6600-S AMH REV H4510.1

6600-S AMH REV H4510.1

SSB 6600 - H COMM AMD

By Committee on Revenue

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. The sum of one hundred thousand dollars, or as much thereof as may be necessary, is appropriated to the legislature, to be divided equally between the senate and the house of representatives, from the general fund for the biennium ending June 30, 1995, for the purpose of conducting a study of the property tax system of Washington and other states. The goal of the study shall be to analyze the existing system with an emphasis on the problems resulting from changes in economic conditions and actual impacts on residential property taxes. The study shall consider possible changes to the system, including the adoption of an alternative system, that would alleviate the problems of the current system and operate to enhance the confidence of persons in the property tax system beyond that confidence level that now exists. Alternative systems considered may include two-tiered property tax systems, property classification systems, tax or value limitations, homestead or other exemptions, or alternative tax bases.

The appropriation shall be used to contract with a private consultant to conduct the study.

The study shall examine the current and possible alternative systems in terms of the following:

(1) What are the major strengths and deficiencies of the current system?

(2) What problems are caused by the current system, including problems perceived by property taxpayers, and to what extent do the problems exist?

(3) How can the problems be reduced or eliminated?

(4) How would a proposed change shift the burden among property tax payers, both short and long-term? What will be the consequence of any proposed change on individual taxpayers?

(5) What will be the consequence of any proposed change on the stability and predictability of local government revenues?

(6) Does the current or any alternate system proposed provide an equitable, predictable, and easily administered property tax system?

(7) For any alternative system proposed, what are the major strengths and deficiencies? What are the costs, both state and local, associated with making the change?

(8) Are the alternative systems consistent with state policies, including growth management, transportation planning, and the environment?

(9) Are the alternative systems likely to promote business growth and economic activity?

A legislative oversight committee is hereby created to monitor and consult with the contractor selected to conduct the study. The committee shall consist of six legislators, three from the senate and three from the house of representatives. Not more than two members from each chamber shall be from the same political party. The members from the senate shall be appointed by the president of the senate and the members from the house of representatives shall be appointed by the speaker of the house of representatives.

The department of revenue, and all local governments, shall provide all technical assistance and data required by the contractor to perform the study.

The contractor shall prepare and provide a final report, together with recommendations, to the oversight committee and the fiscal committees of the legislature by December 1, 1994.

NEW SECTION. Sec. 2. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately."