HOUSE BILL REPORT

SSB 5199

BYSenate Committee on Governmental Operations (originally sponsored by Senators Halsan, Zimmerman and DeJarnatt)

Establishing time limitation for port district boundary changes.

House Committe on Trade & Economic Development

Majority Report:  Do pass.  (16)

      Signed by Representatives Vekich, Chair; Wineberry, Vice Chair; Amondson, Beck, Belcher, Cantwell, Doty, Grant, Hargrove, Holm, Kremen, McLean, McMullen, Moyer, Rasmussen and J. Williams.

House Staff:Stephen Hodes (786-7092)

AS PASSED HOUSE APRIL 7, 1987

BACKGROUND:

Prior to 1971, port districts could be created either county-wide or in an area less than county-wide.  Legislation was enacted in 1971 which limited new port formation to county-wide ports.  In 1986, the Legislature passed legislation authorizing the formation by election of port districts in area of less than county-wide size.  This provision will expire December 31, 1988. Three elections were held in September of 1986 to establish port districts of less than county-wide size, two of which resulted in the establishment of local port districts under the provisions of the legislation.

No property tax levy may be collected for any taxing district whose boundaries were not duly established on the first day of March of the year in which the levy is made.  This provision, which has existed in law for many years, was enacted as a result of the length of the taxing and tax assessment process for local property taxes. This is especially important for special districts providing utility services.  As a result of this provision, these two newly-formed port districts could not levy a tax in 1986 for collection in 1987.  These port districts have borrowed funds to cover administrative costs, pledged against a planned 1988 property tax levy.  The proposed legislation would prevent a repetition of this situation.

SUMMARY:

For the purposes of property taxation and the levy of property taxes, the boundaries for port districts newly formed by election shall be the established official boundaries on the first day of October following formation.  The applicability of the October date is limited to those newly formed port districts whose boundaries are coterminous with other taxing district boundaries which were established prior to the first day of March.

Fiscal Note:      Attached.

House Committee ‑ Testified For:    Don White, Washington Public Ports Association.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Such legislation would prevent a repetition of the problems faced by the Centralia and Chehalis port districts which are unable to undertake levies in 1987 as a result of existing provisions.  Interest exists in certain eastern Washington counties in forming port districts during 1987 for industrial development purposes.

House Committee - Testimony Against:      None Presented.