FINAL BILL REPORT

HB 1137

                                  C 282 L 87

BYRepresentatives Locke, Niemi and Jacobsen

Exempting low-income housing owned or operated by certain public corporations from excise tax.

House Committe on Ways & Means/Revenue

Senate Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

An excise "in lieu" of property taxes is assessed on any public corporation, commission or authority created by a city, town or county to carry out federal grant programs.  These public corporations, commissions or authorities have the same immunity from property taxation as a city, town or county except for the obligation to pay the "in-lieu" tax.  The tax is equal to the amounts which would be paid upon real and personal property if the property were in private ownership.  The only exemption from the "in-lieu" tax is granted to property listed on the federal or state register of historical sites.

SUMMARY:

Property owned or operated by a public corporation that is used primarily for low-income housing is exempted from paying the "in-lieu" tax.  In addition, "low income" is defined as 50 percent of the median income as determined by the U.S. Department of Housing and Urban Development in a standard metropolitan statistical area (SMSA).  For non-SMSA areas, "low income" is defined as 50 percent of the median income of the county as determined by the Washington State Department of Community Development.

VOTES ON FINAL PASSAGE:

      House 96   0

      Senate    49     0(Senate amended)

      House 96   1(House concurred)

EFFECTIVE:July 26, 1987