AN ACT
Relating to reducing property taxes; amending RCW 84.48.080 and 84.52.010;
adding a new section to chapter 84.55 RCW; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. With
property valuations continuing to increase, property taxes have been steadily
increasing. At the same time, personal incomes have not continued to rise at
the same rate. Property taxes are becoming increasingly more difficult to
pay. Many residential property owners complain about the overall level of
taxes and about the continuing increase in tax from year to year. Taxpayers
want property tax relief. The legislature intends to establish an on-going
program of state property tax reductions the amount of which is to be
determined by the legislature on a yearly basis based on the level of general
fund tax revenues.
NEW
SECTION. Sec. 2. A new
section is added to chapter 84.55 RCW to read as follows:
(1)
The state property tax levy for collection in 1996 shall be reduced by 4.7187
percent of the levy amount that would otherwise be allowed under this chapter
without regard to this section or any other tax reduction legislation enacted
in 1995.
(2)
The tax reduction provided in this section is in addition to any other tax
reduction legislation that may be enacted by the legislature.
(3)
State levies for collection after 1996 shall be set at the amount that would be
allowed otherwise under this chapter if the state levy for collection in 1996
had been set without the reduction under subsection (1) of this section.
Sec.
3. RCW
84.48.080 and 1994 c 301 s 43 are each amended to read as follows:
(1)
Annually during the months of September and October, the department of revenue
shall examine and compare the returns of the assessment of the property in the
several counties of the state, and the assessment of the property of railroad
and other companies assessed by the department, and proceed to equalize the
same, so that each county in the state shall pay its due and just proportion of
the taxes for state purposes for such assessment year, according to the ratio
the valuation of the property in each county bears to the total valuation of
all property in the state.
First.
The department shall classify all property, real and personal, and shall raise
and lower the valuation of any class of property in any county to a value that
shall be equal, so far as possible, to the true and fair value of such class as
of January 1st of the current year for the purpose of ascertaining the just
amount of tax due from each county for state purposes. In equalizing personal
property as of January 1st of the current year, the department shall use the
assessment level of the preceding year. Such classification may be on the
basis of types of property, geographical areas, or both. For purposes of this
section, for each county that has not provided the department with an assessment
return by December 1st, the department shall proceed, using facts and
information and in a manner it deems appropriate, to estimate the value of each
class of property in the county.
Second.
The department shall keep a full record of its proceedings and the same shall
be published annually by the department.
(2)
The department shall levy the state taxes authorized by law((: PROVIDED,
That)). The amount levied in any one year for general state
purposes shall not exceed the lawful dollar rate on the dollar of the assessed
value of the property of the entire state, which assessed value shall be one
hundred percent of the true and fair value of such property in money. The
department shall apportion the amount of tax for state purposes levied by the
department, among the several counties, in proportion to the valuation of the
taxable property of the county for the year as equalized by the department:
PROVIDED, That for purposes of this apportionment, the department shall
recompute the previous year's levy and the apportionment thereof to correct for
changes and errors in taxable values reported to the department after October 1
of the preceding year and shall adjust the apportioned amount of the current
year's state levy for each county by the difference between the apportioned
amounts established by the original and revised levy computations for the
previous year. For purposes of this section, changes in taxable values mean a
final adjustment made by a county board of equalization, the state board of tax
appeals, or a court of competent jurisdiction and shall include additions of
omitted property, other additions or deletions from the assessment or tax
rolls, any assessment return provided by a county to the department subsequent
to December 1st, or a change in the indicated ratio of a county. Errors in
taxable values mean errors corrected by a final reviewing body.
In
addition to computing a levy under this subsection that is reduced under
section 2 of this act, the department shall compute a hypothetical levy without
regard to the reduction under section 2 of this act. This hypothetical levy
shall also be apportioned among the several counties in proportion to the
valuation of the taxable property of the county for the year, as equalized by
the department, in the same manner as the actual levy and shall be used by the
county assessors for the purpose of recomputing and establishing a consolidated
levy under RCW 84.52.010.
(3)
The department shall have authority to adopt rules and regulations to enforce
obedience to its orders in all matters in relation to the returns of county
assessments, the equalization of values, and the apportionment of the state
levy by the department.
(4)
After the completion of the duties ((hereinabove)) prescribed in this
section, the director of the department shall certify the record of the
proceedings of the department under this section, the tax levies made for state
purposes and the apportionment thereof among the counties, and the
certification shall be available for public inspection.
Sec.
4. RCW
84.52.010 and 1995 c 99 s 2 are each amended to read as follows:
Except
as is permitted under RCW 84.55.050, all taxes shall be levied or voted in
specific amounts.
The
rate percent of all taxes for state and county purposes, and purposes of taxing
districts coextensive with the county, shall be determined, calculated and
fixed by the county assessors of the respective counties, within the
limitations provided by law, upon the assessed valuation of the property of the
county, as shown by the completed tax rolls of the county, and the rate percent
of all taxes levied for purposes of taxing districts within any county shall be
determined, calculated and fixed by the county assessors of the respective
counties, within the limitations provided by law, upon the assessed valuation
of the property of the taxing districts respectively.
When a
county assessor finds that the aggregate rate of tax levy on any property, that
is subject to the limitations set forth in RCW 84.52.043 or 84.52.050, ((as
now or hereafter amended,)) exceeds the limitations provided in either of
these sections, the assessor shall recompute and establish a consolidated levy
in the following manner:
(1) The
full certified rates of tax levy for state, county, county road district, and
city or town purposes shall be extended on the tax rolls in amounts not
exceeding the limitations established by law; however any state levy shall take
precedence over all other levies and shall not be reduced for any purpose other
than that required by RCW 84.55.010. If, as a result of the levies imposed
under RCW 84.52.069, 84.34.230, the portion of the levy by a metropolitan park
district that was protected under RCW 84.52.--- (section 1, chapter 99, Laws of
1995), and 84.52.105, the combined rate of regular property tax levies that are
subject to the one percent limitation exceeds one percent of the true and fair
value of any property, then these levies shall be reduced as follows: (a) The
portion of the levy by a metropolitan park district that is protected under RCW
84.52.--- (section 1, chapter 99, Laws of 1995) shall be reduced until the
combined rate no longer exceeds one percent of the true and fair value of any
property or shall be eliminated; (b) if the combined rate of regular property
tax levies that are subject to the one percent limitation still exceeds one
percent of the true and fair value of any property, then the levies imposed
under RCW 84.34.230, 84.52.105, and any portion of the levy imposed under RCW
84.52.069 that is in excess of thirty cents per thousand dollars of assessed
value, shall be reduced on a pro rata basis until the combined rate no longer
exceeds one percent of the true and fair value of any property or shall be
eliminated; and (c) if the combined rate of regular property tax levies that
are subject to the one percent limitation still exceeds one percent of the true
and fair value of any property, then the thirty cents per thousand dollars of assessed
value of tax levy imposed under RCW 84.52.069 shall be reduced until the
combined rate no longer exceeds one percent of the true and fair value of any
property or eliminated.
(2)
The certified rates of tax levy subject to these limitations by all junior
taxing districts imposing taxes on such property shall be reduced or eliminated
as follows to bring the consolidated levy of taxes on such property within the
provisions of these limitations:
(a)
First, the certified property tax levy rates of those junior taxing districts
authorized under RCW 36.68.525, 36.69.145, and 67.38.130 shall be reduced on a
pro rata basis or eliminated;
(b)
Second, if the consolidated tax levy rate still exceeds these limitations, the
certified property tax levy rates of flood control zone districts shall be
reduced on a pro rata basis or eliminated;
(c)
Third, if the consolidated tax levy rate still exceeds these limitations, the
certified property tax levy rates of all other junior taxing districts, other
than fire protection districts, library districts, the first fifty cent per
thousand dollars of assessed valuation levies for metropolitan park districts,
and the first fifty cent per thousand dollars of assessed valuation levies for
public hospital districts, shall be reduced on a pro rata basis or eliminated;
(d)
Fourth, if the consolidated tax levy rate still exceeds these limitations, the
certified property tax levy rates authorized to fire protection districts under
RCW 52.16.140 and 52.16.160 shall be reduced on a pro rata basis or eliminated;
and
(e)
Fifth, if the consolidated tax levy rate still exceeds these limitations, the
certified property tax levy rates authorized for fire protection districts
under RCW 52.16.130, library districts, metropolitan park districts under their
first fifty cent per thousand dollars of assessed valuation levy, and public
hospital districts under their first fifty cent per thousand dollars of
assessed valuation levy, shall be reduced on a pro rata basis or eliminated.
In
determining whether the aggregate rate of tax levy on any property, that is
subject to the limitations set forth in RCW 84.52.050, exceeds the limitations
provided in that section, the assessor shall use the hypothetical state levy,
as apportioned to the county under RCW 84.48.080, that was computed under RCW
84.48.080 without regard to the reduction under section 2 of this act.
