HOUSE BILL REPORT

EHB 1958

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 Reported by House Committee On:

Transportation

Title: An act relating to regional transit authority property taxes imposed on less than a whole parcel.

Brief Description: Prohibiting the imposition of regional transit authority property taxes on less than a whole parcel.

Sponsors: Representatives Harmsworth, Young, Rodne and Stanford.

Brief History:

Committee Activity:

Transportation: 2/16/17, 2/21/17 [DP], 1/24/18 [DPS].

Brief Summary of Substitute Bill

Prohibits a regional transit authority from imposing a property tax on less than a whole parcel of property.

HOUSE COMMITTEE ON TRANSPORTATION

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 23 members: Representatives Clibborn, Chair; Fey, Vice Chair; Wylie, Vice Chair; Orcutt, Ranking Minority Member; Hargrove, Assistant Ranking Minority Member; Harmsworth, Assistant Ranking Minority Member; Chapman, Gregerson, Irwin, Kloba, Lovick, McBride, Ortiz-Self, Pellicciotti, Pike, Riccelli, Rodne, Shea, Stambaugh, Tarleton, Valdez, Van Werven and Young.

Staff: David Munnecke (786-7315).

Background:

A Regional Transit Authority (RTA) is authorized to use its tax revenues to develop and operate a high capacity transportation system. There is currently one RTA, Sound Transit, which operates light rail, commuter rail service, and express bus service. The boundaries of the Sound Transit district generally follow the urban growth boundaries of King, Pierce, and Snohomish counties.

After the approval of the most recent system expansion plan in 2016, Sound Transit imposes the following taxes within the boundaries of the Sound Transit district:

a sales and use tax of 1.4 percent;
a motor vehicle excise tax of 1.1 percent;
a property tax of 25 cents per $1,000 of assessed valuation; and
a rental car sales and use tax of 0.8 percent.

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Summary of Substitute Bill:

A RTA is prohibited from imposing a property tax on less than a whole parcel of property.

Substitute Bill Compared to Engrossed Bill:

The requirement that county treasurers waive interest and penalties for property tax delinquencies on property taxes imposed by a regional transit authority on certain properties is removed, as is the requirement that the bill be applied retroactively.

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Appropriation: None.

Fiscal Note: Available.

Effective Date of Substitute Bill: The bill contains an emergency clause and takes effect immediately.