Notice of Public Hearing of House Bill 1800

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HB 1800, titled AN ACT Relating to allowing a local sales and use tax as a credit against the state sales tax for rural high-speed internet infrastructure without increasing the total sales and use tax rate, has been scheduled for a public hearing by the House Committee on Finance.

Date and Time: 02/19/2019 8:00AM (Subject to change by the Legislature.)
Location: John L. O'Brien Building, House Hearing Rm A, Olympia, WA

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, a rural county may impose a state-shared tax at a rate of 0.09 percent to finance public facilities which service economic development purposes.

This legislation allows for an additional 0.05 percent may be imposed to be available and used exclusively to support the development of infrastructure to bring high-speed internet access to unserved regions throughout the county as defined by the federal communications commission. To the extent possible, the additional funds collected must be used for the development of last-mile infrastructure where it has not been commercially feasible for the private sector to build. The additional funds may not be used for government operation or for the provision of retail broadband service by public entities.

ASSUMPTIONS

- 31 counties levy the rural county tax.

- Distributions of the rural county tax in Fiscal Year 2018 were about $35.4 million.

- Since this is a state-shared tax, it is assumed all rural counties would take advantage of the additional tax to fund the development of last-mile infrastructure where it has not been commercially feasible for the private sector to build. 

- Effective date is August 1, 2019.  

- Local governments could impose the tax on September 1, 2019. The Department must receive 30 days prior notice.

DATA SOURCES

- Department of Revenue excise tax data

- Economic and Revenue Forecast Council November forecast

REVENUE ESTIMATES 

State revenues would decrease by $7.3 million in Fiscal Year 2020 and by $22.5 million in Fiscal Year 2021.

Local governments would increase by an identical amount.

TOTAL REVENUE IMPACT: 

      State Government (cash basis, $000): 

           FY 2020 -      ($  7,250)

           FY 2021 -     ($ 22,500)

           FY 2022 -     ($ 23,300)

           FY 2023 -     ($ 24,100)

           FY 2024 -     ($ 24,800)

           FY 2025 -     ($ 25,500)

      Local Government, if applicable (cash basis, $000): 

           FY 2020 -      $   7,250

           FY 2021 -      $ 22,500

           FY 2022 -      $ 23,300

           FY 2023 -      $ 24,100

           FY 2024 -      $ 24,800

           FY 2025 -      $ 25,500

Bill sponsors and contact information:

Representative Ed Orcutt, Prime Sponsor

Republican

(360) 786-7990

Ed.Orcutt@leg.wa.gov

Representative Mike Chapman

Democrat

(360) 786-7916

Mike.Chapman@leg.wa.gov

Representative Richard DeBolt

Republican

(360) 786-7896

Richard.DeBolt@leg.wa.gov

Representative Brian Blake

Democrat

(360) 786-7870

Brian.Blake@leg.wa.gov

Representative Jim Walsh

Republican

(360) 786-7806

Jim.Walsh@leg.wa.gov

Representative Luanne Van Werven

Republican

(360) 786-7980

Luanne.VanWerven@leg.wa.gov

House Committee on Finance members and contact information:

Representative Mike Chapman

Democrat

(360) 786-7916

Mike.Chapman@leg.wa.gov

Representative Laurie Dolan

Democrat

(360) 786-7940

Laurie.Dolan@leg.wa.gov

Representative Noel Frame

Democrat

(360) 786-7814

Noel.Frame@leg.wa.gov

Representative Nicole Macri

Democrat

(360) 786-7826

Nicole.Macri@leg.wa.gov

Representative Jeff Morris

Democrat

(360) 786-7970

Jeff.Morris@leg.wa.gov

Representative Ed Orcutt

Republican

(360) 786-7990

Ed.Orcutt@leg.wa.gov

Representative Tina Orwall

Democrat

(360) 786-7834

Tina.Orwall@leg.wa.gov

Representative Gerry Pollet

Democrat

(360) 786-7886

Gerry.Pollet@leg.wa.gov

Representative Larry Springer

Democrat

(360) 786-7822

Larry.Springer@leg.wa.gov

Representative Drew Stokesbary

Republican

(360) 786-7846

Drew.Stokesbary@leg.wa.gov

Representative Gael Tarleton

Democrat

(360) 786-7860

Gael.Tarleton@leg.wa.gov

Representative Brandon Vick

Republican

(360) 786-7850

Brandon.Vick@leg.wa.gov

Representative Amy Walen

Democrat

(360) 786-7848

WALEN_AM@leg.wa.gov

Representative Sharon Wylie

Democrat

(360) 786-7924

Sharon.Wylie@leg.wa.gov

Representative Jesse Young

Republican

(360) 786-7964

Jesse.Young@leg.wa.gov

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

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