SENATE BILL REPORT

HB 2053

BYRepresentatives Silver, Locke, May, H. Sommers, Ferguson, Horn and Wood

Providing a seven-year limitation for regular property tax levies involving redemption payments on bonds.

House Committe on Revenue

Senate Committee on Ways & Means

Senate Hearing Date(s):March 30, 1989; March 31, 1989

Majority Report:  Do pass as amended.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bailey, Bauer, Bluechel, Cantu, Fleming, Johnson, Lee, Moore, Niemi, Saling, Smith, Talmadge, Williams, Wojahn.

Senate Staff:Bill Bafus (786-7715)

                  April 3, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, MARCH 31, 1989

BACKGROUND:

Property taxing districts may ask voters to lift the 106 percent property tax limit, with the following options: 1) limit the period for which the increased levy is to be made; 2) limit the purpose for which the increased levy is to be made; 3) set the levy at a rate less than the maximum rate allowed for the district; or 4) include any combination of the conditions listed above.

Increases in the 106 percent limit must be approved by a majority of the voters of the district at a general election or special election held for that purpose.

SUMMARY:

Ballot propositions shall clearly state any conditions that are applicable when voters are asked to increase the 106 percent property tax limit.

If a taxing district asks its voters to raise the 106 percent property tax limit for the purpose of redemption payments on bonds, the increased levy shall not exceed seven years in duration.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

SUMMARY OF PROPOSED SENATE AMENDMENT:

The time limit for bond redemption levies is changed from seven to nine years in order to more closely correspond to the term of bonds usually issued by taxing authorities.

Senate Committee - Testified: Representative Silver (for); Stan Finkelstein, Association of Washington Cities (con)