HOUSE BILL REPORT

HB 2303

BYRepresentatives Crane, Locke, Todd, Fraser, Brough and Rayburn

Removing the 40% validation requirement for emergency medical service levies.

House Committe on Local Government

Majority Report:  Do pass.  (11)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Ferguson, Ranking Republican Member; Kirby, Nelson, Nutley, Phillips, Raiter, Rayburn, Wood and Zellinsky.

Minority Report:  Do not pass.  (3)

      Signed by Representatives Horn, Nealey and Wolfe.

House Staff:Steve Lundin (786-7127)

AS PASSED HOUSE FEBRUARY 5, 1990

BACKGROUND:

Article VII, Section 2, of the state constitution, limits the aggregate of all property taxes that are imposed by the state and most local governments in any year not to exceed one percent of the value of the property upon which such taxes are imposed. Property taxes imposed by port districts and public utility, as well as excess voter approved tax levies, are not subject to this limitation.

Statutes reduce this one percent constitutional limitation.  The state may impose regular property taxes to finance K-12 education at a rate not to exceed $3.60 per $1,000 of assessed valuation, adjusted to the state equalized value.  The aggregate of regular property taxes imposed by all other taxing districts, subject to the constitutional one percent limitation, may not exceed an amount equal to $5.55 per $1,000 of assessed valuation, except that this limitation does not apply to regular property taxes of up to: (1) $.0625 per $1,000 of assessed valuation each year for conservation futures; (2) $.35 per $1,000 of assessed valuation to protect the tax levy of a junior taxing district from prorationing, or reduction, if voters of the taxing district authorize such levies by a simple majority vote to be used for each year of a five consecutive year period; and (3) $.25 per $1,000 of assessed valuation for emergency medical services, if voters of the taxing district imposing this tax authorize such levies by a 60 percent vote, with a 40 percent validation requirement, authorizing these levies to be imposed each year for six years.

The following taxing districts are authorized to impose the regular property tax levies of up to $.25 per $1,000 of assessed valuation for each of six years to be used for emergency medical services purposes, when authorized by a 60 percent vote, with a 40 percent validation requirement: (1) counties; (2) cities and towns; (3) fire protection districts; (4) public hospital districts; and (5) emergency medical services districts.

SUMMARY:

The 40 percent validation requirement is eliminated in the voter approval of regular property tax levies of up to $.25 per $1,000 of assessed valuation for each of six years for emergency medical services.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Representative Ernie Crane, Prime Sponsor; Howard Vietzke, Washington State Council of Fire Fighters; and Roger Ferris, Washington Fire Commissioners Association.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    A problem can arise with this 40 percent validation requirement.  These levies are not excess levies.  The Legislature could have allowed them to be imposed without voter approval being required.

House Committee - Testimony Against:      None.