Notice of Introduction of House Bill 1717

Office of the Governor / Office of Financial Management sent this bulletin at 01/28/2019 04:50 PM PST

Office of Financial Management

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HB 1717, titled AN ACT Relating to extending the expiration date on the health sciences and services authority sales and use tax authorization, has been introduced in the House of Representatives. The Office of Financial Management has identified this bill as requiring a ten-year projection of increased cost to the taxpayers or affected fee payers.

Ten-year projection:

Under current law, local authorities that have created a health sciences and services authority (HSSA) prior to January 1, 2010, may impose a state-shared sales and use tax to promote bioscience-based economic development and advance new therapies and procedures to combat disease and promote public health or to finance and retire indebtedness per RCW 35.104.070.  The tax is set to expire January 1, 2023.  
 
This legislation extends the expiration date to January 1, 2038.
 
ASSUMPTIONS
- There is one HSSA in Spokane City.
- In Fiscal Year 2018, the Spokane HSSA received $2.2 million.
- The Spokane HSSA will extend the tax in 2023.
- Impact reflects 5 months of cash collection for Fiscal Year 2023.
 
DATA SOURCES
Department of Revenue excise tax data.
 
REVENUE ESTIMATES 
 
TOTAL REVENUE IMPACT: 
 
      State Government (cash basis, $000): 
           FY 2020 -       $ 0
           FY 2021 -       $ 0
           FY 2022 -       $ 0
           FY 2023 -      ($ 1,125)
           FY 2024 -      ($ 2,800)
           FY 2025 -      ($ 2,900)
 
      Local Government, if applicable (cash basis, $000): 
           FY 2020 -      $ 0
           FY 2021 -      $ 0
           FY 2022 -      $ 0
           FY 2023 -      $ 1,125
           FY 2024 -      $ 2,800
           FY 2025 -      $ 2,900
 




Bill sponsors and contact information:




Legislative Bill Information Website: http://apps.leg.wa.gov/billinfo/

Initiative 960 Website: http://www.ofm.wa.gov/tax/default.asp