Local Revitalization Financing (LRF)

2010 LRF demonstration projects approved

The Department has approved five of the six projects awarded a state contribution through E2SSB 6609. These projects had previously applied in September 2009 for an award amount during the first come first serve application process. They were required to resubmit an application to the Department by September 1, 2010. These projects were approved after an economic review was conducted by the University of Washington as outlined in E2SSB 6609. One of the six projects awarded a state contribution through E2SSB 6609 chose not to resubmit an application.

LRF application process completed

The Department is no longer accepting applications for the LRF program as the state contribution limit has been reached. As required by the Revised Code of Washington (RCW) 39.104.100, once the state contribution limit has been reached, the Department may no longer accept applications.

Background

The Local Revitalization Financing (LRF) Program was created by Second Substitute Senate Bill 5045 (2SSB 5045), passed by the WA State Legislature in 2009. The LRF program authorizes cities and counties to create “revitalization areas” and allows certain increases in local sales and use tax revenues and local property tax revenues generated from within the revitalization area, additional funds from other local public sources, and a state contribution to be used for payment of bonds issued for financing local public improvements within the revitalization area. The state contribution is provided through a new local sales and use tax that is credited against the state sales and use tax (sometimes referred to as the “LRF tax”). This tax does not increase the combined sales and use tax rates paid by consumers.

The Department of Revenue is responsible for reviewing annual reports and the distribution of LRF state contribution payments to participating jurisdictions. Local government that created a revitalization area previously must have been approved by the Department. The bill made available state contributions for seven demonstration projects that were awarded by Department by September 1, 2009. The additional projects were approved on a first-come basis.

Per RCW 39.104.100 (5) Department of Commerce is responsible for rewarding and administering any future LRF project amounts that were forfeited.

The maximum amount allowed statewide for state contributions to LRF is $4.75 million per state fiscal year. Of this amount, $2.25 million is allocated for the seven demonstration projects, and $2.5 million is allocated for the other projects approved on a first-come basis. The maximum amount of state contribution for each demonstration project is specified in the bill and ranges from $200,000 to $500,000 per project. The maximum state contribution for each project approved on a first-come basis is $500,000.

More information about this program and the application process for a state contribution will be posted to this page as it becomes available. Currently, the following information is available:

• LRF Report
• Timeline on the LRF process
• Q&A regarding property tax related elements of LRF
• Local Revitalization Financing example

Please contact the following Department of Revenue staff with questions:

General LRF program questions
Brittney May, LRF Program Manager, BrittneyM@dor.wa.gov, (360) 705-6085
Cheryl Wack, LRF Program Coordinator, CherylW@dor.wa.gov, (360) 705-6005

Property tax related LRF questions
Property Tax Division, (360) 534-1400

Assistance for estimating incremental tax revenues for LRF
Diana Tibbetts, Research Division, DianaT@dor.wa.gov, (360) 534-1520

Applications and project awards
Janea Stark, Executive Director and Tribal Liaison, Department of Commerce (Commerce), Community Economic Revitalization Board (CERB), Janea.Stark@commerce.wa.gov, (360) 764-9820