BILL REQ. #:  H-3569.1 

Read first time 04/18/2007.   Referred to Committee on Finance.

     AN ACT Relating to the levy capacity of port districts; 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) The regular property tax levy for each taxing district other than the state or port districts 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) The regular property tax levy for a port district 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.
     (a) However, the levy may not be set to exceed an amount equal to a factor, equal to one hundred percent plus inflation, multiplied by the amount of regular property taxes lawfully levied for such district in the highest of the three most recent years in which such taxes were levied for such district plus an additional dollar amount as calculated in (b) of this subsection.
     (b) The additional dollar amount in (a) of this subsection is calculated by multiplying the increase in assessed value in that district resulting from new construction; increases in assessed value due to construction of electric generation wind turbine facilities classified as personal property; improvements to property; and any increase in the assessed value of state-assessed property by the regular property tax levy rate of that district for the preceding year.
     (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.