43.135.035 - Tax legislation -- Referral to voters -- Conditions and restrictions -- Ballot title -- Declarations of emergency -- Taxes on intangible property -- Expenditure limit to reflect program c

Tax legislation — Referral to voters — Conditions and restrictions — Ballot title — Declarations of emergency — Taxes on intangible property — Expenditure limit to reflect program cost shifting or fund transfer.

(1) After July 1, 2011, any action or combination of actions by the legislature that raises taxes may be taken only if approved by a two-thirds vote of each house of the legislature, and then only if state expenditures in any fiscal year, including the new revenue, will not exceed the state expenditure limits established under this chapter. Pursuant to the referendum power set forth in Article II, section 1(b) of the state Constitution, tax increases may be referred to the voters for their approval or rejection at an election.

     (2)(a) If the legislative action under subsection (1) of this section will result in expenditures in excess of the state expenditure limit, then the action of the legislature shall not take effect until approved by a vote of the people at a November general election. The state expenditure limit committee shall adjust the state expenditure limit by the amount of additional revenue approved by the voters under this section. This adjustment shall not exceed the amount of revenue generated by the legislative action during the first full fiscal year in which it is in effect. The state expenditure limit shall be adjusted downward upon expiration or repeal of the legislative action.

     (b) The ballot title for any vote of the people required under this section shall be substantially as follows:


     "Shall taxes be imposed on . . . . . . . in order to allow a spending increase above last year's authorized spending adjusted for personal income growth?"


     (3)(a) The state expenditure limit may be exceeded upon declaration of an emergency for a period not to exceed twenty-four months by a law approved by a two-thirds vote of each house of the legislature and signed by the governor. The law shall set forth the nature of the emergency, which is limited to natural disasters that require immediate government action to alleviate human suffering and provide humanitarian assistance. The state expenditure limit may be exceeded for no more than twenty-four months following the declaration of the emergency and only for the purposes contained in the emergency declaration.

     (b) Additional taxes required for an emergency under this section may be imposed only until thirty days following the next general election, unless an extension is approved at that general election. The additional taxes shall expire upon expiration of the declaration of emergency. The legislature shall not impose additional taxes for emergency purposes under this subsection unless funds in the education construction fund have been exhausted.

     (c) The state or any political subdivision of the state shall not impose any tax on intangible property listed in RCW 84.36.070 as that statute exists on January 1, 1993.

     (4) If the cost of any state program or function is shifted from the state general fund to another source of funding, or if moneys are transferred from the state general fund to another fund or account, the state expenditure limit committee, acting pursuant to RCW 43.135.025(5), shall lower the state expenditure limit to reflect the shift. For the purposes of this section, a transfer of money from the state general fund to another fund or account includes any state legislative action taken that has the effect of reducing revenues from a particular source, where such revenues would otherwise be deposited into the state general fund, while increasing the revenues from that particular source to another state or local government account. This subsection does not apply to: (a) The dedication or use of lottery revenues under RCW 67.70.240(3), in support of education or education expenditures; or (b) a transfer of moneys to, or an expenditure from, the budget stabilization account.

     (5) If the cost of any state program or function and the ongoing revenue necessary to fund the program or function are shifted to the state general fund on or after January 1, 2007, the state expenditure limit committee, acting pursuant to RCW 43.135.025(5), shall increase the state expenditure limit to reflect the shift unless the shifted revenue had previously been shifted from the general fund.

     (6) For the purposes of chapter 1, Laws of 2008, "raises taxes" means any action or combination of actions by the legislature that increases state tax revenue deposited in any fund, budget, or account, regardless of whether the revenues are deposited into the general fund.

[2010 c 4 § 2; 2009 c 479 § 36. Prior: 2008 c 1 § 5 (Initiative Measure No. 960, approved November 6, 2007); 2007 c 484 § 6; 2005 c 72 § 5; 2005 c 72 § 2; (2006 c 56 § 8 expired July 1, 2007); prior: 2001 c 3 § 8 (Initiative Measure No. 728, approved November 7, 2000); 2000 2nd sp.s. c 2 § 2; (2002 c 33 § 1 expired June 30, 2003); 1994 c 2 § 4 (Initiative Measure No. 601, approved November 2, 1993).]

Notes: Intent -- 2010 c 4: "In order to preserve funding for education, public safety, health care, and safety net services for elderly, disabled, and vulnerable people, it is the intent of the legislature to provide a means to stabilize revenue collections." [2010 c 4 § 1.]

Effective date -- 2010 c 4: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately [February 24, 2010]." [2010 c 4 § 4.]

Effective date -- 2009 c 479: See note following RCW 2.56.030.

Findings -- Intent -- Construction -- Severability -- Subheadings and part headings not law -- Short title -- Effective date -- 2008 c 1 (Initiative Measure No. 960): See notes following RCW 43.135.031.

Contingent effective date -- 2007 c 484 §§ 2-8: See note following RCW 43.79.495.

Expiration date -- 2006 c 56 §§ 7 and 8: See note following RCW 43.135.025.

Effective dates -- 2006 c 56: See note following RCW 41.45.230.

Findings--Effective dates -- 2005 c 72: See notes following RCW 43.135.010.

Expiration date -- 2002 c 33: See note following RCW 43.135.045.

Short title -- Purpose -- Intent -- Construction -- Severability -- Effective dates -- 2001 c 3 (Initiative Measure No. 728): See notes following RCW 28A.505.210.

Effective date -- 2000 2nd sp.s. c 2: See note following RCW 43.135.025.