Senate Bill 5315, heard by the Local Government Committee, would standardize notifications that local governments must send to the Washington State Department of Revenue (DOR) when they change local sales-and-use tax rates, impose shared taxes administered by DOR, or when annexations or bond retirements affect local tax status.

Committee staff explained that while DOR currently receives notices under statute, the RCWs do not standardize the form or required attachments. SB 5315 would require written notice that includes a copy of the signed ordinance or resolution enacting the tax-rate change, a complete ordinance with legal description, a map showing annexation boundaries, and a list of parcel numbers in the annexed area. For public facilities districts whose local sales-and-use tax is credited against the state rate to finance bond issuance, the bill would require written notice to DOR of the actual date bonds are retired at least 75 days prior to retirement.

Steve Ewing, legislative liaison for the Department of Revenue, said the change is a ‘‘good government’’ proposal to ensure DOR has the complete documentation it needs to correctly administer local taxes and help businesses charge the correct rates. Mark Johnson of the Washington Retail Association testified in support, saying small businesses would benefit from standardized notices that help retailers know which local rates to charge. Support from the Association of Washington Cities, the Association of Washington Business and the Washington Food Industry Association was noted in the hearing record.

No opposition testimony was recorded in the hearing. Committee members had no substantive objections in the hearing record and the panel concluded testimony without taking a recorded vote that day.