HOUSE BILL REPORT

HJR 4207

BYRepresentatives Haugen, Winsley, Appelwick, Ferguson, Cooper, Dorn, Brough, Fraser, Jones, Nelson, Walker and Rasmussen

Amending the Constitution to allow excess levies for up to six-year periods by the state and taxing districts.

House Committe on Revenue

Majority Report:  Do pass.  (17)

      Signed by Representatives Wang, Chair; Pruitt, Vice Chair; Holland, Ranking Republican Member; Horn, Assistant Ranking Republican Member; Appelwick, Basich, Brumsickle, Fraser, Fuhrman, Grant, Haugen, Morris, Phillips, Rust, Silver, H. Sommers and Van Luven.

House Staff:Rick Wickman and Bob Longman (786-7136)

AS REPORTED BY COMMITTEE ON REVENUE MARCH 1, 1989

BACKGROUND:

Taxing districts, other than school districts, may impose excess or special levies for general purposes for a one-year period if authorized by the voters of the district.  School districts may impose excess or special levies, if authorized by the voters as follows: 1) for one or two years for any purpose; and 2) for up to a six-year period for the purposes of construction, modernization, or remodeling school facilities.

Districts seeking voter approval of such propositions are subject to the 60 percent/40 percent voter approval requirement (60 percent favorable vote of at least 40 percent of those voting in the last general election).  In seeking voter approval, taxing districts must describe levies in terms of a dollar amount for ballot purposes.  In cases of general obligation indebtedness levies, it is often impossible for a district to know precisely the actual dollar amount required until the bonds are sold and the interest rate or rates, terms, and bond retirement provisions are evident.

Some taxing district levies are unique.  For example, emergency medical service districts (EMS) levies are authorized for six years up to $.25 per $1,000 of assessed valuation with a 60 percent/40 percent voter approval requirement.  Park and Recreation Districts, Park and Recreation Service areas, Cultural Arts, Stadium, and Convention Center Districts possess levy authority of up to $.15 per $1,000 of assessed value by a 60 percent/40 percent vote of the people for up to either a five or six-year period.

The state does not possess authority to impose single year excess levies under existing constitutional provisions.  Additionally, the constitution limits excess levies.

SUMMARY:

Property taxing districts, including the state would be authorized to impose six year levies.  The proposed constitutional amendment authorizing six year levies is to be placed before the voters for their approval or rejection in November, 1989.

Fiscal Note:      Not Requested.

House Committee ‑ Testified For:    Mark Allen, WLA; Mike Lynch, North Central Regional Library; Lon Dickerson; Timberland Regional Library; Carolyn Else, Pierce County Library; Nancy Pearson, Pierce County Library; Les Eldridge, Thurston County; Jim Metcaf, Washington State Association of Counties; Councilman Brian Corcran, Snohomish County; Val Loveland, Franklin County; Tom Falquist, Spokane County; Chuck Gordon, Pierce County; Karen Davis, Washington Education Association; Pete Spiller, Washington Fire Commissioners; Seth Dawson, WAPA; Howard Vietzke, Firefighters; Pat Berndt, City of Yakima; Dick Zais, City of Yakima; Kent Swisher, Association of Washington Cities; Jack Hebner, City of Spokane; Jim Salatino, Metro Park District; and Bruce Holloway, Grant County Fire District 5.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    State and local taxing districts need the authority to levy six-year levies to provide for a stable, predictable revenue source for funding local services and programs.

House Committee - Testimony Against:      None Presented.