House of Representatives                     P.O. Box 40600

Office of Program Research            Olympia WA 98504-0600

Finance Committee                        Phone 360-786-7100

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HB 2505

Bill Analysis

January 25, 2000

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

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

          Brief Summary of Bill

CExpands the areas included in the 10 year property tax exemption for multiple-unit housing projects by lowering the eligible city population threshold from 100,000 to 50,000.

Staff: Rick Peterson, 786-7150.

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 the increased value 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.

Appropriation: None.

Fiscal Note:  Requested January 12, 2000.

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