SENATE BILL REPORT

2SSJR 8212

BYSenate Committee on Ways & Means (originally sponsored by Senators Lee, Williams and Fleming)

Amending the Constitution to allow property devoted to low-income housing to be taxed based on its current use value.

Senate Committee on Economic Development & Labor

Senate Hearing Date(s):January 24, 1990; January 29, 1990

Majority Report:     That Substitute Senate Joint Resolution No. 8212 be substituted therefor, and the substitute joint resolution do pass.

     Signed by Senators Lee, Chairman; Anderson, Vice Chairman; Murray, Smitherman, Warnke, Williams.

Senate Staff:Dave Cheal (786-7576)

                February 2, 1990

Senate Committee on Ways & Means

Senate Hearing Date(s):February 5, 1990; February 6, 1990

Majority Report:     That Second Substitute Senate Joint Resolution No. 8212 be substituted therefor, and the second substitute joint resolution do pass.

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

Senate Staff:Terry Wilson (786-7715)

                February 28, 1990

House Committe on Housing

Rereferred House Committee on Revenue

AS PASSED SENATE, FEBRUARY 13,  1990

BACKGROUND:

Under the state Constitution, real property must be taxed according to the valuation of its highest and best use.  Exceptions to this rule are listed in Article VII, Section 11 and include farm and agricultural land, standing timber and timberlands, and open space lands. 

Taxing residential real estate at highest and best use, particularly innercity multi-family housing, encourages owners to redevelop their property to secure the highest possible revenue in order to cover the tax burden.  This rule discourages owners of low-income housing from maintaining their property for that use.

SUMMARY:

Property devoted primarily to low-income housing, containing five or more low-income dwelling units, and that complies with health and safety standards is added to the list of properties in Article VII, Section 11 of the state Constitution that may be assessed at an amount based on their current use.  The property must be totally devoted to low-income housing.

Appropriation:  none

Revenue:   none

Fiscal Note:    available

Senate Committee - Testified:   ECONOMIC DEVELOPMENT & LABOR:  Mike Ryherd (pro); Karen Gordon (pro)

Senate Committee - Testified:   WAYS & MEANS:  Mike Ryherd (pro)

HOUSE AMENDMENT:

Property not devoted exclusively to low-income housing, but primarily to that use, could be assessed at a valuation based on their current use.  The amendment adds mobile home parks to the list of properties that may be assessed based on current use.