S-1626.1  _______________________________________________

                    SUBSTITUTE SENATE BILL 5746

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Senate Committee on Ways & Means (originally sponsored by Senators Wojahn and Rasmussen)

Read first time 02/26/1999.

Modifying certain exemption language for new and rehabilitated multiple-unit dwellings in urban centers.

    AN ACT Relating to the exemption for new and rehabilitated multiple-unit dwellings in urban centers; and amending RCW 84.14.020 and 84.14.050.

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

    Sec. 1.  RCW 84.14.020 and 1995 c 375 s 5 are each amended to read as follows:

    (1) The value of new housing construction, conversion, and rehabilitation improvements qualifying under this chapter is exempt from ad valorem property taxation, for ten successive years beginning January 1 of the year immediately following the calendar year ((after)) of issuance of the certificate of tax exemption eligibility.  However, the exemption does not include the value of land or nonhousing-related improvements not qualifying under this chapter.

    (2) In the case of rehabilitation of existing buildings, the exemption does not include the value of improvements constructed prior to the submission of the application required under this chapter.  The incentive provided by this chapter is in addition to any other incentives, tax credits, grants, or other incentives provided by law.

    (3) This chapter does not apply to increases in assessed valuation made by the assessor on nonqualifying portions of building and value of land nor to increases made by lawful order of a county board of equalization, the department of revenue, or a county, to a class of property throughout the county or specific area of the county to achieve the uniformity of assessment or appraisal required by law.

    Sec. 2.  RCW 84.14.050 and 1997 c 429 s 43 are each amended to read as follows:

    An owner of property seeking tax incentives under this chapter must complete the following procedures:

    (1) In the case of rehabilitation or where demolition or new construction is required, the owner shall secure from the governing authority or duly authorized agent, before commencement of rehabilitation improvements or new construction, verification of property noncompliance with applicable building and housing codes;

    (2) In the case of new and rehabilitated multifamily housing, the owner shall apply to the city on forms adopted by the governing authority.  The application must contain the following:

    (a) Information setting forth the grounds supporting the requested exemption including information indicated on the application form or in the guidelines;

    (b) A description of the project and site plan, including the floor plan of units and other information requested;

    (c) A statement that the applicant is aware of the potential tax liability involved when the property ceases to be eligible for the incentive provided under this chapter;

    (3) The applicant must verify the application by oath or affirmation; and

    (4) The application must be ((made on or before April 1 of each year, and must be)) accompanied by the application fee, if any, required under RCW 84.14.080.  The governing authority may permit the applicant to revise an application before final action by the governing authority.

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