HomeMy WebLinkAbout2025.10.06 Council Meeting - J Padvoac Public Comment Handout2/17125, 10:21 PM RCW 82.02.020: State preempts certain tax fields —Fees prohibited for the development of land or buildings —Voluntary payments...
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State preempts certain tax fields —Fees prohibited for the development of land or
buildings —Voluntary payments by developers authorized —Limitations —Exceptions.
(Effective until January 1, 2028.)
Except only as expressly provided in chapters 67.23, 81.104, and RCW, the state preempts the
field of imposing retail sales and use taxes and taxes upon parimutuel wagering authorized pursuant to RCW
67.16.060, conveyances, and cigarettes, and no county, town, or other municipal subdivision shall have the
right to impose taxes of that nature. Except as provided in RCW 64.34.440 and 82.02.050 through Q.02.090,
no county, city, town, or other municipal corporation shall impose any tax, fee, or charge, either direct or
indirect, on the construction or reconstruction of residential buildings, commercial buildings, industrial
buildings, or on any other building or building space or appurtenance thereto, or on the development,
subdivision, classification, or reclassification of land. However, this section does not preclude dedications of
land or easements within the proposed development or plat which the county, city, town, or other municipal
corporation can demonstrate are reasonably necessary as a direct result of the proposed development or plat
to which the dedication of land or easement is to apply.
This section does not prohibit voluntary agreements with counties, cities, towns, or other municipal
corporations that allow a payment in lieu of a dedication of land or to mitigate a direct impact that has been
identified as a consequence of a proposed development, subdivision, or plat. A local government shall not
use such voluntary agreements for local off -site transportation improvements within the geographic
boundaries of the area or areas covered by an adopted transportation program authorized by chapter 39.92
RCW. Any such voluntary agreement is subject to the following provisions:
(1) The payment shall be held in a reserve account and may only be expended to fund a capital
improvement agreed upon by the parties to mitigate the identified, direct impact;
(2) The payment shall be expended in all cases within five years of collection; and
(3) Any payment not so expended shall be refunded with interest to be calculated from the original
date the deposit was received by the county and at the same rate applied to tax refunds pursuant to RCW
M.69.100; however, if the payment is not expended within five years due to delay attributable to the
developer, the payment shall be refunded without interest.
No county, city, town, or other municipal corporation shall require any payment as part of such a
voluntary agreement which the county, city, town, or other municipal corporation cannot establish is
reasonably necessary as a direct result of the proposed development or plat.
Nothing in this section prohibits cities, towns, counties, or other municipal corporations from collecting
reasonable fees from an applicant for a permit or other governmental approval to cover the cost to the city,
town, county, or other municipal corporation of processing applications, inspecting and reviewing plans, or
preparing detailed statements required by chapter RCW, including reasonable fees that are
consistent with RCW 43.21C.420(6), 43.21C.428, and beginning July 1, 2014, RCW 35.91.020.
This section does not limit the existing authority of any county, city, town, or other municipal
corporation to impose special assessments on property specifically benefited thereby in the manner
prescribed by law. _
Nothing in this section prohibits counties, cities, or towns from imposing or permits counties, cities, or
towns to impose water, sewer, natural gas, drainage utility, and drainage system charges. However, no such
charge shall exceed the proportionate share of such utility or system's capital costs which the county, city, or
town can demonstrate are attributable to the property being charged. Furthermore, these provisions may not
be interpreted to expand or contract any existing authority of counties, cities, or towns to impose such
charges.
in this section prohibits a
m imposing fees or charges
authorized in RCW 36.73.120 nor prohibits the legislative authority of a county, city, or town from approving
the imposition of such fees within a transportation benefit district.
https://app.leg.wa.gov/rcw/default.aspx?cite=82.02.020
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