Brief Description: Limiting property valuation increases.

Sponsors: Senators Rockefeller, Haugen, Oemig, Shin, Kilmer, Sheldon, McAuliffe and Rasmussen.

Brief History:

Committee Activity: Ways & Means: 2/07/08.

SENATE COMMITTEE ON WAYS & MEANS

Staff: Dean Carlson (786-7305)

Background: All real and personal property in Washington State is subject to property tax, unless a specific exemption is provided by law.

Property taxes are calculated for individual properties by multiplying a tax rate by the assessed value of each property. By statute, assessed value must be equal to 100 percent of the fair market value of the property, unless the property qualifies under a special tax relief program. Article 7, section 1 of the State Constitution provides that all taxes must be uniform on the same class of property. This means that taxes must be the same on property of the same value and requires both an equal rate and equality in valuing the property taxed.

Summary of Bill: An amendment to Article 7, section 1, of the State Constitution is submitted to the people at the next general election. The amendment allows the legislature to provide a method or methods of limiting increases in the taxation of real estate under definitions, conditions, and restrictions deemed proper by the Legislature. This constitutional amendment is implemented by SB 6899 (2008).

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: CON: This is the same testimony I give every year on all property tax bills. When you look at the picture despite individual complaints, nationwide we are 27th or 28th overall. We support maintaining the current constitutional uniformity provisions. We stand for accurate notice and a fair appeal system.

Persons Testifying: CON: Amber Carter, Association of Washington Business.