H-3780.2  _______________________________________________

                          HOUSE BILL 2720

          _______________________________________________

State of Washington      55th Legislature     1998 Regular Session

By Representatives McCune, B. Thomas, Thompson, Sheahan, Sherstad, Dunn and Keiser

Read first time 01/19/98.  Referred to Committee on Finance.

Regulating port district property tax levies.

    AN ACT Relating to port district property tax levies; and amending RCW 53.36.020 and 53.36.100.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 53.36.020 and 1973 1st ex.s. c 195 s 56 are each amended to read as follows:

(1) Except as limited by subsection (2) of this section, a port district may raise revenue by levy of an annual tax not to exceed forty-five cents per thousand dollars of assessed value against the assessed valuation of the taxable property in such port district for general port purposes, including the establishment of a capital improvement fund for future capital improvements, except that any levy for the payment of the principal and interest of the general bonded indebtedness of the port district shall be in excess of any levy made by the port district under the forty-five cents per thousand dollars of assessed value limitation.  ((The levy shall be made and taxes collected in the manner provided for the levy and collection of taxes in school districts of the first class.))

(2)(a) Except as provided under (b) of this subsection, the authority of a port district with a population of one million or more to levy property taxes, or have property taxes levied for it, under subsection (1) of this section shall be reduced and eliminated as follows:

(i) The maximum rate of property taxes levied by or for such a port district in 1998 may not exceed an amount equal to two-thirds of the taxes imposed by or for that port district in 1997;

(ii) The maximum rate of property taxes levied by or for such a port district in 1999 may not exceed an amount equal to one-third of the taxes imposed by or for such a district in 1997; and

(iii) Commencing in 2000 and thereafter such a port district may not impose property taxes, or have property taxes imposed for it, under this section.

(b) To avoid a potential impairment of a contract, property taxes levied under this section by or for a port district with a population of one million or more may continue to be imposed notwithstanding the provisions of (a) of this subsection, but only for the purpose of making interest and principal payments on the general indebtedness incurred before the effective date of this section.

    Sec. 2.  RCW 53.36.100 and 1994 c 278 s 1 are each amended to read as follows:

    (1) The following additional property taxes may be imposed by or for a port district ((having)) with a population of less than one million, if the port district has adopted a comprehensive scheme of harbor improvements and industrial developments ((may thereafter raise revenue,)):

(a) Such a port district may impose property taxes for a six-year((s only, and)) period at an annual rate not to exceed forty-five cents per thousand dollars of assessed value of the taxable property in the port district.

(b) Such a port district may impose property taxes for a second six-year((s if the procedures are followed under subsection (2) of this section, in addition to all other revenues now authorized by law, by an annual levy)) period at an annual rate not to exceed forty-five cents per thousand dollars of assessed value against the assessed valuation of the taxable property in ((such)) the port district.  The levy of such taxes is subject to potential referendum action under subsection (3) of this section.

    ((In addition,)) (c) If voters approve a ballot proposition authorizing additional levies by a simple majority vote, such a port district that is located in a county bordering on the Pacific Ocean ((having adopted a comprehensive scheme of harbor improvements and industrial developments may impose these levies)) may impose property taxes for a third six-year period at an annual rate not to exceed forty-five cents per thousand dollars of the taxable property in the port district.

    ((Said)) (2) Revenues derived from the levies authorized under this section shall be used exclusively for the exercise of the powers granted to port districts under chapter 53.25 RCW, except as provided in RCW 53.36.110.  The levy of such taxes is herein authorized notwithstanding the provisions of RCW 84.52.050 and 84.52.043.  The revenues derived from levies made under RCW 53.36.100 and 53.36.110 not expended in the year in which the levies are made may be paid into a fund for future use in carrying out the powers granted under chapter 53.25 RCW, which fund may be accumulated and carried over from year to year, with the right to continue to levy the taxes provided for in RCW 53.36.100 and 53.36.110 for the purposes herein authorized.

    (((2))) (3) If a port district intends to levy ((a tax)) property taxes under subsection (1)(b) of this section ((for one or more years after the first six years these levies were imposed)), the port commission shall publish notice of this intention, in one or more newspapers of general circulation within the district, by June 1 of the year in which the first levy ((of the seventh through twelfth year)) during this period is to be made.  If within ninety days of the date of publication a petition is filed with the county auditor containing the signatures of eight percent of the number of voters registered and voting in the port district for the office of the governor at the last preceding gubernatorial election, the county auditor shall canvass the signatures in the same manner as prescribed in RCW 29.79.200 and certify their sufficiency to the port commission within two weeks.  The proposition to make these levies ((in the seventh through twelfth year)) during this period shall be submitted to the voters of the port district at a special election, called for this purpose, no later than the date on which a primary election would be held under RCW 29.13.070.  The levies may be made ((in the seventh through twelfth year)) during this period only if approved by a majority of the voters of the port district voting on the proposition.

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