Analysis Complete for Substitute House Bill 1659

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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:

Note:  This fiscal note reflects language in SHB 1659, 2019 Legislative Session.

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 HSSA 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 HSSA creation date to prior to January 1, 2019.    Before levying the HSSA tax local jurisdictions that have created a health sciences and services authority after January 1, 2010, are required to submit an expenditure plan for such tax revenue to the appropriate committees of the Legislature at least three months prior to the first day of the next scheduled regular session of the Legislature. 

The HSSA tax may not be collected prior to ninety days following the end of the legislative session for which the report is submitted. The report must include the authority's funding distribution plan including, but not limited to, how the activities supported by any HSSA tax authorized by this section will address health disparities resulting in lower disability adjusted life years experienced by populations within the jurisdiction, including migrant populations and members of a federally recognized Indian tribe.  

ASSUMPTIONS

- Currently, there is one HSSA in Spokane County that levies the HSSA tax but Yakima County recently created a new HSSA.

- Only two authorities are allowed statewide and an authority may only be created in a county with a population of less than one million persons and located east of the crest of the Cascade mountains. 

- After Yakima submits the expenditure plan in October 2019 and 90 days after the end of the 2020  legislative session, the state-shared tax can be imposed July 1, 2020.  

- The tax is set to expire January 1, 2023.  Fiscal Year 2023 has 6 months of cash impact.

DATA SOURCES

Department of Revenue data

REVENUE ESTIMATES 

TOTAL REVENUE IMPACT: 

      State Government (cash basis, $000):

           FY 2020 -       $      0

           FY 2021 -      ($ 800)

           FY 2022 -      ($ 800)

           FY 2023 -      ($ 400)

           FY 2024 -       $     0

           FY 2025 -       $     0

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

           FY 2020 -      $     0

           FY 2021 -      $ 800

           FY 2022 -      $ 800

           FY 2023 -      $ 400

           FY 2024 -      $     0

           FY 2025 -      $     0