5286-S AMS MCAU S2398.1

SSB 5286 - S AMD - 133

By  Senators McAuliffe, Loveland, Snyder, Spanel, Prentice, Franklin, Sheldon, Fraser, Swanson and Wojahn

                                               NOT ADOPTED 3/13/97

    Strike everything after the enacting clause and insert the following:

    "NEW SECTION. Sec. 1.  (1) The legislature intends to maintain the status quo with respect to the listing and assessment of intangible personal property while the department of revenue studies the issue.

    (2) For property taxes due in 1997 and 1998, the state and the county assessors shall list and assess intangible personal property in the same manner and to the same extent as intangible personal property was listed and assessed for taxes due in 1996.

NEW SECTION. Sec. 2.  (1) The department of revenue shall conduct a study of the current state and local taxation of intangible personal property.  The study shall address but is not limited to the following:

    (a) What is intangible property and how is it defined?

    (b) What intangible property is subject to tax in this state, and to what extent is intangible property that is subject to tax actually taxed?

    (c) How is intangible property treated in each county of the state?

    (d) To what extent are intangibles captured in standard valuation methodologies by the state and by county assessors?

    (e) How do intangibles affect the county indicated ratio calculations?

    (f) How is intangible property treated with regard to property valued by the department of revenue?

    (g) What is taxpayer compliance on reporting intangible property for property tax purposes?

    (h) What legal and other issues arise with either taxing intangibles or exempting intangibles?

    (i) What would be the effect of exempting all intangible property from property taxation on state and local government valuation practices and revenues?

    (j) How do other states tax intangibles?

    (2) To perform this study, the department shall form an advisory study committee with balanced representation from different segments of government and the business community.  The advisory committee shall include, but need not be limited to, two members from the house of representatives, two members from the senate, representatives of both small and large businesses, representatives of cities, counties, and other taxing districts, a representative of the county assessors, a representative of the appraisal industry, a representative of the department of revenue, and tax policy experts from the academic, legal, and business communities.

    (3) The department of revenue shall provide staff for the purpose of the study.

    (4) The department of revenue shall present a final report of the findings of the study to the committees of the legislature that deal with revenue matters no later than December 31, 1996.

NEW SECTION. Sec. 3.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately."

EFFECT:  Requires a study of the taxation of intangibles.

SSB 5286 - S AMD - 133

By Senators McAuliffe, Loveland, Snyder, Spanel, Prentice, Franklin, Sheldon, Fraser, Swanson and Wojahn

                                               NOT ADOPTED 3/13/97

    On page 1, line 1 of the title, after "property;" strike the remainder of the title and insert "creating new sections; and declaring an emergency."

EFFECT:  Title amendment.

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