BILL REQ. #:  H-3575.1 

Read first time 04/20/2007.   Referred to Committee on Finance.

     AN ACT Relating to property tax increases by port districts; and amending RCW 84.55.120.

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

Sec. 1   RCW 84.55.120 and 2006 c 184 s 6 are each amended to read as follows:
     (1) A taxing district, other than the state, that collects regular levies shall hold a public hearing on revenue sources for the district's following year's current expense budget. The hearing must include consideration of possible increases in property tax revenues and shall be held prior to the time the taxing district levies the taxes or makes the request to have the taxes levied. The county legislative authority, or the taxing district's governing body if the district is a city, town, or other type of district, shall hold the hearing. For purposes of this section, "current expense budget" means that budget which is primarily funded by taxes and charges and reflects the provision of ongoing services. It does not mean the capital, enterprise, or special assessment budgets of cities, towns, counties, or special purpose districts.
     (2) If the taxing district is otherwise required to hold a public hearing on its proposed regular tax levy, a single public hearing may be held on this matter.
     (3) Except as provided otherwise by this section, no increase in property tax revenue, other than that resulting from the addition of new construction, increases in assessed value due to construction of electric generation wind turbine facilities classified as personal property, and improvements to property and any increase in the value of state-assessed property, may be authorized by a taxing district, other than the state, except by adoption of a separate ordinance or resolution, pursuant to notice, specifically authorizing the increase in terms of both dollars and percentage. The ordinance or resolution may cover a period of up to two years, but the ordinance shall specifically state for each year the dollar increase and percentage change in the levy from the previous year.
     (4) No increase in property tax revenue may be authorized by a port district except:
     (a) By adoption of a separate ordinance or resolution, pursuant to notice, specifically requesting the increase in terms of dollars and percentage. The ordinance or resolution must specifically state the requested dollar increase and percentage change in the levy from the previous year; and
     (b) When authorized to do so by the voters of the port district at a special or general election held in accordance with the general election laws of this state in the year in which the levy is made. The proposal submitted to the voters must be consistent with the ordinance or resolution adopted in (a) of this subsection. The authorization is granted if at least three-fifths of the votes cast on the proposition are in favor of the increase. This subsection (4)(b) applies only to regular property tax levies and does not affect laws governing excess property tax levies.