BILL REQ. #:  S-4248.1 

Read first time 01/14/08.   Referred to Committee on Government Operations & Elections.

     AN ACT Relating to phasing out property tax levies for ports in counties with large populations; and amending RCW 53.36.020, 53.36.100, and 84.55.005.

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

Sec. 1   RCW 53.36.020 and 1973 1st ex.s. c 195 s 56 are each amended to read as follows:
     (1) Except as provided in subsection (2) of this section, a district may raise revenue by levy of an annual tax not to exceed forty-five cents per thousand dollars of assessed value against the assessed valuation of the taxable property in such port district for general port purposes, including the establishment of a capital improvement fund for future capital improvements, except that any levy for the payment of the principal and interest of the general bonded indebtedness of the port district shall be in excess of any levy made by the port district under the forty-five cents per thousand dollars of assessed value limitation. The levy shall be made and taxes collected in the manner provided for the levy and collection of taxes in school districts of the first class.
     (2)(a) A district in a county with a population of two hundred fifty thousand or more may raise revenue by the levy of an annual tax in the following amounts:
     (i) For taxes imposed for collection from January 1, 2010, through December 31, 2013, the levy is the lesser of the amount imposed for collection on January 1, 2009, or thirty-five cents per thousand dollars of assessed valuation of the taxable property in such port district.
     (ii) For taxes imposed for collection from January 1, 2014, through December 31, 2016, the levy is the lesser of the amount imposed for collection on January 1, 2013, or twenty-five cents per thousand dollars of assessed valuation of the taxable property in such port district.
     (iii) For taxes imposed for collection from January 1, 2017, through December 31, 2020, the levy is the lesser of the amount imposed for collection on January 1, 2013, or fifteen cents per thousand dollars of assessed valuation of the taxable property in such port district.
     (iv) For taxes imposed for collection from January 1, 2021, through December 31, 2024, the levy is the lesser of the amount imposed for collection on January 1, 2020, or five cents per thousand dollars of assessed valuation of the taxable property in such port district.
     (v) After December 31, 2025, no levy can be imposed or collected for any port district under this subsection.
     (b) Notwithstanding (a) of this subsection, a port district in a county with a population of two hundred fifty thousand or more may continue to levy taxes under this section, but only if they are dedicated to paying the principal or interest on bonds existing as of January 1, 2008, and are used solely for the purpose of retiring the bonds.

Sec. 2   RCW 53.36.100 and 1994 c 278 s 1 are each amended to read as follows:
     (1) Except as otherwise provided in subsection (3) of this section, a port district having adopted a comprehensive scheme of harbor improvements and industrial developments may thereafter raise revenue, for six years only, and a second six years if the procedures are followed under subsection (2) of this section, in addition to all other revenues now authorized by law, by an annual levy not to exceed forty-five cents per thousand dollars of assessed value against the assessed valuation of the taxable property in such port district. In addition, if voters approve a ballot proposition authorizing additional levies by a simple majority vote, a port district located in a county bordering on the Pacific Ocean having adopted a comprehensive scheme of harbor improvements and industrial developments may impose these levies for a third six-year period. Said levies shall be used exclusively for the exercise of the powers granted to port districts under chapter 53.25 RCW except as provided in RCW 53.36.110. The levy of such taxes is herein authorized notwithstanding the provisions of RCW 84.52.050 and 84.52.043. The revenues derived from levies made under RCW 53.36.100 and 53.36.110 not expended in the year in which the levies are made may be paid into a fund for future use in carrying out the powers granted under chapter 53.25 RCW, which fund may be accumulated and carried over from year to year, with the right to continue to levy the taxes provided for in RCW 53.36.100 and 53.36.110 for the purposes herein authorized.
     (2) If a port district intends to levy a tax under this section for one or more years after the first six years these levies were imposed, the port commission shall publish notice of this intention, in one or more newspapers of general circulation within the district, by June 1 of the year in which the first levy of the seventh through twelfth year period is to be made. If within ninety days of the date of publication a petition is filed with the county auditor containing the signatures of eight percent of the number of voters registered and voting in the port district for the office of the governor at the last preceding gubernatorial election, the county auditor shall canvass the signatures in the same manner as prescribed in RCW ((29.79.200)) 29A.72.230 and certify their sufficiency to the port commission within two weeks. The proposition to make these levies in the seventh through twelfth year period shall be submitted to the voters of the port district at a special election, called for this purpose, no later than the date on which a primary election would be held under RCW ((29.13.070)) 29A.04.311. The levies may be made in the seventh through twelfth year period only if approved by a majority of the voters of the port district voting on the proposition.
     (3) A district in a county with a population of two hundred fifty thousand or more may raise revenue by the levy of an annual tax in the following amounts:
     (i) For taxes imposed for collection from January 1, 2010, through December 31, 2013, the levy is the lesser of the amount imposed for collection on January 1, 2009, or thirty-five cents per thousand dollars of assessed valuation of the taxable property in such port district.
     (ii) For taxes imposed for collection from January 1, 2014, through December 31, 2016, the levy is the lesser of the amount imposed for collection on January 1, 2013, or twenty-five cents per thousand dollars of assessed valuation of the taxable property in such port district.
     (iii) For taxes imposed for collection from January 1, 2017, through December 31, 2020, the levy is the lesser of the amount imposed for collection on January 1, 2013, or fifteen cents per thousand dollars of assessed valuation of the taxable property in such port district.
     (iv) For taxes imposed for collection from January 1, 2021, through December 31, 2024, the levy is the lesser of the amount imposed for collection on January 1, 2020, or five cents per thousand dollars of assessed valuation of the taxable property in such port district.
     (v) After December 31, 2025, no levy can be imposed or collected for any port district under this subsection.
     (b) Notwithstanding (a) of this subsection, a port district in a county with a population of two hundred fifty thousand or more may continue to levy taxes under this section, but only if they are dedicated to paying the principal or interest on bonds existing as of January 1, 2008, and are used solely for the purpose of retiring the bonds.

Sec. 3   RCW 84.55.005 and 2007 sp.s. c 1 s 1 are each amended to read as follows:
     As used in this chapter:
     (1) "Inflation" means the percentage change in the implicit price deflator for personal consumption expenditures for the United States as published for the most recent twelve-month period by the bureau of economic analysis of the federal department of commerce in September of the year before the taxes are payable;
     (2) "Limit factor" means:
     (a) For taxing districts with a population of less than ten thousand in the calendar year prior to the assessment year, one hundred one percent;
     (b) For taxing districts for which a limit factor is authorized under RCW 84.55.0101, the lesser of the limit factor authorized under that section or one hundred one percent;
     (c) For all other districts, the lesser of one hundred one percent or one hundred percent plus inflation; and
     (3) "Regular property taxes" has the meaning given it in RCW 84.04.140.
     (4) For purposes of this chapter, "taxing districts" does not include a port district in a county with a population of two hundred fifty thousand or more.