HOUSE BILL REPORT

EHB 772

BYRepresentatives Madsen and Fisch

Revising property tax provisions.

House Committe on Ways & Means/Revenue

Majority Report:     Do pass.  (9)

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

House Staff:Rick Wickman (786-7150)

AS PASSED HOUSE MARCH 10, 1987

BACKGROUND:

Refunds of taxes are subject to 5 percent interest per annum from date of collection of the portion refundable or from the date of claim for refund, whichever is later.

Cities are authorized to levy 22 1/2 cents per $1,000 of assessed value for purposes of funding firemen's pension programs.  When so levied and for the purpose of funding firemen's pensions for older firemen, the general city levy is 3.375 per $1,000 of assessed value plus the 22 1/2 cents for a total of $3.60 per $1,000 of assessed value.  If an actuarial study determines sufficiency of funds to meet future obligations, the city may levy the full $3.60 per $1,000 of assessed valuation for general purposes.

Revaluations of property are required at least once every six years.  The process of conducting revaluations by county assessors is specified by statute.

Real and personal property that is destroyed in whole or in part, in an area that has been declared a disaster by the governor is not eligible for reductions in value for taxing purposes.

County assessors are charged with the responsibility of keeping a list of the number of television sets in the television improvement district for billing a benefit assessment charge.

SUMMARY:

Interest owing on property tax refunds is changed from 5 percent to the equivalent coupon issue yield as published by the Federal Reserve Bank of San Francisco, measured by the 26-week average treasury bill rate.

Cities that have annexed to library districts and/or fire protection districts may not levy the 22 1/2 cents for firemen's pensions if it causes the combined levies to exceed the $9.15 statutory maximum or the one percent constitutional limit.

The Department of Revenue is authorized to approve a two-year revaluation plan for any county desiring to do so.

New procedures are provided for destroyed property in an area that has been declared a disaster area by the governor and reduced in value by more than 20 percent.

The county treasurer instead of the county assessor is designated as the repository for information determining the number of television sets to be included in a television improvement district.

Satellite dish antennas are eliminated from the information required by television improvement districts to enable the districts to bill for benefit assessment purposes.

Fiscal Note:    Requested February 16, 1987.

House Committee ‑ Testified For:     Trevor Thompson, Department of Revenue; Fred Saeger Washington Association of County Officials.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     Several provisions of property tax administration need clarification.  Refunds of property taxes are subject to a 5 percent per annum interest rate.  To be more equitable, the rate of interest should change to the average treasury bill rate for 26 weeks as published by the Federal Reserve Bank of San Francisco.

In addition, property tax revaluations by counties, which must occur at least once every six years should be altered to allow the Department of Revenue to approve revaluations by counties every two years in order to reflect current practice in some counties.

There is also a need to clarify that qualifying cities levying a 22 1/2 cent property tax for purposes of funding firemen's pensions programs, cannot cause the $9.15 per $1,000 of assessed valuation statutory limit or the one percent constitutional maximum for all levies to be exceeded.

Administration of partially or wholly destroyed personal and real property for assessment purposes needs clarification to ensure that areas designated a disaster by the governor are eligible to participate in the destroyed property tax provisions.  In conducting assessment of destroyed property, there is an additional need to change months to days to compute actual reductions in decreased values.

Finally, clarification is needed to designated the proper county officer to administer information for television improvement districts.

House Committee - Testimony Against: None Presented.