HOUSE BILL REPORT

                 EHB 3068

                      As Passed House:

                        March 9, 2000

Title:  An act relating to exempting privatization contracts for the treatment of radioactive waste and hazardous substances from property taxes.

Brief Description:  Exempting privatization contracts for the treatment of radioactive waste and hazardous substances from property taxes.

Sponsors:  Representatives Kessler, Hankins, Delvin, Mastin, Grant, Linville and G. Chandler.

Brief History:

  Floor Activity:

Passed House:  3/9/00, 98-0.

                 Brief Summary of Bill

$Exempts private property used for tank waste clean up at Hanford from property tax.

HOUSE COMMITTEE ON FINANCE

Majority/Minority Report:    None.  (Bill removed from committee on 3/9/00).

Staff:  Rick Peterson (786-7150).

Background:

All property in this state is subject to the property tax each year based on the property's value unless a specific exemption is provided by law.  Property owned by governments is exempt from property tax.  However, private property located on government owned property is not exempt from tax.

Summary of Bill:

Starting in 2002, private property located on federal land at the Hanford reservation that is used exclusively in the performance of a contract with the federal government to pretreat, treat, vitrify, and immobilize tank waste is exempt from state property tax.  To be exempt from state property tax for the years 2002 through 2005,  the owner must comply with schedules for tank waste treatment start of construction, hot commissioning, tax waste pretreatment processing, and vitrification.  The contractor must file progress reports with the Washington Department of Ecology in August of each year.  Starting in 2006, the property is exempt from both state and local property taxes.

Appropriation:  None.

Fiscal Note:  Requested March 9, 2000.

Effective Date: The bill takes effect on January 1, 2001.

Testimony For:  None.

Testimony Against:  None.

Testified:  None.