Bill that would expand tribal property tax exemption passes House and Senate

by <a href="mailto:candiceb@awcnet.org">Candice Bock</a>, <a href="mailto:maggied@awcnet.org">Maggie Carol</a> | Mar 07, 2020
<a target="_blank" href="https://app.leg.wa.gov/billsummary?BillNumber=2230&amp;Initiative=false&amp;Year=2019"><strong>HB 2230</strong></a> expands a tribal property tax exemption for economic development projects created in 2014.

HB 2230 expands a tribal property tax exemption for economic development projects created in 2014.

Legislation passed in 2014 exempts tribes from paying property tax on tribally owned property used for economic development that is located outside of a reservation. Rather than paying property tax, tribes may make a “payment in lieu of taxes” (PILT) to compensate for local governments’ lost revenue. The 2014 exemption only applied to properties owned prior to March 2014 and sunsets in 2022. HB 2230 would eliminate the March 2014 restriction and the 2022 sunset.

When we previously reported on HB 2230, we shared concerns about the open-ended nature of the exemption and that the PILT is subject to being negotiated by the county and not the impacted city. We are grateful for Sen. Ann Rivers’ (R–La Center) floor amendment that includes any affected city in PILT negotiations.

HB 2230 must now return to the House for concurrence on the Senate amendments before heading to the Governor’s desk for signature.

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