SENATE BILL REPORT

ESHB 168

BYHouse Committee on Local Government (originally sponsored by Representatives Madsen, Brough, Haugen, May, Unsoeld, Sayan, Grant, Nutley, L. Smith, Ferguson,  Holm, Todd, Belcher, Basich, Hargrove, Spanel, Leonard, Cooper and Hine)

Revising provisions on fire service district service charges.

House Committe on Local Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):April 1, 1987; April 2, 1987

Majority Report:  Do pass as amended.

      Signed by Senators Halsan, Chairman; Garrett, Vice Chairman; McCaslin, Talmadge, Zimmerman.

Senate Staff:Walt Corneille (786-7452); Eugene Green (786-7405)

                  April 3, 1987

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, APRIL 2, 1987

BACKGROUND:

Fire protection districts are authorized to impose the following regular property tax levies to finance their activities:  (1) $.50 per $1000 of assessed valuation, which is one of the highest status junior taxing district levies; (2) $.50 per $1000 of assessed valuation, which is one of the secondary status junior taxing district levies; (3) $.50 per $1000 of assessed valuation, if the fire district has at least one full- time employee, which is one of the secondary status junior taxing district levies, and was only recently authorized for most of the eligible fire districts; and (4) an emergency medical service (EMS) levy of up to $.25 per $1000 of assessed valuation for six years if authorized by a 60 percent/40 percent vote of the voters, which is above the $9.15 limit.

A fire protection district additionally may finance its operations by imposing service charges on personal property and improvements to real property located in the district, that benefit or will benefit from the fire protection provided by the district.  Service charges may only be imposed for a three-year period if a ballot proposition authorizing the service charges is approved by a 60 percent majority vote of the district voters.  Service charges cannot generate more than 60 percent of a fire district's budget. Public property, religious property, and public and private schools and institutions of higher education are exempted from these service charges.  No fire district has attempted to impose these service charges.

SUMMARY:

Statutes relating to fire protection district service charges are changed as follows:

(1)  A service charge imposed by a fire protection district is proportioned to the benefits to property from the services provided by the district, not just the fire protection provided.

(2)  Examples of how a service charge may be measured include the level of fire prevention services provided and the need of the properties for specialized services.

(3) The exemption from service charges applicable to religious property does not include higher education facilities or property used for business operations, profit making enterprises or activities not including use of a sanctuary.  The exemption for religious organizations does apply to facilities used for kindergarten, primary, or secondary education purposes.

(4)  Property owned or used by public or non-religious private schools or any institution of higher education is no longer exempt from fire district service charges.

(5)  A fire protection district imposing service charges may not impose the third level of general property tax which is authorized up to $.50 per $1,000 of assessed value.

SUMMARY OF PROPOSED SENATE AMENDMENT:

Fire protection district service charges do not apply to personal property or improvements to real property owned or used by a recognized religious organization in operating an institution of higher education.

Fiscal Note:      none requested

Senate Committee - Testified: Pete Spiller, Fire Districts; John Milton, Adventist Churches; Tom Parker, Washington Friends of Higher Education