SENATE BILL REPORT

SJR 8210

BYSenators Fleming, Warnke, Zimmerman, Vognild, Lee, Saling, McDermott, Stratton, Owen, Rinehart, Nelson, Talmadge, Kiskaddon and Bauer

Amending constitution to allow current use property valuation for tax purposes on low-income housing.

Senate Committee on Ways & Means

Senate Hearing Date(s):February 10, 1987

Majority Report:  Do pass.

      Signed by Senators McDermott, Chairman; Gaspard, Vice Chairman; Bauer, Fleming, Kreidler, Moore, Owen, Rinehart, Warnke, Williams, Wojahn, Zimmerman.

Senate Staff:William Bafus (786-7437)

                  February 11, 1987

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 10, 1987

BACKGROUND:

Under the Constitution, most property is assessed at "true and fair value" for property tax purposes.  "True and fair value" has been interpreted to mean market value, i.e., the amount of money a buyer who is willing but not obligated to buy would pay to a seller who is willing but not obligated to sell.  Property taxes on one class of property -- open space -- are based on the property's "current use value" rather than the highest and best use, or market, value.

SUMMARY:

Property with buildings that are devoted primarily to low- income housing and contain at least five low-income dwelling units may be valued at its current use value rather than at true and fair market value for property tax purposes.

Fiscal Note:      none requested

Senate Committee - Testified: David Moseley, City of Seattle