Homeowners get a break from tax

BRAD SHANNON, THE OLYMPIAN

OLYMPIA -- A bill that simplifies taxes for Lake Cushman residents in Mason County became law Monday.

The tax measure was one of a dozen bills Gov. Gary Locke signed into law Monday.

House Bill 1055 abolishes the leasehold excise tax on land around Lake Cushman, a power-company reservoir that is ringed by summer cabins and other homes.

The leasehold-excise tax is a tax that lets government collect revenues from land that is publicly owned but used for private purposes.

The estimated 3,200 lots around Lake Cushman now will be subjected only to ordinary property taxes.

The land in question is owned by Tacoma Power but leased to the Lake Cushman Co., which sublets lots to residents.

"It was a pretty big deal for the landowners at Lake Cushman," said Margrethe Jones, vice president of Lake Cushman Co., which lobbied for the bill.

Jones said the company is pleased that beginning in January 2002, the company won't have to collect the tax from lot users, who will instead pay a property tax to the Mason County treasurer.

The prime sponsor of the bill was Rep. Kathy Haigh, D-Shelton, who also got backing from Rep. Bill Eickmeyer, D-Belfair.

Eickmeyer had pushed a similar measure in 1998. Sen. Tim Sheldon, D-Potlatch, pushed the measure in the Senate.

"The community came to us with this," said Haigh, who started working for the law during 1999.

Because it was a small bill benefiting a few people, it was hard to get through, Eickmeyer said.

Eickmeyer said House Republicans got behind it this year because it might reduce overall property taxes paid by the Cushman residents.

Residents will be protected the same as all other property owners from sudden spikes in tax values, Haigh said.

"On average it isn't going to change a thing," Haigh said. "On average it isn't going to make their payments go up or down."

Although it's not widely understood, residents will continue to make a $44 lease payment for their lots, Haigh added. The bill only repeals the excise tax on the lease.

Other new laws

Among other bills Locke signed were:

-Substitute House Bill 1349, which will let local governments apply for grants from the state's Toxics Control Account to pay for cleanup and disposal of pollution from derelict vessels.

-House Bill 1546. It expands home-address confidentiality protections to victims of stalking crimes. No one testified against it.

-Senate Bill 5118, which enacts an interstate compact that lets the state continue supervision of offenders who legitimately move to other states while under jurisdiction of state courts. It also will give the state tools for ensuring other states' compliance with agreements with Washington.

By joining, Washington will gain a voting seat on the new Interstate Commission for Adult Supervision.

The Olympian Copyright 2001

back to main Legislature 2001 index