H-1718              _______________________________________________

                                           SUBSTITUTE HOUSE BILL NO. 167

                        _______________________________________________

State of Washington                              50th Legislature                              1987 Regular Session

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

Read first time 2/13/87 and referred to Committee on Ways & Means.

AN ACT Relating to property taxes; and adding a new section to chapter 84.52 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  A new section is added to chapter 84.52 RCW to read as follows:

          (1) The governing body of any taxing district may provide for the submission of a ballot proposition to the voters of the taxing district authorizing the taxing district to maintain its otherwise authorized tax levy rate, and authorizing an increase in the cumulative regular property tax limitation of nine dollars and fifteen cents per thousand dollars of assessed valuation within the taxing district, as provided in this section.

          (2) A resolution by a governing body, requesting that a special election be called to submit such a ballot proposition to the voters, must be transmitted to the county legislative authority of the county, or county legislative authorities of the counties, within which the taxing district is located, at least forty-five days before the special election date at which the ballot proposition is submitted.  The ballot proposition shall be worded substantially as follows:

          "Shall the cumulative limitation on most regular property tax rates be increased by an amount not exceeding thirty-five cents per thousand dollars of assessed  valuation for a five consecutive year period allowing (insert the name of the taxing district) to maintain its otherwise authorized property tax rate?"

          Approval of this ballot proposition by a simple majority vote shall authorize the following for the succeeding five consecutive year period:  (a) Property tax rates of junior taxing districts are calculated first as if this proposition had not been approved; (b) subject to the one hundred six percent limitation, the regular property tax rate of the taxing district receiving such authorization is increased to a level not exceeding the lesser of its maximum authorized regular property tax rate or whatever tax rate it otherwise would have been able to impose plus an additional thirty-five cents per thousand dollars of assessed valuation; and (c) the cumulative property tax rate limitation is increased within the boundaries of the taxing district receiving this authorization to an amount equal to nine dollars and fifteen cents per thousand dollars of assessed valuation plus the increased amount of the regular levy rate of this taxing district, but not to exceed nine dollars and fifty cents per thousand dollars of assessed valuation.

          (3) If two or more taxing districts that occupy a portion of the same territory receive such approval, the additional authorized taxing capacity above nine dollars and fifteen cents per thousand dollars of assessed valuation shall be distributed among these taxing districts by adjusting their levy rate requests in the same manner and under the same conditions as if they were the only taxing districts in the area subject to adjustment of their property tax rates and the levy rate adjustments were being made with the cumulative limitation of nine dollars and fifteen cents per thousand dollars of assessed valuation.

          (4) Levies authorized under RCW 84.52.069 are not subject to the rate adjustments and the nine dollar and fifty cent per thousand dollar of assessed valuation cumulative limitation on regular property tax rates established by this section.