H-574                _______________________________________________

                                                    HOUSE BILL NO. 759

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Ballard, Smitherman, Padden, Lewis, Taylor, B. Williams, Bond, Silver, Zellinsky, L. Smith, Sanders, Brooks, J. Williams, West and Thomas

Read first time 2/8/85 and referred to Committee on Ways & Means.

AN ACT Relating to property tax limitations; adding a new section to chapter 84.55 RCW; and declaring an emergency.

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

NEW SECTION. Sec. 1.  A new section is added to chapter 84.55 RCW to read as follows:

          (1) In calculating the highest lawfully levied property taxes in the three most recent years under this chapter for the state, counties, cities, and towns, the taxes levied in 1982 and paid in 1983 shall be reduced by an amount equal to one hundred six percent of the property taxes levied in 1981 on business inventories, the taxes levied in 1983 and paid in 1984 shall be reduced by an amount equal to one hundred six percent of the amount by which the taxes levied in 1982 are reduced under this subsection, and the taxes levied in 1984 and paid in 1985 shall be reduced by an amount equal to one hundred six percent of the amount by which the taxes levied in 1983 are reduced under this subsection.

          (2) If any class of property is exempted from property taxation after the effective date of this act, the amount of taxes levied on that property in the three most recent years shall be removed from the calculation of subsequent tax limitations for all taxing districts in the same manner as business inventories are removed under subsection (1) of this section.

NEW SECTION. Sec. 2.     This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect immediately.