BillTracker

Encouraging investments in affordable and supportive housing (Robinson, Tharinger)

Allows a county legislative authority to authorize, fix, and impose a sales and use tax, however, if a county has not imposed the full tax rate by July 1, 2020, a city legislative authority in that county may authorize, fix, and impose the sales and use tax. Requires a county or a city that imposes the tax to report annually to the housing finance commission on the collection and use of the revenue.

EFFECT OF CHANGES MADE BY 1ST SUBSTITUTE
(1) Increases the maximum rate a county or city may impose to 0.03 percent. (2) Removes language allowing counties and cities in a distressed area to impose a higher rate of 0.05 percent. (3) Requires a county or city to provide annual matching funds based on the rate imposed and the maximum amount of tax distributions as follows: (a) A rate of 0.0125 percent or less requires an annual match of 10 percent; (b) A rate greater than 0.0125 percent but no more than 0.025 percent requires a 15 percent match; and (c) A rate greater than 0.025 percent requires a 35 percent annual match. (4) Requires the Department of Revenue to calculate the maximum annual amount of tax distributions based on fiscal year 2018 taxable retail sales. (5) Changes the earliest date for the Department of Revenue to calculate the maximum tax distributions for a county or city from September 1, 2019, to December 31, 2018. (6) Requires the effective date of the tax imposed by the county or city to be the first day of a state fiscal year. (7) Changes the due date for the first annual report from the Housing Finance Commission from December 1, 2018, to December 1, 2019.

HOUSE FLOOR STRIKER AMENDMENT
(1) Removes the statutory reference to behavioral health organizations under RCW 71.24.385. (2) Requires a county with a population of greater than one million five hundred thousand to distribute taxes collected under this act equitably throughout the county and produce an annual report on the geographic distribution of funds.

SENATE COMMITTEE (Ways & Means) STRIKER AMENDMENT
(1) Lowers the maximum tax rate to 0.01 percent. (2) Restricts the use of funds to supportive housing. (3) Changes the tiered local match requirements to a uniform 15 percent match requirement. (4) Eliminates the requirements for King County to distribute funds pursuant to a regional implementation plan that has been submitted to a regional committee for review and recommendation.

Hearing Date: Tuesday, March 06, 2018 -- 2:30 pm

WA State Legislature Link:
http://app.leg.wa.gov/billsummary?BillNumber=2437&Year=2018    (opens a new browser tab)