BILL REQ. #:  H-1349.1 

Read first time 02/03/09.   Referred to Committee on Finance.

     AN ACT Relating to reducing property taxes; adding a new section to chapter 84.55 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds that any increase in the sales and use tax to balance the 2009-2011 biennium budget must first be used to reduce state property taxes. The purpose of this act is to ensure that any increase in the sales and use tax will be used to reduce state property taxes before providing additional tax revenue to the general fund.

NEW SECTION.  Sec. 2   A new section is added to chapter 84.55 RCW to read as follows:
     (1) Beginning with taxes levied for collection in 2010 and every year thereafter, the state property tax levy must be reduced by the tax reduction amount. Each year's reduction must be based on the levy amount that would have otherwise been allowed under this chapter without regard to the application of this section.
     (2) For the purposes of this section, "tax reduction amount" means the excess amount of sales and use taxes collected under chapters 82.08 and 82.12 RCW for the prior fiscal year from a general sales or use tax rate that is in excess of six and one-half percent. The department must make this determination by January 1st of each year based on the most recent sales and use tax collection data available at that time and notify the county assessors.