HB 1527 — Making technical corrections to the local tax increment financing program.

CERTIFICATIONZ-0238.2 OF ENROLLMENT HOUSE BILL 1527 68thState Legislatureof RegularWashington Session68th PassedLegislature by the House April 14, 2023 CERTIFICATERegular YeasSession 72By Nays 24 I, Bernard Dean, Chief Clerk of the House of Representatives ofWylie, theSandlin, StateDuerr, ofBarnard, Washington,Connors, doChapman, herebyWaters, SpeakerSpringer, ofHarris, the House of certify that the attached is HOUSE BILL 1527 as passed by the House of Representatives Representatives and theGregerson; Senate on the dates hereon set forth.

Passed by the Senate April 10, 2023 Yeas 49 Nays 0 Chief Clerk President of the Senate Approved FILED Secretary of State State of Washington Governor of the State of Washington HOUSE BILL 1527 AS AMENDED BY THE SENATE Passed Legislature - 2023 Regular Session State of Washington 68th Legislature 2023 Regular Session By Representatives Wylie, Sandlin, Duerr, Barnard, Connors, Chapman, Waters, Springer, Harris, and Gregerson;

amending RCW 39.114.010, 39.114.020, 39.114.040, 39.114.050, 84.55.015, 84.55.020, and 84.55.030;

1 HB 1527.PL1527 (2) "Increment area" means the geographic area within which regular property tax revenues are to be apportioned to pay public improvement costs, as authorized under this chapter.

2 HB 1527.PL1527 the public improvements and the use of tax increment financing to fund the costs of the public improvements.

3 HB 1527.PL1527 for the payments of principal and interest on general obligation debt;

4 HB 1527.PL1527 (d) A local government can create no more than two active increment areas at any given time and they may not physically overlap by including the same land in more than one increment area at any time;

5 HB 1527.PL1527 estimated to result from the proposed development with the proposed public improvements.

6 HB 1527.PL1527 government for the administration or other activities related to tax increment financing authorized under this section.

7 HB 1527.PL1527 before the date on which the ordinance authorizing creation of an increment area is adopted that describes the public improvements, describes the boundaries of the increment area, and identifies the location and times where the ordinance and other public information concerning the public improvement may be inspected;

8 HB 1527.PL1527 subsection (1)(b) may only be expended to finance public improvement costs associated with the public improvements financed in whole or in part by tax increment financing;

9 HB 1527.PL1527 year in which the increment area was first designated.

RCW 84.55.02084.55.015 and 2014 c 4 s 32 are each amended to read as follows:

NotwithstandingIf thea limitationtaxing setdistrict forthhas innot RCWlevied 84.55.010,since the1985 firstand levyelects forto restore a taxingregular districtproperty createdtax fromlevy consolidationsubject ofto similarapplicable taxingstatutory districtslimitations then such first restored levy must be set so that the regular property taxestax payable indoes the following year do not exceed the limit factor multiplied by the sum of the amount ofwhich regularwas propertylast taxeslevied, lawfullyplus leviedan foradditional eachdollar componentamount taxingcalculated districtby inmultiplying the highestproperty oftax therate three most recent years in which suchis taxesproposed wereto leviedbe forrestored, suchor district plus the additionalmaximum dollar amount calculatedwhich bycould multiplyingbe thelawfully regularlevied propertyin taxthe rateyear ofsuch eacha componentrestored districtlevy foris theproposed, preceding year by the increase in assessed value in eachthe component district since the last levy resulting from:

and (5) Any increase in the assessed value of real property, as defined in RCW 39.114.010, within an increment area as designated by any local government underin RCW 39.114.020 if the increase is not included elsewhere under this section.

This subsection does not apply to levies by the state or by port districts andor public utility districts for the purpose of making required payments of principal and interest on general indebtedness.

p.Sec.

10 HB 1527.PL Sec.

RCW 84.55.020 and 2014 c 4 s 3 are each amended to read as follows:

p.

10 HB 1527 Notwithstanding the limitation set forth in RCW 84.55.010, the first levy for a taxing district created from consolidation of similar taxing districts must be set so that the regular property taxes payable in the following year do not exceed the limit factor multiplied by the sum of the amount of regular property taxes lawfully levied for each component taxing district in the highest of the three most recent years in which such taxes were levied for such district plus the additional dollar amount calculated by multiplying the regular property tax rate of each component district for the preceding year by the increase in assessed value in each component district resulting from:

(1) New construction;

(2) Increases in assessed value due to construction of wind turbine, solar, biomass, and geothermal facilities, if such facilities generate electricity and the property is not included elsewhere under this section for purposes of providing an additional dollar amount.

The property may be classified as real or personal property;

(3) Improvements to property;

((and)) (4) Any increase in the assessed value of state-assessed property;

and (5) Any increase in the assessed value of real property, as defined in RCW 39.114.010, within an increment area as designated by any local government in RCW 39.114.020 if the increase is not included elsewhere under this section.

This subsection does not apply to levies by the state or by port districts or public utility districts for the purpose of making required payments of principal and interest on general indebtedness.

Sec.

7.

For the first levy for a taxing district following annexation of additional property, the limitation set forth in RCW 84.55.010 must be increased by an amount equal to the aggregate assessed valuation of the newly annexed property as shown by the current completed and balanced tax rolls of the county or counties within which such property lies, multiplied by the dollar rate that would have been used by the annexing unit in the absence of such annexation, plus the additional dollar amount calculated by multiplying the regular property tax levy rate of that annexing taxing district for the precedingp. year by the increase in assessed value in the annexing district resulting from:

11 HB 1527 preceding year by the increase in assessed value in the annexing district resulting from:

7.8.

1112 HB 1527.PL1527