SENATE BILL REPORT

                   SB 6470

                    As of January 27, 2000

Title:  An act relating to authorizing a local school district regular levy for the purpose of enhancing kindergarten through twelfth grade education by reducing class sizes and improving educational programs, to be allowed as a credit against the state property tax levy.

Brief Description:  Authorizing local school district levies to reduce class size and improve programs.

Sponsors:  Senators Snyder, Kline, Patterson, Rasmussen and Bauer; by request of Governor Locke.

Brief History:

Committee Activity:  Education:  1/27/2000.

SENATE COMMITTEE ON EDUCATION

Staff:  Kelly Simpson (786-7403)

Background:  Under current law, the state levies a property tax upon the assessed valuation of all taxable property within the state.  This tax is in addition to local excess levies.  The state portion of the property tax is collected locally and then put into the state general fund.

Summary of Bill:  School districts are authorized to impose a limited property tax to be credited against the state portion of the property tax levy.  The school district levy is not to exceed the state levy amount for the school district.  In the event the credit does exceed the state property tax levy for the school district, the Legislature must fund the difference.

The county treasurer (a) collects the state levy; (b) distributes the state portion, less the school district levy, to the state (if available) and (3) distributes the school district levy to the appropriate school district.  Rather than going to the state general fund, the school district levy goes to the appropriate school district.

The school district levy must be used by the school district for (a) hiring additional K-6 teachers; (b) providing new and expanded learning opportunities; (c) providing new and expanded preschool programs; and (d) providing improvements to school facilities that are directly related to the new or expanded services.

Appropriation:  None.

Fiscal Note:  Requested on January 27, 2000.

Effective Date:  The bill is effective for taxes levied in 2000 for collection in 2001 and thereafter.