BILL REQ. #: S-0330.1
State of Washington | 58th Legislature | 2003 Regular Session |
Read first time 01/15/2003. Referred to Committee on Ways & Means.
AN ACT Relating to eliminating the state property tax; amending RCW 84.52.065, 84.52.043, 84.52.050, 36.58.150, 36.60.040, 36.69.145, 36.73.060, 36.83.030, 36.100.050, 67.38.130, and 84.69.020; reenacting and amending RCW 84.52.010; 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 2003, and before;
(b) Three dollars and fifteen cents per thousand dollars of
assessed value for taxes levied for collection in 2004;
(c) Two dollars and seventy cents per thousand dollars of assessed
value for taxes levied for collection in 2005;
(d) Two dollars and twenty-five cents per thousand dollars of
assessed value for taxes levied for collection in 2006;
(e) One dollar and eighty cents per thousand dollars of assessed
value for taxes levied for collection in 2007;
(f) One dollar and thirty-five cents per thousand dollars of
assessed value for taxes levied for collection in 2008;
(g) Ninety cents per thousand dollars of assessed value for taxes
levied for collection in 2009;
(h) Forty-five cents per thousand dollars of assessed value for
taxes levied for collection in 2010; and
(i) No tax may be levied under this section for taxes levied for
collection in 2011 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.
Sec. 2 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. 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.
Sec. 3 RCW 84.52.050 and 1973 1st ex.s. c 194 s 1 are each
amended to read as follows:
(1) Except as hereinafter provided, the aggregate of all tax levies
upon real and personal property by the state and all taxing districts,
now existing or hereafter created, shall not in any year exceed ((one
percentum)) the following percentage of the true and fair value of such
property in money: ((PROVIDED, HOWEVER, That))
(a) For taxes levied for collection in 2003, and before, 1.0
percent;
(b) For taxes levied for collection in 2004, 0.95 percent;
(c) For taxes levied for collection in 2005, 0.90 percent;
(d) For taxes levied for collection in 2006, 0.85 percent;
(e) For taxes levied for collection in 2007, 0.80 percent;
(f) For taxes levied for collection in 2008, 0.75 percent;
(g) For taxes levied for collection in 2009, 0.70 percent;
(h) For taxes levied for collection in 2010, 0.65 percent; and
(i) For taxes levied for collection in 2011 and thereafter, 0.64
percent.
(2) Nothing herein shall prevent levies at the rates now provided
by law by or for any port or public utility district. The term "taxing
district" for the purposes of this section shall mean any political
subdivision, municipal corporation, district, or other governmental
agency authorized by law to levy, or have levied for it, ad valorem
taxes on property, other than a port or public utility district. Such
aggregate limitation or any specific limitation imposed by law in
conformity therewith may be exceeded only as authorized by law and in
conformity with the provisions of Article VII, section 2(a), (b), or
(c) of the Constitution of the state of Washington.
(3) Nothing herein contained shall prohibit the legislature from
allocating or reallocating the authority to levy taxes between the
taxing districts of the state and its political subdivisions in a
manner which complies with the aggregate tax limitation set forth in
this section.
Sec. 4 RCW 36.58.150 and 1984 c 186 s 25 are each amended to read
as follows:
(1) A solid waste disposal district shall not have the power to
levy an annual levy without voter approval, but it shall have the power
to levy a tax, in excess of the ((one percent)) limitation in RCW
84.52.050, upon the property within the district for a one year period
to be used for operating or capital purposes whenever authorized by the
electors of the district pursuant to RCW 84.52.052 and Article VII,
section 2(a) of the state Constitution.
A solid waste disposal district may issue general obligation bonds
for capital purposes only, subject to the limitations prescribed in RCW
39.36.020(1), and may provide for the retirement of the bonds by voter-approved bond retirement tax levies pursuant to Article VII, section
2(b) of the state Constitution and RCW 84.52.056. Such general
obligation bonds shall be issued and sold in accordance with chapter
39.46 RCW.
A solid waste disposal district may issue revenue bonds to fund its
activities. Such revenue bonds may be in any form, including bearer
bonds or registered bonds as provided in RCW 39.46.030.
(2) Notwithstanding subsection (1) of this section, such revenue
bonds may be issued and sold in accordance with chapter 39.46 RCW.
Sec. 5 RCW 36.60.040 and 1983 c 303 s 11 are each amended to read
as follows:
A county rail district is not authorized to impose a regular ad
valorem property tax levy but may:
(1) Levy an ad valorem property tax, in excess of the ((one
percent)) limitation in RCW 84.52.050, upon the property within the
district for a one-year period to be used for operating or capital
purposes whenever authorized by the voters of the district pursuant to
RCW 84.52.052 and Article VII, section 2(a) of the state Constitution.
(2) Provide for the retirement of voter approved general obligation
bonds, issued for capital purposes only, by levying bond retirement ad
valorem property tax levies, in excess of the one percent limitation,
whenever authorized by the voters of the district pursuant to Article
VII, section 2(b) of the state Constitution and RCW 84.52.056.
Sec. 6 RCW 36.69.145 and 1994 c 156 s 3 are each amended to read
as follows:
(1) A park and recreation district may impose regular property tax
levies in an amount equal to sixty cents or less per thousand dollars
of assessed value of property in the district in each year for six
consecutive years when specifically authorized so to do by a majority
of at least three-fifths of the voters thereof approving a proposition
authorizing the levies submitted at a special election or at the
regular election of the district, at which election the number of
voters voting "yes" on the proposition shall constitute three-fifths of
a number equal to forty per centum of the number of voters voting in
such district at the last preceding general election when the number of
voters voting on the proposition does not exceed forty per centum of
the number of voters voting in such taxing district in the last
preceding general election; or by a majority of at least three-fifths
of the voters thereof voting on the proposition if the number of voters
voting on the proposition exceeds forty per centum of the number of
voters voting in such taxing district in the last preceding general
election. A proposition authorizing the tax levies shall not be
submitted by a park and recreation district more than twice in any
twelve-month period. Ballot propositions shall conform with RCW
29.30.111. In the event a park and recreation district is levying
property taxes, which in combination with property taxes levied by
other taxing districts subject to the ((one percent)) limitation
provided for in ((Article 7, section 2, of our state Constitution))
RCW 84.52.050 result in taxes in excess of the limitation provided for
in RCW 84.52.043, the park and recreation district property tax levy
shall be reduced or eliminated before the property tax levies of other
taxing districts are reduced.
(2) The limitation in RCW 84.55.010 shall not apply to the first
levy imposed under this section following the approval of the levies by
the voters under subsection (1) of this section.
Sec. 7 RCW 36.73.060 and 1987 c 327 s 6 are each amended to read
as follows:
(1) A transportation benefit district may levy an ad valorem
property tax in excess of the ((one percent)) limitation in RCW
84.52.050 upon the property within the district for a one-year period
whenever authorized by the voters of the district pursuant to RCW
84.52.052 and Article VII, section 2(a) of the state Constitution.
(2) A district may provide for the retirement of voter-approved
general obligation bonds, issued for capital purposes only, by levying
bond retirement ad valorem property tax levies in excess of the one
percent limitation whenever authorized by the voters of the district
pursuant to Article VII, section 2(b) of the state Constitution and RCW
84.52.056.
Sec. 8 RCW 36.83.030 and 1983 c 130 s 3 are each amended to read
as follows:
(1) A service district may levy an ad valorem property tax, in
excess of the ((one percent)) limitation in RCW 84.52.050, upon the
property within the district for a one-year period whenever authorized
by the voters of the district pursuant to RCW 84.52.052 and Article
VII, section 2(a) of the state Constitution.
(2) A service district may provide for the retirement of voter
approved general obligation bonds, issued for capital purposes only, by
levying bond retirement ad valorem property tax levies, in excess of
the one percent limitation, whenever authorized by the voters of the
district pursuant to Article VII, section 2(b) of the state
Constitution and RCW 84.52.056.
Sec. 9 RCW 36.100.050 and 1988 ex.s. c 1 s 15 are each amended to
read as follows:
(1) A public facilities district may levy an ad valorem property
tax, in excess of the ((one percent)) limitation in RCW 84.52.050, upon
the property within the district for a one-year period to be used for
operating or capital purposes whenever authorized by the voters of the
district pursuant to RCW 84.52.052 and Article VII, section 2(a) of the
state Constitution.
(2) A public facilities district may provide for the retirement of
voter-approved general obligation bonds, issued for capital purposes
only, by levying bond retirement ad valorem property tax levies, in
excess of the one percent limitation, whenever authorized by the voters
of the district pursuant to Article VII, section 2(b) of the state
Constitution and RCW 84.52.056.
Sec. 10 RCW 67.38.130 and 1984 c 131 s 4 are each amended to read
as follows:
The governing body of a cultural arts, stadium and convention
district may levy or cause to levy the following ad valorem taxes:
(1) Regular ad valorem property tax levies in an amount equal to
twenty-five cents or less per thousand dollars of the assessed value of
property in the district in each year for six consecutive years when
specifically authorized so to do by a majority of at least three-fifths
of the electors thereof approving a proposition authorizing the levies
submitted at a general or special election, at which election the
number of persons voting "yes" on the proposition shall constitute
three-fifths of a number equal to forty percentum of the total votes
cast in such taxing district at the last preceding general election; or
by a majority of at least three-fifths of the electors thereof voting
on the proposition when the number of electors voting yes on the
proposition exceeds forty percentum of the total votes cast in such
taxing district in the last preceding general election. Ballot
propositions shall conform with RCW 29.30.111.
In the event a cultural arts, stadium and convention district is
levying property taxes, which in combination with property taxes levied
by other taxing districts subject to the ((one percent)) limitation
provided for in ((Article VII, section 2, of our state Constitution))
RCW 84.52.050 result in taxes in excess of the limitation provided for
in RCW 84.52.043, the cultural arts, stadium and convention district
property tax levy shall be reduced or eliminated before the property
tax levies of other taxing districts are reduced: PROVIDED, That no
cultural arts, stadium, and convention district may pledge anticipated
revenues derived from the property tax herein authorized as security
for payments of bonds issued pursuant to subsection (1) of this
section: PROVIDED, FURTHER, That such limitation shall not apply to
property taxes approved pursuant to subsections (2) and (3) of this
section.
The limitation in RCW 84.55.010 shall apply to levies after the
first levy authorized under this section following the approval of such
levy by voters pursuant to this section.
(2) An annual excess ad valorem property tax for general district
purposes when authorized by the district voters in the manner
prescribed by ((section 2,)) Article VII, section 2 of the state
Constitution and by RCW 84.52.052.
(3) Multi-year excess ad valorem property tax levies used to retire
general obligation bond issues when authorized by the district voters
in the manner prescribed by ((section 2,)) Article VII, section 2 of
the state Constitution and by RCW 84.52.056.
The district shall include in its regular property tax levy for
each year a sum sufficient to pay the interest and principal on all
outstanding general obligation bonds issued without voter approval
pursuant to RCW 67.38.110 and may include a sum sufficient to create a
sinking fund for the redemption of all outstanding bonds.
Sec. 11 RCW 84.52.010 and 2002 c 248 s 15 and 2002 c 88 s 7 are
each reenacted and amended to read as follows:
Except as is permitted under RCW 84.55.050, all taxes shall be
levied or voted in specific amounts.
The rate percent of all taxes for state and county purposes, and
purposes of taxing districts coextensive with the county, shall be
determined, calculated and fixed by the county assessors of the
respective counties, within the limitations provided by law, upon the
assessed valuation of the property of the county, as shown by the
completed tax rolls of the county, and the rate percent of all taxes
levied for purposes of taxing districts within any county shall be
determined, calculated and fixed by the county assessors of the
respective counties, within the limitations provided by law, upon the
assessed valuation of the property of the taxing districts
respectively.
When a county assessor finds that the aggregate rate of tax levy on
any property, that is subject to the limitations set forth in RCW
84.52.043 or 84.52.050, exceeds the limitations provided in either of
these sections, the assessor shall recompute and establish a
consolidated levy in the following manner:
(1) The full certified rates of tax levy for state, county, county
road district, and city or town purposes shall be extended on the tax
rolls in amounts not exceeding the limitations established by law;
however any state levy shall take precedence over all other levies and
shall not be reduced for any purpose other than that required by RCW
84.55.010. If, as a result of the levies imposed under RCW 84.52.069,
84.34.230, the portion of the levy by a metropolitan park district that
was protected under RCW 84.52.120, and 84.52.105, the combined rate of
regular property tax levies that are subject to the ((one percent))
limitation under RCW 84.52.050 exceeds ((one percent of the true and
fair value of any property)) the limitation under RCW 84.52.050, then
these levies shall be reduced as follows: (a) The portion of the levy
by a metropolitan park district that is protected under RCW 84.52.120
shall be reduced until the combined rate no longer exceeds ((one
percent of the true and fair value of any property)) the limitation
under RCW 84.52.050 or shall be eliminated; (b) if the combined rate of
regular property tax levies that are subject to the one percent
limitation still exceeds ((one percent of the true and fair value of
any property)) the limitation under RCW 84.52.050, then the levies
imposed under RCW 84.34.230, 84.52.105, and any portion of the levy
imposed under RCW 84.52.069 that is in excess of thirty cents per
thousand dollars of assessed value, shall be reduced on a pro rata
basis until the combined rate no longer exceeds one percent of the true
and fair value of any property or shall be eliminated; and (c) if the
combined rate of regular property tax levies that are subject to the
one percent limitation still exceeds one percent of the true and fair
value of any property, then the thirty cents per thousand dollars of
assessed value of tax levy imposed under RCW 84.52.069 shall be reduced
until the combined rate no longer exceeds one percent of the true and
fair value of any property or eliminated.
(2) The certified rates of tax levy subject to these limitations by
all junior taxing districts imposing taxes on such property shall be
reduced or eliminated as follows to bring the consolidated levy of
taxes on such property within the provisions of these limitations:
(a) First, the certified property tax levy rates of those junior
taxing districts authorized under RCW 36.68.525, 36.69.145, 35.95A.100,
and 67.38.130 shall be reduced on a pro rata basis or eliminated;
(b) Second, if the consolidated tax levy rate still exceeds these
limitations, the certified property tax levy rates of flood control
zone districts shall be reduced on a pro rata basis or eliminated;
(c) Third, if the consolidated tax levy rate still exceeds these
limitations, the certified property tax levy rates of all other junior
taxing districts, other than fire protection districts, library
districts, the first fifty cent per thousand dollars of assessed
valuation levies for metropolitan park districts, and the first fifty
cent per thousand dollars of assessed valuation levies for public
hospital districts, shall be reduced on a pro rata basis or eliminated;
(d) Fourth, if the consolidated tax levy rate still exceeds these
limitations, the first fifty cent per thousand dollars of assessed
valuation levies for metropolitan park districts created on or after
January 1, 2002, shall be reduced on a pro rata basis or eliminated;
(e) Fifth, if the consolidated tax levy rate still exceeds these
limitations, the certified property tax levy rates authorized to fire
protection districts under RCW 52.16.140 and 52.16.160 shall be reduced
on a pro rata basis or eliminated; and
(f) Sixth, if the consolidated tax levy rate still exceeds these
limitations, the certified property tax levy rates authorized for fire
protection districts under RCW 52.16.130, library districts,
metropolitan park districts created before January 1, 2002, under their
first fifty cent per thousand dollars of assessed valuation levy, and
public hospital districts under their first fifty cent per thousand
dollars of assessed valuation levy, shall be reduced on a pro rata
basis or eliminated.
In determining whether the aggregate rate of tax levy on any
property, that is subject to the limitations set forth in RCW
84.52.050, exceeds the limitations provided in that section, the
assessor shall use the hypothetical state levy, as apportioned to the
county under RCW 84.48.080, that was computed under RCW 84.48.080
without regard to the reduction under RCW 84.55.012.
Sec. 12 RCW 84.69.020 and 2002 c 168 s 11 are each amended to
read as follows:
On the order of the county treasurer, ad valorem taxes paid before
or after delinquency shall be refunded if they were:
(1) Paid more than once;
(2) Paid as a result of manifest error in description;
(3) Paid as a result of a clerical error in extending the tax
rolls;
(4) Paid as a result of other clerical errors in listing property;
(5) Paid with respect to improvements which did not exist on
assessment date;
(6) Paid under levies or statutes adjudicated to be illegal or
unconstitutional;
(7) Paid as a result of mistake, inadvertence, or lack of knowledge
by any person exempted from paying real property taxes or a portion
thereof pursuant to RCW 84.36.381 through 84.36.389, as now or
hereafter amended;
(8) Paid as a result of mistake, inadvertence, or lack of knowledge
by either a public official or employee or by any person with respect
to real property in which the person paying the same has no legal
interest;
(9) Paid on the basis of an assessed valuation which was appealed
to the county board of equalization and ordered reduced by the board;
(10) Paid on the basis of an assessed valuation which was appealed
to the state board of tax appeals and ordered reduced by the board:
PROVIDED, That the amount refunded under subsections (9) and (10) of
this section shall only be for the difference between the tax paid on
the basis of the appealed valuation and the tax payable on the
valuation adjusted in accordance with the board's order;
(11) Paid as a state property tax levied upon property, the
assessed value of which has been established by the state board of tax
appeals for the year of such levy: PROVIDED, HOWEVER, That the amount
refunded shall only be for the difference between the state property
tax paid and the amount of state property tax which would, when added
to all other property taxes within the ((one percent)) limitation of
Article VII, section 2 of the state Constitution equal ((one percent))
the percentage under RCW 84.52.050 of the assessed value established by
the board;
(12) Paid on the basis of an assessed valuation which was
adjudicated to be unlawful or excessive: PROVIDED, That the amount
refunded shall be for the difference between the amount of tax which
was paid on the basis of the valuation adjudged unlawful or excessive
and the amount of tax payable on the basis of the assessed valuation
determined as a result of the proceeding;
(13) Paid on property acquired under RCW 84.60.050, and canceled
under RCW 84.60.050(2);
(14) Paid on the basis of an assessed valuation that was reduced
under RCW 84.48.065;
(15) Paid on the basis of an assessed valuation that was reduced
under RCW 84.40.039; or
(16) Abated under RCW 84.70.010.
No refunds under the provisions of this section shall be made
because of any error in determining the valuation of property, except
as authorized in subsections (9), (10), (11), and (12) of this section
nor may any refunds be made if a bona fide purchaser has acquired
rights that would preclude the assessment and collection of the
refunded tax from the property that should properly have been charged
with the tax. Any refunds made on delinquent taxes shall include the
proportionate amount of interest and penalties paid. However, refunds
as a result of an incorrect payment authorized under subsection (8) of
this section made by a third party payee shall not include refund
interest. The county treasurer may deduct from moneys collected for
the benefit of the state's levy, refunds of the state levy including
interest on the levy as provided by this section and chapter 84.68 RCW.
The county treasurer of each county shall make all refunds
determined to be authorized by this section, and by the first Monday in
February of each year, report to the county legislative authority a
list of all refunds made under this section during the previous year.
The list is to include the name of the person receiving the refund, the
amount of the refund, and the reason for the refund.
NEW SECTION. Sec. 13 This act applies to taxes levied for
collection in 2004 and thereafter.