There is created in the state
treasury a special account to be known as the "municipal sales
and use tax equalization account." Into this account shall be
placed such revenues as are provided under *RCW 82.44.110(1)(e).
Funds in this account shall be allocated by the state treasurer
according to the following procedure:
(1) Prior to January 1st of each year the department of
revenue shall determine the total and the per capita levels of
revenues for each city and the statewide weighted average per
capita level of revenues for all cities imposing the sales and
use tax authorized under RCW 82.14.030(1) for the previous
calendar year.
(2) At such times as distributions are made under *RCW 82.44.150, the state treasurer shall apportion to each city not
imposing the sales and use tax under RCW 82.14.030(2) an amount
from the municipal sales and use tax equalization account equal
to the amount distributed to the city under **RCW 82.44.155,
multiplied by forty-five fifty-fifths.
(3) Subsequent to the distributions under subsection (2) of
this section, and at such times as distributions are made under
*RCW 82.44.150, the state treasurer shall apportion to each city
imposing the sales and use tax under RCW 82.14.030(1) at the
maximum rate and receiving less than seventy percent of the
statewide weighted average per capita level of revenues for all
cities as determined by the department of revenue under
subsection (1) of this section, an amount from the municipal
sales and use tax equalization account sufficient, when added to
the per capita level of revenues received the previous calendar
year by the city, to equal seventy percent of the statewide
weighted average per capita level of revenues for all cities
determined under subsection (1) of this section, subject to
reduction under subsection (6) of this section.
(4) Subsequent to the distributions under subsection (3) of
this section, and at such times as distributions are made under
*RCW 82.44.150, the state treasurer shall apportion to each city
imposing the sales and use tax under RCW 82.14.030(2) at the
maximum rate and receiving a distribution under subsection (3) of
this section, a third distribution from the municipal sales and
use tax equalization account. The distribution to each
qualifying city shall be equal to the distribution to the city
under subsection (3) of this section, subject to the reduction
under subsection (6) of this section. To qualify for the
distributions under this subsection, the city must impose the tax
under RCW 82.14.030(2) for the entire calendar year. Cities
imposing the tax for less than the full year shall qualify for
prorated allocations under this subsection proportionate to the
number of months of the year during which the tax is imposed.
(5) For a city with an official incorporation date after
January 1, 1990, municipal sales and use tax equalization
distributions shall be made according to the procedures in this
subsection. Municipal sales and use tax equalization
distributions to eligible new cities shall be made at the same
time as distributions are made under subsections (3) and (4) of
this section. The department of revenue shall follow the
estimating procedures outlined in this subsection until the new
city has received a full year's worth of revenues under RCW 82.14.030(1) as of the January municipal sales and use tax
equalization distribution.
(a) Whether a newly incorporated city determined to receive
funds under this subsection receives its first equalization
payment at the January, April, July, or October municipal sales
and use tax equalization distribution shall depend on the date
the city first imposes the tax authorized under RCW 82.14.030(1).
(i) A newly incorporated city imposing the tax authorized
under RCW 82.14.030(1) effective as of January 1st shall be
eligible to receive funds under this subsection beginning with
the April municipal sales and use tax equalization distribution
of that year.
(ii) A newly incorporated city imposing the tax authorized
under RCW 82.14.030(1) effective as of February 1st, March 1st,
or April 1st shall be eligible to receive funds under this
subsection beginning with the July municipal sales and use tax
equalization distribution of that year.
(iii) A newly incorporated city imposing the tax authorized
under RCW 82.14.030(1) effective as of May 1st, June 1st, or July
1st shall be eligible to receive funds under this subsection
beginning with the October municipal sales and use tax
equalization distribution of that year.
(iv) A newly incorporated city imposing the tax authorized
under RCW 82.14.030(1) effective as of August 1st, September 1st,
or October 1st shall be eligible to receive funds under this
subsection beginning with the January municipal sales and use tax
equalization distribution of the next year.
(v) A newly incorporated city imposing the tax authorized
under RCW 82.14.030(1) effective as of November 1st or December
1st shall be eligible to receive funds under this subsection
beginning with the April municipal sales and use tax equalization
distribution of the next year.
(b) For purposes of calculating the amount of funds the new
city should receive under this subsection, the department of
revenue shall:
(i) Estimate the per capita amount of revenues from the tax
authorized under RCW 82.14.030(1) that the new city would have
received had the city received revenues from the tax the entire
calendar year;
(ii) Calculate the amount provided under subsection (3) of
this section based on the per capita revenues determined under
(b)(i) of this subsection;
(iii) Prorate the amount determined under (b)(ii) of this
subsection by the number of months the tax authorized under RCW 82.14.030(1) is imposed.
(c) A new city imposing the tax under RCW 82.14.030(2) at
the maximum rate and receiving a distribution calculated under
(b) of this subsection shall receive another distribution from
the municipal sales and use tax equalization account. This
distribution shall be equal to the calculation made under (b)(ii)
of this subsection, prorated by the number of months the city
imposes the tax authorized under RCW 82.14.030(2) at the full
rate.
(d) The department of revenue shall advise the state
treasurer of the amounts calculated under (b) and (c) of this
subsection and the state treasurer shall distribute these amounts
to the new city from the municipal sales and use tax equalization
account subject to the limitations imposed in subsection (6) of
this section.
(e) Revenues estimated under this subsection shall not
affect the calculation of the statewide weighted average per
capita level of revenues for all cities made under subsection (1)
of this section.
(6) If inadequate revenues exist in the municipal sales and
use tax equalization account to make the distributions under
subsection (3), (4), or (5) of this section, then the
distributions under subsections (3), (4), and (5) of this section
shall be reduced ratably among the qualifying cities. At such
time during the year as additional funds accrue to the municipal
sales and use tax equalization account, additional distributions
shall be made under subsections (3), (4), and (5) of this section
to the cities.
(7) If the level of revenues in the municipal sales and use
tax equalization account exceeds the amount necessary to make the
distributions under subsections (2) through (5) of this section,
then the additional revenues shall be apportioned among the
several cities within the state ratably on the basis of
population as last determined by the office of financial
management: PROVIDED, That no such distribution shall be made to
those cities receiving a distribution under subsection (2) of
this section.
(8) During the 2003-2005 fiscal biennium, the legislature
may transfer from the municipal sales and use tax equalization
account to the state general fund such amounts as reflect the
excess fund balance in the account.
[2003 1st sp.s. c 25 § 942; 1996 c 64 § 1; 1991 sp.s. c 13 § 16; 1990 2nd ex.s. c 1 § 701; 1990 c 42 § 314; 1985 c 57 § 83; 1984 c 225 § 2; 1982 1st ex.s. c 49 § 22.]
NOTES:
Reviser's note: *(1) RCW 82.44.110 and 82.44.150 were
repealed by 2003 c 1 § 5 (Initiative Measure No. 776, approved
November 5, 2002).
**(2) RCW 82.44.155 was repealed by 2006 c 318 § 10.
Severability -- Effective date -- 2003 1st sp.s. c 25: See notes following RCW 19.28.351.
Effective date -- 1996 c 64: "This act shall take effect July 1, 1996." [1996 c 64 § 2.]
Effective dates -- Severability -- 1991 sp.s. c 13: See notes following RCW 18.08.240.
Effective dates -- 1990 2nd ex.s. c 1: See note following RCW 84.52.010.
Severability -- 1990 2nd ex.s. c 1: See note following RCW 82.14.300.
Purpose -- Headings -- Severability -- Effective dates -- Application -- Implementation -- 1990 c 42: See notes following RCW 82.36.025.
Effective date -- 1985 c 57: See note following RCW 18.04.105.
Intent -- 1984 c 225: "It is the intent of the legislature to provide for the allocation of moneys by the department of revenue from the municipal sales and use tax equalization account to cities and towns initially incorporated on or after January 1, 1983." [1984 c 225 § 1.]
Applicability -- 1984 c 225: "Sections 1 and 2 of this act apply to distributions for calendar year 1984 and thereafter which are made to cities and towns that were initially incorporated on or after January 1, 1983, and that impose the tax authorized by RCW 82.14.030(1)." [1984 c 225 § 3.]
Rules -- 1984 c 225: "The department of revenue shall adopt rules as necessary to implement this act." [1984 c 225 § 7.]
Intent -- Construction -- Effective date -- Fire district funding -- 1982 1st ex.s. c 49: See notes following RCW 35.21.710.