BILL REQ. #:  H-4807.1 

Read first time 01/28/08.   Referred to Committee on Finance.

     AN ACT Relating to requiring property tax statistics and information on banked levy capacity; reenacting and amending RCW 84.55.092; adding a new section to chapter 84.52 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   The legislature finds that the amount of banked levy capacity available to taxing districts is unknown. The legislature further finds that the restoration of one percent limit in November 2007 did not address the use of banked levy capacity. The legislature further finds that requiring regular reports on property tax collections and the amount of banked levy capacity will assist the legislature and the people in determining how taxing districts should use banked levy capacity in the future.

NEW SECTION.  Sec. 2   A new section is added to chapter 84.52 RCW to read as follows:
     Each county assessor, before March 1st each year, must prepare and submit to the department of revenue a detailed report on property taxes levied within the county. The report must include assessed valuation, levy rate, and levy amount for each type of levy by each taxing district authorized to levy property taxes within the county. The report must also include information necessary to calculate the property tax limit contained in chapter 84.55 RCW for each taxing district, including the regular property tax lawfully levied in the three most recent years; the amount of new construction, improvements to property, and the increase in assessed value of state-assessed property; the tax rate for the preceding year; the levy amount requested by the taxing district; copies of ordinances adopted under RCW 84.55.0101 and 84.55.120; copies of ballot propositions authorizing increases in the limit under RCW 84.55.050; the amount of levy capacity available under RCW 84.55.092; and other information the department of revenue may request. The department must compile the information submitted by county assessors and submit a report to the legislature by September 30th of each year.

Sec. 3   RCW 84.55.092 and 1998 c 16 s 3 are each reenacted and amended to read as follows:
     (1) 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) 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.
     (3) Until calendar year 2010, to set a regular property tax levy at an amount authorized under this section, a taxing district must submit an authorizing proposition to the voters for approval by a majority of the voters of the taxing district voting on the proposition. Elections for this purpose must be held at a primary or general election.