SENATE BILL REPORT

SB 6707

BYSenators Barr, Conner and Bailey

Modifying levy rate provisions for senior and junior taxing districts.

Senate Committee on Ways & Means

Senate Hearing Date(s):January 31, 1990

Senate Staff:Terry Wilson (786-7715)

AS OF JANUARY 29, 1990

BACKGROUND:

Statutes limit the regular property tax rate of the state to $3.60 per $1,000 of market valuation and of most other taxing districts to $5.55 per $1,000 of assessed valuation.  When the cumulative rates of these other taxing districts exceed $5.55 per $1,000, county assessors must reduce or eliminate the rates of various taxing districts, according to priorities set by the Legislature, until the cumulative rates are within the limit.  Districts are grouped within five priority levels, and the levies of districts within lower priority levels are reduced or eliminated before the levies of districts in higher priority levels.

Statutes authorize voters to increase the $5.55 limit up to $5.90 for five years to protect the levies of library districts, public hospital districts, metropolitan park districts, and the first $.50 levy of fire protection districts.  The voters of several areas have approved this increase.

SUMMARY:

The need to reduce or eliminate junior taxing district property tax levies is decreased by:

(1) Increasing the $5.55 per $1,000 of assessed valuation rate limit by $.35 to $5.90 and eliminating the authority of voters to increase the limit; and

(2) Splitting the $.75 per $1,000 of assessed valuation levy authority for both public hospital districts and metropolitan park districts into two separate tax levies for each district.  Each district is authorized a levy of $.50 per $1,000 of assessed valuation that maintains its existing priority at the highest level.  Each district is authorized an additional levy of $.25 per $1,000 of assessed valuation that is given a lesser priority.

Appropriation:  none

Revenue:   yes

Fiscal Note:    requested