HOUSE BILL REPORT

                 SSB 6115

                      As Passed House:

                        March 2, 2000

Title:  An act relating to the reinstatement of the exemption from property tax for motor vehicles, travel trailers, and campers eliminated by Initiative 695.

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

Sponsors:  Senate Committee on Ways & Means (originally sponsored by Senators Loveland, Brown, Bauer, Snyder, Rasmussen, Haugen, B. Sheldon, Eide, Jacobsen, McAuliffe, Gardner, Heavey, Franklin, Patterson, Prentice, T. Sheldon, Costa, Goings, McCaslin, Swecker and Winsley; by request of Governor Locke).

Brief History:

  Committee Activity:

Finance:  2/28/00 [DP].

Floor Activity:

Passed House:  3/2/00, 96-2.

           Brief Summary of Substitute Bill

$Exempts motor vehicles, travel trailers, and campers from property taxation.

HOUSE COMMITTEE ON FINANCE

Majority Report:  Do pass.  Signed by 11 members:  Representatives Dunshee, Democratic Co-Chair; Thomas, Republican Co-Chair; Cairnes, Republican Vice Chair; Reardon, Democratic Vice Chair; Carrell; Conway; Cox; Dickerson; Pennington; Santos and Van Luven.

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Initiative 695 repealed the motor vehicle excise tax and the travel trailer and camper excise tax.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 1970s,  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  Initiative 695 repealed the property tax exemptions for motor vehicles, travel trailers, and campers.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:  Available.

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

Testimony For:  None.

Testimony Against:  None.

Testified:  None.