S-0979.3 _______________________________________________
SENATE BILL 5857
_______________________________________________
State of Washington 55th Legislature 1997 Regular Session
By Senator Roach
Read first time 02/17/97. Referred to Committee on Ways & Means.
AN ACT Relating to property taxes; amending RCW 84.41.050, 84.55.010, 84.55.020, 35.61.210, 70.44.060, and 84.08.115; adding new sections to chapter 84.40 RCW; adding new sections to chapter 84.41 RCW; adding a new section to chapter 84.44 RCW; adding a new section to chapter 84.48 RCW; adding a new section to chapter 84.52 RCW; adding a new section to chapter 84.55 RCW; creating a new section; repealing RCW 84.41.030, 84.41.041, 84.41.070, and 84.41.130; and providing for submission of this act to a vote of the people.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. This act may be referred to as the Property Tax Relief Act.
NEW SECTION. Sec. 2. The legislature of the state of Washington finds and declares:
(1) Real property taxes should be stabilized, uniform, and predictable.
(2) The 1996 assessed value of real property shall constitute the standard for determining true and fair value for taxation purposes.
(3) This act's limitation of assessed valuation to the 1996 base year and limiting increases to a two percent inflation rate is a fair method, as determined by the consumer price index, of determining assessed valuation. This method applies to every parcel of real property in this state and operates in an orderly, simple, systematic, nondiscriminatory, and uniform manner.
(4) This act's limitation on assessed valuation is consistent with the existing one percent limitation on true and fair value in the state Constitution. This act guarantees that the constitutional limit on property taxes will not be breached.
NEW SECTION. Sec. 3. For the purposes of chapters 84.40, 84.41, 84.44, 84.48, 84.52, and 84.55 RCW, "true and fair value" and "value" mean:
(1) The fair market value of all property in 1996, as assessed;
(2) The 1996 value of any new construction or new improvements to real property; and
(3) An inflationary rate not to exceed two percent for any given year or a reduction to reflect decline in value.
NEW SECTION. Sec. 4. Assessors shall revalue all real property to 1996 values before taxes for collection in 1999 are levied.
NEW SECTION. Sec. 5. For the purposes of section 3 of this act, new construction or new improvements shall not include any construction, installation, or modification required by any unit of government for any purpose, including but not limited to health and safety.
NEW SECTION. Sec. 6. The method of determining true and fair value for real property in RCW 84.40.030 and for timberland in RCW 84.40.033 shall be used for determination of the 1996 true and fair value. Thereafter, true and fair value shall be determined under section 3 of this act.
NEW SECTION. Sec. 7. A new section is added to chapter 84.41 RCW to read as follows:
The requirements in this chapter for an active program of revaluation shall terminate once all property is revalued at 1996 values. Thereafter, county assessors shall maintain an active and systematic program of revaluing only new construction or new improvements to real property to determine 1996 values of such new construction and new improvements.
NEW SECTION. Sec. 8. A new section is added to chapter 84.41 RCW to read as follows:
The definitions in section 3 of this act apply to this chapter.
NEW SECTION. Sec. 9. A new section is added to chapter 84.44 RCW to read as follows:
The definitions in section 3 of this act apply to this chapter.
NEW SECTION. Sec. 10. A new section is added to chapter 84.48 RCW to read as follows:
The definitions in section 3 of this act apply to this chapter.
NEW SECTION. Sec. 11. A new section is added to chapter 84.52 RCW to read as follows:
The definitions in section 3 of this act apply to this chapter.
NEW SECTION. Sec. 12. A new section is added to chapter 84.55 RCW to read as follows:
The definitions in section 3 of this act apply to this chapter.
Sec. 13. RCW 84.41.050 and 1961 c 15 s 84.41.050 are each amended to read as follows:
((Each
county assessor in budgets hereafter submitted, shall make adequate provision
to effect county-wide revaluations as herein directed.)) The several
boards of county commissioners in passing upon budgets submitted by the several
assessors, shall authorize and levy amounts which in the judgment of the boards
will suffice to carry out the directions of this chapter.
Sec. 14. RCW 84.55.010 and 1979 ex.s. c 218 s 2 are each amended to read as follows:
Except
as provided in this chapter, the levy for a taxing district in any year shall
((be set so that the regular property taxes payable in the following year
shall)) not exceed one hundred six percent of the amount of regular
property taxes lawfully levied for such district in the highest of the three
most recent years in which such taxes were levied for such district plus an
additional dollar amount calculated by multiplying the increase in assessed
value in that district resulting from new construction, improvements to
property, and any increase in the assessed value of state-assessed property by
the regular property tax levy rate of that district for the preceding year. The
limit under this section on regular property taxes payable is reduced in 1998
to one hundred five percent, reduced in 1999 to one hundred four percent, and
reduced in 2000 to one hundred two percent, and that one hundred two percent
limit shall remain the limit thereafter.
Sec. 15. RCW 84.55.020 and 1971 ex.s. c 288 s 21 are each amended to read as follows:
Notwithstanding
the limitation set forth in RCW 84.55.010, the first levy for a taxing district
created from consolidation of similar taxing districts shall ((be set so
that the regular property taxes payable in the following year shall)) not
exceed one hundred six percent of the sum of the amount of regular property
taxes lawfully levied for each component taxing district in the highest of the
three most recent years in which such taxes were levied for such district plus
the additional dollar amount calculated by multiplying the increase in assessed
value in each component district resulting from new construction and
improvements to property by the regular property tax rate of each component
district for the preceding year. The limit under this section on regular
property taxes payable is reduced in 1998 to one hundred five percent, reduced
in 1999 to one hundred four percent, and reduced in 2000 to one hundred two
percent, and that one hundred two percent limit shall remain the limit
thereafter.
Sec. 16. RCW 35.61.210 and 1990 c 234 s 3 are each amended to read as follows:
The
board of park commissioners may levy or cause to be levied a general tax on all
the property located in said park district each year not to exceed fifty cents
per thousand dollars of assessed value of the property in such park district.
In addition, the board of park commissioners may levy or cause to be levied a
general tax on all property located in said park district each year not to
exceed twenty-five cents per thousand dollars of assessed valuation. Although
park districts are authorized to impose two separate regular property tax
levies, the levies shall be considered to be a single levy for purposes of the
((one hundred six percent)) limitation provided for in chapter 84.55
RCW.
The board is hereby authorized to levy a general tax in excess of its regular property tax levy or levies when authorized so to do at a special election conducted in accordance with and subject to all the requirements of the Constitution and laws of the state now in force or hereafter enacted governing the limitation of tax levies. The board is hereby authorized to call a special election for the purpose of submitting to the qualified voters of the park district a proposition to levy a tax in excess of the seventy-five cents per thousand dollars of assessed value herein specifically authorized. The manner of submitting any such proposition, of certifying the same, and of giving or publishing notice thereof, shall be as provided by law for the submission of propositions by cities or towns.
The board shall include in its general tax levy for each year a sufficient sum to pay the interest on all outstanding bonds and may include a sufficient amount to create a sinking fund for the redemption of all outstanding bonds. The levy shall be certified to the proper county officials for collection the same as other general taxes and when collected, the general tax shall be placed in a separate fund in the office of the county treasurer to be known as the "metropolitan park district fund" and paid out on warrants.
Sec. 17. RCW 70.44.060 and 1990 c 234 s 2 are each amended to read as follows:
All public hospital districts organized under the provisions of this chapter shall have power:
(1) To make a survey of existing hospital and other health care facilities within and without such district.
(2) To construct, condemn and purchase, purchase, acquire, lease, add to, maintain, operate, develop and regulate, sell and convey all lands, property, property rights, equipment, hospital and other health care facilities and systems for the maintenance of hospitals, buildings, structures, and any and all other facilities, and to exercise the right of eminent domain to effectuate the foregoing purposes or for the acquisition and damaging of the same or property of any kind appurtenant thereto, and such right of eminent domain shall be exercised and instituted pursuant to a resolution of the commission and conducted in the same manner and by the same procedure as in or may be provided by law for the exercise of the power of eminent domain by incorporated cities and towns of the state of Washington in the acquisition of property rights: PROVIDED, That no public hospital district shall have the right of eminent domain and the power of condemnation against any health care facility.
(3) To lease existing hospital and other health care facilities and equipment and/or other property used in connection therewith, including ambulances, and to pay such rental therefor as the commissioners shall deem proper; to provide hospital and other health care services for residents of said district by facilities located outside the boundaries of said district, by contract or in any other manner said commissioners may deem expedient or necessary under the existing conditions; and said hospital district shall have the power to contract with other communities, corporations, or individuals for the services provided by said hospital district; and they may further receive in said hospitals and other health care facilities and furnish proper and adequate services to all persons not residents of said district at such reasonable and fair compensation as may be considered proper: PROVIDED, That it must at all times make adequate provision for the needs of the district and residents of said district shall have prior rights to the available hospital and other health care facilities of said district, at rates set by the district commissioners.
(4) For the purpose aforesaid, it shall be lawful for any district so organized to take, condemn and purchase, lease, or acquire, any and all property, and property rights, including state and county lands, for any of the purposes aforesaid, and any and all other facilities necessary or convenient, and in connection with the construction, maintenance, and operation of any such hospitals and other health care facilities, subject, however, to the applicable limitations provided in subsection (2) of this section.
(5) To contract indebtedness or borrow money for corporate purposes on the credit of the corporation or the revenues of the hospitals thereof, and the revenues of any other facilities or services that the district is or hereafter may be authorized by law to provide, and to issue and sell: (a) Revenue bonds, revenue warrants, or other revenue obligations therefor payable solely out of a special fund or funds into which the district may pledge such amount of the revenues of the hospitals thereof, and the revenues of any other facilities or services that the district is or hereafter may be authorized by law to provide, to pay the same as the commissioners of the district may determine, such revenue bonds, warrants, or other obligations to be issued and sold in the same manner and subject to the same provisions as provided for the issuance of revenue bonds, warrants, or other obligations by cities or towns under the Municipal Revenue Bond Act, chapter 35.41 RCW, as may hereafter be amended; (b) general obligation bonds therefor in the manner and form as provided in RCW 70.44.110 and 70.44.130, as may hereafter be amended; or (c) interest-bearing warrants to be drawn on a fund pending deposit in such fund of money sufficient to redeem such warrants and to be issued and paid in such manner and upon such terms and conditions as the board of commissioners may deem to be in the best interest of the district; and to assign or sell hospital accounts receivable, and accounts receivable for the use of other facilities or services that the district is or hereafter may be authorized by law to provide, for collection with or without recourse. General obligation bonds shall be issued and sold in accordance with chapter 39.46 RCW. Revenue bonds, revenue warrants, or other revenue obligations may be issued and sold in accordance with chapter 39.46 RCW.
(6)
To raise revenue by the levy of an annual tax on all taxable property within
such public hospital district not to exceed fifty cents per thousand dollars of
assessed value, and an additional annual tax on all taxable property within
such public hospital district not to exceed twenty-five cents per thousand
dollars of assessed value, or such further amount as has been or shall be
authorized by a vote of the people. Although public hospital districts are
authorized to impose two separate regular property tax levies, the levies shall
be considered to be a single levy for purposes of the ((one hundred six
percent)) limitation provided for in chapter 84.55 RCW. Public hospital
districts are authorized to levy such a general tax in excess of their regular
property taxes when authorized so to do at a special election conducted in
accordance with and subject to all of the requirements of the Constitution and
the laws of the state of Washington now in force or hereafter enacted governing
the limitation of tax levies. The said board of district commissioners is
authorized and empowered to call a special election for the purpose of submitting
to the qualified voters of the hospital district a proposition or propositions
to levy taxes in excess of its regular property taxes. The superintendent
shall prepare a proposed budget of the contemplated financial transactions for
the ensuing year and file the same in the records of the commission on or
before the first Monday in September. Notice of the filing of said proposed
budget and the date and place of hearing on the same shall be published for at
least two consecutive weeks in a newspaper printed and of general circulation
in said county. On the first Monday in October the commission shall hold a
public hearing on said proposed budget at which any taxpayer may appear and be
heard against the whole or any part of the proposed budget. Upon the
conclusion of said hearing, the commission shall, by resolution, adopt the
budget as finally determined and fix the final amount of expenditures for the
ensuing year. Taxes levied by the commission shall be certified to and
collected by the proper county officer of the county in which such public
hospital district is located in the same manner as is or may be provided by law
for the certification and collection of port district taxes. The commission is
authorized, prior to the receipt of taxes raised by levy, to borrow money or
issue warrants of the district in anticipation of the revenue to be derived by
such district from the levy of taxes for the purpose of such district, and such
warrants shall be redeemed from the first money available from such taxes when
collected, and such warrants shall not exceed the anticipated revenues of one
year, and shall bear interest at a rate or rates as authorized by the
commission.
(7) To enter into any contract with the United States government or any state, municipality, or other hospital district, or any department of those governing bodies, for carrying out any of the powers authorized by this chapter.
(8) To sue and be sued in any court of competent jurisdiction: PROVIDED, That all suits against the public hospital district shall be brought in the county in which the public hospital district is located.
(9) To pay actual necessary travel expenses and living expenses incurred while in travel status for (a) qualified physicians who are candidates for medical staff positions, and (b) other qualified persons who are candidates for superintendent or other managerial and technical positions, when the district finds that hospitals or other health care facilities owned and operated by it are not adequately staffed and determines that personal interviews with said candidates to be held in the district are necessary or desirable for the adequate staffing of said facilities.
(10) To make contracts, employ superintendents, attorneys, and other technical or professional assistants and all other employees; to make contracts with private or public institutions for employee retirement programs; to print and publish information or literature; and to do all other things necessary to carry out the provisions of this chapter.
Sec. 18. RCW 84.08.115 and 1991 c 218 s 2 are each amended to read as follows:
(1) The department shall prepare a clear and succinct explanation of the property tax system, including but not limited to:
(a) The standard of true and fair value as the basis of the property tax.
(b) How the assessed value for particular parcels is determined.
(c) The procedures and timing of the assessment process.
(d)
How district levy rates are determined, including the ((one hundred six percent))
limit under chapter 84.55 RCW.
(e) How the composite tax rate is determined.
(f) How the amount of tax is calculated.
(g) How a taxpayer may appeal an assessment, and what issues are appropriate as a basis of appeal.
(h) A summary of tax exemption and relief programs, along with the eligibility standards and application processes.
(2) Each county assessor shall provide copies of the explanation to taxpayers on request, free of charge. Each revaluation notice shall include information regarding the availability of the explanation.
NEW SECTION. Sec. 19. The following acts or parts of acts are each repealed:
(1) RCW 84.41.030 and 1996 c 254 s 7, 1982 1st ex.s. c 46 s 1, 1971 ex.s. c 288 s 6, & 1961 c 15 s 84.41.030;
(2) RCW 84.41.041 and 1987 c 319 s 4, 1982 1st ex.s. c 46 s 2, 1979 ex.s. c 214 s 9, & 1974 ex.s. c 131 s 2;
(3) RCW 84.41.070 and 1994 c 301 s 40, 1975 1st ex.s. c 278 s 198, & 1961 c 15 s 84.41.070; and
(4) RCW 84.41.130 and 1974 1st ex.s. c 278 s 203 & 1961 c 15 s 84.41.130.
NEW SECTION. Sec. 20. Sections 1 through 6 of this act are each added to chapter 84.40 RCW.
NEW SECTION. Sec. 21. In order to assure that the long-term stability of the valuation system established in this act is not subject to repeated statutory changes, the legislature shall propose any changes as may be necessary by amendment to the state Constitution pursuant to its authority in Article XXIII of the state Constitution.
NEW SECTION. Sec. 22. The secretary of state shall submit this act to the people for their adoption and ratification, or rejection, at the next general election to be held in this state, in accordance with Article II, section 1 of the state Constitution and the laws adopted to facilitate its operation.
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