H-3474.1  _______________________________________________

                          HOUSE BILL 2731

          _______________________________________________

State of Washington      57th Legislature     2002 Regular Session

By Representatives Veloria, Gombosky, Dunshee and Chase

Read first time 01/25/2002.  Referred to Committee on Finance.

Revising the evaluation of tax preferences.

    AN ACT Relating to the evaluation of tax preferences; and amending RCW 43.136.010.

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

    Sec. 1.  RCW 43.136.010 and 1982 1st ex.s. c 35 s 39 are each amended to read as follows:

    The legislature recognizes that tax preferences are enacted by the legislature to meet objectives which are determined to be in the public interest.  The legislature finds, however, that some tax preferences may not be efficient or equitable tools for the achievement of current legislative objectives.  The legislature finds that unless it can be demonstrated that the public interest is served by the continued existence of tax preferences, they should be terminated or modified.  The legislature further finds that periodic evaluations of tax preferences are needed to determine if their continued existence is in the public interest.

    It is the intent of the legislature to establish a mechanism for scheduling periodic evaluations of tax preferences together with a system for their termination, continuation, or modification.  By this mechanism, the legislature intends to ensure that thorough ((periodic)) evaluations are made for each exemption at least once every six years and that those tax preferences which do not continue to serve the public interest are terminated or modified.

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