HOUSE BILL REPORT

HB 1373

BYRepresentatives Unsoeld and Belcher

Eliminating the current year tax cancellation for property becoming exempt from property tax.

House Committe on Ways & Means/Revenue

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (9)

      Signed by Representatives Appelwick, Chair; Basich, Dellwo, Holland, Rust, Schoon, Taylor, Valle and Winsley.

House Staff:Rick Wickman (786-7136)

AS REPORTED BY COMMITTEE ON WAYS & MEANS/REVENUE

JANUARY 28, 1988

BACKGROUND:

Property qualifying for property tax exemption is entitled to a cancellation of the pro-rata portion of taxes payable for the remaining portion of the year from the date of exemption or conversion to exemption.

If taxes have already been paid subject to the period of time of qualification of exemption, the property tax payer is entitled to a refund.

SUMMARY:

SUBSTITUTE BILL:  The bill eliminates both the cancellation of pro-rata portion of taxes payable and any refunds that may have been paid relative to property tax exemptions in the year in which the exemption was granted.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Clarified the year following the year an exemption, conversion to exemption, or refund was granted is the year additional qualifying property is acquired under tax exempt status.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Margaret Casey, WSCC; and Stan Finkelstein, Association of Washington Cities.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Qualifying property tax exemptions, conversion to exemption, or refunds should not impair state and local property tax revenues in the year the exemption, conversion to exemption, or refund was granted.  The property tax exemption, conversion to exemption, or refunds should be applied in the year following qualification.

House Committee - Testimony Against:      Existing qualifying property tax exempt organizations should continue to receive property tax exemptions, conversion to exemptions, or refunds in the year additional qualifying property is acquired under tax exempt status.