SENATE BILL REPORT

                            SB 5835

               AS PASSED SENATE, MARCH 12, 1993

Brief Description:  Exempting certain public authority property from taxation.

SPONSORS: Senators McAuliffe, Bluechel and McDonald

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  Do pass. 

     Signed by Senators Rinehart, Chairman; Spanel, Vice Chairman; Bauer, Bluechel, Cantu, Gaspard, Hargrove, Hochstatter, Jesernig, McDonald, Moyer, Niemi, Quigley, Roach, L. Smith, Snyder, Talmadge, West, Williams, and Wojahn.

Staff:  Terry Wilson (786‑7715)

Hearing Dates: March 5, 1993; March 8, 1993

BACKGROUND:

Public corporations, commissions, or authorities receive the same immunity or exemption from taxation as the cities or towns which form them.  However, these entities must pay an in lieu excise tax on their real and personal property equal to the regular property taxes that would have been paid if the property were privately owned.  Exempt from the tax is: (a) property within a special review district established by ordinance before January 1, 1976, or property listed on a state or federal register of historic sites, or property which is within a special review district listed on such a register, and (b) property owned or operated by a public corporation that is used primarily for low-income housing.  Proceeds from the excise tax are distributed to the taxing districts in which the property is situated in the same manner as property taxes.

SUMMARY:

Property owned, operated, or controlled by a public corporation that is used as a convention center, performing arts center, public assembly hall, or public meeting place is exempted from the in lieu excise tax.

Appropriation:  none

Revenue:  none

Fiscal Note:  available

TESTIMONY FOR:

The Bellevue Convention Center is the only convention center subject to tax.  The center will bring visitors to the area, generate hotel/motel and sales tax revenues, and increase employment.  This bill is key to the viability of the center.

TESTIMONY AGAINST:  None

TESTIFIED:  Judhi Jopping, Bellevue Convention Center Authority (pro); Van-Rex Gallard, Bellevue Convention Center Authority (pro); Becky Bogard, Washington Hotel/Motel Association (pro)