HB 1663 — Allowing functionally consolidated port districts to adopt a unified levy.

H-0832.1ENGROSSED HOUSE BILL 1663 State of Washington 68th Legislature 2023 Regular Session By Representatives Goehner and Steele Read first time 01/30/23.

(1) Two or more port districts, operating under a mutual agreement pursuant to RCW 53.08.240, may levy and collect jointly the property tax assessments authorized under thisRCW chapter53.36.020 under the following conditions:

(b) The commissioners of each port district have, no later than July 1st, and by at least a two-thirds margin, voted to conduct a joint property tax levy for collection in the following year;year and for subsequent years, until such time as the commissioners of each port district have voted to discontinue the joint property tax levy;

(c) The joint property tax levy imposedhas withinbeen theapproved portby districtsa doesmajority notof exceedvoters theat ratespecial atelections whichcalled eitherunder RCW 29A.04.330 by the port district couldcommissioners individuallyof levythe aport districts that propose to conduct the joint property tax;tax levy.

The special elections within p.

1 EHB 1663 each port district must be held on the same day.

If the certified election results show that a majority of the total votes cast among all the port districts participating in the special elections approve the joint property tax levy, then the joint levy shall be deemed approved.

Once voters have approved the conduct of a joint property tax levy, the conduct of a joint levy in subsequent consecutive years does not require voter approval;

(2)(a) Two or more port districts that are jointly levying and collecting property taxes as provided for under subsection (1) of this section are considered a "taxing district" under RCW 84.04.120.

(b) The commissioners of the port districts that are jointly levying and collecting property taxes under subsection (1) of this section are considered the governing body of the districts for the purposes of RCW 84.55.120.

(3)(a) Port districts that are jointly levying and collecting property taxes as provided for in subsection (1) of this section may not independently conduct a property tax levy under RCW 53.36.020, except as provided in (b) of this subsection.

(b) Port districts conducting a joint levy may independently approve a property tax levy under RCW 53.36.020 to the extent needed to provide for payment of principal and interest on general bonded indebtedness.

(4)(a) Notwithstanding RCW 84.55.035, when conducting a joint property tax levy, the first joint levy amount must be set as provided for in RCW 84.55.020 as if the port districts had consolidated.

Subsequent joint levies are subject to the limitations in RCW 84.55.010.

(b) Any increase in the property tax revenue by the jointly taxing port districts may only be authorized pursuant to RCW 84.55.120, except that any such increase must be approved by at least two-thirds of the commissioners of each of the port districts.

(c) Port districts that are jointly levying and collecting property taxes may conduct a levy in an amount exceeding the limitations provided for in chapter 84.55 RCW as provided for in RCW 84.55.050, except that such a levy may only be conducted if approved by a majority of voters in each port district participating in the joint property tax levy.

12 HBEHB 1663 (2)(5) TwoThe orseparate moreobligations portof districtseach thatof arethe jointlyport levyingdistricts andconducting collectinga joint property taxestax aslevy providedshall fornot underbe subsectionaffected (1)by the conduct of thisthe sectionjoint arelevy, consideredand ashall "taxingremain district"the underresponsibility RCWof 84.04.120.the individual port district subject to the obligation.

(3)(a)Taxes Ifand theassessments portfor districtspayment electof such obligations shall continue to levybe levied and collectcollected aas jointprovided propertyfor taxin under subsection (1)(3)(b) of this section,section the county assessor in each county must certify to the auditor of his or her county the total assessed valuation of the port district whichnotwithstanding liesthe withinjoint hisproperty ortax herlevy. county.

TheWhile portany commissionssuch ofobligations theremain portsoutstanding, mustfunds certifysubject to eachsuch countyobligations auditorshall the budget and the levies to be assessedkept forseparate. the ports' purposes.

Each(6)(a) countyIn auditorthe mustevent forwardthat atwo certificateor tomore theport countydistricts commissionersoperating ofunder eacha countymutual inagreement whichpursuant oneto ofRCW the53.08.240 jointlycease operatingto portoperate districtsunder isthe locatedagreement, specifying the proportionjoint debts and assets of taxesthe toport districts must be levieddivided as provided for portin districtthe purposes.agreement.

(b) Upon receipt of the certificate from the county auditor, the board of county commissioners of each county in which one of the jointly operating port districts is located must levy on all taxable property of the port district which lies within the county a tax sufficient to raise the amount necessary to meet the county's proportionate share of the total tax levy.

Such taxes must be levied and collected in the same manner as other taxes are levied and collected, and subject to the same limitations as if each jointly operating port district were levying taxes separately.

The proceeds must be forwarded quarterly by the treasurer of each county to the port district operating within the county.

(c) The amount of tax to be levied upon taxable property in each port district must be in such ratio to the whole amount levied upon the property lying in the whole of the port districts operating together as the assessed valuation lying in each port district bears to the assessed valuation of the property in the whole of the port districts operating together.

(4) In the event that two or more port districts operating under a mutual agreement pursuant to RCW 53.08.240 cease to operate under the agreement, the joint debts and assets of the port districts must be divided as provided for in the agreement.

(b) The first property tax levy conducted by a port district after it ceases to conduct a joint property tax levy with another port district must be set so that the levy does not exceed the port district's proportional share of the last levy jointly conducted with one or more other port districts plus additional increases allowed under RCW 84.55.010.

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