H-2424.2  _______________________________________________

                 HOUSE CONCURRENT RESOLUTION 4409

          _______________________________________________

State of Washington      54th Legislature     1995 Regular Session

By Representatives Carrell, B. Thomas, Mulliken, Brumsickle, Sheldon, Morris, Talcott, Benton, Honeyford, Ballasiotes, Horn, Pelesky, Mitchell, Lambert, Romero, Hatfield, Dickerson, Pennington, Backlund, Crouse, Smith, Boldt, Tokuda, Casada, Hymes, Van Luven, McMahan, Regala, Stevens, Wolfe, Kessler, Thibaudeau, Mielke, Campbell, Costa, Quall, McMorris, Cairnes, Schoesler, Delvin, Buck, Mason, Huff, Chappell, Elliot, Conway, Cody, Dellwo, Johnson, Thompson, Hargrove, Basich, L. Thomas, Kremen, D. Schmidt, Cooke, Koster, Dyer, Hankins, Blanton, Chandler, Skinner and Clements

Read first time 04/23/95.  Referred to Committee on Finance.

Forming a joint select committee on property tax reform.

    WHEREAS, The property tax remains a key component of the state-local tax system, and by far the largest source of local government revenues; and

    WHEREAS, Average levy rates and effective tax rates have risen substantially over the last ten years; and

    WHEREAS, Property assessments may increase rapidly in certain geographic areas, resulting in sharp increases in taxes on many homeowners, without corresponding increases in ability to pay; and

    WHEREAS, Property tax increases may place financial hardships on many low-income and middle-income families; and

    WHEREAS, Current constitutional provisions relating to the property tax may not provide sufficient protections from such financial hardships; and

    WHEREAS, Some property tax relief measures that may be proposed to address this problem would result in unfair tax shifts and other inequities;

    NOW, THEREFORE, BE IT RESOLVED, By the House of Representatives of the state of Washington, the Senate concurring, that there is hereby created a joint select committee on property tax reform composed of twelve members, with six members of the senate, three from each of the major caucuses, to be appointed by the president of the senate; and six members of the house of representatives, three from each of the major caucuses, to be appointed by the speaker of the house of representatives.  The speaker of the house of representatives and the president of the senate shall designate cochairs of the committee.  The expenses of the committee members shall be paid by the legislature under chapter 44.04 RCW.  Staff support for the committee shall be provided by senate committee services and house of representatives office of program research as mutually agreed by the cochairs of the joint select committee.  The committee may also use the research services provided to the legislature by the department of revenue under RCW 82.01.060(4); and

    BE IT FURTHER RESOLVED, That the joint select committee on  property tax reform shall complete a thorough review of this state's property tax system, addressing the following issues:

    (1) What is the nature and intent of the constitutional requirement of uniformity in property taxation?

    (2) Is fair market value the only constitutionally permitted basis for property taxation?

    (3) Does the current property tax administration comply with the uniformity requirement?

    (4) Assuming the greatest practicable compliance with the uniformity requirement, is the current property tax system fair and equitable?

    (5) Is the current property tax system perceived by the taxpayers to be a fair and equitable property tax system?

    (6) What changes, if any, should the legislature make in the property tax system?

    (7) Would these changes require an amendment of the state Constitution?

    (8) What would be the consequences of these changes on individual taxpayers, classes of taxpayers, and state and local government revenues?

    BE IT FURTHER RESOLVED, That the joint select committee on property tax reform shall submit its final report to the legislature by December 31, 1995.

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