SENATE BILL REPORT

SB 5880

BYSenators Barr, McCaslin, Hansen, Saling, Patterson and Owen

Creating a housing unit excise tax for cemetery districts.

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 21, 1989

Majority Report:  Do pass.

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

Senate Staff:Eugene Green (786-7405); Sam Thompson (786-7754)

                  February 23, 1989

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 21, 1989

BACKGROUND:

In 1987, due to increasing problems with property tax levy rate reductions for junior taxing districts, the relative status of tax levies and taxing districts was classified and altered.  The classification and alteration for junior taxing districts from least seniority to most seniority was as follows:  (1) park and recreation districts, park and recreation service areas, and cultural arts districts; (2) flood control zone districts; (3) all other junior taxing districts including cemetery districts (except fire districts, hospital districts, library districts, and metro park districts); (4) the second and third $.50 property tax levies of fire districts; and (5) hospital districts, library districts, metro park districts, and the first $.50 levy of fire districts.  Therefore, the status of cemetery districts was lowered from the highest status to one below the second and third $.50 tax levies of fire districts.  The annual property tax levy for cemetery districts may not exceed $.1125 cents per $1,000 of assessed valuation.

Because of this lowering of status, a number of cemetery districts no longer receive any property tax revenues.

SUMMARY:

Whenever a cemetery district is subject to a reduction in or elimination of its property tax, the commissioners of the district may adopt resolutions for the levy and collection of a housing unit excise tax.  The rate of such excise tax shall not exceed a rate necessary to collect an amount equal to the difference between the property tax revenues received after a reduction or elimination and the amount that would have been received had the full property tax levy rate, subject to the 106 percent limitation, been used.

"Housing unit" is defined.

This optional excise tax is subject to a referendum procedure.

The country treasurer may delegate duties related to this excise tax to the cemetery district commissioners and charge a fee for his or her services.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 14, 1989

Senate Committee - Testified: No one