SENATE BILL REPORT

                   SB 5443

              As Reported By Senate Committee On:

           Government Operations, February 21, 1995

Title:  An act relating to public hearings for collection of authorized taxes.

Brief Description:  Requiring taxing districts to hold hearings about using the authorized amount of property tax.

Sponsors:  Senators Drew, Fairley, Quigley, McAuliffe, Hargrove, Haugen, Owen, Rasmussen, Loveland, Smith, Gaspard and Franklin.

Brief History:

Committee Activity:  Government Operations:  2/9/95, 2/21/95 [DPS].

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  That Substitute Senate Bill No. 5443 be substituted therefor, and the substitute bill do pass.

  Signed by Senators Haugen, Chair; Sheldon, Vice Chair; Drew, Hale, Heavey, McCaslin and Winsley.

Staff:  Eugene Green (786-7405)

Background:  A number of taxing districts collect regular property tax levies.  They include, but are not limited to:  counties; cities; towns; a metropolitan park district; fire protection districts; library districts; hospital districts; flood control zone districts; cemetery districts; park and recreation districts; and emergency medical service districts.

The levy for a taxing district in any year must be set so that the regular property taxes payable in the following year do not exceed 106 percent of the levies for the district in the highest of the three most recent years in which the taxes were levied (plus an increase in value resulting from new construction and improvements to property).

Summary of Substitute Bill:  A taxing district, other than the state, that collects regular levies must hold a public hearing, not earlier than July 1 and not later than September 30 on revenue sources for the taxing districts following year's operating budget.  The hearing must include consideration of possible increases in property tax revenues.

Substitute Bill Compared to Original Bill:  The revenue meeting can occur as late as September 30 rather than August 31.

It is clarified that the meeting is concerned with revenue for the operating budget.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  People deserve a public hearing to learn about tax revenue increases.

Testimony Against:  None.

Testified:  Stan Finkelstein, AWC (pro).