S-0549.1/91 _______________________________________________
SENATE BILL 5195
_______________________________________________
State of Washington 52nd Legislature 1991 Regular Session
By Senators McDonald, Hayner, Bluechel, Cantu, Roach, von Reichbauer, Oke, Thorsness, Metcalf, Johnson, Erwin, West, Nelson and Conner.
Read first time January 23, 1991. Referred to Committee on Ways & Means.
AN ACT Relating to the use of 1989 property valuations and assessments for 1991 property taxes; adding a new section to chapter 84.40 RCW; adding a new section to chapter 84.55 RCW; adding a new section to chapter 39.36 RCW; creating a new section; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The legislature finds that the markets for real estate in some areas of the state have recently experienced substantial volatility. This volatility was fueled by speculative buying that coincided with a temporary shortage of available property. This temporary imbalance resulted in dramatic and sudden increases in property values that have been followed by significant declines. These fluctuations have had several pernicious effects on the taxation of property in this state.
First, the drastic and unanticipated property tax increases that result from volatile real estate values produce hardships for many taxpayers. Secondly, rapid fluctuations in the real estate market have an arbitrary and disparate effect on the valuation of properties during the revaluation cycle, producing unequal valuations and substantial disparities among properties.
It is the intent of the legislature to revise property revaluation methods to produce a system of taxation that is more equitable, uniform, and stable. To accomplish that goal, it is necessary to adopt section 2 of this act on a temporary and emergency basis to prevent imminent hardship and to allow the thoughtful consideration of property tax reform proposals during the 1991 regular session of the legislature.
NEW SECTION. Sec. 2. A new section is added to chapter 84.40 RCW to read as follows:
(1) The county assessor shall use the 1989 assessment of real property for taxes levied for collection in 1991 if directed by a resolution of the county legislative authority pursuant to a determination by the authority that 1990 assessments reflect substantial volatility in the real estate market in the county.
(2) If the method of valuation prescribed in subsection (1) of this section is adopted:
(a) The value of real property destroyed after January 1, 1989, shall be reduced as provided in chapter 84.70 RCW;
(b) New construction, improvements to property, and subdivisions of land, that occur after January 1, 1989, shall be valued and assessed as otherwise provided in this chapter but with reference to the value the property would have had if it had existed on January 1, 1989; and
(c) Real property in the county that is assessed by the department of revenue shall be valued and assessed as provided in this section.
(3) This section shall expire January 1, 1992.
NEW SECTION. Sec. 3. A new section is added to chapter 84.55 RCW to read as follows:
Section 2 of this act does not apply to the determination of limitations under this chapter.
This section shall expire January 1, 1992.
NEW SECTION. Sec. 4. A new section is added to chapter 39.36 RCW to read as follows:
Section 2 of this act does not apply to the determination of the value of taxable property under this chapter.
This section shall expire January 1, 1992.
NEW SECTION. Sec. 5. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.
NEW SECTION. Sec. 6. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately.