HOUSE BILL REPORT

HB 1370

BYRepresentatives Brough, Haugen, Ferguson, Sayan, Hine, Miller and G. Fisher 

Changing provisions relating to taxing district boundaries.

House Committe on Local Government

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (13)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Ferguson, Ranking Republican Member; Horn, Nealey, Nelson, Nutley, Phillips, Rayburn, Todd, Wolfe, Wood and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS REPORTED BY COMMITTEE ON LOCAL GOVERNMENT FEBRUARY 16, 1989

BACKGROUND:

With certain exceptions, the boundaries of a taxing district are established in the first day of March of the year in which the taxes are imposed for collection the following year.  The exceptions, include:

o The boundaries of a mosquito control district are established on the first day of September of the year in which the taxes are imposed;

o The boundaries of a newly incorporated port district that has boundaries coterminous with another taxing district's boundaries, as they existed prior to the first day of March of that year, are established on the first day of October;

o The boundaries of any taxing district are established as of the first day of June if the taxing district incorporated that year and has boundaries coterminous with those of another taxing district as it existed on the first day of March of that year; and

o The boundaries of any taxing district are established as of the first day of June if its boundaries have been altered that year by the removal or addition of territory that is contiguous with the boundaries of another taxing district as it existed on the first day of March of that year.

SUMMARY:

SUBSTITUTE BILL:  For purposes of imposing property taxes, the boundaries of a newly-incorporated city are established on the last day of March of the year in which the property tax is made if the city files its budget and requests its property tax levy at the required dates.  The boundaries of a fire protection district, library district, and road district, within which the newly incorporated area was located, are altered accordingly at that time.  On or before the first day of March, the county auditor must supply the department of revenue with the boundary description of a city that is proposed to be incorporated at a special election held in March.

If the boundaries of a city are established as of the first day of June for purposes of imposing property taxes, as a result of annexing certain territory, the boundaries of a library district, fire protection district or road district that included such territory also shall be altered at that date.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  (1) Boundaries of a newly incorporated city are established as of the last day of March, instead of the first day of June, for purposes of imposing property taxes.  (2) Road district, fire district, and library district boundaries are altered for purposes of imposing property taxes at the same time the boundaries of a city are established as the result of a city incorporation or annexation.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Representative Brough, Prime Sponsor.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Several city incorporations are going to be voted on in March at special elections.  This will allow newly incorporated cities to impose their initial property taxes one year earlier, if the election is held in March to authorize the incorporation.

House Committee - Testimony Against:      None Presented.