BILL REQ. #:  S-0044.1 

Read first time 01/10/2005.   Referred to Committee on Ways & Means.

     AN ACT Relating to the six-year review of property tax exemptions; adding a new section to chapter 44.28 RCW; and repealing RCW 43.136.010, 43.136.020, 43.136.030, 43.136.040, 43.136.050, and 43.136.070.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 44.28 RCW to read as follows:
     (1) The joint legislative audit and review committee shall review the tax preferences in Title 84 RCW beginning in 2006 and every six years thereafter. The review shall be completed and a report prepared by June 30th of the year a review is required. The review shall not include an evaluation of any tax preference in chapter 84.36 RCW that has been in effect less than two years. The department of revenue shall provide the committee with property tax data necessary to conduct the review. Upon completion of the review, the committee shall transmit the report to the appropriate committees of the legislature. The report shall include the following:
     (a) Identification of the populations whose tax liabilities are directly affected by the tax preferences in chapter 84.36 RCW under review;
     (b) Identification where possible of the legislative objective in establishing a tax preference and an assessment of the extent to which the preference has accomplished that objective;
     (c) An estimate of the additional tax revenues that state and local governments would collect if a tax preference is eliminated; and
     (d) An analysis of the change in the distribution of property taxes if a tax preference is eliminated.
     (2) As used in this section, "tax preference" means an exemption, exclusion, or deduction from the base of tax; a credit against tax; a deferral of tax; or a preferential tax rate.

NEW SECTION.  Sec. 2   The following acts or parts of acts are each repealed:
     (1) RCW 43.136.010 (Legislative findings -- Intent) and 1982 1st ex.s. c 35 s 39;
     (2) RCW 43.136.020 ("Tax preference" defined) and 1982 1st ex.s. c 35 s 40;
     (3) RCW 43.136.030 (Legislative budget committee and department of revenue -- Review of tax preferences -- Reports) and 1982 1st ex.s. c 35 s 41;
     (4) RCW 43.136.040 (Legislative budget committee review of tax preferences -- Factors for consideration) and 1982 1st ex.s. c 35 s 42;
     (5) RCW 43.136.050 (Powers and duties of ways and means committees) and 1982 1st ex.s. c 35 s 43; and
     (6) RCW 43.136.070 (Report on existing tax preferences to be provided -- Additional information to be provided) and 1982 1st ex.s. c 35 s 45.