H-3147              _______________________________________________

                                                   HOUSE BILL NO. 1774

                        _______________________________________________

State of Washington                              49th Legislature                              1986 Regular Session

By Representative Lux

Read first time 1/23/86 and referred to Committee on State Government.  Referred to Committee on Ways & Means 1/28/86.

AN ACT Relating to waiver of the one hundred six percent property tax limitation by local governments; and amending RCW 84.55.050.

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

        Sec. 1.  Section 24, chapter 288, Laws of 1971 ex. sess. as last amended by section 3, chapter 218, Laws of 1979 ex. sess. and RCW 84.55.050 are each amended to read as follows:

(1) Subject to any otherwise applicable statutory dollar rate limitations, regular property taxes may be levied by or for a taxing district in an amount exceeding the limitations provided for in this chapter if such levy is authorized by a proposition approved by a majority of the voters of the taxing district voting on the proposition at a general election held within the district or at a special election within the taxing district called by the district for the purpose of submitting such proposition to the voters.  Any election held pursuant to this section shall be held not more than twelve months prior to the date on which the proposed levy is to be made.  The ballot of the proposition shall state the dollar rate proposed.

          After a levy authorized pursuant to this section is made, the dollar amount of such levy shall be used for the purpose of computing the limitations for subsequent levies provided for in this chapter.

(2) A local government taxing district alternatively may place a proposition before the voters to waive the one hundred six percent limitation for capital purposes only where the proposition limits the effect of the waiver by one or more of the following:  (a) Setting the initial levy imposed after the approval at a dollar amount less than the maximum allowable dollar amount for the taxing district; (b) limiting the number of years for which this new dollar amount of levy shall be used for the purpose of computing the limitations on subsequent levies during these years; or (c) limiting the type or types of capital purposes for which receipts from the additional dollar amount of levy or levies exclusively shall be used.  If such a proposition is approved that limits the number of years or types of capital purposes for which this new dollar amount of levy shall be used for computing the limitations on the maximum dollar amounts of levies allowed  to be imposed by the local government taxing district, the county treasurer shall keep records for every levy during these years as if the proposition had not been approved.  After this specified number of years has expired or the types of capital purposes no longer exist, the subsequent limitation on levies for the local government taxing district shall be calculated using these records as if the potentially higher dollar amounts of levies had not been imposed.

Nothing in this section authorizes levies in excess of the maximum allowable statutory dollar amount of levy for the particular local government taxing district.

As used in this subsection, the term "local government taxing district" includes all taxing districts other than the state.