BILL REQ. #:  H-3263.3 

Read first time 01/16/12.   Referred to Committee on Ways & Means.

     AN ACT Relating to modifying the property tax revenue limit; amending RCW 84.55.005 and 84.55.0101; creating a new section; and providing for submission of this act to a vote of the people.

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

Sec. 1   RCW 84.55.005 and 2007 sp.s. c 1 s 1 are each amended to read as follows:
     As used in this chapter:
     (1) "Inflation" means the average annual percentage change in the implicit price deflator for personal consumption expenditures for the United States as ((published)) provided for the most recent twelve-month period by the bureau of economic analysis of the federal department of commerce in September of the year before the taxes are payable;
     (2) "Limit factor" means:
     (a) For taxing districts with a population of less than ten thousand in the calendar year prior to the assessment year, the greater of one hundred ((one)) percent plus inflation or one hundred one percent;
     (b) For taxing districts for which a limit factor is authorized under RCW 84.55.0101, the ((lesser of)) greater of one hundred percent, one hundred percent plus inflation, or the limit factor authorized under that section ((or)) of one hundred one percent;
     (c) For all other districts, ((the lesser of one hundred one percent or one hundred percent plus)) the greater of one hundred percent plus inflation or one hundred percent; and
     (3) "Regular property taxes" has the meaning given it in RCW 84.04.140.

NEW SECTION.  Sec. 2   If this act is adopted and ratified by the voters, as provided in section 4 of this act, this act applies to taxes levied for collection in 2013 and thereafter.

Sec. 3   RCW 84.55.0101 and 2007 sp.s. c 1 s 2 are each amended to read as follows:
     Upon a finding of substantial need, the legislative authority of a taxing district other than the state may provide for the use of a limit factor under this chapter of one hundred one percent ((or less)). In districts with legislative authorities of four members or less, two-thirds of the members must approve an ordinance or resolution under this section. In districts with more than four members, a majority plus one vote must approve an ordinance or resolution under this section. The new limit factor shall be effective for taxes collected in the following year only.

NEW SECTION.  Sec. 4   The secretary of state shall submit this act to the people for their adoption and ratification, or rejection, at the next general election to be held in this state, in accordance with Article II, section 1 of the state Constitution and the laws adopted to facilitate its operation.