House of Representatives                     P.O. Box 40600

Office of Program Research            Olympia WA 98504-0600

Finance Committee                        Phone 360-786-7100

1

HB 2309

Bill Analysis

January 18, 2000

Brief Description: Reinstating the property tax exemption for motor vehicles, travel trailers, and campers.

Bill Sponsors: Representatives Thomas and Fortunato.

          Brief Summary of Bill

CExempts motor vehicles, travel trailers, and campers from property taxation.

Staff: Rick Peterson, 786-7150.

Background: 

All real and personal property in this state is subject to property tax each year based on its value unless a specific exemption is provided by law.  Taxable property includes both real property and personal property.  Real property is land and the buildings, structures, or improvements that are affixed to the land.  Personal property includes all other property.

Initiative 695 repealed the motor vehicle excise tax and the travel trailer and camper excise tax.  The motor vehicle excise tax was adopted in 1937.  Prior to that time vehicles were subject to property tax.  The motor vehicle excise tax statutes contained an exemption from property taxes. In 1943, house trailers were added to the motor vehicle excise tax.  In the 1970's a separate statute was created for the excise tax on travel trailers and campers.  The travel trailer and camper excise tax statutes contained an exemption from property taxes.  Initiative 695 repealed the property tax exemptions for motor vehicles, travel trailers, and campers.

Summary of Bill:

Motor vehicles, travel trailers, and campers are exempt from property taxation.  The act applies retrospectively to January 1, 2000.

Appropriation:  None.

Fiscal Note:  Requested January 12, 2000.

Effective Date: The bill contains an emergency clause and takes effect immediately.