HOUSE BILL REPORT

HB 1137

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

Majority Report:  Do pass.  (8)

      Signed by Representatives Appelwick, Chair; Basich, Grimm, Holland, Rust, Schoon, Taylor and Valle.

House Staff:Rick Wickman (786-7150)

AS PASSED HOUSE MARCH 20, 1987

BACKGROUND:

An excise "in lieu" of property taxes is required of 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 as 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 Labor 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.

EFFECT OF SENATE AMENDMENT(S):  Changes U.S. Department of Labor to the U.S. Department of Housing and Urban Development as the federal agency from whom median income is derived for purposes of establishing a definition of low income in standard metropolitan statistical areas (SMSA's).

Fiscal Note:      Requested March 2, 1987.

House Committee ‑ Testified For:    Wally Johnson, City of Seattle.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Exempting the excise in-lieu tax for low income housing owned or operated by public corporations is necessary to develop additional housing units to assist the low income.

House Committee - Testimony Against:      None Presented.

VOTE ON FINAL PASSAGE:

      Yeas 96; Nays 0; Absent 0; Excused 2

Excused:    Representatives Chandler and Padden