Brief Description: Establishing fair market property values by considering the growth management act.

Sponsors: Representatives Kilmer, Lantz, Linville, Buri, Morrell, Green, Appleton, Rodne, Springer and Simpson.

Hearing Date: 1/16/06

Staff: Ethan Moreno (786-7386).

Background:

Property taxes are imposed by state and local governments and apply to the assessed value of all taxable property, which includes all real and personal property located within the state, unless specifically exempted. Real property includes land, structures, and certain equipment that is affixed to the structure. Personal property includes machinery, supplies, certain utility property, and items which are generally movable. The assessed value of most real property is determined by the county assessor.

All property must be valued at 100 percent of its true and fair value unless specifically provided otherwise by law. In addition to other statutory requirements, the true and fair value of real property for taxation purposes must be consistent with the comprehensive land use plan, development regulations under the Growth Management Act (GMA), zoning, and any other governmental policies or practices in effect at the time of appraisal that affect the use of property. An assessment may not be determined by a method that assumes a land usage not permitted under existing zoning or land use planning ordinances or statutes.

Enacted in 1990 and 1991, the GMA establishes a comprehensive land use planning framework for county and city governments in Washington. The GMA specifies numerous provisions for jurisdictions fully planning under the Act (planning jurisdictions) and establishes a reduced number of compliance requirements for all local governments.

Among other requirements, planning jurisdictions must adopt internally consistent comprehensive land use plans, which are generalized, coordinated land use policy statements of the governing body. Planning jurisdictions must also adopt development regulations that are consistent with and implement the comprehensive plan.

Summary of Bill:

County assessors must consider the restrictions imposed by the GMA in establishing the fair market value of property.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.