HOUSE BILL REPORT
SHB 1634
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent. |
As Passed Legislature
Title: An act relating to including the value of solar, biomass, and geothermal facilities in the property tax levy limit calculation.
Brief Description: Including the value of solar, biomass, and geothermal facilities in the property tax levy limit calculation.
Sponsors: House Committee on Finance (originally sponsored by Representatives Warnick and Manweller).
Brief History:
Committee Activity:
Finance: 2/15/13, 2/27/13 [DP], 1/16/14 [DPS].
Floor Activity:
Passed House: 4/18/13, 93-0.
Passed House: 2/7/14, 80-14.
Passed Senate: 3/4/14, 49-0.
Passed Legislature.
Brief Summary of Substitute Bill |
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HOUSE COMMITTEE ON FINANCE |
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 9 members: Representatives Carlyle, Chair; Tharinger, Vice Chair; Nealey, Ranking Minority Member; Fitzgibbon, Hansen, Lytton, Pollet, Reykdal and Wilcox.
Minority Report: Without recommendation. Signed by 3 members: Representatives Orcutt, Assistant Ranking Minority Member; Condotta and Vick.
Staff: Jeffrey Mitchell (786-7139).
Background:
A district's regular property tax levy is limited by a statutory maximum growth rate in the amount of tax revenue that may be collected from year to year. The limit requires a reduction of property tax rates as necessary to limit the growth in the total amount of property tax revenue received to the lesser of 1 percent or inflation. The revenue limitation does not apply to new value placed on tax rolls attributable to new construction, improvements to existing property, changes in state-assessed valuation, or to construction of certain wind turbines.
Solar, biomass, and geothermal facilities are personal property unless the same person owns both the facilities and the land upon which they are located. Solar, biomass, and geothermal facilities owned by utilities that operate in more than one county are state assessed. Property taxes resulting from new state-assessed facilities increase revenues to taxing districts because taxes resulting from increases in the value of state-assessed property are added to the amount that may be levied under the levy limit. Solar, biomass, and geothermal facilities owned by utilities that operate entirely within a single county are assessed by the county assessor. Property taxes resulting from new county-assessed facilities do not increase revenues to taxing districts because they are not considered "new construction" or an "improvement to property."
Summary of Substitute Bill:
The property tax revenue limit for a taxing district is increased by the value resulting from new solar, biomass, and geothermal facilities that generate electricity.
Appropriation: None.
Fiscal Note: Available.
Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.
Staff Summary of Public Testimony:
See House Bill Report in the 2013 Regular Session.
Persons Testifying: See House Bill Report in the 2013 Regular Session.
Persons Signed In To Testify But Not Testifying: See House Bill Report in the 2013 Regular Session.