H-5082.1  _______________________________________________

                    SUBSTITUTE HOUSE BILL 2939

          _______________________________________________

State of Washington      55th Legislature     1998 Regular Session

By House Committee on Finance (originally sponsored by Representatives Carrell, B. Thomas, Ballasiotes, Thompson, Boldt, DeBolt, Robertson, Pennington, Van Luven, K. Schmidt, Mielke, Mitchell, Lisk, Smith, McMorris, L. Thomas, Mastin, Sheahan, Skinner, Hankins, Mulliken, Delvin, Sehlin, Zellinsky, Chandler, Hickel, Radcliff, Honeyford, Clements, Carlson, Reams, Cooke, Crouse, McDonald, Talcott, Dyer, Cairnes, Benson, Backlund and Bush)

Read first time 02/09/98.  Referred to Committee on .

Reducing the inflationary adjustment for the state property tax levy to zero over time.

    AN ACT Relating to reducing the inflationary adjustment for the state property tax levy to zero over time; and reenacting and amending RCW 84.55.005.

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

    Sec. 1.  RCW 84.55.005 and 1997 c 393 s 20 and 1997 c 3 s 201 (Referendum Bill No. 47) are each reenacted and amended to read as follows:

    As used in this chapter:

    (1) "Adjusted inflation" means:

(a) Ninety-five percent of inflation for taxes levied for collection in 1999;

(b) Ninety percent of inflation for taxes levied for collection in 2000;

(c) Eighty-five percent of inflation for taxes levied for collection in 2001;

(d) Eighty percent of inflation for taxes levied for collection in 2002;

(e) Seventy-five percent of inflation for taxes levied for collection in 2003;

(f) Seventy percent of inflation for taxes levied for collection in 2004;

(g) Sixty-five percent of inflation for taxes levied for collection in 2005;

(h) Sixty percent of inflation for taxes levied for collection in 2006;

(i) Fifty-five percent of inflation for taxes levied for collection in 2007;

(j) Fifty percent of inflation for taxes levied for collection in 2008;

(k) Forty-five percent of inflation for taxes levied for collection in 2009;

(l) Forty percent of inflation for taxes levied for collection in 2010;

(m) Thirty-five percent of inflation for taxes levied for collection in 2011;

(n) Thirty percent of inflation for taxes levied for collection in 2012;

(o) Twenty-five percent of inflation for taxes levied for collection in 2013;

(p) Twenty percent of inflation for taxes levied for collection in 2014;

(q) Fifteen percent of inflation for taxes levied for collection in 2015;

(r) Ten percent of inflation for taxes levied for collection in 2016;

(s) Five percent of inflation for taxes levied for collection in 2017; and

(t) Zero for taxes levied for collection in 2018 and thereafter;

(2) "Inflation" means the percentage change in the implicit price deflator for personal consumption expenditures for the United States as published for the most recent twelve-month period by the bureau of economic analysis of the federal department of commerce in September of the year before the taxes are payable;

    (((2))) (3) "Limit factor" means:

    (a) For the state one hundred percent plus adjusted inflation;

(b) For taxing districts with a population of less than ten thousand in the calendar year prior to the assessment year, one hundred six percent;

    (((b))) (c) For taxing districts for which a limit factor is authorized under RCW 84.55.0101, the lesser of the limit factor authorized under that section or one hundred six percent;

    (((c))) (d) For all other districts, the lesser of one hundred six percent or one hundred percent plus inflation; and

    (((3))) (4) "Regular property taxes" has the meaning given it in RCW 84.04.140.

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