05/17/2003 11:45 AM Senate STA

         HB 209-MUNI.TAX:  PROPERTY AFFECTED BY DISASTER                                                                    
                                                                                                                              
                                                                                                                                
REPRESENTATIVE MIKE  CHENAULT, bill  sponsor, explained this  is a                                                              
local  tax  issue that  allows  municipalities  to provide  a  tax                                                              
reduction for property  destroyed, damaged or reduced  in value as                                                              
a result  of a disaster. Municipalities  would have the  leeway to                                                              
define a disaster  to include a fire  or flood in a  private home,                                                              
which is  an option  they don't  have currently.  They would  also                                                              
have  the ability  to  set the  parameters  on reassessing  values                                                              
after the renovation.                                                                                                           
                                                                                                                                
SENATOR FRED DYSON  asked whether the fact that a  house burned to                                                              
the  ground wouldn't  automatically  give the  property owner  tax                                                              
relief.                                                                                                                         
                                                                                                                                
REPRESENTATIVE CHENAULT  said a municipality  would first  have to                                                              
adopt  an ordinance  declaring that  they  want to  take on  these                                                              
powers. Then  they would have to  set the criteria for  a disaster                                                              
declaration.                                                                                                                    
                                                                                                                                
SENATOR FRED  DYSON said  he could  see the  situation in  which a                                                              
house burns down,  the owners collect the insurance  and get a tax                                                              
break on the property and spend the money.                                                                                      
                                                                                                                                
CHAIR GARY STEVENS asked for the pleasure of the committee.                                                                     
                                                                                                                                
SENATOR DYSON said, "Move it."                                                                                                  
                                                                                                                                
CHAIR GARY STEVENS  said, "I assume that's a motion  Senator Dyson                                                              
to move it [CSHB 209(RLS)] with a  zero fiscal note and individual                                                              
recommendations." There being no objection, it was so ordered.