S-953                 _______________________________________________

                                                   SENATE BILL NO. 5675

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

By Senator Nelson

Read first time 2/6/87 and referred to Committee on Ways & Means.

AN ACT Relating to revenue and taxation; amending RCW 84.55.010 and 84.55.020; and repealing RCW 84.55.015.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

        Sec. 1.  Section 20, chapter 288, Laws of 1971 ex. sess. as last amended by section 2, chapter 218, Laws of 1979 ex. sess. and RCW 84.55.010 are each amended to read as follows:

(1)  Except as provided in this chapter, the levy for a taxing district in any year shall be set so that the regular property taxes payable in the following year shall not exceed one hundred six percent of the amount of regular property taxes which could have been lawfully levied for such district in the ((highest of the three)) most recent ((years in which such taxes were levied for such district)) year, plus an additional dollar amount calculated by multiplying the increase in assessed value in that district resulting from new construction, improvements to property, and any increase in the assessed value of state-assessed property by the regular property tax levy rate of that district for the preceding year.

(2) The amount of regular property taxes which could have been lawfully levied for the district in the most recent year under subsection (1) of this section shall be determined as if the district had levied at the maximum rate permissible under this section in 1973 and years subsequent to 1973, including the additional amounts which could have been levied on new construction and improvements.

        Sec. 2.  Section 21, chapter 288, Laws of 1971 ex. sess. and RCW 84.55.020 are each amended to read as follows:

          Notwithstanding the limitation set forth in RCW 84.55.010, the first levy for a taxing district created from consolidation of similar taxing districts shall be set so that the regular property taxes payable in the following year shall not exceed one hundred six percent of the sum of the amount of regular property taxes which could have been lawfully levied for each component taxing district in the ((highest of the three)) most recent ((years in which such taxes were levied for such district)) year under RCW 84.55.010, plus the additional dollar amount calculated by multiplying the increase in assessed value in each component district resulting from new construction and improvements to property by the regular property tax rate of each component district for the preceding year.

NEW SECTION. Sec. 3.     Section 4, chapter 218, Laws of 1979 ex. sess. and RCW 84.55.015 are each repealed.