2841 AMH MORR H4799.1 [atlas:amendment]

2841 AMH MORR H4799.1

HB 2841 - H AMD 061 WITHDRAWN 2-7-96

By Representative Morris

Beginning on page 1, after line 4, strike all material through "year." on page 2, line 25, and insert the following:

"Sec. 1. RCW 84.55.005 and 1994 c 301 s 49 are each amended to read as follows:

As used in this chapter((~~, the term~~)):

(1) "Regular property taxes" has the meaning given it in RCW 84.04.140, and also includes amounts received in lieu of regular property taxes.

(2) "Inflation" means the percentage change in the implicit price deflator for the United States for each calendar year as published by the United States department of commerce.

(3) "Population change" means the percentage change in district population for each year as reported by the office of financial management.

(4) "Fiscal growth factor" means the average of the sum of inflation and population change for each of the prior three calendar years.

Sec. 2. RCW 84.55.010 and 1979 ex.s. c 218 s 2 are each amended to read as follows:

Except as provided in this chapter, the levy for a taxing district in any year shall be set so that the regular property taxes payable in the following year shall not exceed one hundred six percent or one hundred percent plus the fiscal growth factor, whichever is lower, of the amount of regular property taxes lawfully levied for such district in the highest of the three most recent years in which such taxes were levied for such district plus an additional dollar amount calculated by multiplying the increase in assessed value in that district resulting from new construction, improvements to property, and any increase in the assessed value of state-assessed property by the regular property tax levy rate of that district for the preceding year.

Sec. 3. RCW 84.55.020 and 1971 ex.s. c 288 s 21 are each amended to read as follows:

Notwithstanding the limitation set forth in RCW 84.55.010, the first levy for a taxing district created from consolidation of similar taxing districts shall be set so that the regular property taxes payable in the following year shall not exceed one hundred six percent or one hundred percent plus the fiscal growth factor, whichever is lower, of the sum of the amount of regular property taxes lawfully levied for each component taxing district in the highest of the three most recent years in which such taxes were levied for such district plus the additional dollar amount calculated by multiplying the increase in assessed value in each component district resulting from new construction and improvements to property by the regular property tax rate of each component district for the preceding year."

EFFECT OF AMENDMENT: Amends the current 106 percent levy lid by restricting growth in state and local regular levies to the lesser of a "fiscal growth factor" or six percent. The "fiscal growth factor" is the average of population growth plus inflation for the three prior years. This is similar to the I-601 growth factor.