FINAL BILL REPORT

HB 1185

                                  C 255 L 87

BYRepresentative Appelwick

Specifying the order for the deduction of levy rates of junior taxing districts to meet limitations imposed by law.

House Committe on Ways & Means/Revenue

Senate Committee on Governmental Operations

SYNOPSIS AS ENACTED

BACKGROUND:

The constitution and state laws place several restrictions on property taxes.

Laws establish the maximum tax rate that each taxing district may impose.  These rate limitations are expressed in terms of a dollar value per $1,000 of assessed valuation, except that the state's rate is a dollar value per $1,000 of assessed valuation adjusted to an equalized value.

Current law places a cumulative rate limitation on most of the regular property tax levies of most taxing districts at $9.15 per $1,000 of assessed valuation that may be imposed on any property.  The relative status of the various taxing districts has been established so that the senior taxing districts (counties, road districts, cities and towns and the state for educational purposes) are permitted to impose their tax levies before the remaining taxing districts (referred to as junior taxing districts) impose their tax levies.  Different status levels have been established for the regular property tax levies of various junior taxing districts.  If the requested rates of tax levy exceed this $9.15 limit on any property, levy rates of the junior taxing districts are reduced or eliminated to remain within this ceiling.  The reduction or elimination occurs on the lowest status districts before the next highest are affected.

SUMMARY:

The relative status of tax levies and taxing districts is clarified and altered for junior taxing districts from least seniority to most seniority:  (1) park and recreation districts, park and recreation service areas and cultural arts districts; (2) flood control zone districts; (3) all other junior taxing districts (except fire districts, hospital districts, library districts and metro park districts); (4) the second and third $.50 property tax levies of fire districts; and (5) hospital districts, library districts, metro park districts and the first $.50 levy of fire districts.  The status of cemetery districts is lowered from the highest status to one below the second and third $.50 tax levies of fire districts.

VOTES ON FINAL PASSAGE:

      House 94   0

      Senate    43     1

EFFECTIVE:July 26, 1987