BP BHEAD INT S [atlas:bill]

AN ACT Relating to transferring the state property tax to local school districts; amending RCW 84.52.065, 84.52.0531, and 84.52.043; adding a new section to chapter 84.52 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 84.52.065 and 1991 sp.s. c 31 s 16 are each amended to read as follows:

(1) Subject to the limitations in RCW 84.55.010, in each year the state shall levy for collection in the following year for the support of common schools of the state a tax ((~~of three dollars and sixty cents per thousand dollars of assessed value~~)) at the rate specified in subsection (2) of this section upon the assessed valuation of all taxable property within the state adjusted to the state equalized value in accordance with the indicated ratio fixed by the state department of revenue.

(2) The rate of state tax in subsection (1) of this section shall be as follows:

(a) Three dollars and sixty cents per thousand dollars of assessed value for taxes levied for collection in 1999, and before;

(b) Three dollars per thousand dollars of assessed value for taxes levied for collection in 2000;

(d) Two dollars and forty cents per thousand dollars of assessed value for taxes levied for collection in 2002;

(e) Two dollars and ten cents per thousand dollars of assessed value for taxes levied for collection in 2003;

(f) One dollar and eighty cents per thousand dollars of assessed value for taxes levied for collection in 2004;

(g) One dollar and fifty cents per thousand dollars of assessed value for taxes levied for collection in 2005;

(h) One dollar and twenty cents per thousand dollars of assessed value for taxes levied for collection in 2006;

(i) Ninety cents per thousand dollars of assessed value for taxes levied for collection in 2007;

(j) Sixty cents per thousand dollars of assessed value for taxes levied for collection in 2008;

(k) Thirty cents per thousand dollars of assessed value for taxes levied for collection in 2009; and

(l) No tax may be levied under this section for taxes levied for collection in 2010 and thereafter.

(3) As used in this section, "the support of common schools" includes the payment of the principal and interest on bonds issued for capital construction projects for the common schools.

NEW SECTION. Sec. 2. A new section is added to chapter 84.52 RCW to read as follows:

(1) A school district may impose an annual regular property tax at the rate specified in subsection (2) of this section upon the assessed valuation of all taxable property within the district.

(2) The rate of tax in subsection (1) of this section shall not exceed the following:

(a) Twenty cents per thousand dollars of assessed value for taxes levied for collection in 2001;

(b) Fifty cents per thousand dollars of assessed value for taxes levied for collection in 2002;

(d) One dollar and ten cents per thousand dollars of assessed value for taxes levied for collection in 2004;

(e) One dollar and forty cents per thousand dollars of assessed value for taxes levied for collection in 2005;

(f) One dollar and seventy cents per thousand dollars of assessed value for taxes levied for collection in 2006;

(g) Two dollars per thousand dollars of assessed value for taxes levied for collection in 2007;

(h) Two dollars and thirty cents per thousand dollars of assessed value for taxes levied for collection in 2008;

(i) Two dollars and sixty cents per thousand dollars of assessed value for taxes levied for collection in 2009;

(j) Two dollars and ninety cents per thousand dollars of assessed value for taxes levied for collection in 2010; and

(k) Three dollars and sixty cents per thousand dollars of assessed value for taxes levied for collection in 2011 and thereafter.

(3) Any tax imposed under this section shall only be used for the maintenance and operation support of the school district.

Sec. 3. RCW 84.52.0531 and 1997 c 259 s 2 are each amended to read as follows:

The maximum dollar amount which may be levied by or for any school district for maintenance and operation support under the provisions of RCW 84.52.053 shall be determined as follows:

(1) For excess levies for collection in calendar year 1997, the maximum dollar amount shall be calculated pursuant to the laws and rules in effect in November 1996.

(2) For excess levies for collection in calendar year 1998 and thereafter, the maximum dollar amount shall be the sum of (a) plus or minus (b) and (c) of this subsection minus (d) of this subsection:

(a) The district's levy base as defined in subsection (3) of this section multiplied by the district's maximum levy percentage as defined in subsection (4) of this section;

(b) For districts in a high/nonhigh relationship, the high school district's maximum levy amount shall be reduced and the nonhigh school district's maximum levy amount shall be increased by an amount equal to the estimated amount of the nonhigh payment due to the high school district under RCW 28A.545.030(3) and 28A.545.050 for the school year commencing the year of the levy;

(c) For districts in an interdistrict cooperative agreement, the nonresident school district's maximum levy amount shall be reduced and the resident school district's maximum levy amount shall be increased by an amount equal to the per pupil basic education allocation included in the nonresident district's levy base under subsection (3) of this section multiplied by:

(i) The number of full-time equivalent students served from the resident district in the prior school year; multiplied by:

(ii) The serving district's maximum levy percentage determined under subsection (4) of this section; increased by:

(iii) The percent increase per full-time equivalent student as stated in the state basic education appropriation section of the biennial budget between the prior school year and the current school year divided by fifty-five percent;

(d) The district's maximum levy amount shall be reduced by the maximum amount of state matching funds for which the district is eligible under RCW 28A.500.010.

(3) For excess levies for collection in calendar year 1998 and thereafter, a district's levy base shall be the sum of allocations in (a) through (c) of this subsection received by the district for the prior school year, including allocations for compensation increases, plus the sum of such allocations multiplied by the percent increase per full time equivalent student as stated in the state basic education appropriation section of the biennial budget between the prior school year and the current school year and divided by fifty-five percent. A district's levy base shall not include local school district property tax levies or other local revenues, or state and federal allocations not identified in (a) through (c) of this subsection.

(a) The district's basic education allocation as determined pursuant to RCW 28A.150.250, 28A.150.260, and 28A.150.350;

(b) State and federal categorical allocations for the following programs:

(i) Pupil transportation;

(ii) Special education;

(iii) Education of highly capable students;

(iv) Compensatory education, including but not limited to learning assistance, migrant education, Indian education, refugee programs, and bilingual education;

(v) Food services; and

(vi) State-wide block grant programs; and

(c) Any other federal allocations for elementary and secondary school programs, including direct grants, other than federal impact aid funds and allocations in lieu of taxes.

(4) A district's maximum levy percentage shall be twenty-two percent in 1998 and twenty-four percent in 1999 and every year thereafter; plus, for qualifying districts, the grandfathered percentage determined as follows:

(a) For 1997, the difference between the district's 1993 maximum levy percentage and twenty percent; and

(b) For 1998 and thereafter, the percentage calculated as follows:

(i) Multiply the grandfathered percentage for the prior year times the district's levy base determined under subsection (3) of this section;

(ii) Reduce the result of (b)(i) of this subsection by any levy reduction funds as defined in subsection (5) of this section that are to be allocated to the district for the current school year;

(iii) Divide the result of (b)(ii) of this subsection by the district's levy base; and

(iv) Take the greater of zero or the percentage calculated in (b)(iii) of this subsection.

The percentage otherwise determined under this subsection (4) shall be reduced by one percentage point for taxes due in 2001, two percentage points for taxes due in 2002, three percentage points for taxes due in 2003, four percentage points for taxes due in 2004, five percentage points for taxes due in 2005, six percentage points for taxes due in 2006, seven percentage points for taxes due in 2007, eight percentage points for taxes due in 2008, nine percentage points for taxes due in 2009, and ten percentage points for taxes due in 2010 and thereafter.

(5) "Levy reduction funds" shall mean increases in state funds from the prior school year for programs included under subsection (3) of this section: (a) That are not attributable to enrollment changes, compensation increases, or inflationary adjustments; and (b) that are or were specifically identified as levy reduction funds in the appropriations act. If levy reduction funds are dependent on formula factors which would not be finalized until after the start of the current school year, the superintendent of public instruction shall estimate the total amount of levy reduction funds by using prior school year data in place of current school year data. Levy reduction funds shall not include moneys received by school districts from cities or counties.

(6) For the purposes of this section, "prior school year" means the most recent school year completed prior to the year in which the levies are to be collected.

(7) For the purposes of this section, "current school year" means the year immediately following the prior school year.

(8) Funds collected from transportation vehicle fund tax levies shall not be subject to the levy limitations in this section.

(9) The superintendent of public instruction shall develop rules and regulations and inform school districts of the pertinent data necessary to carry out the provisions of this section.

Sec. 4. RCW 84.52.043 and 1995 c 99 s 3 are each amended to read as follows:

Within and subject to the limitations imposed by RCW 84.52.050 as amended, the regular ad valorem tax levies upon real and personal property by the taxing districts hereafter named shall be as follows:

(1) Levies of the senior taxing districts shall be as follows: (a) The levy by the state shall not exceed ((~~three dollars and sixty cents~~)) the dollar rate per thousand dollars of assessed value specified in RCW 84.52.065 adjusted to the state equalized value in accordance with the indicated ratio fixed by the state department of revenue to be used exclusively for the support of the common schools; (b) the levy by any county shall not exceed one dollar and eighty cents per thousand dollars of assessed value; (c) the levy by any road district shall not exceed two dollars and twenty-five cents per thousand dollars of assessed value; ((~~and~~)) (d) the levy by any city or town shall not exceed three dollars and thirty-seven and one-half cents per thousand dollars of assessed value; and (e) the levy by any school district shall not exceed the dollar rate per thousand dollars of assessed value specified in section 2 of this act. However any county is hereby authorized to increase its levy from one dollar and eighty cents to a rate not to exceed two dollars and forty-seven and one-half cents per thousand dollars of assessed value for general county purposes if the total levies for both the county and any road district within the county do not exceed four dollars and five cents per thousand dollars of assessed value, and no other taxing district has its levy reduced as a result of the increased county levy.

(2) The aggregate levies of junior taxing districts and senior taxing districts, other than the state, shall not exceed five dollars and ninety cents per thousand dollars of assessed valuation. The term "junior taxing districts" includes all taxing districts other than the state, counties, road districts, cities, towns, port districts, and public utility districts. The limitations provided in this subsection shall not apply to: (a) Levies at the rates provided by existing law by or for any port or public utility district; (b) excess property tax levies authorized in Article VII, section 2 of the state Constitution; (c) levies for acquiring conservation futures as authorized under RCW 84.34.230; (d) levies for emergency medical care or emergency medical services imposed under RCW 84.52.069; (e) levies to finance affordable housing for very low-income housing imposed under RCW 84.52.105; and (f) the portions of levies by metropolitan park districts that are protected under RCW 84.52.120.

NEW SECTION. Sec. 5. This act applies to taxes levied for collection in 2000 and thereafter.