SENATE BILL REPORT

SHB 1370

BYHouse Committee on Local Government (originally sponsored by Representatives Brough, Haugen, Ferguson, Sayan, Hine, Miller and G. Fisher) 

Changing provisions relating to taxing district boundaries.

House Committe on Local Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):March 27, 1989

Majority Report:  Do pass as amended.

      Signed by Senators McCaslin, Chairman; Thorsness, Vice Chairman; Conner, Sutherland.

Senate Staff:Sam Thompson (786-7754)

                  March 27, 1989

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, MARCH 27, 1989

BACKGROUND:

The boundaries of local governments imposing property taxes are those existing on the first day of March in the year that the taxes are imposed.  The taxes are collected the following year.

A number of special elections were recently held in King County concerning proposed incorporations of cities in Woodinville, an area surrounding Sea-Tac Airport, and Federal Way.  Two proposed incorporations were approved by voters.  Under existing law, the new cities will not have the authority to impose a property tax this year for collection next year because the incorporations were approved after March 1.  Property tax collection will have to wait until 1991.

SUMMARY:

For purposes of imposing property taxes, the boundaries of a newly-incorporated city are those established on the last day of March of the year in which the tax is levied, if the city files its budget and requests its tax levy on the required dates at the end of this year.

The boundaries of fire protection, library and road districts within the incorporated area will be altered accordingly at the time the property tax boundary is established. 

If the property tax boundary of a city that annexed territory is established by the first day of June, the boundaries of fire protection, library and road districts within the annexed territory will be altered on that date.

On or before the first day of March, the county auditor must supply the state department of revenue with the boundary description of a city that is proposed to be incorporated at a special election held in March.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

Effective Date:The bill contains an emergency clause and takes effect immediately.

SUMMARY OF PROPOSED SENATE AMENDMENT:

Nonsubstantive grammatical changes make the language more understandable.

Senate Committee - Testified: Representative Jean Marie Brough, original sponsor (pro)