SENATE BILL REPORT

SB 5821

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As of February 24, 2009

Title: An act relating to a property tax exemption for manufactured/mobile home communities.

Brief Description: Creating a property tax exemption for manufactured/mobile home communities.

Sponsors: Senators Kastama, Fraser, Kauffman, McAuliffe and Shin.

Brief History:

Committee Activity: Financial Institutions, Housing & Insurance: 2/25/09.

SENATE COMMITTEE ON FINANCIAL INSTITUTIONS, HOUSING & INSURANCE

Staff: Diane Smith (786-7410)

Background: Property tax exemptions are available for some property owners, such as senior citizens, disabled persons, and many nonprofit organizations. Historic property may also qualify for a special valuation.

Without a special exemption, all real and personal property is subject to tax.

Summary of Bill: The bill as referred to committee not considered.

Summary of Bill (Proposed Substitute): Manufactured/mobile home community owners are provided the opportunity to participate in a voluntary property tax exemption. This exemption requires the owner to continue as a manufactured/mobile home community for at least ten years; to comply with the Manufactured/Mobile Home Landlord-Tenant Act; and to limit any lot rental increase to no more than the percentage change in the consumer price index for the prior calendar year.

When the property's use no longer qualifies for the exemption, the owner must repay all back taxes with interest for the last ten years and pay a 10 percent penalty. However, no taxes, interest, or penalties apply if the property has been exempt for more than ten consecutive years.

Appropriation: None.

Fiscal Note: Requested on February 9, 2009.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.