FINAL BILL REPORT

                  SSB 6115

                          C 136 L 00

                      Synopsis as Enacted

Brief Description:  Reinstating the property tax exemption for motor vehicles, travel trailers, and campers.

Sponsors:  Senate Committee on Ways & Means (originally sponsored by Senators Loveland, Brown, Bauer, Snyder, Rasmussen, Haugen, B. Sheldon, Eide, Jacobsen, McAuliffe, Gardner, Heavey, Franklin, Patterson, Prentice, T. Sheldon, Costa, Goings, McCaslin, Swecker and Winsley; by request of Governor Locke).

Senate Committee on Ways & Means

House Committee on Finance

Background:  The property tax is applied annually to the assessed value of all property except that which is specifically exempt by law.  Taxable property includes both real property and personal property.  Real property is land and the buildings, structures, or improvements that are affixed to the land.  Personal property includes all other property.

Real property is assessed by the county assessor on its value on January 1 of the assessment year, except that new construction is assessed on its value on July 31 of the assessment year.  Personal property is reported by April 30 of each year to the county assessor by persons with taxable personal property based on its value on January 1.  These values are used to calculate taxes payable in the following year.

Initiative 695 repealed the exemption from state and local property taxation for motor vehicles, travel trailers, and campers, effective January 1, 2000.  Because of this, motor vehicles, travel trailers, and campers are subject to state and local personal property taxes for taxes payable in 2001 based on the value of the vehicle on January 1, 2000.

Summary:  The property tax exemption for motor vehicles, travel trailers, and campers as it existed before passage of Initiative 695 is restored.  The act applies retrospectively to January 1, 2000.

Votes on Final Passage:

Senate 480

House962

Effective:March 27, 2000