BILL REQ. #:  S-0556.1 

Read first time 01/11/2007.   Referred to Committee on Transportation.

     AN ACT Relating to the imposition of motor vehicle excise taxes by regional transit authorities; and amending RCW 81.104.160 and 81.112.130.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 81.104.160 and 2003 c 1 s 6 are each amended to read as follows:
     (1) An agency may impose a sales and use tax solely for the purpose of providing high capacity transportation service, in addition to the tax authorized by RCW 82.14.030, upon retail car rentals within the agency's jurisdiction that are taxable by the state under chapters 82.08 and 82.12 RCW. The rate of tax shall not exceed 2.172 percent. The base of the tax shall be the selling price in the case of a sales tax or the rental value of the vehicle used in the case of a use tax.
     (2) Any motor vehicle excise tax previously imposed under the provisions of ((RCW 81.104.160(1))) section 27, chapter 101, Laws of 1992 shall be repealed, terminated, and expire on December 5, 2002.
     (3) Any motor vehicle excise tax previously imposed by a regional transit authority as of December 5, 2002, may be imposed only so long as the authority is contractually obligated to impose the tax and no longer. However, this tax may not be imposed after the last scheduled bond payment is due on bonds sold before December 5, 2002.

Sec. 2   RCW 81.112.130 and 1992 c 101 s 13 are each amended to read as follows:
     (1) Notwithstanding RCW 39.36.020(1), an authority may at any time contract indebtedness or borrow money for authority purposes and may issue general obligation bonds in an amount not exceeding, together with any existing indebtedness of the authority not authorized by the voters, one and one-half percent of the value of the taxable property within the boundaries of the authority; and with the assent of three-fifths of the voters therein voting at an election called for that purpose, may contract indebtedness or borrow money for authority purposes and may issue general obligation bonds therefor, provided the total indebtedness of the authority shall not exceed five percent of the value of the taxable property therein. Such bonds shall be issued and sold in accordance with chapter 39.46 RCW.
     (2) The term "value of the taxable property" shall have the meaning set forth in RCW 39.36.015.
     (3) An authority shall not contract indebtedness, borrow money, or issue general obligation bonds that obligate the authority to impose a motor vehicle excise tax after the last scheduled bond payment is due on bonds sold before December 5, 2002.