SENATE BILL REPORT

SB 5204

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As of February 1, 2017

Title: An act relating to modifying a property tax exemption for industrial and manufacturing industries in targeted areas.

Brief Description: Modifying a property tax exemption for industrial and manufacturing industries in targeted areas.

Sponsors: Senator Fain.

Brief History:

Committee Activity: Ways & Means: 2/02/17.

Brief Summary of Bill

  • Adjusts the industrial/manufacturing facility property tax exemption.

  • Expands the exemption to apply in any city or county urban growth area.

  • Reduces the size of qualifying construction from 10,000 square feet to 2,500 square feet.

  • Qualifies renovations of existing buildings.

SENATE COMMITTEE ON WAYS & MEANS

Staff: Dean Carlson (786-7305)

Background: In 2015, the Legislature passed ESB 5761 which provided a ten year local property tax exemption in cities in Snohomish County for the value of new construction of industrial or manufacturing facilities. The exemption does not apply to state or county levies, but counties may opt in. To qualify, an application for a certificate of tax exemption must be submitted before December 31, 2022, and meet the following requirements:

For an area to be designated as a targeted area:

Family living wage job is defined to mean a job with an average wage of at least $18 per hour, working 2080 hours per year, adjusted annually for inflation. A local authority may set the wage higher.

Summary of Bill: The property tax exemption passed in 2015 is expanded to apply in any city or county urban growth area located in a designated targeted area. The size of qualifying construction is reduced from 10,000 square feet to 2,500 square feet. Renovations of existing buildings may qualify for the exemption, but does not apply to the value of any improvements constructed prior to the application.

Appropriation: None.

Fiscal Note: Available.

Creates Committee/Commission/Task Force that includes Legislative members: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.