Rep. Mike Volz (R–Spokane) sponsored HB 1718 changing how cities can use sales tax for delivery of chemical dependency or mental health treatment and the application of levy lid lifts.

The bill repeals the language restricting use to providing new or expansion of programs and services and the supplanting clause associated with the sales and use tax for chemical dependency and mental health treatment programs. By repealing these clauses, cities would be allowed to use (what is commonly referred to as) the mental health sales tax to maintain existing programs and divert other funding sources that are used in support of these programs.

Cities in King County that have approved a levy lid lift are currently prohibited from using levy lid lift revenue to supplant existing funds. This bill would remove the prohibition on supplanting of property tax levy lid lift revenue. Cities outside of King County already have the option to supplant levy lid lift revenue.

The bill also changes the classification of veterans’ levies and the mental health levy. The levies would be independent of the regular property tax levy and placed above junior taxing districts in the hierarchy of property tax rates.

AWC supports the additional fiscal flexibility provided by HB 1718.

Dates to remember

The bill is being heard in the House Local Government Committee on Tuesday, February 12 at 10 am.