Brief Description: Providing a constitutional amendment to modify voter-approved property tax levy limitations.

Sponsors: Representatives McIntire, Ahern, Simpson, Santos, Schindler, Chase and Appleton.

Hearing Date: 2/8/05

Staff: Rick Peterson (786-7150).

Background:

The Washington State Constitution caps the total property tax rate at 1 percent ($10 per $1,000 of value.) With at least a 60 percent majority vote of the people a district can impose taxes above the 1 percent cap. Levies above the 1 percent cap are called "excess" levies. The elections must occur not more than twelve months before the tax levy is to be made. A proposition may be submitted twice in a twelve month period.

Generally, districts may only impose excess levies for one year at a time. However, school districts and fire districts may ask voters to approve excess levies for up to four years for operations and up to six years for construction, modernization, or remodeling of facilities.

Summary of Bill:

The Constitution is amended to allow all property taxing districts to ask their voters to approve excess levies for up to four years for operating purposes and up to six years for the construction, modernization, or remodeling of facilities. The requirement that elections be held not more than twelve months before the levy is made is deleted. More than two propositions may be presented to the voters.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: The resolution takes effect upon approval of the voters at the November 2005 general election.