2089 AMH THOB LONG 195

HB 2089 ‑ H AMD to AMD (H2923.2)850

By Representative B. Thomas

     On page 1, line 7, after "provide" strike everything through page 3, line 17, and insert "a comprehensive study of Washington's property tax system.  The legislature finds as follows:

(1) The property tax remains a key component of the state-local tax system, and by far the largest source of local government revenues;

(2) Average levy rates and effective tax rates have risen substantially over the last ten years;

(3) Property assessments may increase rapidly in certain geographic areas, resulting in sharp increases in taxes on many homeowners, without corresponding increases in ability to pay;

(4) Property tax increases may place financial hardships on many low-income and middle-income families;

(5) Current constitutional provisions relating to the property tax may not provide sufficient protections from such financial hardships;

(6) Some property tax relief measures that may be proposed to address this problem would result in unfair tax shifts and other inequities; and

(7) Some property tax relief measures that may be proposed to address this problem would result in costly administrative burdens upon state and local government budgets.

NEW SECTION. Sec. 69.  There is hereby created a joint select committee on property tax reform composed of twelve members, with six members of the senate, three from each of the two largest caucuses, to be appointed by the president of the senate; and six members of the house of representatives, three from each of the two largest caucuses, to be appointed by the speaker of the house of representatives.  The speaker of the house of representatives and the president of the senate shall designate cochairs of the committee.  The expenses of the committee members shall be paid by the legislature under chapter 44.04 RCW.  Staff support for the committee shall be provided by senate committee services and house of representatives office of program research as mutually agreed by the cochairs of the joint select committee.  The committee may also use the research services provided to the legislature by the department of revenue under RCW 82.01.060(4).

NEW SECTION. Sec. 70.  The joint select committee on  property tax reform shall complete a thorough review of this state's property tax system, addressing the following issues:

     (1) What is the nature and intent of the constitutional requirement of uniformity in property taxation?

     (2) Is fair market value the only constitutionally permitted basis for property taxation?

     (3) Does the current property tax administration comply with the uniformity requirement?

     (4) Assuming the greatest practicable compliance with the uniformity requirement, is the current property tax system fair and equitable?

     (5) Is the current property tax system perceived by the taxpayers to be a fair and equitable property tax system?

     (6) What changes, if any, should the legislature make in the property tax system?

     (7) Would these changes require an amendment of the state Constitution?

     (8) What would be the consequences of these changes on individual taxpayers, classes of taxpayers, and state and local government budgets?

     The joint select committee on property tax reform shall submit its final report to the legislature by December 31, 1995."

     Renumber sections consecutively, correct any internal references accordingly, and correct the title.