HOUSE BILL REPORT

HB 2477

BYRepresentatives Ferguson, Haugen and Horn

Providing exemptions from taxation for certain classes of public property.

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; Ferguson, Ranking Republican Member; Horn, Kirby, Nealey, Nelson, Nutley, Phillips, Raiter, Rayburn, Wolfe and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS REPORTED BY COMMITTEE ON LOCAL GOVERNMENT JANUARY 30, 1990

BACKGROUND:

All property located in the state is subject to property taxes, except property that is exempted from taxation by state statute.

Among many property tax exemptions, all property belonging to the United States, the state, and counties or municipal corporations, is exempted from taxation.  Additionally, property owned by a public corporation or authority created by a county, city or town is exempted from property taxes.  However, such property is subject to an excise tax equaling what the property taxes would have been if the property were subject to property taxes, unless the property:  (1) was located within a special review district established prior to January 1, 1976; (2) listed on or located within a district listed on any federal or state register of historical sites; or (3) used primarily for low income housing.  Receipts from this excise tax are distributed in the same manner as property tax receipts would be.

SUMMARY:

SUBSTITUTE BILL:  Convention center facilities and related accessory facilities that are owned by a public authority or corporation and created by a county, city, or town, would not be subject to the excise tax imposed on some property owned by such public authorities or corporations.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The substitute bill no longer: (1) deletes the excise tax on property owned by a public authority or corporation; and (2) exempts property from property taxes that is operated or controlled by a public authority or corporation.

Fiscal Note:      Requested January 30, 1990.

House Committee ‑ Testified For:    Chuck Mize, City of Bellevue; and Stan Finkelstein, Association of Washington Cities.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    This is part of a package of bills assisting the Bellevue Convention Center.  The changes are made to reduce the costs of the convention center.

House Committee - Testimony Against:      None.