Z-1208.1 _______________________________________________
SENATE BILL 6789
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State of Washington 56th Legislature 2000 Regular Session
By Senators Snyder, McAuliffe, Goings, Bauer, Oke and Rasmussen; by request of Governor Locke
Read first time 01/27/2000. Referred to Committee on Ways & Means.
AN ACT Relating to property tax relief by spreading property tax valuation increases over four years; amending RCW 84.40.0305; and creating a new section.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 84.40.0305 and 1997 c 3 s 105 are each amended to read as follows:
(1) As used in this section:
(a) "Previous assessed value" means the assessed value for the year immediately preceding the year for which a calculation is being made under this section.
(b) "Current appraised value" means the appraised value for the year for which a calculation is being made under this section.
(c) "Total value increase" means the current appraised value minus the previous assessed value. Total value increase can never be less than zero.
(d) "Improvement increase" means the portion of the total value increase attributable to any physical improvements made to the property since the previous assessment, other than improvements exempt under RCW 84.36.400 for the year for which a calculation is being made under this section. Improvement increase can never be less than zero.
(e) "Market increase" means the total value increase minus the improvement increase. Market increase can never be less than zero.
(2) The assessed value of property is equal to the lesser of the current appraised value or a limited value determined under this section. The limited value is equal to the greater of the values determined as follows:
(a) In any year in which the market increase is equal to or less than sixty percent of the previous assessed value, the limited value is the improvement increase plus one hundred fifteen percent of the previous assessed value; or
(b) In any year in which the market increase is more than sixty percent of the previous assessed value, the limited value for the year of the increase and for each of the three succeeding years is not less than the sum of:
(i) The previous assessed value;
(ii) The improvement increase; and
(iii) Twenty-five percent of the market increase.
(3) Upon loss of preferential tax treatment for property that qualifies for preferential tax treatment under chapter 84.14, 84.26, 84.33, 84.34, or 84.36 RCW, the previous assessed value shall be the assessed value the property would have had without the preferential tax treatment.
(4) The assessed value of real property that has been subdivided or merged is the current appraised value of the parcel or lot formed after the subdivision or merger.
(5) The assessed value of new construction and mobile homes under RCW 36.21.080 and 36.21.090 is determined without regard to this section.
NEW SECTION. Sec. 2. This act takes effect for taxes levied in 2000 for collection in 2001 and thereafter if the proposed amendment to Article VII, section 1 of the state Constitution providing for valuation increases to be phased in over a period of four years is validly submitted to and is approved and ratified by the voters at the next general election. If the proposed amendment is not approved and ratified, this act is void in its entirety.
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