H-1109.3 _______________________________________________
HOUSE BILL 1789
_______________________________________________
State of Washington 53rd Legislature 1993 Regular Session
By Representatives Valle, Campbell and Roland
Read first time 02/08/93. Referred to Committee on Revenue.
AN ACT Relating to limiting property tax valuation increases for residential property; adding new sections to chapter 84.40 RCW; creating new sections; and providing a contingent effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. The intent of this act is to provide property tax relief for residential property owners whose property values are increasing at a rapid rate. This rapid increase in values often has the effect of increasing property taxes without an accompanying increase in ability to pay. This act provides for a limitation on the rate of increase of the assessed values of residential real property so that the effect of rapidly rising property taxes is spread over a period of years. This act also prevents shifting of property tax burdens from commercial to residential property during times of rapidly increasing residential property values.
NEW SECTION. Sec. 2. (1) An owner of residential property may apply to the county assessor in the county where the property is located to have his or her real property assessed under section 3 of this act. Application shall be made on forms prepared by the department of revenue and available at the office of the county assessor. The application shall be submitted to the county assessor. A taxpayer who submits an application shall certify that he or she is the owner of qualifying residential property. After the taxpayer submits the initial application, and the assessor determines that the property is used for residential purposes, the assessor shall, at the time a notice of change of value is mailed to a taxpayer under RCW 84.40.045, require the taxpayer to recertify that he or she is an owner of residential property in order to continue to qualify for the assessed value limitation provisions of section 3 of this act.
(2) If, on the basis of the application submitted by the taxpayer, the assessor determines that the property is not used for residential purposes, the assessor shall so notify the taxpayer in writing. The notice shall inform the taxpayer of the right to appeal the assessor's determination to the county board of equalization within thirty days of the mailing of the notice to the taxpayer.
NEW SECTION. Sec. 3. (1) The residential property of an owner who receives verification under section 2 of this act shall be valued and assessed as provided in this section, unless and until the property is no longer used for residential purposes.
(2) The assessed value of residential property shall be the lesser of the following values at the time of valuation:
(a) True and fair market value as established by the county assessor in accordance with applicable law; or
(b) The most recent assessed value of the property increased on January 1 each year thereafter by six percent, compounded annually, plus the portion of the true and fair market value attributable to any physical improvements not included in the previous assessment, other than improvements exempt under RCW 84.36.400 for the assessment year.
(3) All property valued under this section shall be listed on the county assessment rolls by the assessor at each of the values described in subsection (2) (a) and (b) of this section.
NEW SECTION. Sec. 4. Sections 2 and 3 of this act are each added to chapter 84.40 RCW.
NEW SECTION. Sec. 5. This act shall be effective for taxes levied for collection in 1994 and thereafter.
NEW SECTION. Sec. 6. This act shall take effect if the proposed amendment to Article VII, section 1 of the state Constitution, providing for limitation of increases in taxation of residential real estate is validly submitted to and is approved and ratified by the voters at the next general election. If the proposed amendment is not so approved and ratified, this act is void in its entirety.
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