Z‑0604.1   _____________________________________________

SENATE BILL 6002

           _____________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Senators Rossi and West; by request of Governor Locke

Read first time 02/13/2001.  Referred to Committee on Ways & Means.

_1      AN ACT Relating to property tax relief by spreading property

_2  tax valuation increases over four years; amending RCW 84.40.0305;

_3  and creating a new section.

_4  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_5      Sec. 1.  RCW 84.40.0305 and 1997 c 3 s 105 are each amended to read

_6  as follows:

_7      (1) As used in this section:

_8      (a) "Previous assessed value" means the assessed value for the

_9  year immediately preceding the year for which a calculation is

10  being made under this section.

11      (b) "Current appraised value" means the appraised value for the

12  year for which a calculation is being made under this section.

13      (c) "Total value increase" means the current appraised value

14  minus the previous assessed value.  Total value increase can never

15  be less than zero.

16      (d) "Improvement increase" means the portion of the total value

17  increase attributable to any physical improvements made to the

18  property since the previous assessment, other than improvements

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_1  exempt under RCW 84.36.400 for the year for which a calculation is

_2  being made under this section.  Improvement increase can never be

_3  less than zero.

_4      (e) "Market increase" means the total value increase minus the

_5  improvement increase.  Market increase can never be less than zero.

_6      (2) The assessed value of property is equal to the lesser of

_7  the current appraised value or a limited value determined under

_8  this section.  The limited value is equal to the greater of the

_9  values determined as follows:

10      (a) In any year in which the market increase is equal to or

11  less than sixty percent of the previous assessed value, the

12  limited value is the improvement increase plus one hundred fifteen

13  percent of the previous assessed value; or

14      (b) In any year in which the market increase is more than sixty

15  percent of the previous assessed value, the limited value for the

16  year of the increase and for each of the three succeeding years is

17  not less than the sum of:

18      (i) The previous assessed value;

19      (ii) The improvement increase; and

20      (iii) Twenty-five percent of the market increase.

21      (3) Upon loss of preferential tax treatment for property that

22  qualifies for preferential tax treatment under chapter 84.14,

23  84.26, 84.33, 84.34, or 84.36 RCW, the previous assessed value

24  shall be the assessed value the property would have had without

25  the preferential tax treatment.

26      (4) The assessed value of real property that has been

27  subdivided or merged is the current appraised value of the parcel

28  or lot formed after the subdivision or merger.

29      (5) The assessed value of new construction and mobile homes

30  under RCW 36.21.080 and 36.21.090 is determined without regard to

31  this section.

32      NEW SECTION. Sec. 2.  This act takes effect for taxes levied in

33  2001 for collection in 2002 and thereafter if the proposed

34  amendment to Article VII, section 1 of the state Constitution

35  providing for valuation increases to be phased-in over a period of

36  four years is validly submitted to and is approved and ratified by

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_1  the voters at the next general election.  If the proposed amendment

_2  is not approved and ratified, this act is void in its entirety.

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