Current through Register Vol. 24-06, March 15, 2024
(1)
Introduction. Port districts may annually levy for industrial
development district (IDD) purposes when they have adopted a comprehensive
scheme of harbor improvements and industrial development. Levies for IDD
purposes are treated as though they are separate regular property tax levies
made by or for a separate taxing district. This rule describes these port
district levies for IDD purposes, authorized in
RCW
53.36.100 and
53.36.160.
(a)
Other rules that may apply.
Readers may also want to refer to the following rules for additional
information:
(i) WAC
458-19-005
Definitions.
(ii) WAC
458-19-010
Levy limit and levy rate calculations.
(iii) WAC
458-19-020
Levy limitMethod of calculation.
(iv) WAC
458-19-050
Port district levies.
(b)
Examples. This rule contains
examples; each example identifies a number of assumed facts and then states a
conclusion. The examples should only be used as a general guide. The results of
other situations must be determined after a review of all the facts and
circumstances.
(2)
Organization of rule. This rule has two parts:
(a) Part I - IDD levy under
RCW
53.36.100.
(b) Part II - Multiyear IDD levies under
RCW
53.36.160.
(3)
Definitions. For purposes of
this rule, the definitions in WAC
458-19-005 apply. In
addition, "base year" means the year prior to the first collection year in a
first or second multiyear IDD levy period.
(4)
Limitations upon regular property
tax levies; exception.
(a) As set
forth in
RCW
84.04.140, all port district levies discussed
in this rule are regular property tax levies regardless of whether they are
voter-approved levies. As such, they are generally subject to the levy limit,
unless otherwise specified.
(b)
Port district levies are not subject to either the statutory aggregate dollar
rate limit set forth in
RCW
84.52.043 or the constitutional one percent
limit set forth in RCW 84.52.-050.
Part I
- IDD levies under
RCW
53.36.100
(101)
Levy periods. A port
district having adopted a comprehensive scheme of harbor improvements and
industrial developments may impose up to three periods of six IDD levies. The
levy periods do not have to be continuous, but they may not overlap. The six
IDD levies in a levy period do not have to be continuous, but may not overlap.
(a)
First IDD levy period. The
first IDD levy period does not require voter approval.
(b)
Second IDD levy period. The
port commission must publish their intention to make an additional period of
six IDD levies in a newspaper by June 1st of the year in which the first levy
of this period will be made. Voter approval to make this levy is only required
if a petition with eight percent of the voters' signatures of the district is
submitted to the county auditor within ninety days of the date of notice in the
newspaper. If voter approval is required, a majority of the voters must approve
this levy.
(c)
Third IDD levy
period. Port districts in a county bordering the Pacific Ocean may
request voter approval to make a third period of six IDD levies. This levy
period requires a simple majority voter approval.
(102)
Forty-five cent levy rate
limitation. This levy cannot exceed the levy rate of forty-five cents
per thousand dollars of assessed value of the port district specified in
RCW
53.36.100(1).
(103)
Levy limit calculation.
Except for the first levy in each period, the IDD levies are subject to the
levy limit in chapter 84.55 RCW. Refer to WAC
458-19-020
for more information about the levy limit calculation. County assessors must
calculate the levy limit every calendar year until there has been six levies in
each period. County assessors must use the levy rate from the last year in
which there is an IDD levy when calculating increases to the authorized levy
amount due to new construction, wind turbine/solar/bio-mass/geothermal facility
construction, improvements to property, and any increase in the value of
state-assessed property (collectively "new construction increases").
(104)
Effective period.
(a)
RCW
53.36.100 applies to a port district that has
initiated one or more IDD levy periods before tax year 2016.
(b)
RCW
53.36.100 is repealed effective January 1,
2026, and port districts are prohibited from levying taxes under this repealed
provision for collection in 2026 and after.
(c) A port district authorized under
RCW
53.36.100 may continue to levy under this
provision, so long as no collection occurs in 2026 and after.
Part II
-
Multiyear IDD levies under
RCW
53.36.160
(201)
Multiyear levy periods. A
port district having adopted a comprehensive scheme of harbor improvements and
industrial developments may impose up to three periods of multiyear IDD levies.
The multiyear levy periods do not have to be continuous, but they may not
overlap. Except as otherwise provided, a multiyear levy period may not exceed
twenty years from the date the first levy is made in the period.
(a)
First multiyear IDD levy
period. A port district must adopt a resolution during the base year
approving the use of the first multiyear IDD levy period.
(b)
Second multiyear IDD levy
period.(i) A port district must adopt
a resolution during the base year approving the use of the second multiyear IDD
levy period.
(ii) A port district
must publish notice of the intention to impose a second multiyear IDD levy
period. The port commission must publish their intention to make this levy in
one or more newspapers of general circulation within the district, by April 1st
of the base year of this second multiyear levy period.
(iii) A petition containing the signatures of
eight percent of the number of voters registered and voting in the port
district for the office of the governor at the last preceding gubernatorial
election, may be filed with the county auditor within ninety days of the date
of the port commission's publication. The county auditor then has two weeks to
certify to the port commission the sufficiency of the signatures in accordance
with
RCW
29A.72.230. Once certified, the proposition
to impose the levies in this second multiyear levy period is subject to voter's
approval in a special election, no later than the date on which a primary
election would be held under
RCW 29A.04.311. The
levies may proceed only if a majority of voters of the port district voting on
this proposition approves it.
(c)
Third multiyear IDD levy
period. A county bordering on the Pacific Ocean having adopted a
comprehensive scheme of harbor improvements and industrial developments may
seek a simple majority voter approval to impose up to six levies in a six-year
period for the third multiyear levy period.
(202)
Forty-five cent levy rate
limitation.
RCW
53.36.160(1) and (3) provide
that no levy in any period may exceed forty-five cents per thousand dollars of
assessed value of the port district.
(203)
Levy limit calculation.
(a)
RCW
84.55.130 provides that the levy limit under
RCW
84.55.010 does not apply to a district's
first or second multiyear levy period. The levy limit under
RCW
84.55.010 only applies to the third multiyear
levy period's years two through six.
(b) Instead, the first and second multiyear
levy periods have a limit on the aggregate revenue amount that the period may
collect. The aggregate revenue amount for each multi-year levy period may not
exceed the maximum allowable amount that could have been collected under
RCW
84.55.010 for the first six collection years
of the period. This means that:
(i) County
assessors must calculate the levy limit for each of the first six calendar
years of the period as if the port district were levying;
(ii) County assessors must use the levy rate
from the last year in which there is an IDD levy when calculating increases to
the authorized levy amount due to new construction increases; there would be no
new construction increases in the first year. See subsection (203)(d) of this
rule below for examples of aggregate revenue limit calculations.
(c) For purposes of this section
(203), the levy limit in
RCW
84.55.010 is calculated in accordance with
RCW
84.55.092, and any other applicable
provisions in chapter 84.55 RCW, and subject to the forty-five cent levy rate
limitation. See WAC
458-19-020.
(d)
Examples. Some numbers in
the examples are rounded for ease of illustration.
(i) Example 1. Assume a qualifying port
district has a base year of $1,000,000,000 assessed value, with approximately
four percent increase annually. There are new construction increases in years
four and five. The maximum allowable amount that could have been levied under
RCW
84.55.010 for the first six collection years
of the levy period is computed as follows:
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
|
Year 6
|
(A)
|
Assessed value (AV)
|
$1,040,000,000 |
$1,082,000,000 |
$1,125,000,000 |
$1,170,000,000 |
$1,217,000,000 |
$1,266,000,000 |
(B)
|
Highest prior lawful levy
|
n/a |
$468,000 |
$472,680 |
$477,407 |
$486,381 |
$494,245 |
(C)
|
(B) + 1% growth
|
n/a |
$472,680 |
$477,407 |
$482,181 |
$491,245 |
$499,187 |
(D)
|
Statutory max, @ 45¢/ $1,000
AV
|
$468,000 |
$486,900 |
$506,250 |
$526,500 |
$547,650 |
$569,700 |
(E)
|
New construction increases
|
n/a |
$0 |
$0 |
$10,000,000 |
$7,500,000 |
$0 |
(F)
|
Multiply (E) by prior year levy
rate
|
n/a*
|
$0 |
$0 |
$4,200 |
$3,000 |
$0 |
(G)
|
Levy limit: Lesser of (C) and (D), plus
(F); and not exceeding (D)
|
$468,000 |
$472,680 |
$477,407 |
$486,381 |
$494,245 |
$499,187 |
(H)
|
Regular property tax levy rate: (G)
divided by (A)
|
44¢
|
44¢
|
42¢
|
42¢
|
41¢
|
39¢
|
* There has been no IDD levy yet, so there would not be any new
construction increases for the first IDD levy year.
The aggregate revenue amount for the period is the sum of the
levy limits (row G), which is $2,897,900. A port district may collect this
aggregate revenue amount for the levy period in at most twenty levies within
twenty years from, and including, the first year.
(ii) Example 2. Assume a qualifying port
district has a base year of $2,200,000,000 assessed value, with fluctuating
increases/decreases over the course of the six years. There are new
construction increases in years three and six. The maximum allowable amount
that could have been levied under
RCW
84.55.010 for the first six collection years
of the levy period is computed as follows:
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
|
Year 6
|
(A)
|
Assessed value (AV)
|
$2,500,000,000 |
$2,000,000,000 |
$1,400,000,000 |
$1,800,000,000 |
$2,300,000,000 |
$2,800,000,000 |
(B)
|
Highest prior lawful levy
|
n/a |
$1,125,000 |
$1,125,000 |
$1,125,000 |
$1,125, 000 |
$1,125, 000 |
(C)
|
(B) + 1% growth
|
n/a |
$1,136,250 |
$1,136,250 |
$1,136,250 |
$1,136,250 |
$1,136,250 |
(D)
|
Statutory max, @ 45¢/ $1,000
AV
|
$1,125,000 |
$900,000 |
$630,000 |
$810,000 |
$1,035,000 |
$1,260,000 |
(E)
|
New construction increases
|
n/a*
|
$0 |
$100,000,000 |
$0 |
$0 |
$800,000,000 |
(F)
|
Multiply (E) by prior year levy
rate
|
n/a |
$0 |
$45,000 |
$0 |
$0 |
$360,000 |
(G)
|
Levy limit: Lesser of (C) and (D), plus
(F); and not exceeding (D)
|
$1,125,000 |
$900,000 |
$630,000 |
$810,000 |
$1,035,000 |
$1,260,000 |
(H)
|
Regular property tax levy rate: (G)
divided by (A)
|
45¢
|
45¢
|
45¢
|
45¢
|
45¢
|
45¢
|
* There has been no IDD levy yet, so there would not be any new
construction increases for the first IDD levy year.
The aggregate revenue amount for the period is the sum of the
levy limits (row G), which is $5,760,000. A port district may collect this
aggregate revenue amount in up to twenty levies for the period.
(204)
Effective period.(a)
RCW
53.36.160, authorizing multiyear IDD levies,
is effective for IDD levy period that begins in 2016 and after.
(b) A port district that has levied the tax
authorized under
RCW
53.36.100 (see Part I of this rule) may not
levy a tax authorized under
RCW
53.36.160 (see Part II of this rule) except
as follows:
If a Port District Levied Under
RCW
53.36.100:
|
Then the Port District May Levy Under
RCW
53.36.160:
|
IDD Levy Period
|
IDD Levy Period
|
At least one levy in t he first period is
collected in 2015 or prior |
Second and third levy periods |
At least one levy in the second period is
collected in 2015 or prior |
Third levy period |