HOUSE BILL REPORT

HJR 4201

BYRepresentatives Unsoeld, Brough, Haugen, May, Sayan, Grant, Nutley, L. Smith, Fisch, Holm, Todd, Belcher, Basich, P. King, Hargrove, Taylor, Spanel, Betrozoff and Hine

Exempting a $.50 library district levy from the 1% levy ceiling.

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 establishes a limitation on the cumulative property tax rates of most taxing jurisdictions at not to exceed 1% of the true and fair value on any property.  Port district and public utility district property taxes are not subject to the 1% limitation.

Library districts are junior taxing districts that have been authorized to impose regular property taxes at a rate not exceeding $.50 per $1000 of assessed valuation.  Their tax rate is subject to this 1% limitation.

SUMMARY:

SUBSTITUTE BILL:  A property tax rate for library districts, of not to exceed $.50 per $1000 of assessed valuation of the taxable property in the district, is not subject to the 1% cumulative limitation on regular property tax rates.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The terminology used to describe the maximum tax rate of a library district was changed from a percentum of true and fair value to a dollar value figure per $1000 of assessed valuation.

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:      Jim Metcalf, Washington Association of Counties.

House Committee - Testimony For:    This will provide relief for junior taxing districts by lessening the number of junior taxing districts, and thus leaving more taxing capacity for the remaining junior taxing districts.  Library districts are popular and ready to work for passage of the constitutional amendment.

House Committee - Testimony Against:      Why should libraries be placed on a pedestal above fire fighting, law enforcement, and public health?  This does not address funding needs of counties.