Multiple Agency Fiscal Note Summary — 1521 S HB, Warehousing & Manuf. Jobs
Summary
Multiple Agency Fiscal Note Summary and attached fiscal notes for Bill Number 1521 S HB, with the Office of State Treasurer note stating that SHB 1521 creates the manufacturing and warehousing job centers account. That note lists operating expenditures from the Manufacturing and Warehousing Job Centers Account-State of 6,750,000 for FY 2022 and 5,400,000 for FY 2023, and the Department of Revenue is listed at 11,600. A local government fiscal note states that the bill will increase the city revenues of Auburn, Fife, Issaquah, Kent, Sumner, Tukwila, and Woodinville by $3,375,000 in FY 2022 and $2,700,000 in FY 2023. It states that these mitigation payments expire July 1, 2026.
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“Multiple Agency Fiscal Note Summary — 1521 S HB, Warehousing & Manuf. Jobs.”
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Multiple Agency Fiscal Note Summary
Bill Number: 1521 S HB Title: Warehousing & manuf. jobs
Estimated Cash Receipts
Agency Name 2021-23 2023-25 2025-27
GF-State NGF-Outlook Total GF-State NGF-Outlook Total GF-State NGF-Outlook Total
Office of State (12,150,000) (12,150,000) 0 (7,780,000) (7,780,000) 0 (2,770,000) (2,770,000) 0
Treasurer
Total $ (12,150,000) (12,150,000) 0 (7,780,000) (7,780,000) 0 (2,770,000) (2,770,000) 0
Agency Name 2021-23 2023-25 2025-27
GF- State Total GF- State Total GF- State Total
Local Gov. Courts
Loc School dist-SPI
Local Gov. Other 6,075,000 3,888,000 1,382,000
Local Gov. Total 6,075,000 3,888,000 1,382,000
Estimated Operating Expenditures
Agency Name 2021-23 2023-25 2025-27
FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total FTEs GF-State NGF-Outlook Total
Office of State .0 0 0 12,150,000 .0 0 0 7,780,000 .0 0 0 2,770,000
Treasurer
Department of .1 11,600 11,600 11,600 .0 0 0 0 .0 0 0 0
Revenue
Total $ 0.1 11,600 11,600 12,161,600 0.0 0 0 7,780,000 0.0 0 0 2,770,000
Estimated Capital Budget Expenditures
Agency Name 2021-23 2023-25 2025-27
FTEs Bonds Total FTEs Bonds Total FTEs Bonds Total
Office of State Treasurer .0 0 0 .0 0 0 .0 0 0
Department of Revenue .0 0 0 .0 0 0 .0 0 0
Total $ 0.0 0 0 0.0 0 0 0.0 0 0
Estimated Capital Budget Breakout
NONE
FNPID: 62654
FNS029 Multi Agency rollup
Prepared by: Ramona Nabors, OFM Phone: Date Published:
(360) 902-0547 Final 3/ 4/2021
FNPID: 62654
FNS029 Multi Agency rollup
Individual State Agency Fiscal Note
Bill Number: 1521 S HB Title: Warehousing & manuf. jobs Agency: 090-Office of State
Treasurer
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
ACCOUNT FY 2022 FY 2023 2021-23 2023-25 2025-27
General Fund-State 001-1 (6,750,000) (5,400,000) (12,150,000) (7,780,000) (2,770,000)
Manufacturing and Warehousing Job 6,750,000 5,400,000 12,150,000 7,780,000 2,770,000
Centers Account-State New-1
Total $
Estimated Operating Expenditures from:
FY 2022 FY 2023 2021-23 2023-25 2025-27
Account
Manufacturing and Warehousing Job 6,750,000 5,400,000 12,150,000 7,780,000 2,770,000
Centers Account-State New-1
Total $ 6,750,000 5,400,000 12,150,000 7,780,000 2,770,000
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
X
form Parts I-V.
If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Nick Tucker Phone: 360-786-7383 Date: 02/26/2021
Agency Preparation: Dan Mason Phone: (360) 902-8990 Date: 03/03/2021
Agency Approval: Dan Mason Phone: (360) 902-8990 Date: 03/03/2021
OFM Review: Ramona Nabors Phone: (360) 902-0547 Date: 03/04/2021
Form FN (Rev 1/00) 167,501.00 Request # 078-1
FNS063 Individual State Agency Fiscal Note 1 Bill # 1521 S HB
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Briefly describe by section number, the significant provisions of the bill, and any related workload or policy assumptions, that have revenue or
expenditure impact on the responding agency.
SHB 1521 creates the manufacturing and warehousing job centers account, coupled with the general fund as the
recipient of the earnings from investments under RCW 43.84.092(4).
The department of revenue (DOR) provided the section 2 transfers and distributions amounts.
II. B - Cash receipts Impact
Briefly describe and quantify the cash receipts impact of the legislation on the responding agency, identifying the cash receipts provisions by section
number and when appropriate the detail of the revenue sources. Briefly describe the factual basis of the assumptions and the method by which the
cash receipts impact is derived. Explain how workload assumptions translate into estimates. Distinguish between one time and ongoing functions.
DOR provided the section 2 transfer amounts included in this fiscal note.
Projected cash flows are currently unavailable; therefore, estimated earnings from investments are
indeterminable.
There may be an impact on the debt service limitation calculation. Any change to the earnings credited to the
general fund will change, by an equal amount, general state revenues.
II. C - Expenditures
Briefly describe the agency expenditures necessary to implement this legislation (or savings resulting from this legislation), identifying by section
number the provisions of the legislation that result in the expenditures (or savings). Briefly describe the factual basis of the assumptions and the
method by which the expenditure impact is derived. Explain how workload assumptions translate into cost estimates. Distinguish between one time
and ongoing functions.
DOR provided the section 2 distribution amounts included in this fiscal note.
Part III: Expenditure Detail
III. A - Operating Budget Expenditures
Account Account Title Type FY 2022 FY 2023 2021-23 2023-25 2025-27
New-1 Manufacturing and State 6,750,000 5,400,000 12,150,000 7,780,000 2,770,000
Warehousing Job
Centers Account
Total $ 6,750,000 5,400,000 12,150,000 7,780,000 2,770,000
Warehousing & manuf. jobs 090-Office of State Treasurer
Form FN (Rev 1/00) 167,501.00 Request # 078-1
FNS063 Individual State Agency Fiscal Note 2 Bill # 1521 S HB
III. B - Expenditures by Object Or Purpose
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years
A-Salaries and Wages
B-Employee Benefits
C-Professional Service Contracts
E-Goods and Other Services
G-Travel
J-Capital Outlays
M-Inter Agency/Fund Transfers
N-Grants, Benefits & Client Services 6,750,000 5,400,000 12,150,000 7,780,000 2,770,000
P-Debt Service
S-Interagency Reimbursements
T-Intra-Agency Reimbursements
9-
Total $ 6,750,000 5,400,000 12,150,000 7,780,000 2,770,000
III. C - Operating FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part I and Part IIIA
NONE
III. D - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and describe potential financing methods
NONE
IV. D - Capital FTE Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in
Part IVB
NONE
Part V: New Rule Making Required
Warehousing & manuf. jobs 090-Office of State Treasurer
Form FN (Rev 1/00) 167,501.00 Request # 078-1
FNS063 Individual State Agency Fiscal Note 3 Bill # 1521 S HB
Department of Revenue Fiscal Note
Bill Number: 1521 S HB Title: Warehousing & manuf. jobs Agency: 140-Department of
Revenue
Part I: Estimates
No Fiscal Impact
Estimated Cash Receipts to:
NONE
Estimated Expenditures from:
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.1 0.1
Account
GF-STATE-State 001-1 11,600 11,600
Total $ 11,600 11,600
Estimated Capital Budget Impact:
NONE
The cash receipts and expenditure estimates on this page represent the most likely fiscal impact. Factors impacting the precision of these estimates,
and alternate ranges (if appropriate), are explained in Part II.
Check applicable boxes and follow corresponding instructions:
If fiscal impact is greater than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete entire fiscal note
form Parts I-V.
X If fiscal impact is less than $50,000 per fiscal year in the current biennium or in subsequent biennia, complete this page only (Part I).
X Capital budget impact, complete Part IV.
Requires new rule making, complete Part V.
Legislative Contact: Nick Tucker Phone: 360-786-7383 Date: 02/26/2021
Agency Preparation: Valerie Torres Phone: 360-534-1521 Date: 03/01/2021
Agency Approval: Don Gutmann Phone: 360-534-1510 Date: 03/01/2021
OFM Review: Ramona Nabors Phone: (360) 902-0547 Date: 03/02/2021
Request # 1521-2-1
Form FN (Rev 1/00) 167,407.00 1 Bill # 1521 S HB
FNS062 Department of Revenue Fiscal Note
Part II: Narrative Explanation
II. A - Brief Description Of What The Measure Does That Has Fiscal Impact
Briefly describe, by section number, the significant provisions of the bill, and any related workload or policy assumptions, that have revenue or
expenditure impact on the responding agency.
Note: This fiscal note reflects language in SHB 1521, 2021 Legislative Session.
CURRENT LAW:
Streamline sales tax mitigation payments ended June 30, 2020, with the Governor’s veto of Engrossed House Bill 1948 passed
during the 2020 Legislative Session.
COMPARISON OF SUBSTITUTE BILL WITH THE ORIGINAL BILL:
The substitute bill removes the emergency clause and the doubling of the first payment.
PROPOSED LAW:
Qualified local taxing districts will receive a quarterly streamlined sales and use tax mitigation payment (SST mitigation
payment) from the manufacturing and warehousing job center account.
At first, the payment amounts will equal the payments received June 30, 2020. Beginning July 1, 2022, the amount of the
payment will be reduced by 20 percent from the previous year's payment for the same quarter.
The manufacturing and warehousing job center account is created in the state treasury. July 1, 2021, and each July 1 through
July 1, 2026, the State Treasurer transfers from the general fund the sum required to mitigate actual net losses.
A qualified local taxing district is defined as having received more than $60,000 in the June 30, 2020, SST mitigation payment.
EFFECTIVE DATE:
The bill takes effect 90 days after final adjournment of the session in which it is enacted.
The payments expire July 1, 2026.
II. B - Cash receipts Impact
Briefly describe and quantify the cash receipts impact of the legislation on the responding agency, identifying the cash receipts provisions by section
number and when appropriate the detail of the revenue sources. Briefly describe the factual basis of the assumptions and the method by which the
cash receipts impact is derived. Explain how workload assumptions translate into estimates. Distinguish between one time and ongoing functions.
ASSUMPTIONS
- The first payment after the transfer by the State Treasurer on July 1, 2021, will be made by September 30, 2021.
- This legislation passes effective July 23, 2021.
DATA SOURCES
- Department of Revenue, SST mitigation payment data
REVENUE ESTIMATES
Please see the Office of the State Treasurer's fiscal note for total payment amounts.
Request # 1521-2-1
Form FN (Rev 1/00) 167,407.00 2 Bill # 1521 S HB
FNS062 Department of Revenue Fiscal Note
II. C - Expenditures
Briefly describe the agency expenditures necessary to implement this legislation (or savings resulting from this legislation), identifying by section
number the provisions of the legislation that result in the expenditures (or savings). Briefly describe the factual basis of the assumptions and the method
by which the expenditure impact is derived. Explain how workload assumptions translate into cost estimates. Distinguish between one time and
ongoing functions.
ASSUMPTIONS:
This legislation will affect seven cities that will receive mitigation payments.
FIRST YEAR COSTS:
The Department of Revenue will incur total costs of $11,600 in Fiscal Year 2022. These costs include:
Labor Costs - Time and effort equates to 0.1 FTE.
- Administer mitigation program, calculate and review mitigation payments.
- Assist jurisdictions and respond to inquiries via phone call, web message, and paper correspondence.
SECOND YEAR COSTS:
The Department of Revenue will not incur any costs in Fiscal Year 2023.
ONGOING COSTS:
There are no ongoing costs.
Part III: Expenditure Detail
III. A - Expenditures by Object Or Purpose
FY 2022 FY 2023 2021-23 2023-25 2025-27
FTE Staff Years 0.1 0.1
A-Salaries and Wages 7,100 7,100
B-Employee Benefits 2,600 2,600
E-Goods and Other Services 1,200 1,200
J-Capital Outlays 700 700
Total $ $11,600 $11,600
III. B - Detail: List FTEs by classification and corresponding annual compensation. Totals need to agree with total FTEs in Part I
and Part IIIA
Job Classification Salary FY 2022 FY 2023 2021-23 2023-25 2025-27
MGMT ANALYST4 70,956 0.1 0.1
Total FTEs 0.1 0.1
III. C - Expenditures By Program (optional)
NONE
Part IV: Capital Budget Impact
IV. A - Capital Budget Expenditures
NONE
IV. B - Expenditures by Object Or Purpose
NONE
Request # 1521-2-1
Form FN (Rev 1/00) 167,407.00 3 Bill # 1521 S HB
FNS062 Department of Revenue Fiscal Note
IV. C - Capital Budget Breakout
Identify acquisition and construction costs not reflected elsewhere on the fiscal note and dexcribe potential financing methods
NONE
None.
Part V: New Rule Making Required
Request # 1521-2-1
Form FN (Rev 1/00) 167,407.00 4 Bill # 1521 S HB
FNS062 Department of Revenue Fiscal Note
LOCAL GOVERNMENT FISCAL NOTE
Department of Commerce
Bill Number: 1521 S HB Title: Warehousing & manuf. jobs
Part I: Jurisdiction-Location, type or status of political subdivision defines range of fiscal impacts.
Legislation Impacts:
X Cities: Revenue increase for 7 cities receiving SST mitigation payments
Counties:
Special Districts:
X Specific jurisdictions only: seven cities: Auburn, Fife, Issaquah, Kent, Sumner, Tukwila, and Woodinville
Variance occurs due to:
Part II: Estimates
No fiscal impacts.
Expenditures represent one-time costs:
Legislation provides local option:
Key variables cannot be estimated with certainty at this time:
Estimated revenue impacts to:
Jurisdiction FY 2022 FY 2023 2021-23 2023-25 2025-27
City 3,375,000 2,700,000 6,075,000 3,888,000 1,382,000
TOTAL $ 3,375,000 2,700,000 6,075,000 3,888,000 1,382,000
GRAND TOTAL $ 11,345,000
Estimated expenditure impacts to:
None
Part III: Preparation and Approval
Fiscal Note Analyst: Angie Hong Phone: 360-725-5041 Date: 03/02/2021
Leg. Committee Contact: Nick Tucker Phone: 360-786-7383 Date: 02/26/2021
Agency Approval: Allan Johnson Phone: 360-725-5033 Date: 03/02/2021
OFM Review: Ramona Nabors Phone: (360) 902-0547 Date: 03/04/2021
Page 1 of 3 Bill Number: 1521 S HB
FNS060 Local Government Fiscal Note
Part IV: Analysis
A. SUMMARY OF BILL
Provide a clear, succinct description of the bill with an emphasis on how it impacts local government .
CHANGES FROM PREVIOUS BILL VERSION
This substitute bill removes the emergency clause and the doubling of the first payment .
SUMMARY OF CURRENT BILL
This bill creates a new account: the manufacturing and warehousing job centers account for a five-year period beginning July 1 , 2021. The
department will provide each qualified local taxing district a quarterly mitigation payment from the account equal to the streamlined sales
tax mitigation payment that was provided to that qualified local taxing district on June 30 , 2020. The amount of the quarterly mitigation
payment shall be reduced by 20% from the previous year's payment.
A qualified local taxing district is defined as having received more than $60 ,000 in the June 30, 2020, SST mitigation payment.
This bill takes effect 90 days after final adjournment of the session in which it is enacted . The payments expire July 1, 2026.
BACKGROUND
According to the DOR, the mitigation timeline for local governments is as follows:
December 31, 2008 – Mitigation payments begin.
July 1, 2017 – Mitigation payments are limited to cities, counties and public facility districts.
January 1, 2018 – Marketplace Fairness law goes into effect. Marketplace facilitator/remote seller offset revenue begins to be collected.
June 30, 2018 – Mitigation payments are modified based on the offset of the prior quarter , which now includes increased revenue resulting
from marketplace facilitator/remote seller revenue gains.
September 30, 2019 – Mitigation payments end, with an exception for: cities having more than $50,000 in SST Mitigation payments in
Calendar Year 2018 will continue to receive SST Mitigation payments through June 30 , 2020.
The following cities received a quarterly streamlined sales tax mitigation payment from the state on June 30 , 2020, of:
AT LEAST $60,000
- Auburn
- Fife
- Issaquah
- Kent
- Sumner
- Tukwila
- Woodinville
GREATER THAN ZERO AND LESS THAN $60,000
- Burlington
- Milton
- Othello
B. SUMMARY OF EXPENDITURE IMPACTS
Briefly describe and quantify the expenditure impacts of the legislation on local governments , identifying the expenditure provisions by
section number, and when appropriate, the detail of expenditures. Delineate between city, county and special district impacts.
CHANGES FROM PRIOR BILL VERSION
Changes in this version do not alter the previous analysis of impacts.
SUMMARY OR CURRENT BILL
This bill would not impact local government expenditures because no action is required .
Page 2 of 3 Bill Number: 1521 S HB
FNS060 Local Government Fiscal Note
C. SUMMARY OF REVENUE IMPACTS
Briefly describe and quantify the revenue impacts of the legislation on local governments , identifying the revenue provisions by section
number, and when appropriate, the detail of revenue sources. Delineate between city, county and special district impacts.
CHANGES FROM PREVIOUS BILL VERSION
This substitute bill removes the doubling of the first payment.
SUMMARY OF CURRENT BILL REVENUE IMPACTS
This bill will increase the city revenues of Auburn, Fife, Issaquah, Kent, Sumner, Tukwila, and Woodinville by:
$3,375,000 in FY 2022
$2,700,000 in FY 2023
$2,160,000 in FY 2024
$1,728,000 in FY 2025
$1,382,000 in FY 2026
These mitigation payments expire July 1, 2026.
SOURCES
Association of Washington Cities
Office of State Treasurer, Fiscal Note HB 1521
Washington State Dept. of Revenue, Mitigation for local governments website
Page 3 of 3 Bill Number: 1521 S HB
FNS060 Local Government Fiscal Note
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