SENATE BILL REPORT

SB 6639

BYSenators 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

Senate Hearing Date(s):February 1, 1990; February 5, 1990

Majority Report:     That Substitute Senate Bill No. 6639 be substituted therefor, and the substitute bill do pass.

     Signed by Senators McDonald, Chairman; Bailey, Bluechel, Fleming, Johnson, Lee, Moore, Niemi, Talmadge, Warnke, Williams, Wojahn.

Senate Staff:Bill Freund (786-7715)

                February 6, 1990

AS REPORTED BY COMMITTEE ON WAYS & MEANS, FEBRUARY 5, 1990

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

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.

EFFECT OF PROPOSED SUBSTITUTE:

A technical amendment is made specifying that approval of the proposition shall be by a majority of county voters voting thereon.  It is clarified that payment of the tax is a prerequisite to recording of the title conveyance.

Appropriation:  none

Revenue:   none

Fiscal Note:    none requested

Senate Committee - Testified:   Tom Cowan, San Juan County Commissioner (pro); Peter Fisher, Friends of the San Juans (pro); Judy Moody, San Juan Open Space Committee (pro); Diane Pressenda (pro); Jim Salatino, Christine This, Washington Association of Realtors (con)