BILL REQ. #:  H-0931.1 

Read first time 02/04/13.   Referred to Committee on Finance.

     AN ACT Relating to including the value of solar, biomass, and geothermal facilities in the property tax levy limit calculation; amending RCW 84.55.010, 84.55.015, 84.55.020, 84.55.030, and 84.55.120; and creating a new section.

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

Sec. 1   RCW 84.55.010 and 2006 c 184 s 1 are each amended to read as follows:
     Except as provided in this chapter, the levy for a taxing district in any year ((shall)) must be set so that the regular property taxes payable in the following year ((shall)) does not exceed the limit factor multiplied by the amount of regular property taxes lawfully levied for such district in the highest of the three most recent years in which such taxes were levied for such district plus an additional dollar amount calculated by multiplying the regular property tax levy rate of that district for the preceding year by the increase in assessed value in that district resulting from:
     (1) New construction((,));
     (2) Increases in assessed value due to construction of ((electric generation)) wind turbine, solar, biomass, and geothermal facilities ((classified as personal property)), if such facilities generate electricity and the property is not included elsewhere under this section for purposes of providing an additional dollar amount. The property may be classified as real or personal property;
     (3) Improvements to property((,)); and
     (4) Any increase in the assessed value of state-assessed property ((by the regular property tax levy rate of that district for the preceding year)).

Sec. 2   RCW 84.55.015 and 2006 c 184 s 2 are each amended to read as follows:
     If a taxing district has not levied since 1985 and elects to restore a regular property tax levy subject to applicable statutory limitations then such first restored levy ((shall)) must be set so that the regular property tax payable ((shall)) does not exceed the amount which was last levied, plus an additional dollar amount calculated by multiplying the property tax rate which is proposed to be restored, or the maximum amount which could be lawfully levied in the year such a restored levy is proposed, by the increase in assessed value in the district since the last levy resulting from:
     (1) New construction((,));
     (2) Increases in assessed value due to construction of ((electric generation)) wind turbine, solar, biomass, and geothermal facilities ((classified as personal property)), if such facilities generate electricity and the property is not included elsewhere under this section for purposes of providing an additional dollar amount. The property may be classified as real or personal property;
     (3) Improvements to property((,)); and
     (4) Any increase in the assessed value of state-assessed property ((by the property tax rate which is proposed to be restored, or the maximum amount which could be lawfully levied in the year such a restored levy is proposed)).

Sec. 3   RCW 84.55.020 and 2006 c 184 s 3 are each amended to read as follows:
     Notwithstanding the limitation set forth in RCW 84.55.010, the first levy for a taxing district created from consolidation of similar taxing districts ((shall)) must be set so that the regular property taxes payable in the following year ((shall)) do not exceed the limit factor multiplied by the sum of the amount of regular property taxes lawfully levied for each component taxing district in the highest of the three most recent years in which such taxes were levied for such district plus the additional dollar amount calculated by multiplying the regular property tax rate of each component district for the preceding year by the increase in assessed value in each component district resulting from:
     (1) New construction((,));
     (2) Increases in assessed value due to construction of ((electric generation)) wind turbine, solar, biomass, and geothermal facilities ((classified as personal property)), if such facilities generate electricity and the property is not included elsewhere under this section for purposes of providing an additional dollar amount. The property may be classified as real or personal property;
     (3) Improvements to property((,)); and
     (4) Any increase in the assessed value of state-assessed property ((by the regular property tax rate of each component district for the preceding year)).

Sec. 4   RCW 84.55.030 and 2006 c 184 s 4 are each amended to read as follows:
     For the first levy for a taxing district following annexation of additional property, the limitation set forth in RCW 84.55.010 ((shall)) must be increased by an amount equal to (((1))) the aggregate assessed valuation of the newly annexed property as shown by the current completed and balanced tax rolls of the county or counties within which such property lies, multiplied by (((2))) the dollar rate that would have been used by the annexing unit in the absence of such annexation, plus (((3))) the additional dollar amount calculated by multiplying the regular property tax levy rate of that annexing taxing district for the preceding year by the increase in assessed value in the annexing district resulting from:
     (1) New construction((,));
     (2) Increases in assessed value due to construction of ((electric generation)) wind turbine, solar, biomass, and geothermal facilities ((classified as personal property)), if such facilities generate electricity and the property is not included elsewhere under this section for purposes of providing an additional dollar amount. The property may be classified as real or personal property;
     (3) Improvements to property((,)); and
     (4) Any increase in the assessed value of state-assessed property ((by the regular property tax levy rate of that annexing taxing district for the preceding year)).

Sec. 5   RCW 84.55.120 and 2006 c 184 s 6 are each amended to read as follows:
     (1) A taxing district, other than the state, that collects regular levies ((shall)) must hold a public hearing on revenue sources for the district's following year's current expense budget. The hearing must include consideration of possible increases in property tax revenues and ((shall)) must be held prior to the time the taxing district levies the taxes or makes the request to have the taxes levied. The county legislative authority, or the taxing district's governing body if the district is a city, town, or other type of district, ((shall)) must hold the hearing. For purposes of this section, "current expense budget" means that budget which is primarily funded by taxes and charges and reflects the provision of ongoing services. It does not mean the capital, enterprise, or special assessment budgets of cities, towns, counties, or special purpose districts.
     (2) If the taxing district is otherwise required to hold a public hearing on its proposed regular tax levy, a single public hearing may be held on this matter.
     (3)(a) Except as provided in (b) of this subsection (3), no increase in property tax revenue((, other than that resulting from the addition of new construction, increases in assessed value due to construction of electric generation wind turbine facilities classified as personal property, and improvements to property and any increase in the value of state-assessed property, may be authorized by a taxing district, other than the state, except by adoption of a separate ordinance or resolution, pursuant to notice, specifically authorizing the increase in terms of both dollars and percentage. The ordinance or resolution may cover a period of up to two years, but the ordinance shall specifically state for each year the dollar increase and percentage change in the levy from the previous year)) may be authorized by a taxing district, other than the state, except by adoption of a separate ordinance or resolution, pursuant to notice, specifically authorizing the increase in terms of both dollars and percentage. The ordinance or resolution may cover a period of up to two years, but the ordinance must specifically state for each year the dollar increase and percentage change in the levy from the previous year.
     (b) Exempt from the requirements of (a) of this subsection are increases in revenue resulting from the addition of:
     (i) New construction;
     (ii) Increases in assessed value due to construction of wind turbine, solar, biomass, and geothermal facilities, if such facilities generate electricity and the property is not included elsewhere under this section for purposes of providing an additional dollar amount. The property may be classified as real or personal property;
     (iii) Improvements to property; and
     (iv) Any increase in the value of state-assessed property.

NEW SECTION.  Sec. 6   This act applies to taxes levied for collection in 2014 and thereafter.