SENATE BILL REPORT

SB 5239

BYSenators McDermott, McDonald, Gaspard, Lee and Hayner; by request of Department of Revenue

Transferring assessment authority for motor vehicle transportation companies to county assessors.

Senate Committee on Ways & Means

Senate Hearing Date(s):January 27, 1987

Majority Report:  Do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bluechel, Cantu, Craswell, Deccio, Hayner, Kreidler, Lee, McDonald, Moore, Rinehart, Saling, Talmadge, Warnke, Williams, Zimmerman.

Senate Staff:William Bafus (786-7437)

                  February 20, 1987

AS PASSED SENATE, FEBRUARY 20, 1987

BACKGROUND:

The Department of Revenue currently assesses motor vehicle freight and passenger carriers, as well as other intercounty and interstate utilities for property tax purposes.  This was valid when a franchise value could be established for such companies in addition to the value of their operating property.  Since these companies are no longer regulated as to routes served, franchise values can no longer be established.  Assessment of the real property of motor vehicle carriers can be transferred to county assessors, thus freeing Department staff for other utility valuation projects.

SUMMARY:

Motor vehicle transportation companies are removed from the list of companies assessed by the Department of Revenue, thereby returning their assessment to the county assessors.

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: Barney McClure, Department of Revenue