SENATE BILL REPORT

HB 1137

BYRepresentatives Locke, Niemi and Jacobsen

Exempting low-income housing owned or operated by certain public corporations from excise tax.

House Committe on Ways & Means/Revenue

Senate Committee on Ways & Means

Senate Hearing Date(s):April 1, 1987

Majority Report:  Do pass as amended.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Bluechel, Craswell, Deccio, Fleming, Hayner, Kreidler, Lee, McDonald, Moore, Owen, Rinehart, Saling, Vognild, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:William Bafus (786-7437)

                  April 2, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, APRIL 1, 1987

BACKGROUND:

An excise "in lieu" of property taxes is required of any public corporation, commission, or authority created by a city, town, or county to carry out federal grant programs.  These public corporations, commissions, or authorities have the same immunity from property taxation as a city, town, or county except for the obligation to pay the "in-lieu" tax.  The tax is equal to the amounts which would be paid upon real and personal property as if the property were in private ownership.  The only exemption from the "in-lieu" tax is granted to property listed on the federal or state register of historical sites.

SUMMARY:

Property owned or operated by a public corporation that is used primarily for low-income housing is exempted from paying the "in-lieu" tax.  In addition, "low income" is defined as 50 percent of the median income as determined by the U.S. Department of Labor in a standard metropolitan statistical area (SMSA).  For non-SMSA areas, "low income" is defined as 50 percent of the median income of the county as determined by the Washington State Department of Community Development.

SUMMARY OF PROPOSED SENATE AMENDMENT:

The amendment corrects a reference to a federal agency.

Fiscal Note:      available

Senate Committee - Testified: Representative Gary Locke