided in (a)(i) of16 this subsection, a county legislative authority may impose, without a17 proposition approved by a majority of persons voting, a sales and use18 tax in accordance with the terms of this chapter. The rate of tax19 under this section may not exceed one-tenth of one percent of the20 HOUSE BILL 1590 AS AMENDED BY THE SENATE Passed Legislature - 2020 Regular Session State of Washington 66th Legislature 2019 Regular Session By Representatives Doglio, Dolan, Macri, Cody, Gregerson, Wylie, Appleton, Robinson, Ormsby, Frame, and Davis Read first time 01/24/19. Referred to Committee on Housing, Community Development & Veterans. p. 1 HB 1590.SL selling price in the case of a sales tax, or value of the article1 used, in the case of a use tax.2 (b)(i) If a county ((with a population of one million five3 hundred thousand or less has not imposed)) does not impose the full4 tax rate authorized under (a) of this subsection ((within two years5 of October 9, 2015)) by September 30, 2020, any city legislative6 authority located in that county may ((submit)):7 (A) Submit an authorizing proposition to the city voters at a8 special or general election and, if the proposition is approved by a9 majority of persons voting, impose the whole or remainder of the10 sales and use tax rate in accordance with the terms of this chapter.11 The title of each ballot measure must clearly state the purposes for12 which the proposed sales and use tax will be used;13 (B) Impose, without a proposition approved by a majority of14 persons voting, the whole or remainder of the sales and use tax rate15 in accordance with the terms of this chapter.16 (ii) The rate of tax under this section may not exceed one-tenth17 of one percent of the selling price in the case of a sales tax, or18 value of the article used, in the case of a use tax.19 (((ii) If a)) (iii) A county with a population of greater than20 one million five hundred thousand ((has not imposed the full)) may21 impose the tax authorized under (a)(ii) of this subsection ((within22 three years of October 9, 2015, any city legislative authority)) only23 if the county plans to spend at least thirty percent of the moneys24 collected under this section that are attributable to taxable25 activities or events within any city with a population greater than26 sixty thousand located in that county ((may submit an authorizing27 proposition to the city voters at a special or general election and,28 if the proposition is approved by a majority of persons voting,29 impose the whole or remainder of the sales and use tax rate in30 accordance with the terms of this chapter. The title of each ballot31 measure must clearly state the purposes for which the proposed sales32 and use tax will be used. The rate of tax under this section may not33 exceed one-tenth of one percent of the selling price in the case of a34 sales tax, or value of the article used, in the case of a use tax))35 within that city's boundaries.36 (c) If a county imposes a tax authorized under (a) of this37 subsection after a city located in that county has imposed the tax38 authorized under (b) of this subsection, the county must provide a39 credit against its tax for the full amount of tax imposed by a city.40 p. 2 HB 1590.SL (d) The taxes authorized in this subsection are in addition to1 any other taxes authorized by law and must be collected from persons2 who are taxable by the state under chapters 82.08 and 82.12 RCW upon3 the occurrence of any taxable event within the county for a county's4 tax and within a city for a city's tax.5 (2)(a) Notwithstanding subsection (4) of this section, a minimum6 of sixty percent of the moneys collected under this section must be7 used for the following purposes:8 (i) Constructing affordable housing, which may include new units9 of affordable housing within an existing structure, and facilities10 providing housing-related services; or11 (ii) Constructing mental and behavioral health-related12 facilities; or13 (iii) Funding the operations and maintenance costs of new units14 of affordable housing and facilities where housing-related programs15 are provided, or newly constructed evaluation and treatment centers.16 (b) The affordable housing and facilities providing housing-17 related programs in (a)(i) of this subsection may only be provided to18 persons within any of the following population groups whose income is19 at or below sixty percent of the median income of the county imposing20 the tax:21 (i) Persons with ((mental illness)) behavioral health22 disabilities;23 (ii) Veterans;24 (iii) Senior citizens;25 (iv) Homeless, or at-risk of being homeless, families with26 children;27 (v) Unaccompanied homeless youth or young adults;28 (vi) Persons with disabilities; or29 (vii) Domestic violence survivors.30 (c) The remainder of the moneys collected under this section must31 be used for the operation, delivery, or evaluation of mental and32 behavioral health treatment programs and services or housing-related33 services.34 (3) A county that imposes the tax under this section must consult35 with a city before the county may construct any of the facilities36 authorized under subsection (2)(a) of this section within the city37 limits.38 (4) A county that has not imposed the tax authorized under RCW39 82.14.460 prior to October 9, 2015, but imposes the tax authorized40 p. 3 HB 1590.SL under this section after a city in that county has imposed the tax1 authorized under RCW 82.14.460 prior to October 9, 2015, must enter2 into an interlocal agreement with that city to determine how the3 services and provisions described in subsection (2) of this section4 will be allocated and funded in the city.5 (5) To carry out the purposes of subsection (2)(a) and (b) of6 this section, the legislative authority of the county or city7 imposing the tax has the authority to issue general obligation or8 revenue bonds within the limitations now or hereafter prescribed by9 the laws of this state, and may use, and is authorized to pledge, up10 to fifty percent of the moneys collected under this section for11 repayment of such bonds, in order to finance the provision or12 construction of affordable housing, facilities where housing-related13 programs are provided, or evaluation and treatment centers described14 in subsection (2)(a)(iii) of this section.15 (6)(a) Moneys collected under this section may be used to offset16 reductions in state or federal funds for the purposes described in17 subsection (2) of this section.18 (b) No more than ten percent of the moneys collected under this19 section may be used to supplant existing local funds.20 Passed by the House March 9, 2020. Passed by the Senate March 6, 2020. Approved by the Governor March 31, 2020. Filed in Office of Secretary of State March 31, 2020. --- END --- p. 4 HB 1590.SL