FINAL BILL REPORT

SHB 1370

                                   C 10 L 88

BYHouse Committee on Ways & Means/Revenue (originally sponsored by Representatives Holland, Appelwick, Taylor, Grimm, Silver, Braddock, Fuhrman, Bristow, Nealey, Valle, Padden, Brough, McLean, Basich, Schoon, H. Sommers, Winsley, May, B. Williams, Beck, Butterfield, Ballard, Baugher, Lewis, J. Williams, Amondson, Sanders, Kremen, Betrozoff, Rasmussen, Doty, Hankins, Miller, Hine, Holm and Cooper)

Increasing the head of family exemption for personal property taxes.

House Committe on Ways & Means/Revenue

Senate Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

In Washington all personal property is subject to property taxation unless exempted by law.  Generally, personal property subject to the tax includes office equipment, office machinery and other personal property used in private business.

The state constitution and statutes provide a $300 personal property tax exemption for each household. By statute all household effects are exempt from personal property taxes.  However, an individual who operates a business from a home is subject to personal property taxation with a $300 exemption.  This exemption was provided by law in 1935.

SUMMARY:

The household personal property tax exemption is increased from $300 to $3,000 for property tax collections beginning in 1990.  The act implements the constitutional amendment proposed in HJR 4222.

VOTES ON FINAL PASSAGE:

      House 97   0

      Senate    49     0     

EFFECTIVE:January 1, 1989, provided the proposed amendment is ratified by the voters.