BILL REQ. #:  H-1164.2 

Read first time 01/26/2007.   Referred to Committee on Finance.

     AN ACT Relating to excluding newly created property tax exemptions from applying to school district levies; amending RCW 84.36.005; creating a new section; and declaring an emergency.

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

NEW SECTION.  Sec. 1   In the state of Washington, school funding for construction bonds, as well as maintenance and operation levies is derived solely from property taxes at the local level. Tax benefits given to businesses as location incentives often include property tax reductions or forgiveness, which has the effect of burdening other taxpayers in the district with higher rates and taxes. The legislature recognizes that it is the paramount duty of the state to adequately educate our children and finds that this responsibility should be shared as broadly as possible among its taxpayers.

Sec. 2   RCW 84.36.005 and 1961 c 15 s 84.36.005 are each amended to read as follows:
     (1) All property now existing, or that is hereafter created or brought into this state, shall be subject to assessment and taxation for state, county, and other taxing district purposes, upon equalized valuations thereof, fixed with reference thereto on the first day of January at twelve o'clock meridian in each year, excepting such as is exempted from taxation by law as provided in subsection (2) of this section.
     (2)(a) Except as provided in (b) of this subsection, any tax exemption of property enacted on or after the effective date of this act does not apply to property that, for the purposes of school districts, is subject to assessment and taxation under the authority of chapter 84.52 RCW.
     (b)(i) The provisions in (a) of this subsection do not apply to: (A) Property exempted under RCW 84.36.010; and (B) property owned by a nonprofit organization qualified for exemption under 26 U.S.C. Sec. 501(c)(3) of the internal revenue code as amended on January 1, 2007.
     (ii) A school district board of directors may, by resolution in which a majority of board members vote in the affirmative, exempt property from tax if the property would otherwise be exempt from tax but for the provisions contained in (a) of this subsection.

NEW SECTION.  Sec. 3   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect immediately.