H-0691.1  _______________________________________________

                          HOUSE BILL 1488

          _______________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Representatives Carrell, Cairnes, Boldt and Mulliken

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

Restricting property tax levies in excess of the rate of inflation.

    AN ACT Relating to restricting property tax levies in excess of the rate of inflation; amending RCW 84.55.0101; creating a new section; and providing a contingent effective date.

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

    Sec. 1.  RCW 84.55.0101 and 1997 c 3 s 204 are each amended to read as follows:

(1) Upon a finding of substantial need, the legislative authority of a taxing district other than the state may provide for the use of a limit factor under this chapter of one hundred six percent or less.  A limit factor may be adopted for a period not to exceed nine consecutive years.  After the expiration of a period for which a limit factor is adopted, another limit factor may not be adopted for an equal number of years.

(2) In districts with legislative authorities of four members or less, two-thirds of the members must approve an ordinance or resolution under this section.  In districts with more than four members, a majority plus one vote must approve an ordinance or resolution under this section.  The new limit factor shall be effective for taxes collected in the following year only.  Subsequent levies shall be computed as if the taxing district had levied for that year at the maximum rate that would otherwise have been allowed under this chapter without a finding of substantial need.

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 6, 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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