AN ACT Relating to
property tax reductions; 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.
