HOUSE BILL REPORT
HB 167
BYRepresentatives Unsoeld, Brough, Haugen, Madsen, May, Sayan, Nutley, L. Smith, Ferguson, Holm, Todd, Belcher, Basich, Spanel, Cooper and Hine
Authorizing a limited voter approved increase in counties in the cumulative property tax limitation.
House Committe on Local Government
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. (13)
Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Beck, Bumgarner, Ferguson, Hine, Madsen, Nealey, Nelson, Nutley, Rayburn, L. Smith and Zellinsky.
House Staff:Steve Lundin (786-7127)
AS REPORTED BY COMMITTEE ON LOCAL GOVERNMENT FEBRUARY 10, 1987
BACKGROUND:
The constitution and statutes place several restrictions on property taxes.
Statutes 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.
Statutes place 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 status tax levies and junior taxing districts are reduced or eliminated to remain within this cumulative ceiling rate. The reduction or elimination occurs on the lowest status levies and districts before the next highest are affected.
Voter-approved property taxes of up to $.25 per $1,000 of assessed valuation are not subject to the $9.15 Limitation.
SUMMARY:
SUBSTITUTE BILL: A ballot proposition could be submitted to the voters of a taxing district which, if approved by a simple majority vote, would permit both: (1) the taxing district to impose a higher rate of taxation than it otherwise could impose due to the $9.15 limitation, but still subject to the 106% limitation and the maximum rate limitation for the taxing district; and (2) increase the $9.15 limitation by an amount equal to this increased tax but not to exceed $9.50 per $1,000 of assessed valuation. The increase in the $9.15 limitation only would be for the taxing district that received such voter approval. Other taxing districts would not be affected.
When two or more taxing districts that occupy part of the same area receive this voter approval, they would share in the increased amount of taxing capacity. If the requested taxing rates exceed the $9.50 limitation, these taxing districts would have their requested levy rates adjusted in the same manner as if the rates were being reduced due to the $9.15 limitation.
The voter-approved six year tax levies of up to $.25 per $1,000 of assessed valuation for emergency medical services are still above this $9.50 limitation.
SUBSTITUTE BILL COMPARED TO ORIGINAL: The ballot proposition may be submitted by any taxing district, instead of just being submitted countywide.
Fiscal Note: Attached.
House Committee ‑ Testified For: Mark Allen, Washington Library Association; Marilyn Showalter, Public Hospital District; Stan Finkelstein, Association of Washington Cities; Mark Lynch, North Central Regional Library; and Lon Dickerson, Timberland Regional Library.
House Committee - Testified Against: None Presented.
House Committee - Testimony For: This allows voters to increase the $9.15 limitation. This gives a little more capacity for the junior taxing districts, while still retaining some cushion under the 1% limitation.
House Committee - Testimony Against: None Presented.