FINAL BILL REPORT

SB 5431

                              C 131 L 90

BYSenators Bauer, Smith, Sutherland, McDonald and Vognild

Exempting property from the leasehold excise tax.

Senate Committee on Ways & Means

House Committe on Revenue

SYNOPSIS AS ENACTED

BACKGROUND:

Public corporations, commissions, or authorities receive the same immunity or exemption from taxes as the cities or towns which form them.  However, such bodies must pay an in lieu excise tax on real and personal property, equal to the regular property taxes which would have been paid if the property had been privately owned.  The exceptions to this are:  (a) property within a special review district established prior to January 1, 1976, or listed on a state or federal register of historical sites, or within a special review district listed on such a register, and (b) property devoted primarily to low-income housing.

The leasehold excise tax does not apply to property meeting condition (a), above, controlled by a public corporation, commission or authority which was also in existence before January 1, 1976.

SUMMARY:

The leasehold excise tax exemption is extended to public corporations, commissions, and authorities established prior to January 1, 1987.

VOTES ON FINAL PASSAGE:

     Senate   46    0

     House 96  0

EFFECTIVE:June 7, 1990