SENATE BILL REPORT

                            SB 6018

      AS REPORTED BY COMMITTEE ON GOVERNMENT OPERATIONS,

                        JANUARY 27, 1994

Brief Description:  Clarifying authorized uses of the excise tax on the sale of real property.

SPONSORS: Senators Winsley and Haugen

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  That Substitute Senate Bill No. 6018 be substituted therefor, and the substitute bill do pass. 

     Signed by Senators Haugen, Chairman; Drew, Vice Chairman; Loveland, McCaslin, Oke, Owen and Winsley.

Staff:  Eugene Green (786-7405)

Hearing Dates: January 21, 1994; January 27, 1994

BACKGROUND:

In 1982, all counties, cities, and towns were authorized to impose an excise tax on each sale of real property at a rate not exceeding one-quarter of 1 percent of the selling price.  For counties, cities, and towns under 5,000 population that are required or choose to plan under the Growth Management Act or any county city or town that does not plan under the Growth Management Act, the revenues from this excise tax must be used for local capital improvements.  A question has been raised as to whether or not revenues from this tax may be used for the acquisition of real and personal property associated with the local capital improvement.

SUMMARY:

It is clarified that counties, cities, and towns under 5,000 population that are planning under the Growth Management Act and any county, city, or town not planning under the Growth Management Act may use the revenues from the 1982 one-quarter of 1 percent real estate excise tax for the acquisition of real property and personal property associated with a local capital improvement.

EFFECT OF PROPOSED SUBSTITUTE:

It is further clarified that any county, city, or town under 5,000 population may expend these revenues on any capital purpose identified in a capital improvement plan.

Appropriation:  none

Revenue:  none

Fiscal Note:  none requested

TESTIMONY FOR:  None

TESTIMONY AGAINST:  None

TESTIFIED:  No one