Washington State House of Representatives Office of Program Research	BILL ANALYSIS
Local Government & Housing Committee

SSB 5638

Brief Description:  Making technical corrections to county treasurer statutes.

Sponsors:  By Senate Committee on State & Local Government (originally sponsored by Senators Gardner, Swecker and Snyder).

Brief Summary of Substitute Bill

$Repeals the exemption from property taxes for property valued at $500 or less.

$Specifies that county road district taxes that were levied prior to annexation by a city or town are paid to the county road fund.

$Makes numerous changes relating to miscellaneous county treasurer statutes.

Hearing Date:  3/22/01

Staff:  Scott MacColl (786‑7106).

Background: 

County road districts that have territory annexed to a city or town where taxes have been levied but not collected, the uncollected revenue is transferred to the city or town road fund.

County treasurers have duties specified in statute, including collecting taxes and depositing monies with the state, maintaining financial records to account for and pay bonded indebtedness, and the following specific examples relating to county treasurer statutes:

$The county treasurer collects all state deferred property taxes and deposits the money with the Department of Revenue within thirty days.

$Short term obligations issued by local governments are authorized by ordinance, and may designate a paying agent to sell and deliver the short-term obligation.  If issued by the county, the county treasurer is required to be the paying agent.

$Counties are allowed six months to dispose of foreclosed property by private negotiation in cases where no acceptable bids were received at attempted public auctions for that property.

$When valuing and assessing divided property, a subdivision means a division of land into two or more lots.

$Property valued at less than $500 is exempt from the tax rolls.

Summary of Bill: 

This bill makes three changes relating to county treasurer statutes: 1) repealing the exemption from property taxes for property valued at $500 or less; 2) specifying that county road district taxes that were levied prior to annexation by a city or town are paid to the county road fund; and

3) making numerous changes relating to county treasurer statutes.

Those changes relating to various county treasurer statutes specify that:

$Counties are allowed twelve months to dispose of foreclosed property by private negotiation in cases where no acceptable bids were received at attempted public auctions for that property.

$The definition of a bond for state and local government bonds is clarified to specifically include capital leases as related to short term obligations.  Also, a clarification is made to state that only those municipalities and taxing and assessment districts in which the county treasurer is not the designated treasurer by law may designate a paying agent when issuing short term obligations. 

$Additional clarifications are made regarding the county and those taxing districts for which the county treasurer is the designated treasurer.  The treasurer must be notified thirty days in advance of issuing short term obligations, and the treasurer is required to be the paying agent for those districts.

$The State Department of Revenue is designated to collect deferred taxes from the senior citizen deferral program.  In the event the debt becomes delinquent, the county treasurer collects the delinquent taxes.

$When valuing and assessing divided property, a subdivision also means boundary line adjustments between two parcels.

$Many gender specific references are made gender neutral.

Appropriation:  None.

Fiscal Note:  Not Requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.