FINAL BILL REPORT

                 EHB 3068

                         C 246 L 00

                     Synopsis as Enacted

Brief Description:  Exempting personal property used in connection with 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.

House Committee on Finance

Background:

All property in Washington 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 personal 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.

Votes on Final Passage:

House980

Senate442

Effective:January 1, 2001