SENATE BILL REPORT

SB 5431

BYSenators Bauer, Smith, Sutherland, McDonald and Vognild

Exempting property from the leasehold excise tax.

Senate Committee on Ways & Means

Senate Hearing Date(s):March 3, 1989; March 6, 1989

Majority Report:  Do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bauer, Bluechel, Gaspard, Hayner, Johnson, Lee, Matson, Moore, Niemi, Owen, Saling, Smith, Talmadge, Warnke, Williams, Wojahn.

Senate Staff:Terry Wilson (786-7715)

                  February 2, 1990

AS PASSED SENATE, FEBRUARY 2, 1990

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 devoted to their purposes equal to the regular property taxes which would have been paid if the property had been privately owned.  The exceptions to this rule 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 described above is extended to public corporations, commissions and authorities established prior to January 1, 1987.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: Stephen Burdick, NADA (pro)