MRSC Insight

RCW 82.14.370 provides “rural” counties the authority to impose an up to 0.09 percent sales and use tax for the purpose of financing “public facilities serving economic development purposes in rural counties and finance personnel in economic development offices.” (A “rural county” under this statute is one having a population density of less than 100 persons per square mile or one smaller than 225 square miles. Thirty-five counties currently qualify. See this Office of Financial Management webpage.)   This tax – credited against the state’s 6.5 percent sales tax and therefore not an increased tax to the consumer - was part of 1997 legislation intended to assist such counties in their efforts to promote economic development and employment opportunities. A recent informal opinion issued by the Office of the Attorney General provides some specific guidance as to how taxes collected under this statute may be spent.  Continue reading →