SENATE BILL REPORT

                   SB 6524

              As Reported By Senate Committee On:

                  Education, February 6, 1998

Title:  An act relating to defining prior tax collection year for purposes of local effort assistance.

Brief Description:  Redefining prior tax collection year for purposes of local effort assistance.

Sponsors:  Senators Morton, Rasmussen and Hochstatter.

Brief History:

Committee Activity:  Education:  2/6/98 [DP-WM].

Ways & Means:  2/10/98.

SENATE COMMITTEE ON EDUCATION

Majority Report:  Do pass and be referred to Committee on Ways & Means.

  Signed by Senators Hochstatter, Chair; Finkbeiner, Vice Chair; Johnson, Rasmussen and Zarelli.

Staff:  William Bridges (786-7424)

SENATE COMMITTEE ON WAYS & MEANS

Staff:  Bill Freund (786-7441)

Background:  The property tax rate required for a 10 percent maintenance and operations levy varies among school districts.  There is a state-funded levy equalization program which is designed to assist school districts which require an above average property tax rate for a 10 percent levy.  The amount of assessed property value in a school district has a large bearing on the property tax rate needed for a levy and eligibility for levy equalization.

Levy equalization for a calendar year is calculated using the assessed property valuations from the prior calendar year.

In most cases when a school district places a levy before the voters, the amount of assessed valuation and the eligibility for levy equalization is not known.  The Superintendent of Public Instruction furnishes school districts with estimates on the amount of anticipated levy equalization payments based on a number of assumptions.  The agency also advises school districts that these are estimates and that districts should make their own estimates.

Summary of Bill:  The lag in assessed property values is changed from one year to two years when calculating levy equalization.

Appropriation:  None.

Fiscal Note:  Requested on January 23, 1998.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  School districts would know the results of assessed property valuations at the time they run their levies.

Testimony Against:  None.

Testified:  Richard Cole, Colville School Dist. (pro); Bob Dick, NW Forestry Association  (pro).