HOUSE BILL REPORT

HB 351

BYRepresentatives Haugen, Ferguson, Nutley, Taylor, Betrozoff, Holm and Unsoeld

Exempting library district levies below a certain amount from the 1% limit.

House Committe on Local Government

Majority Report:     The substitute bill be substituted therefor and the substitute bill do pass.  (13)

     Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Beck, Bumgarner, Ferguson, Hine, Madsen, Nealey, Nelson, Nutley, Rayburn, L. Smith and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS REPORTED BY COMMITTEE ON LOCAL GOVERNMENT FEBRUARY 10, 1987

BACKGROUND:

The Constitution establishes a limitation on the cumulative property tax rates of most taxing jurisdictions at not to exceed 1% of the true and fair value on any property.  Port district and public utility district property taxes are not subject to the 1% limitation.

Statutes place a cumulative rate limitation on most of the regular property tax levies of most taxing districts at $9.15 per $1000 of assessed valuation that may be imposed on any property.  The relative status of the various taxing districts has been established so that the senior taxing districts (counties, road districts, cities and towns, and the state for educational purposes) are permitted to impose their tax levies before the remaining taxing districts(referred to as junior taxing districts) impose their tax levies.  Different status levels have been established for the regular property tax levies of various junior taxing districts.  If the requested rates of tax levy exceed this $9.15 limit on any property, levy rates of the junior status tax levies and junior taxing districts are reduced or eliminated to remain within this cumulative ceiling rate.  The reduction or elimination occurs on the lowest status levies and districts before the next highest are affected.

Library districts are junior taxing districts that have been authorized to impose regular property taxes at a rate not exceeding $.50 per $1000 of assessed valuation.  Their tax rate is subject to this 1% limitation and $9.15 limitation.

SUMMARY:

SUBSTITUTE BILL:  A property tax rate for library districts, of not to exceed $.50 per $100 of assessed valuation of the taxable property in the district, is not subject to the $9.15 limitation or 1% limitation on cumulative regular property tax rates.  This legislation is not effective unless HJR 4201 is approved by the voters.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  The terminology used to describe the maximum tax rate of a library district was changed from a percentum of true and fair value to a dollar figure per $1000 of assessed valuation.

Fiscal Note:    Not Requested.

House Committee ‑ Testified For:     Mark Allen, Washington Library Association; Marilyn Showalter, Public Hospital District; Stan Finkelstein, Association of Washington Cities; Mark Lynch, North Central Regional Library; and Lon Dickerson, Timberland Regional Library.

House Committee - Testified Against: Jim Metcalf, Washington Association of Counties.

House Committee - Testimony For:     This will provide relief for junior taxing districts by lessening the number of junior taxing districts, and thus leaving more taxing capacity for the remaining junior taxing districts.  Library districts are popular and ready to work for passage of the constitutional amendment.

House Committee - Testimony Against: Why should libraries be placed on a pedestal above fire fighting, law enforcement, and public health?  This does not address funding needs of counties.