Retail Sales and Use Tax.
Retail sales taxes are imposed on retail sales of most articles of tangible personal property, digital products, and some services. A retail sale is a sale to the final consumer or end user of the property, digital product, or service. If retail sales taxes are not collected when the user acquires the property, digital product, or service, then use tax applies to the value of property, digital product, or service when used in this state. The state, all counties, and all cities levy retail sales and use taxes. The state sales and use tax rate is 6.5 percent; local sales and use tax rates vary from 0.5 percent to 4.1 percent, depending on the location.
Local Sales and Use Taxes.
Counties, cities, and towns were first granted the authority to impose a local sales and use tax in 1970. There is a basic 0.5 percent sales and use tax and an optional 0.5 percent sales and use tax. The revenues from these two sales and use taxes are unrestricted and may be used for any lawful government purpose.
When both the city and the county impose the basic sales and use tax, the county must credit back the full amount of the city's basic sales and use tax so that the combined rate does not exceed 0.5 percent. However, the first 15 percent of the basic sales and use tax collected within the city must be distributed to the county. This is also the case with the optional sales and use tax.
There are other optional sales and use taxes that may be imposed; however, the revenues from these sales and use taxes are restricted to specific purposes. For example, the cultural access program sales and use tax of 0.1 percent must be used to benefit or expand access to nonprofit cultural organizations. Many of the optional local sales and use taxes require voter approval.
The legislative authority of a county may by resolution or ordinance impose a local sales and use tax. The rate of the tax is 0.1 percent of the selling price or value of the article used. This tax is in addition to all other taxes.
The revenues from this tax must be used solely for the purpose of providing additional services that assist children and their families. This can include: child care; maternity support services; school-based services that address mental, social, and physical health; workforce capacity building; shelter; rental assistance; and client transportation.
(In support) This is a simple bill, but it could have a huge impact. There are many services not addressed through the current funding. Counties have flexibility that state agencies do not have to address things in their local community. In the post pandemic world, there is an increased need for mental health programming, especially for children and teens. This bill would provide needed resources to help build a partnership to serve our most vulnerable citizens and to empower local communities to meet these needs. An upstream approach to interventions is preferrable to more costly crisis services or criminal justice interactions.
Trauma can cause havoc in people's lives, leading to issues that cost more to address than early interventions. An example of this would be substance abuse disorder. The current programs are all oversubscribed. Clearly, there is demand in our rural counties that is outpacing the funding we have. This bill would be a great step forward.
It would be helpful to add clarifying language to ensure the bill includes nonprofit organizations that have successfully created programs and interventions to teach social-emotional skills to children and assist families in a variety of ways. These great programs need funding options and the ability to compete for funds from local government sources would be helpful.
(Opposed) The goal of this bill is laudable; however, the bill must be clarified to prohibit the use of psychiatry, drugs, and coercive treatments. Any effort to help youth must be directed towards programs that youth and parents would willingly sign up for, and have as their goal health and recovery, rather than symptom reduction.
(In support) Representative Steve Tharinger, prime sponsor; Jefferson County Comm'r Heidi Eisenhour, Jefferson County; Brad Banks, Washington State Association of Counties; Dr. Mel Rose, Jumping Mouse Children's Center; and Katya Miltimore, Alliance of Boys and Girls Clubs of Washington.