H-3154.1          _______________________________________________

 

                                  HOUSE BILL 2238

                  _______________________________________________

 

State of Washington              52nd Legislature             1992 Regular Session

 

By Representatives Heavey, Horn, Rasmussen, G. Cole, G. Fisher, Haugen, Phillips, Cantwell, Valle, Roland, Jacobsen, Nelson, Scott, Mitchell, Wood, Paris, Pruitt, Morris, May, Winsley, Bray and Wineberry

 

Read first time 06/27/91.  Referred to Committee on Revenue.Requiring a study to examine how to make the property tax system more equitable.


     AN ACT Relating to improving property tax equity; creating new sections; and declaring an emergency.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

     NEW SECTION.  Sec. 1.      The legislature finds that residential property tax assessments have increased dramatically in recent years.  The legislature also finds that industrial and commercial property values have not increased at the same rate.  The resulting shift in property burden from commercial and industrial property to residential property threatens the ability of homeowners to remain in their homes and prevents potential homeowners from purchasing homes.  The legislature recognizes that residential property is not purchased primarily as an investment but provides the fundamental right of shelter and stability for families and communities.

     The legislature needs to examine the effects of this tax shift and the need for replacing the current uniform assessment rules with a system of assessing residential and nonresidential property as two separate property classes.  The legislature finds that it is in the interest of good public policy and taxpayer equity to consider an alternative assessment system.

 

     NEW SECTION.  Sec. 2.      (1) The department of revenue shall develop statistics on the following aspects of the property tax system:

     (a) The relative share of residential property tax valuation and nonresidential valuation by county for the assessment years of 1988, 1989, and 1990.

     (b) The relative share of residential property tax burden and nonresidential property tax burden by county for the assessment years of 1988, 1989, and 1990.

     (2) Recognizing that the amount of the tax shift will be greater in some counties and less in others, and to minimize the impact on small shift counties the department of revenue will develop alternative proposals for separate assessment levels for residential and nonresidential properties and estimate the tax impact of these alternatives within each county for the state levy.

     (3) The department of revenue shall study how to allow for a local option by a county government in high shift counties to apply the same factor to all local taxes in addition to the state levy.

     (4) The department shall use a definition of residential property that includes single family residences, mobile homes, houseboats, multifamily residences, and residentially zoned land.

     (5) The department shall report its findings to the appropriate committees of the legislature by December 31, 1991.

 

     NEW SECTION.  Sec. 3.      This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.