HOUSE BILL REPORT

                 HJR 4206

             As Reported By House Committee On:

                      Local Government

Brief Description:  Amending the Constitution to allow additional levies for fire protection districts.

Sponsors:  Representatives Springer, H. Myers, Flemming, Edmondson, Orr, Morris, Sheldon, Grant, Chappell, Dorn, R. Meyers, Quall, Peery, Pruitt, Van Luven, Dunshee, Romero, Reams, Brough, Basich, Rayburn, Wineberry and J. Kohl.

Brief History:

  Reported by House Committee on:

Local Government, March 2, 1993, DP.

HOUSE COMMITTEE ON LOCAL GOVERNMENT

Majority Report:  Do pass.  Signed by 11 members:  Representatives H. Myers, Chair; Bray, Vice Chair; Edmondson, Ranking Minority Member; Reams, Assistant Ranking Minority Member; Dunshee; R. Fisher; Rayburn; Romero; Springer; Van Luven; and Zellinsky.

Minority Report:  Do not pass.  Signed by 1 member:  Representative Horn.

Staff:  Steve Lundin (786-7127).

Background:

1.Regular and excess levies.

Article VII, Section 2, of the state constitution, limits the cumulative rate of regular property taxes that may be imposed on any property in any year to an amount not exceeding 1 percent of the true and fair value of the property.

Excess property tax levies are property tax levies that are imposed above, or in excess of, the constitutional 1 percent limitation on cumulative regular property tax levies.  Except for non-voter approved tax levies by port districts and public utility districts, all excess levies must be approved by voters.  A ballot proposition authorizing excess levies must be approved by a 60 percent affirmative vote, with a 40 percent validation requirement.  Most taxing districts are authorized to impose both:  (1) Single year excess property tax levies that may be used for any operating or capital purpose of the taxing district; and (2) multiple year excess levies used to retire general indebtedness issued for capital purposes.

2.Fire protection district taxing authority.

Fire protection districts have been authorized to impose three separate regular property tax levies.  Every fire protection district may impose two separate levies of 50 cents per $1,000 of assessed valuation.  A fire protection district with one or more employees may impose a third levy of 50 cents per $1,000 of assessed valuation.

Fire protection districts may impose both single year excess property tax levies for any authorized district purpose and multiple year excess levies to retire general indebtedness issued for capital purposes.

Summary of Bill:  The constitution is amended to permit fire protection districts to impose excess levies without voter approval at a rate of up to $1.00 per $1,000 of assessed valuation.

The validation requirement for voter approved excess levies is corrected to require that the number of voters who vote on a ballot proposition authorizing voter approved excess levies must be equal in number to at least 40 percent of the number of voters voting, instead of the number of votes cast, in the taxing district at the last preceding general election.

Fiscal Note:  Not requested.

Effective Date:  The resolution becomes effectively immediately upon certification of the election results of the November 1993 general election, if the voters approve the amendment.

Testimony For:  This will help fire districts.

Testimony Against:  None.

Witnesses:  Representative Springer, prime sponsor.