H-0690.2  _______________________________________________

                          HOUSE BILL 1487

          _______________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Representatives Carrell, Lambert, Benson, Boldt, Roach, Cairnes and Mulliken

Read first time 01/26/2001.  Referred to Committee on Finance.

Phasing out the inflationary adjustment for the state property tax levy.

    AN ACT Relating to reducing the inflationary adjustment for the state property tax levy to zero over time; reenacting and amending RCW 84.55.005; creating a new section; and providing a contingent effective date.

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 are each reenacted and amended to read as follows:

    As used in this chapter:

    (1) "Adjusted inflation" means:

(a) Ninety percent of inflation for taxes levied for collection in 2002;

(b) Eighty percent of inflation for taxes levied for collection in 2003;

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

(d) Sixty percent of inflation for taxes levied for collection in 2005;

(e) Fifty percent of inflation for taxes levied for collection in 2006;

(f) Forty percent of inflation for taxes levied for collection in 2007;

(g) Thirty percent of inflation for taxes levied for collection in 2008;

(h) Twenty percent of inflation for taxes levied for collection in 2009;

(i) Ten percent of inflation for taxes levied for collection in 2010; and

(j) Zero for taxes levied for collection in 2011 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.

NEW SECTION. Sec. 2.  Section 1 of this act takes effect on the day a decision of a court in this state becomes final and invalidates, in whole or in part, the application of section 5, chapter 2, Laws of 2001 (Initiative Measure No. 722) to property tax levies.

NEW SECTION. Sec. 3.  Section 1 of this act applies to taxes levied for collection in 2002 and thereafter.

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