HOUSE BILL REPORT

SB 5431

BYSenators Bauer, Smith, Sutherland, McDonald and Vognild

Exempting property from the leasehold excise tax.

House Committe on Revenue

Majority Report:  Do pass.  (12)

      Signed by Representatives Wang, Chair; Holland, Ranking Republican Member; Appelwick, Basich, Brumsickle, Fuhrman, Grant, Haugen, Morris, Phillips, Silver and H. Sommers.

Minority Report:  Do not pass.  (1)

      Signed by Representative Rust.

House Staff:Rick Wickman (786-7150)

AS PASSED HOUSE MARCH 1, 1990

BACKGROUND:

Public corporations, commissions, or authorities receive the same immunity or exemption from taxes as the cities or towns that form them.  However, such bodies must pay an in lieu excise tax on real and personal property devoted to their purposes equal to the regular property taxes that would have been paid if the property had been privately owned.  The exceptions to this rule are:  (a) property within a special review district established prior to January 1, 1976, or listed on a state or federal register of historical sites or within a special review district listed on such a register, and (b) property devoted primarily to low income housing.

The leasehold excise tax does not apply to property meeting condition (a), above, controlled by a public corporation, commission, or authority that was also in existence before January 1, 1976.

SUMMARY:

The leasehold excise tax exemption described above is extended to public corporations, commissions, and authorities established prior to January 1, 1987.

Revenue:    The bill has a revenue impact.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Stephen Burdick and Linda Horowitz, City of Vancouver.

House Committee - Testified Against:      No one.

House Committee - Testimony For:    Officer's Row at Fort Vancouver is an important asset that should receive a leasehold excise tax exemption like other facilities around the state that have already received an exemption.  The public development corporation was not in existence prior to January 1, 1976, otherwise it would have already qualified for the tax exemption.

House Committee - Testimony Against:      None.