S-0546.1 _______________________________________________
SENATE BILL 5161
_______________________________________________
State of Washington 57th Legislature 2001 Regular Session
By Senators Benton, Hochstatter and Stevens
Read first time 01/12/2001. Referred to Committee on Ways & Means.
AN ACT Relating to limiting property taxes; and adding new sections to chapter 84.36 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 84.36 RCW to read as follows:
(1) Unless otherwise exempt from property taxes, any increase in value of property for taxation purposes over its 1999 valuation level, plus the lesser of two percent per year or inflation, is exempt from property taxes.
(2) Unless otherwise exempt from property taxes, any increase in value of property attributable to construction or manufacture after 1999 over the true and fair value of the new construction or manufacture as of December 31st of the year of construction or manufacture, plus the lesser of two percent per year or inflation, is exempt from property taxes.
(3) For purposes of this section:
(a) "Property" means real and personal property;
(b) "1999 valuation level" means the correct valuation shown on the property tax statement in effect on January 1, 1999;
(c) "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;
(d) "Constructed or manufactured" does not include reconstruction after fire or other natural disaster and does not include maintenance or replacement of existing components, such as roofs, siding, windows, doors, and parts of equipment.
(4) Under this section, all current and future property owners will have the same benefit of knowing that the increase in their property's valuation for tax purposes, except for a maximum of two percent per year, will be exempt from property taxes. This guarantees that property taxes will be predictable and uniform for every present and future property owner in this state. This predictability also promotes neighborhood preservation, continuity, and stability in a manner which treats all property taxpayers uniformly.
NEW SECTION. Sec. 2. A new section is added to chapter 84.36 RCW to read as follows:
(1) Increases in property valuation attributable to maintenance improvements made after January 1, 1999, shall be exempt from property taxes. This exemption promotes neighborhood preservation, continuity, and stability.
(2) For purposes of this section, "maintenance improvements" includes:
(a) Reconstruction after fire and natural disaster; and
(b) Replacement of existing components such as roofs, siding, windows, doors, and painting.
--- END ---