BILL REQ. #:  H-1337.1 

Read first time 02/12/2007.   Referred to Committee on Finance.

     AN ACT Relating to port district property taxation; amending RCW 84.55.092; and creating a new section.

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

Sec. 1   RCW 84.55.092 and 1998 c 16 s 3 are each amended to read as follows:
     (1) Except as provided in subsection (2) of this section, the regular property tax levy for each taxing district other than the state may be set at the amount which would be allowed otherwise under this chapter if the regular property tax levy for the district for taxes due in prior years beginning with 1986 had been set at the full amount allowed under this chapter including any levy authorized under RCW 52.16.160 that would have been imposed but for the limitation in RCW 52.18.065, applicable upon imposition of the benefit charge under chapter 52.18 RCW.
     (2) A port district with an assessed value of over one hundred billion dollars may not set its property tax levy in an amount that exceeds one hundred five percent of the prior year's levy.
     (3) The purpose of this section is to remove the incentive for a taxing district to maintain its tax levy at the maximum level permitted under this chapter, and to protect the future levy capacity of a taxing district that reduces its tax levy below the level that it otherwise could impose under this chapter, by removing the adverse consequences to future levy capacities resulting from such levy reductions.

NEW SECTION.  Sec. 2   This act applies to taxes levied for collection in 2008 and thereafter.