RCW 39.104.010
Finding.
The legislature recognizes that the state as a whole benefits from investment in public infrastructure because it promotes community and economic development. Public investment stimulates business activity and helps create jobs, stimulates the redevelopment of brownfields and blighted areas in the inner city, lowers the cost of housing, and promotes efficient land use. The legislature finds that these activities generate revenue for the state and that it is in the public interest to invest in these projects through a credit against the state sales and use tax to those local governments that can demonstrate the expected returns to the state.
[
2009 c 270 s 101
.]
RCW 39.104.020
Definitions.
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Annual state contribution limit" means two million five hundred thousand dollars statewide per fiscal year, plus the additional amounts approved for demonstration projects in RCW 82.14.505
.
(2) "Approving agency" means the department of revenue for project awards approved before June 9, 2016, and the department of commerce for project awards approved after June 9, 2016.
(3) "Assessed value" means the valuation of taxable real property as placed on the last completed assessment roll.
(4) "Bond" means a bond, a note or other evidence of indebtedness, including but not limited to a lease-purchase agreement or an executory conditional sales contract.
(5) "Department" means the department of revenue.
(6) "Fiscal year" means the twelve-month period beginning July 1st and ending the following June 30th.
(7) "Local government" means any city, town, county, and port district.
(8) "Local property tax allocation revenue" means those tax revenues derived from the receipt of regular property taxes levied on the property tax allocation revenue value and used for local revitalization financing.
(9) "Local revitalization financing" means the use of revenues from local public sources, dedicated to pay the principal and interest on bonds authorized under RCW 39.104.110
and public improvement costs within the revitalization area on a pay-as-you-go basis, and revenues received from the local option sales and use tax authorized in RCW 82.14.510, dedicated to pay the principal and interest on bonds authorized under RCW 39.104.110
.
(10) "Local sales and use tax increment" means the estimated annual increase in local sales and use taxes as determined by the local government in the calendar years following the approval of the revitalization area by the department from taxable activity within the revitalization area.
(11) "Local sales and use taxes" means local revenues derived from the imposition of sales and use taxes authorized in RCW 82.14.030
.
(12) "Ordinance" means any appropriate method of taking legislative action by a local government.
(13) "Participating local government" means a local government having a revitalization area within its geographic boundaries that has taken action as provided in RCW 39.104.070
(1) to allow the use of all or some of its local sales and use tax increment or other revenues from local public sources dedicated for local revitalization financing.
(14) "Participating taxing district" means a taxing district that:
(a) Has a revitalization area wholly or partially within its geographic boundaries;
(b) Levies or has levied for it regular property taxes as defined in this section; and
(c) Has not taken action as provided in RCW 39.104.060
(2).
(15) "Permanently affordable housing" means housing, regardless of ownership, for which there is a legally binding, recorded document in effect that limits the price at which the owner may sell or restricts the occupancy of the unit to a qualified, low-income household, for a period of at least forty years for a property used for shelter or rental housing, or for a period of at least twenty-five years for a property to be owned by a low-income household. These documents include, but are not limited to, affordability covenants, deed restrictions, and community land trust leases. Resale restrictions exercised by providers of permanently affordable housing can include, but are not limited to:
(a) Continuous ownership of land by a public entity or nonprofit housing provider with a lease allowing ownership of the structure by an income-eligible household;
(b) A nonpossessory interest or right in real property, such as a deed restriction, restrictive covenant, resale restriction[,] or other contractual agreement, that ensures affordability.
(16) "Property tax allocation revenue base value" means the assessed value of real property located within a revitalization area, less the property tax allocation revenue value.
(17)(a)(i) "Property tax allocation revenue value" means seventy-five percent of any increase in the assessed value of real property in a revitalization area resulting from:
(A) The placement of new construction, improvements to property, or both, on the assessment roll, where the new construction and improvements are initiated after the revitalization area is approved;
(B) The cost of new housing construction, conversion, and rehabilitation improvements, when the cost is treated as new construction for purposes of chapter
84.55
RCW as provided in RCW 84.14.020, and the new housing construction, conversion, and rehabilitation improvements are initiated after the revitalization area is approved;
(C) The cost of rehabilitation of historic property, when the cost is treated as new construction for purposes of chapter
84.55
RCW as provided in RCW 84.26.070, and the rehabilitation is initiated after the revitalization area is approved.
(ii) Increases in the assessed value of real property in a revitalization area resulting from (a)(i)(A) through (C) of this subsection are included in the property tax allocation revenue value in the initial year. These same amounts are also included in the property tax allocation revenue value in subsequent years unless the property becomes exempt from property taxation.
(b) "Property tax allocation revenue value" includes seventy-five percent of any increase in the assessed value of new construction consisting of an entire building in the years following the initial year, unless the building becomes exempt from property taxation.
(c) Except as provided in (b) of this subsection, "property tax allocation revenue value" does not include any increase in the assessed value of real property after the initial year.
(d) There is no property tax allocation revenue value if the assessed value of real property in a revitalization area has not increased as a result of any of the reasons specified in (a)(i)(A) through (C) of this subsection.
(e) For purposes of this subsection, "initial year" means:
(i) For new construction and improvements to property added to the assessment roll, the year during which the new construction and improvements are initially placed on the assessment roll;
(ii) For the cost of new housing construction, conversion, and rehabilitation improvements, when the cost is treated as new construction for purposes of chapter
84.55
RCW, the year when the cost is treated as new construction for purposes of levying taxes for collection in the following year; and
(iii) For the cost of rehabilitation of historic property, when the cost is treated as new construction for purposes of chapter
84.55
RCW, the year when such cost is treated as new construction for purposes of levying taxes for collection in the following year.
(18) "Public improvement costs" means the costs of:
(a) Design, planning, acquisition, including land acquisition, site preparation including land clearing, construction, reconstruction, rehabilitation, improvement, and installation of public improvements;
(b) Demolishing, relocating, maintaining, and operating property pending construction of public improvements;
(c) Relocating utilities as a result of public improvements;
(d) Financing public improvements, including interest during construction, legal and other professional services, taxes, insurance, principal and interest costs on general indebtedness issued to finance public improvements, and any necessary reserves for general indebtedness; and
(e) Administrative expenses and feasibility studies reasonably necessary and related to these costs, including related costs that may have been incurred before adoption of the ordinance authorizing the public improvements and the use of local revitalization financing to fund the costs of the public improvements.
(19) "Public improvements" means:
(a) Infrastructure improvements within the revitalization area that include:
(i) Street, road, bridge, and rail construction and maintenance;
(ii) Water and sewer system construction and improvements;
(iii) Sidewalks, streetlights, landscaping, and streetscaping;
(iv) Parking, terminal, and dock facilities;
(v) Park and ride facilities of a transit authority;
(vi) Park facilities, recreational areas, and environmental remediation;
(vii) Stormwater and drainage management systems;
(viii) Electric, gas, fiber, and other utility infrastructures;
(b) Expenditures for any of the following purposes:
(i) Providing environmental analysis, professional management, planning, and promotion within the revitalization area, including the management and promotion of retail trade activities in the revitalization area;
(ii) Providing maintenance and security for common or public areas in the revitalization area; or
(iii) Historic preservation activities authorized under RCW 35.21.395
; and
(c) Expenditures to purchase, rehabilitate, retrofit for energy efficiency, and construct housing for the purpose of creating or preserving permanently affordable housing.
(20) "Real property" has the same meaning as in RCW 84.04.090
and also includes any privately owned improvements located on publicly owned land that are subject to property taxation.
(21)(a) "Regular property taxes" means regular property taxes as defined in RCW 84.04.140, except: (i) Regular property taxes levied by public utility districts specifically for the purpose of making required payments of principal and interest on general indebtedness; (ii) regular property taxes levied by the state for the support of common schools under RCW 84.52.065
; and (iii) regular property taxes authorized by RCW 84.55.050
that are limited to a specific purpose.
(b) "Regular property taxes" do not include:
(i) Excess property tax levies that are exempt from the aggregate limits for junior and senior taxing districts as provided in RCW 84.52.043
; and
(ii) Property taxes that are specifically excluded through an interlocal agreement between the sponsoring local government and a participating taxing district as set forth in RCW 39.104.060
(3).
(22)(a) "Revenues from local public sources" means:
(i) The local sales and use tax amounts received as a result of interlocal agreement, local sales and use tax amounts from sponsoring local governments based on its local sales and use tax increment, and local property tax allocation revenues, which are dedicated by a sponsoring local government, participating local governments, and participating taxing districts, for payment of bonds under RCW 39.104.110
or public improvement costs within the revitalization area on a pay-as-you-go basis; and
(ii) Any other local revenues, except as provided in (b) of this subsection, including revenues derived from federal and private sources and amounts received by taxing districts as set forth by an interlocal agreement as described in RCW 39.104.060
(4), which are dedicated for the payment of bonds under RCW 39.104.110
or public improvement costs within the revitalization area on a pay-as-you-go basis.
(b) Revenues from local public sources do not include any local funds derived from state grants, state loans, or any other state moneys including any local sales and use taxes credited against the state sales and use taxes imposed under chapter
82.08
or
82.12
RCW.
(23) "Revitalization area" means the geographic area adopted by a sponsoring local government and approved by the approving agency, from which local sales and use tax increments are estimated and property tax allocation revenues are derived for local revitalization financing.
(24) "Sponsoring local government" means a city, town, county, or any combination thereof, that adopts a revitalization area.
(25) "State contribution" means the lesser of:
(a) Five hundred thousand dollars;
(b) The project award amount approved by the approving agency as provided in RCW 39.104.100
or
82.14.505
; or
(c) The total amount of revenues from local public sources dedicated in the preceding calendar year to the payment of principal and interest on bonds issued under RCW 39.104.110
and public improvement costs within the revitalization area on a pay-as-you-go basis. Revenues from local public sources dedicated in the preceding calendar year that are in excess of the project award may be carried forward and used in later years for the purpose of this subsection (25)(c).
(26) "State property tax increment" means the estimated amount of annual tax revenues estimated to be received by the state from the imposition of property taxes levied by the state for the support of common schools under RCW 84.52.065
on the property tax allocation revenue value, as determined by the sponsoring local government in an application under RCW 39.104.100
and updated periodically as required in RCW 82.32.765
.
(27) "State sales and use tax increment" means the estimated amount of annual increase in state sales and use taxes to be received by the state from taxable activity within the revitalization area in the years following the approval of the revitalization area as determined by the sponsoring local government in an application under RCW 39.104.100
and updated periodically as required in RCW 82.32.765
.
(28) "State sales and use taxes" means state retail sales and use taxes under RCW 82.08.020
(1) and
82.12.020
at the rate provided in RCW 82.08.020
(1), less the amount of tax distributions from all local retail sales and use taxes, other than the local sales and use taxes authorized by RCW 82.14.510
for the applicable revitalization area, imposed on the same taxable events that are credited against the state retail sales and use taxes under RCW 82.08.020
(1) and
82.12.020
.
(29) "Taxing district" means a government entity that levies or has levied for it regular property taxes upon real property located within a proposed or approved revitalization area.
[
2020 c 280 s 3
;
2016 c 207 s 1
;
2010 c 164 s 1
;
2009 c 270 s 102
.]
NOTES:
Reviser's note:
The definitions in this section have been alphabetized pursuant to RCW 1.08.015
(2)(k).
RCW 39.104.030
Conditions.
A local government may finance public improvements using local revitalization financing subject to the following conditions:
(1) The local government has adopted an ordinance designating a revitalization area within its boundaries and specified the public improvements proposed to be financed in whole or in part with the use of local revitalization financing;
(2) The public improvements proposed to be financed in whole or in part using local revitalization financing are expected to encourage private development within the revitalization area and to increase the fair market value of real property within the revitalization area;
(3) The local government has entered into a contract with a private developer relating to the development of private improvements within the revitalization area or has received a letter of intent from a private developer relating to the developer's plans for the development of private improvements within the revitalization area;
(4) Private development that is anticipated to occur within the revitalization area, as a result of the public improvements, will be consistent with the countywide planning policy adopted by the county under RCW 36.70A.210
and the local government's comprehensive plan and development regulations adopted under chapter
36.70A
RCW;
(5) The local government may not use local revitalization financing to finance the costs associated with the financing, design, acquisition, construction, equipping, operating, maintaining, remodeling, repairing, and reequipping of public facilities funded with taxes collected under RCW 82.14.048
or
82.14.390
;
(6) The governing body of the local government must make a finding that local revitalization financing:
(a) Will not be used for the purpose of relocating a business from outside the revitalization area, but within this state, into the revitalization area unless convincing evidence is provided that the firm being relocated would otherwise leave the state;
(b) Will improve the viability of existing business entities within the revitalization area; and
(c) Will be used exclusively in areas within the jurisdiction of the local government deemed in need of either economic development or redevelopment, or both, and absent the financing available under this chapter and RCW 82.14.510
and
82.14.515
the proposed economic development or redevelopment would more than likely not occur; and
(7) The governing body of the local government finds that the public improvements proposed to be financed in whole or in part using local revitalization financing are reasonably likely to:
(a) Increase private investment within the revitalization area;
(b) Increase employment within the revitalization area; and
(c) Generate, over the period of time that the local sales and use tax will be imposed under RCW 82.14.510, increases in state and local property, sales, and use tax revenues that are equal to or greater than the respective state and local contributions made under this chapter.
[
2009 c 270 s 103
.]
RCW 39.104.040
Creation of revitalization area.
(1) Before adopting an ordinance creating the revitalization area, a sponsoring local government must:
(a) Provide notice to all taxing districts that levy or have levied for it regular property taxes and local governments with geographic boundaries within the proposed revitalization area of the sponsoring local government's intent to create a revitalization area. Notice must be provided in writing to the governing body of the taxing districts and local governments at least sixty days in advance of the public hearing as required by (b) of this subsection. The notice must include at least the following information:
(i) The name of the proposed revitalization area;
(ii) The date for the public hearing as required by (b) of this subsection;
(iii) The earliest anticipated date when the sponsoring local government will take action to adopt the proposed revitalization area; and
(iv) The name of a contact person with phone number of the sponsoring local government and mailing address where a copy of an ordinance adopted under RCW 39.104.050
and
39.104.060
may be sent; and
(b) Hold a public hearing on the proposed financing of the public improvements in whole or in part with local revitalization financing. Notice of the public hearing must be published in a legal newspaper of general circulation within the proposed revitalization area at least ten days before the public hearing and posted in at least six conspicuous public places located in the proposed revitalization area. Notices must describe the contemplated public improvements, estimate the costs of the public improvements, describe the portion of the costs of the public improvements to be borne by local revitalization financing, describe any other sources of revenue to finance the public improvements, describe the boundaries of the proposed revitalization area, and estimate the period during which local revitalization financing is contemplated to be used. The public hearing may be held by either the governing body of the sponsoring local government, or a committee of the governing body that includes at least a majority of the whole governing body.
(2) To create a revitalization area, a sponsoring local government must adopt an ordinance establishing the revitalization area that:
(a) Describes the public improvements proposed to be made in the revitalization area;
(b) Describes the boundaries of the revitalization area, subject to the limitations in RCW 39.104.050
;
(c) Estimates the cost of the proposed public improvements and the portion of these costs to be financed by local revitalization financing;
(d) Estimates the time during which local property tax allocation revenues, and other revenues from local public sources, such as amounts of local sales and use taxes from participating local governments, are to be used for local revitalization financing;
(e) Provides the date when the use of local property tax allocation revenues will commence and a list of the participating taxing districts and the regular property taxes that must be used to calculate property tax allocation revenues;
(f) Finds that all of the requirements in RCW 39.104.030
are met;
(g) Provides the anticipated rate of sales and use tax under RCW 82.14.510
that the local government will impose if awarded a state contribution under RCW 39.104.100
;
(h) Provides the anticipated date when the criteria for the sales and use tax in RCW 82.14.510
will be met and the anticipated date when the sales and use tax in RCW 82.14.510
will be imposed.
(3) The sponsoring local government must deliver a certified copy of the adopted ordinance to the county treasurer, county assessor, the governing body of each participating taxing authority and participating taxing district within which the revitalization area is located, and the department.
[
2010 c 164 s 2
;
2009 c 270 s 104
.]
RCW 39.104.050
Limitations on revitalization areas.
The designation of a revitalization area is subject to the following limitations:
(1)(a) Except as provided in (b) of this subsection, no revitalization area may have within its geographic boundaries any part of a hospital benefit zone under chapter
39.100
RCW, any part of a revenue development area created under chapter
39.102
RCW, any part of an increment area under chapter
39.89
RCW, or any part of another revitalization area under this chapter;
(b) A revitalization area's boundaries may include all or a portion of an existing increment area if:
(i) The state of Washington has loaned money for environmental cleanup on such area in order to stimulate redevelopment of brownfields;
(ii) The environmental cleanup, for which the state's loans were intended, has been completed; and
(iii) The sponsoring local government determines the creation of the revitalization area is necessary for redevelopment and protecting the state's investment by increasing property tax revenue;
(2) A revitalization area is limited to contiguous tracts, lots, pieces, or parcels of land without the creation of islands of property not included in the revitalization area;
(3) The boundaries may not be drawn to purposely exclude parcels where economic growth is unlikely to occur;
(4) The public improvements financed through bonds issued under RCW 39.104.110
must be located in the revitalization area;
(5) A revitalization area cannot comprise an area containing more than twenty-five percent of the total assessed value of the taxable real property within the boundaries of the sponsoring local government at the time the revitalization area is created;
(6) The boundaries of the revitalization area may not be changed for the time period that local property tax allocation revenues, local sales and use taxes of participating local governments, and the local sales and use tax under RCW 82.14.510
are used to pay bonds issued under RCW 39.104.110
and public improvement costs within the revitalization area on a pay-as-you-go basis, as provided under this chapter; and
(7) A revitalization area must be geographically restricted to the location of the public improvement and adjacent locations that the sponsoring local government finds to have a high likelihood of receiving direct positive business and economic impacts due to the public improvement, such as a neighborhood or a block.
[
2010 c 164 s 3
;
2009 c 270 s 105
.]
RCW 39.104.060
Use of property tax allocation revenues for revitalization financing
—
Opting out
—
Partial participation.
(1) Participating taxing districts must allow the use of all of their local property tax allocation revenues for local revitalization financing.
(2)(a) If a taxing district does not want to allow the use of its property tax revenues for the local revitalization financing of public improvements in a revitalization area, its governing body must adopt an ordinance to remove itself as a participating taxing district and must notify the sponsoring local government.
(b) The taxing district must provide a copy of the adopted ordinance and notice to the sponsoring local government creating the revitalization area before the anticipated date that the sponsoring local government proposes to adopt the ordinance creating the revitalization area as provided in the notice required by RCW 39.104.040
(1)(a).
(3) If a taxing district wants to become a participating taxing district by allowing one or more but not all of its regular property tax levies to be used for the calculation of local property tax allocation revenues, it may do so through an interlocal agreement specifying the regular property taxes that will be used for calculating its local property tax allocation revenues. This subsection does not authorize a taxing district to allow the use of only part of one or more of its regular property tax levies by the sponsoring local government.
(4) If a taxing district wants to participate on a partial basis by providing a specified amount of money to a sponsoring local government to be used for local revitalization financing for a specified amount of time, it may do so through an interlocal agreement. However, the taxing district must adopt an ordinance as described in subsection (2) of this section to remove itself as a participating taxing district for purposes of calculating property tax allocation revenues and instead partially participate through an interlocal agreement outlining the specifics of its participation.
[
2010 c 164 s 4
;
2009 c 270 s 106
.]
RCW 39.104.070
Participating in revitalization financing
—
Interlocal agreement
—
Imposition of sales and use tax
—
Ordinance to opt out
—
Notice.
(1) A participating local government must enter into an interlocal agreement as provided in chapter
39.34
RCW to participate in local revitalization financing with the sponsoring local government.
(2)(a) If a local government that imposes a sales and use tax under RCW 82.14.030
does not want to participate in the local revitalization financing of public improvements in a revitalization area, its governing body must adopt an ordinance and notify the sponsoring local government that the taxing authority will not be a participating local government.
(b) The local government must provide a copy of the adopted ordinance and the notice to the sponsoring local government creating the revitalization area before the anticipated date that the sponsoring local government proposes to adopt an ordinance creating the revitalization area as provided in the notice required by RCW 39.104.040
(1)(a).
[
2009 c 270 s 107
.]
RCW 39.104.080
Local property tax allocation revenues
—
Distribution
—
Determination
—
Termination
—
Exception.
(1) Commencing in the second calendar year following the creation of a revitalization area by a sponsoring local government, the county treasurer must distribute receipts from regular taxes imposed on real property located in the revitalization area as follows:
(a) Each participating taxing district and the sponsoring local government must receive that portion of its regular property taxes produced by the rate of tax levied by or for the taxing district on the property tax allocation revenue base value for that local revitalization financing project in the taxing district; and
(b) The sponsoring local government must receive an additional portion of the regular property taxes levied by it and by or for each participating taxing district upon the property tax allocation revenue value within the revitalization area. However, if there is no property tax allocation revenue value, the sponsoring local government may not receive any additional regular property taxes under this subsection (1)(b). The sponsoring local government may agree to receive less than the full amount of the additional portion of regular property taxes under this subsection (1)(b) as long as bond debt service, reserve, and other bond covenant requirements are satisfied, in which case the balance of these tax receipts shall be allocated to the participating taxing districts that levied regular property taxes, or have regular property taxes levied for them, in the revitalization area for collection that year in proportion to their regular tax levy rates for collection that year. The sponsoring local government may request that the treasurer transfer this additional portion of the property taxes to its designated agent. The portion of the tax receipts distributed to the sponsoring local government or its agent under this subsection (1)(b) may only be expended to finance public improvement costs associated with the public improvements financed in whole or in part by local revitalization financing.
(2) The county assessor must determine the property tax allocation revenue value and property tax allocation revenue base value. This section does not authorize revaluations of real property by the assessor for property taxation that are not made in accordance with the assessor's revaluation plan under chapter
84.41
RCW or under other authorized revaluation procedures.
(3) The distribution of local property tax allocation revenue to the sponsoring local government must cease when local property tax allocation revenues are no longer obligated to pay the costs of the public improvements. Any excess local property tax allocation revenues, and earnings on the revenues, remaining at the time the distribution of local property tax allocation revenue terminates, must be returned to the county treasurer and distributed to the participating taxing districts that imposed regular property taxes, or had regular property taxes imposed for it, in the revitalization area for collection that year, in proportion to the rates of their regular property tax levies for collection that year.
(4) The allocation to the revitalization area of that portion of the sponsoring local government's and each participating taxing district's regular property taxes levied upon the property tax allocation revenue value within that revitalization area is declared to be a public purpose of and benefit to the sponsoring local government and each participating taxing district.
(5) The distribution of local property tax allocation revenues under this section may not affect or be deemed to affect the rate of taxes levied by or within any sponsoring local government and participating taxing district or the consistency of any such levies with the uniformity requirement of Article VII, section 1 of the state Constitution.
(6) This section does not apply to a revitalization area that has boundaries that include all or a portion of the boundaries of an increment area created under chapter
39.89
RCW.
[
2010 c 164 s 5
;
2009 c 270 s 201
.]
RCW 39.104.090
Local sales and use tax increments.
(1) A sponsoring local government may use annually local sales and use tax amounts equal to some or all of its local sales and use tax increments to finance public improvements in the revitalization area. The amounts of local sales and use tax dedicated by a participating local government must begin and cease on the dates specified in an interlocal agreement authorized in chapter
39.34
RCW. Sponsoring local governments and participating local governments are authorized to allocate some or all of their local sales and use tax increment to the sponsoring local government as provided by RCW 39.104.070
(1).
(2) The department, upon request, must assist sponsoring local governments in estimating sales and use tax revenues from estimated taxable activity in the proposed or adopted revitalization area. The sponsoring local government must provide the department with accurate information describing the geographical boundaries of the revitalization area in an electronic format or in a manner as otherwise prescribed by the department.
[
2009 c 270 s 301
.]
RCW 39.104.100
Application process
—
Approval of project awards by the approving agency.
(1) Prior to applying to receive a state contribution, a sponsoring local government must adopt a revitalization area within the limitations in RCW 39.104.050
and in accordance with RCW 39.104.040
.
(2)(a) As a condition to imposing a sales and use tax under RCW 82.14.510, a sponsoring local government must apply and be approved for a project award amount. The application must be in a form and manner prescribed by the approving agency and include, but not be limited to:
(i) Information establishing that over the period of time that the local sales and use tax will be imposed under RCW 82.14.510, increases in state and local property, sales, and use tax revenues as a result of public improvements in the revitalization area will be equal to or greater than the respective state and local contributions made under this chapter;
(ii) Information demonstrating that the sponsoring local government will meet the requirements necessary to receive the full amount of state contribution it is requesting on an annual basis;
(iii) The amount of state contribution it is requesting;
(iv) The anticipated effective date for imposing the tax under RCW 82.14.510
;
(v) The estimated number of years that the tax will be imposed;
(vi) The anticipated rate of tax to be imposed under RCW 82.14.510, subject to the rate-setting conditions in RCW 82.14.510
(3), should the sponsoring local government be approved for a project award; and
(vii) The anticipated date when bonds under RCW 39.104.110
will be issued.
(b) The approving agency must make available electronic forms to be used for this purpose. As part of the application, each applicant must provide to the department a copy of the adopted ordinance creating the revitalization area as required in RCW 39.104.040, copies of any adopted interlocal agreements from participating local governments, and any notices from taxing districts that elect not to be a participating taxing district.
(3)(a) Project awards must be determined on:
(i) The availability of a state contribution;
(ii) Whether the sponsoring local government would be able to generate enough tax revenue under RCW 82.14.510
to generate the amount of project award requested;
(iii) The number of jobs created;
(iv) The fit of the expected business creation or expansion within the region's preferred economic growth strategy;
(v) The speed with which the project can begin construction; and
(vi) The extent to which the project leverages nonstate funds.
(b) The total of all project awards may not exceed the annual state contribution limit.
(c) If the level of available state contribution is less than the amount requested by the next available applicant, the applicant must be given the first opportunity to accept the lesser amount of state contribution but only if the applicant produces a new application within sixty days of being notified by the approving agency and the application describes the impact on the proposed project as a result of the lesser award in addition to new application information outlined in subsection (2) of this section.
(d) Applications that are not approved for a project award due to lack of available state contribution must be retained on file by the approving agency.
(e)(i) Except as provided in (e)(ii) of this subsection, once total project awards reach the amount of annual state contribution limit, no more applications will be accepted.
(ii) Any city or county that has been approved for a project award by the department prior to January 1, 2011, and has not imposed a sales and use tax under RCW 82.14.510
by December 31, 2016, must forfeit their project award. However, amounts will not be forfeited if a city or county has sent the department a letter indicating its intent to impose the sales and use tax by July 1, 2022, before July 1, 2016. Amounts forfeited under this section must be made available for new applications under subsection (5) of this section.
(f) If the annual contribution limit is increased by making additional funds available for applicants or if funds become available from project awards forfeited under (e)(ii) of this subsection, applications will be accepted again as described in subsection (5) of this section.
(4) The approving agency must notify the sponsoring local government of approval or denial of a project award within sixty days of the approving agency's receipt of the sponsoring local government's application. Determination of a project award by the approving agency is final. Notification must include the earliest date when the tax authorized under RCW 82.14.510
may be imposed, subject to conditions in chapter
82.14
RCW. The project award notification must specify the rate requested in the application and any adjustments to the rate that would need to be made based on the project award and rate restrictions in RCW 82.14.510
. The department of commerce must consult with the department of revenue in determining the amount of a project award.
(5) The department of commerce must begin accepting applications and approving project awards under this section on and after June 9, 2016. The department of commerce must notify the department of all approved project awards under this section. The department of commerce must also provide to the department any information necessary to implement the tax authorized under RCW 82.14.510
.
[
2016 c 207 s 2
;
2010 c 164 s 6
;
2009 c 270 s 401
.]
RCW 39.104.110
Issuance of general obligation bonds.
(1) A sponsoring local government creating a revitalization area and authorizing the use of local revitalization financing may incur general indebtedness, including issuing general obligation bonds, to finance the public improvements and retire the indebtedness in whole or in part from local revitalization financing it receives, subject to the following requirements:
(a)(i) The ordinance adopted by the sponsoring local government creating the revitalization area and authorizing the use of local revitalization financing indicates an intent to incur this indebtedness and the maximum amount of this indebtedness that is contemplated; and
(ii) The sponsoring local government includes this statement of intent in all notices required by RCW 39.104.040
; or
(b) The sponsoring local government adopts a resolution, after opportunity for public comment, that indicates an intent to incur this indebtedness and the maximum amount of this indebtedness that is contemplated.
(2) The general indebtedness incurred under subsection (1) of this section may be payable from other tax revenues, the full faith and credit of the sponsoring local government, and nontax income, revenues, fees, and rents from the public improvements, as well as contributions, grants, and nontax money available to the local government for payment of costs of the public improvements or associated debt service on the general indebtedness.
(3) In addition to the requirements in subsection (1) of this section, a sponsoring local government creating a revitalization area and authorizing the use of local revitalization financing may require any nonpublic participants to provide adequate security to protect the public investment in the public improvement within the revitalization area.
(4) Bonds issued under this section must be authorized by ordinance of the sponsoring local government and may be issued in one or more series and must bear a date or dates, be payable upon demand or mature at a time or times, bear interest at a rate or rates, be in a denomination or denominations, be in a form either coupon or registered as provided in RCW 39.46.030, carry conversion or registration privileges, have a rank or priority, be executed in a manner, be payable in a medium of payment, at a place or places, and be subject to terms of redemption with or without premium, be secured in a manner, and have other characteristics, as may be provided by an ordinance or trust indenture or mortgage issued pursuant thereto.
(5) The sponsoring local government may:
(a) Annually pay into a special fund to be established for the benefit of bonds issued under this section a fixed proportion or a fixed amount of any local property tax allocation revenues derived from property within the revitalization area containing the public improvements funded by the bonds, the payment to continue until all bonds payable from the fund are paid in full;
(b) Annually pay into the special fund established pursuant to this section a fixed proportion or a fixed amount of any revenues derived from taxes imposed under RCW 82.14.510, such payment to continue until all bonds payable from the fund are paid in full. Revenues derived from taxes imposed under RCW 82.14.510
are subject to the use restriction in RCW 82.14.515
; and
(c) Issue revenue bonds payable from any or all revenues deposited in the special fund established pursuant to this section.
(6) In case any of the public officials of the sponsoring local government whose signatures appear on any bonds or any coupons issued under this chapter cease to be the officials before the delivery of the bonds, the signatures must, nevertheless, be valid and sufficient for all purposes, the same as if the officials had remained in office until the delivery. Any provision of any law to the contrary notwithstanding, any bonds issued under this chapter are fully negotiable.
(7) Notwithstanding subsections (4) through (6) of this section, bonds issued under this section may be issued and sold in accordance with chapter
39.46
RCW.
[
2010 c 164 s 7
;
2009 c 270 s 701
.]
RCW 39.104.120
Use of tax revenue for bond repayment.
A sponsoring local government that issues bonds under RCW 39.104.110
to finance public improvements may pledge for the payment of such bonds all or part of any local property tax allocation revenues derived from the public improvements. The sponsoring local government may also pledge all or part of any revenues derived from taxes imposed under RCW 82.14.510
and held in connection with the public improvements. All of such tax revenues are subject to the use restriction in RCW 82.14.515
.
[
2009 c 270 s 702
.]
RCW 39.104.130
Limitation on bonds issued.
The bonds issued by a local government under RCW 39.104.110
to finance public improvements do not constitute an obligation of the state of Washington, either general or special.
[
2009 c 270 s 703
.]
RCW 39.104.140
Construction
—
Port districts
—
Authority.
Nothing in this act may be construed to give port districts the authority to impose a sales or use tax under chapter
82.14
RCW.
[
2009 c 270 s 803
.]
RCW 39.104.150
Administration by the department of revenue and the department of commerce
—
Adoption of rules.
The department of revenue and the department of commerce may adopt any rules under chapter
34.05
RCW that the departments consider necessary for the administration of this chapter.
[
2016 c 207 s 3
;
2009 c 270 s 804
.]