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• Introduced by Rep. Sharon Tomiko Santos, (D-Seattle) (D) on February 12, 2003, to expand the use of the local government real estate excise tax. With this bill, the revenues generated from the tax can be used for any local government capital projects. Currently, the taxes can be used solely for financing capital projects specified in a capital facilities plan element of a comprehensive plan.
  • Referred to the House Local Committee on February 13, 2003.
    • Testimony in support offered to the House Local Committee on March 5, 2003, by Representative Santos; Paul Parker, WA State Association of Counties; Bob Jean, City of University Place; and Jim Justin, Association of WA Cities. They testified that local governments are facing severe fiscal challenges. This bill will provide some flexibility in the use of excise taxes so that local governments can meet the needs of their communities. It does not impose new taxes, but merely provides additional tools for local governments to use existing taxes. This bill is one component of the tri-association which includes the cities, counties, and county officials. The purpose of the bill is to provide some new revenue streams and allow for flexibility in how these existing revenue streams may be used. We are trying in effect to use funds we currently have more efficiently. It also puts the decisions regarding capital priorities in the hands of the city councils. Two hundred and forty-eight cities that plan under the Growth Management Act are authorized to use this second quarter excise real estate tax. Approximately half of the cities use them. We just simply want to expand the uses of those taxes.
    • Testimony in opposition offered to the House Local Committee on March 5, 2003, by Bryan Wahl and Sam Pace, WA Association of Realtors. They testified that second quarter excise taxes were limited in scope by the Legislature in 1992. The list of uses for these taxes was intended to be more limited to essential high priority capital projects. This is not good public policy to remove this restriction right now.
  • Substitute offered to the House Local Committee on March 5, 2003, to remove language authorizing a local government to use proceeds generated by the real estate excise tax for any local government capital project. The original language of the act is restored which provides that revenues generated by the real estate excise tax may only be used for capital projects specified in a capital facilities plan element of a comprehensive plan. Recreational facilities, trails, libraries, administrative, river or waterway flood control projects, and housing projects are removed from the definition of "capital project". The substitute passed in the House by voice vote on March 5, 2003.
  • Referred to the House Rules Committee on March 5, 2003, but the bill did not pass the House by the cutoff date so it is considered a “dead bill” (although technically the bill could become active at any time during the 2003-2004 session).