H-0470.2  _______________________________________________

                          HOUSE BILL 1775

          _______________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Representatives Roach, Casada and Van Luven

Read first time 02/05/2001.  Referred to Committee on Finance.

Limiting property tax increases.

    AN ACT Relating to limiting property tax increases; amending RCW 84.55.0101; reenacting and amending RCW 84.55.005; and repealing RCW 84.55.092.

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) "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) "Limit factor" means:

    (a) For taxing districts with a population of less than ten thousand in the calendar year prior to the assessment year, one hundred ((six)) two percent;

    (b) 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)) two percent;

    (c) For all other districts, the lesser of one hundred ((six)) two percent or one hundred percent plus inflation; and

    (3) "Regular property taxes" has the meaning given it in RCW 84.04.140.

    Sec. 2.  RCW 84.55.0101 and 1997 c 3 s 204 are each amended to read as follows:

    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)) two percent or less.  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.

NEW SECTION. Sec. 3.  RCW 84.55.092 (Protection of future levy capacity) and 1998 c 16 s 3, 1988 c 274 s 4, & 1986 c 107 s 3 are each repealed.

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