FINAL BILL REPORT

                  HB 2505

                         C 242 L 00

                     Synopsis as Enacted

Brief Description:  Modifying the definition of "city" for the multiple‑unit dwellings property tax exemption.

Sponsors:  Representatives Cairnes, Veloria, O'Brien, Morris, Radcliff, Scott, Barlean, Esser, Kagi, Keiser, Fortunato, Schual‑Berke, Edwards and Miloscia.

House Committee on Finance

Senate Committee on State & Local Government

Background:

New, rehabilitated, or converted multiple‑unit housing projects in targeted residential areas are eligible for a 10‑year property tax exemption program.  The property tax exemption applies to increases in the assessed valuation of the building made after the application for the tax exemption.  The exemption does not apply to the land or the nonhousing related improvements. 

The property tax exemption program is limited to cities with a population of at least 100,000, and the largest city or town within a county planning under the Growth Management Act.  A targeted residential area must be located within an urban center, lack sufficient available, desirable, and convenient residential housing to meet public demand, and increase permanent residents in the area or achieve the planning goals of the Growth Management Act.  The city is authorized to establish standards and guidelines for  approving tax exemption applications by developers.

Summary of Bill:

The population threshold for cities that are eligible for the 10‑year property tax exemption program for new, rehabilitated, or converted multiple‑unit housing is lowered from 100,000 to 50,000.

Votes on Final Passage:

House888

Senate462

Effective:June 8, 2000