March 7, 2008

Legislature says yes to levy increase disclosure

OLYMPIA — Washington’s Legislature overwhelmingly passed legislation Thursday making voter approved levy propositions temporary unless otherwise stated.

Senate Bill 6641, sponsored by Sen. Debbie Regala, D-Tacoma, requires taxing districts to explicitly indicate in a ballot proposition that the district's levy base will be permanently increased. Otherwise, the levy base increase will be presumed temporary. This applies to both multi-year and single-year lid lifts.

In 2003, the Legislature authorized local municipalities to seek voter approval for multi-year lid lifts for up to six consecutive years. These were presumed temporary unless the ballot measure explicitly made the increase permanent.

Through the enactment of ESB 5498 in 2007, multi-year lid lift authority was extended to all taxing districts. The Department of Revenue interpreted that, like single-year lid lifts, this new multi-year proposition would also permanently increase the levy base unless otherwise stated.

This new legislation’s primary purpose is to undo DOR’s interpretation and return to the law’s original intention of requiring notification on ballots if the levy base is to become permanent.

“This is an easy fix to a law that was just misinterpreted,” said Regala.

SB 6641 unanimously passed the Senate on Feb. 19 and the House on March 6, and now goes to Gov. Gregoire for her signature. The Governor has 10 days to sign the bill into law. The 2008 Session is scheduled to adjourn March 13.


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