FINAL BILL REPORT

SSB 6639

                             C 5 L 90 E1

BYSenate Committee on Ways & Means (originally sponsored by Senators McDonald, McMullen, Bluechel, Niemi, Patrick, Warnke, Metcalf, Vognild, Bailey, Conner, Talmadge, Rinehart, Williams, Murray, Moore and von Reichbauer)

Authorizing a real estate excise tax for the acquisition of conservation areas.

Senate Committee on Ways & Means

House Committe on Revenue

SYNOPSIS AS ENACTED

BACKGROUND:

Counties may acquire any interest, development right, easement or other contractual right for protecting, maintaining, or limiting the future uses of open space lands or farm and agricultural lands.

To accomplish this purpose counties may levy a regular property tax of $.0625 per $1000 of assessed value.  The tax may be levied without a vote of the people and is outside the $5.55 statutory limitation but within the 1 percent constitutional limitation on regular levies.

The state imposes a real estate tax at the rate of 1.28 percent.  The seller is liable for this tax.  Counties are authorized to impose a .5 percent real estate excise tax for general purposes in lieu of the second .5 percent local option sales tax.  In addition, counties may impose a .25 percent real estate excise tax for capital funding purposes only.  The .25 percent tax is not subject to referendum.

SUMMARY:

Counties are authorized to levy up to a 1 percent real estate tax to acquire and maintain conservation areas.  The tax requires voter approval and would be imposed countywide.  The buyer is liable for the tax and payment of the tax is required prior to recording of the title.

The proposal for the tax may be initiated by the county commissioners or by petition signed by 10 percent of the total number of voters voting in the last county election.

An expenditure plan must be prepared 60 days before the election if the proposition is initiated by the county legislative authority, or within six months if initiated by petition.  The county must consult with cities regarding the expenditure plan.

VOTES ON FINAL PASSAGE:

     Senate   29   16

     House 52 44 (House amended)

     Senate          (Senate refused to concur)

First Special Session

     Senate   28   21

     House 50 45 (House amended)

     Senate          (Senate refused to concur)

     House 51 38 (House receded)

EFFECTIVE:July 1, 1990