BILL REQ. #:  S-3193.3 

Read first time 01/16/14.   Referred to Committee on Trade & Economic Development.

     AN ACT Relating to modifying the tax appeal process; amending RCW 34.05.030, 39.88.060, 42.17A.705, 79.125.450, 82.01.090, 82.29A.060, 82.32.150, 82.32.180, 82.49.060, 84.08.060, 84.08.130, 84.33.091, 84.34.065, 84.36.850, 84.39.020, 84.40.0301, 84.40.038, 84.48.080, 84.52.018, 84.56.290, and 84.69.020; reenacting and amending RCW 34.12.020; adding a new chapter to Title 82 RCW; repealing RCW 82.03.010, 82.03.020, 82.03.030, 82.03.040, 82.03.050, 82.03.060, 82.03.070, 82.03.080, 82.03.090, 82.03.100, 82.03.110, 82.03.120, 82.03.130, 82.03.140, 82.03.150, 82.03.160, 82.03.170, 82.03.180, 82.03.190, and 82.03.200; and providing effective dates.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   It is the intent of the legislature that this act foster the settlement or other resolution of tax disputes and, in cases in which litigation is necessary, to provide the people of this state with a fair, independent, prepayment procedure to determine a dispute with tax administration agencies. This act must be interpreted and construed to further this intent.

NEW SECTION.  Sec. 2   (1) To increase public confidence in the fairness of Washington's tax system, the state must provide an independent agency with tax expertise to resolve disputes between the taxing authority and taxpayers, prior to requiring the payment of the amounts in issue or the posting of a bond. The tax tribunal established in this chapter provides taxpayers with a means of resolving controversies that insures both the appearance and the reality of due process and fundamental fairness.
     (2) The tax tribunal has jurisdiction in all tax matters, except those specified by statute. A tax tribunal hearing is commenced by the filing of a petition appealing an order issued by a county board of equalization or protesting a tax determination made by the taxing authority, including any decision or determination that: Cancels, revokes, suspends, or denies an application for a license, permit, or registration; assesses additional tax, interest, or penalties, or denies a refund of tax, interest, or penalties; or instructs the taxpayer on reporting instructions through a tax administrative agency's ruling. A final decision of the tax tribunal may be appealed only as provided in section 17 of this act.

NEW SECTION.  Sec. 3   (1) There is hereby created the tax tribunal of the state of Washington as an agency of state government.
     (2) The tax tribunal is separate from and independent of the authority of any agency that has administrative responsibility for tax disputes brought before the tax tribunal.
     (3) The tax tribunal must have a seal.
     (4) The tax tribunal must be created by the effective date of this section.
     (5) The tax tribunal is subject to the provisions of chapter 34.05 RCW, to the extent not inconsistent with the provisions of this chapter.

NEW SECTION.  Sec. 4   To provide an orderly transition in establishing the tax tribunal, beginning July 1, 2014, prior to the creation of the tax tribunal in section 3 of this act, judges for the tax tribunal may be appointed and may take any action upon appointment that is necessary to enable the judges to properly exercise the duties, functions, and powers given the tax tribunal under this chapter.

NEW SECTION.  Sec. 5   The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     "Taxpayer" means a person who: Is challenging the state's jurisdiction over the person; has standing to challenge the validity or applicability of the tax; is challenging the amount of the assessment; is a responsible party under RCW 82.32.145; or is deemed to be a successor under RCW 82.32.140.

NEW SECTION.  Sec. 6   (1) The tax tribunal must consist of at least one full-time judge. If there is more than one judge, each judge must exercise the powers of the tax tribunal.
     (2) The judges of the tax tribunal must be appointed by the governor, with the advice and consent of the senate, for a term of six years. If the tribunal has more than one judge, the judges initially appointed must be given terms of different lengths not exceeding six years, so that all judges' terms do not expire in the same year.
     (3) Each judge of the tax tribunal must receive an annual salary no less than that provided for superior court judges under RCW 2.08.092, which salary may not be diminished during the judge's term of appointment except to the extent such reduction applies to all superior court judges. Each judge appointed pro tempore to the tax tribunal must receive compensation as provided under RCW 2.08.180.
     (4) Once appointed and confirmed, each judge must continue in office until his or her term expires and until a successor has been appointed and confirmed.
     (5) A vacancy in the tax tribunal occurring otherwise than by expiration of term must be filled for the unexpired term in the same manner as an original appointment.
     (6) If more than one judge is appointed, the governor must designate one of the members as chief judge. The chief judge must be the executive of the tax tribunal; must have sole charge of the administration of the tax tribunal; and must apportion among the judges all causes, matters, and proceedings coming before the tax tribunal. The individual designated as chief judge must serve in that capacity during the pleasure of the governor.
     (7) The governor may remove a judge, after notice and an opportunity to be heard, for neglect of duty, inability to perform duties, malfeasance in office, or other good cause, with the advice and consent of the senate and the house of representatives.
     (8) Whenever the tax tribunal trial docket or business becomes congested or any judge of the tax tribunal is absent, disqualified, or for any other reason unable to perform his or her duties as judge, and it appears to the governor that it is advisable that the services of an additional judge or judges be provided, the governor may appoint a judge, or judges, pro tempore of the tax tribunal. Any person appointed judge pro tempore of the tax tribunal must have the qualifications set forth in section 7 (1) and (2) of this act and must be entitled to serve for a period no longer than six months.
     (9) A judge may disqualify himself or herself on his or her own motion in any matter, and may be disqualified for any of the causes specified in RCW 2.28.030.

NEW SECTION.  Sec. 7   (1) Each judge of the tax tribunal must be a citizen of the United States and a resident of Washington state during the period of his or her service. No person may be appointed as a judge unless at the time of appointment the individual has substantial knowledge of state tax law and substantial experience making the record in a tax case suitable for judicial review.
     (2) Before entering upon the duties of office, each judge must take and subscribe to an oath or affirmation that he or she will faithfully discharge the duties of the office, and such oath must be filed in the office of the secretary of state.
     (3) Each judge must devote himself or herself full time during business hours to the duties of the office. A judge may not engage in any other gainful employment or business, nor hold another office or position of profit in a government of this state, any other state, or the United States. Notwithstanding the foregoing provisions, a judge may own passive interests in business entities and earn income from incidental teaching or scholarly activities.

NEW SECTION.  Sec. 8   (1) The tax tribunal's principal office must be located in Olympia, Washington.
     (2) The tax tribunal must conduct hearings at its principal office. The tax tribunal may also hold hearings at any place within the state, in order to provide taxpayers a reasonable opportunity to appear before the tax tribunal with as little inconvenience and expense as practicable.
     (3) The principal office of the tax tribunal must be located in a building that is separate and apart from the building in which any tax administration agency is located. When the tax tribunal holds hearings outside of its principal office, it must do so in a location that is physically separated from facilities regularly occupied by any tax administration agency.
     (4) The state must provide hearing rooms, chambers, and offices for the tax tribunal at its principal office and must arrange for hearing rooms, chambers, and offices or other appropriate facilities when hearings are held elsewhere.

NEW SECTION.  Sec. 9   (1) The tax tribunal must appoint a clerk and a reporter, and may appoint such other employees and make such other expenditures, including expenditures for library, publications, and equipment, as are necessary to permit it to efficiently execute its functions.
     (2) The reporter is subject to the provisions of RCW 2.32.180, as if appointed by a judge of a superior court, except where such provisions are in conflict with this chapter.
     (3) No employee of the tax tribunal may act as attorney, representative, or accountant for others in a matter involving any tax imposed or levied by this state.
     (4) An employee of the tax tribunal may be removed by the judge, or chief judge if there is one, after notice and an opportunity to be heard for: Neglect of duty; inability to perform duties; malfeasance in office; or for other good cause. Any reduction, suspension, dismissal, or demotion of a tax tribunal employee must conform to the requirements of RCW 41.06.170.
     (5) In addition to the services of the reporter appointed under this section, the tax tribunal may contract the reporting of its proceedings and in the contract fix the terms and conditions under which transcripts will be supplied by the contractor to the tax tribunal and to other persons and agencies.

NEW SECTION.  Sec. 10   (1) The tax tribunal may hear and determine questions of law and fact arising under any of the following:
     (a) Appeals taken pursuant to RCW 82.03.190;
     (b) Appeals from a county board of equalization pursuant to this chapter;
     (c) Appeals by an assessor or landowner from an order of the director made pursuant to RCW 84.08.010 and 84.08.060, if filed with the tax tribunal within thirty days after the mailing of the order, the right to such an appeal being hereby established;
     (d) Appeals by an assessor or owner of an intercounty public utility or private car company from determinations by the director of revenue of equalized assessed valuation of property and the apportionment thereof to a county made pursuant to chapters 84.12 and 84.16 RCW, if filed with the tax tribunal within thirty days after mailing of the determination, the right to such appeal being hereby established;
     (e) Appeals by an assessor, landowner, or owner of an intercounty public utility or private car company from a determination of any county indicated ratio for such county compiled by the department pursuant to RCW 84.48.075, if the appeal is filed after review of the ratio under RCW 84.48.075(3) and not later than fifteen days after the mailing of the certification. A hearing under this subsection before the tax tribunal must be expeditiously held in accordance with rules prescribed by the tax tribunal and must take precedence over all matters of the same character;
     (f) Appeals from the decisions of sale price of second-class shorelands on navigable lakes by the department of natural resources pursuant to RCW 79.125.450;
     (g) Appeals from urban redevelopment property tax apportionment district proposals established by governmental ordinances pursuant to RCW 39.88.060;
     (h) Appeals from interest rates as determined by the department of revenue for use in valuing farmland under current use assessment pursuant to RCW 84.34.065;
     (i) Appeals from revisions to stumpage value tables used to determine value by the department pursuant to RCW 84.33.091;
     (j) Appeals from denial of tax exemption application by the department pursuant to RCW 84.36.850;
     (k) Appeals pursuant to RCW 84.40.038(3);
     (l) Appeals pursuant to RCW 84.39.020;
     (m) Appeals to taxes assessed and refunds denied under Title 83 RCW; or
     (n) Appeals from rulings issued by a tax authority by statute, rule, or policy that instructs a taxpayer regarding how taxes should be reported if failure to follow such instructions can result in the assessment of taxes, interest, or penalties.
     (2) Except as otherwise specifically provided by law, the provisions of RCW 1.12.070 apply to all notices of appeal filed with the tax tribunal.
     (3) Nothing in this chapter limits the ability to bring a tax refund action in superior court under RCW 82.32.180.
     (4) Except in cases involving the denial of a claim for refund and notwithstanding RCW 82.32.150, and except in cases involving property taxes unless subject to RCW 84.52.018, the taxpayer has the right to have his or her case heard by the tax tribunal prior to the payment of any of the amounts asserted as due by the tax administration agency and prior to the posting of any bond.
     (5) If, with or after the filing of a timely petition, the taxpayer pays all or part of the tax or other amount in issue before the tax tribunal has rendered a decision, the tax tribunal must treat the taxpayer's petition as a protest of a denial of a claim for refund of the amount paid.
     (6) The tax tribunal must decide questions regarding the constitutionality of the application of statutes to the taxpayer and the constitutionality of regulations promulgated by the tax administration agency but does not have the power to declare a statute unconstitutional on its face. A taxpayer desiring to challenge the constitutionality of a statute on its face may, at the taxpayer's election, do so by one of the following methods:
     (a) Commence a declaratory action under chapter 7.24 RCW in the appropriate superior court of this state with respect to the constitutional challenge and file a petition in the tax tribunal with respect to the remainder of the matter, which proceeding must be stayed by the tax tribunal pending final resolution of the constitutional challenge;
     (b) File a petition with the tax tribunal with respect to issues other than the constitutional challenge, in which the taxpayer preserves the constitutional challenge until the entire matter, including the constitutional challenge and the facts related to the constitutional challenge, is presented to the appellate court;
     (c) Commence and simultaneously prosecute a declaratory action in the appropriate superior court with respect to the constitutional challenge and a proceeding in the tax tribunal with respect to the remainder of the issues; or
     (d) Pay the amounts asserted as due by the tax administration agency and commence a refund action in the appropriate superior court.

NEW SECTION.  Sec. 11   (1) For taxes assessed by the department, before the department finalizes a determination that triggers a taxpayer's right to commence a proceeding before the tax tribunal under section 12 of this act, the department must provide to the taxpayer the option to obtain review of the audit function's proposed determination by an independent administrative appeals function.
     (2) The independent administrative appeals function has all of the following characteristics:
     (a) Appeals personnel must exercise independent judgment with the objective of settling as many disputed issues as possible without litigation;
     (b) Appeals personnel must have expertise in, and extensive experience with, the state's tax laws;
     (c) Appeals personnel must concede or settle individual issues based on the facts and the law, including the hazards of litigation, and an issue specifically conceded or settled by appeals personnel may not thereafter be contested by the taxpayer or the department;
     (d) Appeals conferences must be conducted in an informal manner;
     (e) Appeals conferences must be conducted, at the taxpayer's option, by correspondence, by telephone, or in person;
     (f) Appeals personnel must consider arguments as to the applicability of the tax laws; settlement proposals and counterproposals; and new evidence in support of the taxpayer's position. However, if the new evidence is substantial and should have been presented at the time of audit, appeals personnel may request the audit function to examine the evidence and to make a recommendation as to the effect of the evidence on the related issue;
     (g) The taxpayer has the right to bring witnesses to an in-person conference;
     (h) The taxpayer may participate in appeals conferences without representation; may be represented by an officer, employee, partner, or member of the taxpayer; or may be represented by a third party of the taxpayer's choice, including a person specified in section 19(1) of this act;
     (i) Appeals personnel may not engage in ex parte communications with department employees to the extent that such communications appear to compromise the independence of the appeals function. Consistent with this subsection, appeals personnel may on an ex parte basis:
     (i) Ask questions that involve ministerial, administrative, or procedural matters and that do not address the substance of the issues or positions taken in the case; and
     (ii) Seek legal advice on an issue from the department by an attorney, who was not involved in providing advice on that issue to the employees who made the determination being reviewed. In all other cases, appeals personnel must allow the taxpayer to participate in any communications with department employees;
     (j) Appeals decisions and agreements may not be considered as precedent;
     (k) A taxpayer's decision to forego appeals consideration does not constitute a failure to exhaust administrative remedies, nor does a taxpayer's decision to request appeals consideration with respect to a determination preclude the taxpayer from commencing a proceeding in the tax tribunal with respect to any issue not resolved by settlement or concession; and
     (l) The department may promulgate emergency and other rules governing the operation of the independent administrative appeals function, including, without limitation, a rule allowing the department of revenue to finalize its determination if the taxpayer fails to timely request or pursue appeals consideration or a rule allowing the department to publicly designate specific issues that appeals personnel may not compromise.
     (3) For the purposes of this section, an "independent administrative appeals function" means a program of holding conferences and negotiating settlements that is designed to resolve the vast majority of tax controversies without litigation on a basis that is fair and impartial to the state and the taxpayer and that enhances voluntary compliance and public confidence in the integrity and efficiency of the department.

NEW SECTION.  Sec. 12   (1) A taxpayer may commence a proceeding in the tax tribunal by filing a petition protesting the tax administration agency's determination imposing a liability for tax, penalty, or interest; denying a refund or credit application; canceling, revoking, suspending, or denying an application for a license, permit, or registration; or taking any other action that gives a person the right to a hearing under the law. The petition must be filed in the tax tribunal no later than ninety days after receipt of the tax administration agency's written final notice of such determination containing a statement of taxpayer's rights consistent with RCW 82.32.180.
     (2) The tax administration agency must file its answer in the tax tribunal no later than seventy-five days after its receipt of the tax tribunal's notification that the taxpayer has filed a petition in proper form. Upon written request, the tax tribunal may grant up to fifteen additional days to file an answer. The tax administration agency must serve a copy on the taxpayer's representative or, if the taxpayer is not represented, on the taxpayer, and must file proof of such service with the answer. Material facts alleged in the petition, if not expressly admitted or denied in the answer, are deemed admitted. If the tax administration agency fails to answer within the prescribed time, all material facts alleged in the petition is deemed admitted.
     (3) The taxpayer may file a reply in the tax tribunal within thirty days after receipt of the answer. The taxpayer must serve a copy on the director or authorized representative of the tax administration agency and must file proof of such service with the reply. If the taxpayer fails to reply within the prescribed time, all material facts alleged in the answer is deemed denied. When a reply has been filed, or, if no reply has been filed, then thirty days after the filing of the answer, the controversy is deemed at issue and will be scheduled for hearing.
     (4) Either party may amend a pleading once without leave at any time before the period for responding to it expires. After such time, a pleading may be amended only with the written consent of the adverse party or with the permission of the tax tribunal. The tax tribunal must freely grant consent to amend upon such terms as may be just. Except as otherwise ordered by the tax tribunal, there must be an answer or reply to an amended pleading if an answer or reply is required to the pleading being amended. Filing of the answer, or, if the answer has already been filed, the amended answer, must be made no later than seventy-five days after filing of the amended petition. Filing of the reply or, if the reply has already been filed, the amended reply, must be made within thirty days after filing of the amended answer. The taxpayer may not amend a petition after expiration of the time for filing a petition, if such amendment would have the effect of conferring jurisdiction on the tax tribunal over a matter that would otherwise not come within its jurisdiction. An amendment of a pleading must relate back to the time of filing of the original pleading, unless the tax tribunal orders otherwise either on motion of a party or on the tax tribunal's own initiative.

NEW SECTION.  Sec. 13   (1) Upon filing a petition, the taxpayer must pay to the clerk a fee in the amount of two hundred fifty dollars, except that, in the case of a petition filed in the small claims division as provided in section 17 of this act, there is no fee. A similar fee must be paid by other parties making an appearance in the proceeding, except that no fee may be charged to a government body or government official appearing in a representative capacity.
     (2) The tax tribunal may fix a fee, not in excess of the fees charged and collected by the clerks of the superior courts, for comparing, or for preparing and comparing, a transcript of the record, or for copying any record, entry, or other paper and the comparison and certification thereof.

NEW SECTION.  Sec. 14   (1) The parties to a proceeding must make every effort to achieve discovery by informal consultation or communication, before invoking the discovery mechanisms authorized by this section.
     (2) The parties to a proceeding must stipulate all relevant and nonprivileged matters to the fullest extent to which complete or qualified agreement can or fairly should be reached. Neither the existence nor the use of the discovery mechanisms authorized by this section excuses failure to comply with this provision.
     (3) Subject to reasonable limitations prescribed by the tax tribunal, a party may obtain discovery by written interrogatories; requests for the production of returns, books, papers, documents, correspondence, or other evidence; depositions of parties, nonparty witnesses, and experts; and requests for admissions. The tax tribunal may provide for other forms of discovery. Nothing in RCW 82.32.330 may be construed to prevent a deemed successor from obtaining under this section discovery related to an assertion of successor liability.
     (4) The judge or the clerk of the tax tribunal, on the request of any party to the proceeding, must issue subpoenas requiring the attendance of witnesses and giving of testimony and subpoenas duces tecum requiring the production of evidence or things.
     (5) Any employee of the tax tribunal designated in writing for the purpose by the chief judge may administer oaths.
     (6) Any witness subpoenaed or whose deposition is taken must receive the same fees and mileage as a witness in a superior court of this state.
     (7) The tax tribunal may enforce its orders on discovery and other procedural issues, among other means, by deciding issues wholly or partly against the offending party.

NEW SECTION.  Sec. 15   (1) Proceedings before the tax tribunal must be tried de novo and without a jury.
     (2) Except as provided otherwise, the tax tribunal must conduct a pretrial conference for each case to narrow issues and to establish a case scheduling order, take evidence, conduct hearings, and issue final and interlocutory decisions.
     (3) Hearings must be open to the public and must be conducted in accordance with such rules of practice and procedure as the tax tribunal may promulgate. However, on motion of either party the tax tribunal must issue a protective order or an order closing part or all of the hearing to the public, if the party shows good cause to protect certain information from being disclosed to the public. Protective orders issued by the tax tribunal have the same authority under the public records act and other state laws as protective orders issued by superior courts.
     (4) Evidence, including hearsay evidence, is admissible if in the judgment of the judge it is the kind of evidence on which reasonably prudent persons are accustomed to rely in the conduct of their affairs. The judge must exclude evidence that is excludable on constitutional or statutory grounds or on the basis of evidentiary privilege recognized in the courts of this state. The judge may exclude evidence that is irrelevant, immaterial, or unduly repetitious.
     (5) If not inconsistent with subsection (1) of this section, the judge must refer to the Washington rules of evidence as guidelines for evidentiary rulings.
     (6) All testimony of parties and witnesses must be made under oath or affirmation.
     (7) Documentary evidence may be received in the form of copies or excerpts, or by incorporation by reference.
     (8) Official notice may be taken of (a) any judicially cognizable facts, (b) technical or scientific facts within the tribunal's specialized knowledge, and (c) codes or standards that have been adopted by an agency of the United States, of this state, or of another state, or by a nationally recognized organization or association. Parties must be notified either before or during the hearing, or by reference in preliminary reports or otherwise, of the material so noticed and the sources thereof, including any staff memoranda and data, and the parties must be afforded an opportunity to contest the facts and material so noticed. A party proposing that official notice be taken may be required to produce a copy of the material to be noticed.
     (9) In the case of an issue of fact, the taxpayer has the burden of persuasion by a preponderance of the evidence in the record, except that the tax administration agency has the burden of persuasion in the case of an assertion of successorship liability, personal liability for trust funds, fraud, misrepresentation of material fact, any penalty in excess of twenty-five percent of the tax, and in other cases provided by law.
     (10) Proceedings before the tax tribunal, except those before the small claims division as provided in section 17 of this act, must be officially reported. The state must pay the expense of reporting from the appropriation for the tax tribunal.

NEW SECTION.  Sec. 16   (1) The tax tribunal must render its decision in writing, including therein a concise statement of the facts found and the conclusions of law reached. The tax tribunal's decision must, subject to law, grant such relief, invoke such remedies and issue such orders as it deems appropriate to carry out its decision.
     (2) The tax tribunal must render its decision no later than six months after submission of the last brief filed subsequent to completion of the hearing or, if briefs are not submitted, then no later than six months after completion of the hearing. The tax tribunal may extend the six-month period, for good cause, up to three additional months.
     (3) If the tax tribunal fails to render a decision within the prescribed period, either party may institute a proceeding in the superior court to compel the issuance of such decision.
     (4) The tax tribunal's decision must finally decide the matters in controversy, unless any party to the matter timely appeals the decision, as provided in section 18 of this act.
     (5) The tax tribunal's decision has the same effect, and must be enforced in the same manner, as a judgment of a superior court of the state.
     (6) The tax tribunal's interpretation of a taxing statute subject to contest in one case must be followed by the tax tribunal in subsequent cases involving the same statute, and its application of a statute to the facts of one case must be followed by the tax tribunal in subsequent cases involving similar facts, unless the tax tribunal's interpretation or application conflicts with that of an appellate court or the tax tribunal provides satisfactory reasons for reversing prior precedent.

NEW SECTION.  Sec. 17   (1) There is hereby established a small claims division of the tax tribunal.
     (2) The judges of the tax tribunal must sit as the judges of the small claims division.
     (3) If the taxpayer timely elects, or if the county assessor appealing a county board of equalization order timely elects and the taxpayer does not timely file an election otherwise under section 13 of this act, the small claims division has jurisdiction over any proceeding with respect to any calendar year for which the net amount of the tax deficiencies and claimed refunds in controversy or the amount in dispute for each year of property taxes assessed for all taxpayer's parcels under appeal does not exceed twenty-five thousand dollars, exclusive of interest and penalties.
     (4) A taxpayer may elect to proceed in the small claims division of the tax tribunal by filing a petition in the form prescribed by the tax tribunal no later than ninety days after the taxpayer's receipt of written notice of the determination that is the subject of the petition. A taxpayer may not revoke an election to proceed in the small claims division.
     (5) No later than thirty days after receipt of notice that the taxpayer has filed a petition in proper form, or at such other time as the tax tribunal may order, the tax administration agency must file with the tax tribunal an answer similar to that required by section 11 of this act.
     (6) At any time prior to entry of judgment, a taxpayer may dismiss a proceeding in the small claims division by notifying the clerk of the tax tribunal in writing. Such dismissal is with prejudice, and does not have the effect of revoking the election made in accordance with subsection (4) of this section.
     (7) Hearings in the small claims division must be informal, and the judge may receive such evidence as the judge deems appropriate for determination of the case. Testimony must be given under oath or affirmation.
     (8) A judgment of the small claims division is conclusive upon all parties and may not be appealed. A judgment of the small claims division may not be considered as precedent in any other case, hearing, or proceeding.
     (9) Except for section 16 of this act, sections 1 through 22 of this act apply to proceedings in the small claims division unless expressly inapplicable thereto or inconsistent with the provisions of this section.

NEW SECTION.  Sec. 18   (1) The taxpayer or the tax administration agency is entitled to judicial review of a final decision of the tax tribunal, except a final decision of the small claims division, in accordance with the procedure for appeal from a decision of a superior court to the division of the court of appeals where the taxpayer resides, transacts business, or transacted business at any time during the tax period at issue, or has an office for the transaction of business, without regard to the sum involved. The taxpayer or the tax administration agency may obtain judicial review of an interlocutory decision of the tax tribunal under the same conditions and in the same manner as an interlocutory decision of the superior court.
     (2) The record on judicial review must include the decision of the tax tribunal, the stenographic transcript of the hearing before the tax tribunal, the pleadings and all exhibits and documents admitted into evidence.

NEW SECTION.  Sec. 19   (1) Appearances in proceedings conducted by the tax tribunal may be by the taxpayer, by an attorney admitted to practice in this state (including an attorney who is a partner or member of, or is employed by, an accounting or other professional services firm), by an accountant licensed in this state, or by an enrolled agent authorized to represent taxpayers before the federal internal revenue service. The tax tribunal may allow any attorney or accountant authorized to practice or licensed in any other jurisdiction of the United States to appear and represent a taxpayer in proceedings before the tax tribunal for a particular matter. In addition, the tax tribunal may promulgate rules and regulations permitting a taxpayer to be represented by an officer, employee, partner, or member.
     (2) The tax administration agency must be represented by an authorized representative in all proceedings before the tax tribunal.

NEW SECTION.  Sec. 20   Except for decisions issued by the small claims division, the tax tribunal must index and publish its final decisions in such print or electronic form as it deems best adapted for public convenience. All such publications must be made permanently available and constitute the official reports of the tax tribunal.

NEW SECTION.  Sec. 21   (1) Mailing by first-class or certified or registered mail, postage prepaid, to the address of the taxpayer given on the taxpayer's petition, or to the address of the taxpayer's representative of record, if any, or to the usual place of business of the tax administration agency, constitute personal service on the other party. The tax tribunal may by rule prescribe that notice by other means constitute personal service and may in a particular case order that notice be given to additional persons or by other means.
     (2) Mailing by registered or certified mail and delivery by a private delivery service approved by the federal internal revenue service in accordance with 26 U.S.C. Sec. 7502(f) of the federal internal revenue code of 1986, as amended, is deemed to have occurred, respectively, on the date of mailing and the date of submission to the private delivery service.
     (3) The tax tribunal may adopt rules or other guidance to allow papers to be filed, signed, or verified by electronic means. A paper filed electronically in compliance with such rule or guidance is a written paper for purposes of this chapter. The parties may, by agreement, serve any pleadings or discovery by electronic means, in which event service is complete upon transmission, if the parties have so consented in writing.

NEW SECTION.  Sec. 22   The tax tribunal is authorized to promulgate and adopt all reasonable rules and forms as may be necessary or appropriate to carry out the intent and purposes of this chapter.

NEW SECTION.  Sec. 23   (1) This chapter applies to:
     (a) All proceedings commenced in the tax tribunal on or after the effective date of this section; and
     (b) All administrative proceedings commenced prior to the effective date of this section that have not been the subject of a final and irrevocable administrative action as of the effective date of this section, to the extent this chapter can be made applicable thereto.
     (2) Any administrative proceeding in which a hearing has commenced prior to the effective date of this section must be transferred to the tax tribunal, which must render the decision in such proceeding unless there is a prior settlement.
     (3) This chapter does not affect any proceeding, prosecution, action, suit, or appeal commenced in the judicial branch before the effective date of this section.

NEW SECTION.  Sec. 24   (1) The state board of tax appeals is transferred to the tax tribunal.
     (2)(a) All reports, documents, surveys, books, records, files, papers, or written material in the possession of the state board of tax appeals must be delivered to the custody of the tax tribunal. All cabinets, furniture, office equipment, motor vehicles, and other tangible property employed by the state board of tax appeals must be made available to the tax tribunal. All funds, credits, or other assets held by the state board of tax appeals must be assigned to the tax tribunal.
     (b) Any appropriations made to the state board of tax appeals, on the effective date of this section, must be transferred and credited to the tax tribunal.
     (c) If any question arises as to the transfer of any personnel, funds, books, documents, records, papers, files, equipment, or other tangible property used or held in the exercise of the powers and the performance of the duties and functions transferred, the director of financial management must make a determination as to the proper allocation and certify the same to the state agencies concerned.
     (3) All employees of the state board of tax appeals are transferred to the jurisdiction of the tax tribunal. All employees classified under chapter 41.06 RCW, the state civil service law, are assigned to the tax tribunal to perform their usual duties upon the same terms as formerly, without any loss of rights, subject to any action that may be appropriate thereafter in accordance with the laws and rules governing state civil service.
     (4) All rules and all pending business before the state board of tax appeals must be continued and acted upon by the tax tribunal. All existing contracts and obligations remain in full force and must be performed by the tax tribunal.
     (5) The transfer of the powers, duties, functions, and personnel of the state board of tax appeals does not affect the validity of any act performed before the effective date of this section.
     (6) If apportionments of budgeted funds are required because of the transfers directed by this section, the director of financial management must certify the apportionments to the agencies affected, the state auditor, and the state treasurer. Each of these must make the appropriate transfer and adjustments in funds and appropriation accounts and equipment records in accordance with the certification.

Sec. 25   RCW 34.05.030 and 2011 1st sp.s. c 43 s 431 are each amended to read as follows:
     (1) This chapter ((shall)) does not apply to:
     (a) The state militia, or
     (b) The board of clemency and pardons, or
     (c) The department of corrections or the indeterminate sentencing review board with respect to persons who are in their custody or are subject to the jurisdiction of those agencies.
     (2) The provisions of RCW 34.05.410 through 34.05.598 ((shall)) do not apply:
     (a) To adjudicative proceedings of the board of industrial insurance appeals except as provided in RCW 7.68.110 and 51.48.131;
     (b) Except for actions pursuant to chapter 46.29 RCW, to the denial, suspension, or revocation of a driver's license by the department of licensing;
     (c) To the department of labor and industries where another statute expressly provides for review of adjudicative proceedings of a department action, order, decision, or award before the board of industrial insurance appeals;
     (d) To actions of the Washington personnel resources board, the human resources director, or the office of financial management and the department of enterprise services when carrying out their duties under chapter 41.06 RCW;
     (e) To adjustments by the department of revenue of the amount of the surcharge imposed under RCW 82.04.261; or
     (f) To the extent they are inconsistent with any provisions of chapter 43.43 RCW.
     (3) Unless a party makes an election for a formal hearing pursuant to ((RCW 82.03.140 or 82.03.190)) chapter 82.--- RCW (the new chapter created in section 48 of this act), RCW 34.05.410 through 34.05.598 do not apply to a review hearing conducted by the ((board of tax appeals)) tax tribunal created in section 3 of this act.
     (4) The rule-making provisions of this chapter do not apply to:
     (a) Reimbursement unit values, fee schedules, arithmetic conversion factors, and similar arithmetic factors used to determine payment rates that apply to goods and services purchased under contract for clients eligible under chapter 74.09 RCW; and
     (b) Adjustments by the department of revenue of the amount of the surcharge imposed under RCW 82.04.261.
     (5) All other agencies, whether or not formerly specifically excluded from the provisions of all or any part of the administrative procedure act, ((shall be)) are subject to the entire act.

Sec. 26   RCW 34.12.020 and 2010 c 211 s 16 are each reenacted and amended to read as follows:
     ((Unless the context clearly requires otherwise,)) The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
     (1) "Administrative law judge" means any person appointed by the chief administrative law judge to conduct or preside over hearings as provided in this chapter.
     (2) "Hearing" means an adjudicative proceeding within the meaning of RCW 34.05.010(1) conducted by a state agency under RCW 34.05.413 through 34.05.476.
     (3) "Office" means the office of administrative hearings.
     (4) "State agency" means any state board, commission, department, or officer authorized by law to make rules or to conduct adjudicative proceedings, except those in the legislative or judicial branches, the growth management hearings board, the utilities and transportation commission, the pollution control hearings board, the shorelines hearings board, the forest practices appeals board, the environmental ((hearings office)) and land use hearings office, the board of industrial insurance appeals, the Washington personnel resources board, the public employment relations commission, and the ((board of tax appeals)) tax tribunal created in section 3 of this act.

Sec. 27   RCW 39.88.060 and 1989 c 378 s 1 are each amended to read as follows:
     (1) Any taxing district that objects to the apportionment district, the duration of the apportionment, the manner of apportionment, or the propriety of cost items established by the public improvement ordinance of the sponsor may, within thirty days after mailing of the ordinance, petition for review thereof by the ((state board of tax appeals. The state board of tax appeals shall)) tax tribunal created in section 3 of this act. The tax tribunal must meet within a reasonable time, hear all the evidence presented by the parties on matters in dispute, and determine the issues upon the evidence as may be presented to it at the hearing. The ((board)) tax tribunal may approve or deny the public improvement ordinance as enacted or may grant approval conditioned upon modification of the ordinance by the sponsor. The decision by the ((state board of tax appeals shall be)) tax tribunal is final and conclusive but ((shall)) does not preclude modification or discontinuation of the public improvement.
     (2) If the sponsor modifies the public improvement ordinance as directed by the ((board)) tax tribunal, the public improvement ordinance ((shall be)) is effective without further hearings or findings and ((shall)) is not ((be)) subject to any further appeal. If the sponsor modifies the public improvement ordinance in a manner other than as directed by the ((board)) tax tribunal, the public improvement ordinance ((shall be)) is subject to the procedures established pursuant to RCW 39.88.040 and 39.88.050.

Sec. 28   RCW 42.17A.705 and 2012 c 229 s 582 are each amended to read as follows:
     For the purposes of RCW 42.17A.700, "executive state officer" includes:
     (1) The chief administrative law judge, the director of agriculture, the director of the department of services for the blind, the chief information officer of the office of chief information officer, the director of the state system of community and technical colleges, the director of commerce, the director of the consolidated technology services agency, the secretary of corrections, the director of early learning, the director of ecology, the commissioner of employment security, the chair of the energy facility site evaluation council, the director of enterprise services, the secretary of the state finance committee, the director of financial management, the director of fish and wildlife, the executive secretary of the forest practices appeals board, the director of the gambling commission, the secretary of health, the administrator of the Washington state health care authority, the executive secretary of the health care facilities authority, the executive secretary of the higher education facilities authority, the executive secretary of the horse racing commission, the human resources director, the executive secretary of the human rights commission, the executive secretary of the indeterminate sentence review board, the executive director of the state investment board, the director of labor and industries, the director of licensing, the director of the lottery commission, the director of the office of minority and women's business enterprises, the director of parks and recreation, the executive director of the public disclosure commission, the executive director of the Puget Sound partnership, the director of the recreation and conservation office, the director of retirement systems, the director of revenue, the secretary of social and health services, the chief of the Washington state patrol, ((the executive secretary of the board of tax appeals,)) the secretary of transportation, the secretary of the utilities and transportation commission, the director of veterans affairs, the president of each of the regional and state universities and the president of The Evergreen State College, and each district and each campus president of each state community college;
     (2) Each professional staff member of the office of the governor;
     (3) Each professional staff member of the legislature; and
     (4) Central Washington University board of trustees, the boards of trustees of each community college and each technical college, each member of the state board for community and technical colleges, state convention and trade center board of directors, Eastern Washington University board of trustees, Washington economic development finance authority, Washington energy northwest executive board, The Evergreen State College board of trustees, executive ethics board, fish and wildlife commission, forest practices appeals board, forest practices board, gambling commission, Washington health care facilities authority, student achievement council, higher education facilities authority, horse racing commission, state housing finance commission, human rights commission, indeterminate sentence review board, board of industrial insurance appeals, state investment board, commission on judicial conduct, legislative ethics board, life sciences discovery fund authority board of trustees, liquor control board, lottery commission, Pacific Northwest electric power and conservation planning council, parks and recreation commission, Washington personnel resources board, board of pilotage commissioners, pollution control hearings board, public disclosure commission, public employees' benefits board, recreation and conservation funding board, salmon recovery funding board, shorelines hearings board, ((board of tax appeals,)) transportation commission, University of Washington board of regents, utilities and transportation commission, Washington State University board of regents, and Western Washington University board of trustees.

Sec. 29   RCW 79.125.450 and 2005 c 155 s 520 are each amended to read as follows:
     (1) The legislature finds that maintaining public lands in public ownership is often in the public interest. However, when second-class shorelands on navigable lakes have minimal public value, the sale of those shorelands to the abutting upland owner may not be contrary to the public interest. However, the purpose of this section is to remove the prohibition contained in RCW 79.125.200 regarding the sale of second-class shorelands to abutting owners, whose uplands front on the shorelands. Nothing contained in this section ((shall)) may be construed to otherwise affect the rights of interested parties relating to public or private ownership of shorelands within the state.
     (2) Notwithstanding the provisions of RCW 79.125.200, the department may sell second-class shorelands on navigable lakes to abutting owners whose uplands front upon the shorelands in cases where the board has determined that these sales would not be contrary to the public interest. These shorelands ((shall)) may be sold at fair market value, but not less than five percent of the fair market value of the abutting upland, less improvements, to a maximum distance of one hundred and fifty feet landward from the line of ordinary high water.
     (3) Review of the decision of the department regarding the sale price established for a shoreland to be sold pursuant to this section may be obtained by the upland owner by filing a petition with the ((board of tax appeals created in accordance with chapter 82.03 RCW)) tax tribunal created in section 3 of this act within thirty days after the mailing of notification by the department to the owner regarding the price. The ((board of tax appeals shall)) tax tribunal must review the cases in an adjudicative proceeding as described in chapter 34.05 RCW, the administrative procedure act, and the ((board's)) tax tribunal's review ((shall)) must be de novo. Decisions of the ((board of tax)) tax tribunal appeals regarding fair market values determined pursuant to this section ((shall be)) are final ((unless appealed to the superior court pursuant to RCW 34.05.510 through 34.05.598)).

Sec. 30   RCW 82.01.090 and 1967 ex.s. c 26 s 6 are each amended to read as follows:
     Except for the powers and duties devolved upon the ((board of tax appeals by the provisions of RCW 82.03.010 through 82.03.190)) tax tribunal created in section 3 of this act, the director of revenue ((shall)) must, after July 1, 1967, exercise those powers, duties and functions theretofore vested in the tax commission of the state of Washington, including all powers, duties and functions of the commission acting as the commission or as the state board of equalization or in any other capacity.

Sec. 31   RCW 82.29A.060 and 1994 c 95 s 1 are each amended to read as follows:
     (1) All administrative provisions in chapters 82.02 and 82.32 RCW ((shall be)) are applicable to taxes imposed pursuant to this chapter.
     (2)(a) A lessee, or a sublessee in the case where the sublessee is responsible for paying the tax imposed under this chapter, of property used for residential purposes may petition the county board of equalization for a change in appraised value when the department of revenue establishes taxable rent under RCW 82.29A.020(2)(((b))) (g) based on an appraisal done by the county assessor at the request of the department. The petition must be on forms prescribed or approved by the department of revenue and any petition not conforming to those requirements or not properly completed ((shall)) may not be considered by the board. The petition must be filed with the board within the time period set forth in RCW 84.40.038. A decision of the board of equalization may be appealed by the taxpayer to the ((board of tax appeals)) tax tribunal created in section 3 of this act as provided in RCW 84.08.130.
     (b) A sublessee, in the case where the sublessee is responsible for paying the tax imposed under this chapter, of property used for residential purposes may petition the department for a change in taxable rent when the department of revenue establishes taxable rent under RCW 82.29A.020(2)(((b))) (g).
     (c) Any change in tax resulting from an appeal under this subsection ((shall)) must be allocated to the lessee or sublessee responsible for paying the tax.
     (3) This section ((shall)) does not authorize the issuance of any levy upon any property owned by the public lessor.
     (4) In selecting leasehold excise tax returns for audit the department of revenue ((shall)) must give priority to any return an audit of which is specifically requested in writing by the county assessor or treasurer or other chief financial officer of any city or county affected by such return. Notwithstanding the provisions of RCW 82.32.330, findings of fact and determinations of the amount of taxable rent made pursuant to the provisions of this chapter ((shall)) must be open to public inspection at all reasonable times.

Sec. 32   RCW 82.32.150 and 1961 c 15 s 82.32.150 are each amended to read as follows:
     ((All taxes, penalties, and interest shall be paid in full before any action may be instituted in any court to contest all or any part of such taxes, penalties, or interest.)) No restraining order or injunction ((shall)) may be granted or issued by any court or judge to restrain or enjoin the collection of any tax or penalty or any part thereof, except upon the ground that the assessment thereof was in violation of the Constitution of the United States or that of the state.

Sec. 33   RCW 82.32.180 and 1997 c 156 s 4 are each amended to read as follows:
     (1) Any person, except one who has failed to keep and preserve books, records, and invoices as required in this chapter and chapter 82.24 RCW, having paid any tax as required and feeling aggrieved by the amount of the tax may appeal to the tax tribunal created under section 3 of this act or to the superior court of Thurston county((,)). If the appeal is to the superior court, then it must be filed within the time limitation for a refund provided in chapter 82.32 RCW or, if an application for refund has been made to the department within that time limitation, then within thirty days after rejection of the application, whichever time limitation is later. In the appeal the taxpayer ((shall)) must set forth the amount of the tax imposed upon the taxpayer which the taxpayer concedes to be the correct tax and the reason why the tax should be reduced or abated. The appeal ((shall)) must be perfected by serving a copy of the notice of appeal upon the department within the time herein specified and by filing the original thereof with proof of service with the clerk of the superior court of Thurston county.
     (2) The trial in the superior court on appeal ((shall)) must be de novo and without the necessity of any pleadings other than the notice of appeal. At trial, the burden ((shall)) rests upon the taxpayer to prove that the tax as paid by the taxpayer is incorrect, either in whole or in part, and to establish the correct amount of the tax. In such proceeding the taxpayer ((shall be)) is deemed the plaintiff, and the state, the defendant; and both parties ((shall be)) are entitled to subpoena the attendance of witnesses as in other civil actions and to produce evidence that is competent, relevant, and material to determine the correct amount of the tax that should be paid by the taxpayer. Either party may seek appellate review in the same manner as other civil actions are appealed to the appellate courts.
     (3) It ((shall not be)) is not necessary for the taxpayer to protest against the payment of any tax or to make any demand to have the same refunded or to petition the director for a hearing in order to appeal to the superior court, but no court action or proceeding of any kind ((shall)) may be maintained by the taxpayer to recover any tax paid, or any part thereof, except as herein provided.
     (4) The provisions of this section ((shall)) do not apply to any tax payment which has been the subject of an appeal to the ((board of tax appeals with respect to which appeal a formal hearing has been elected)) tax tribunal created in section 3 of this act.

Sec. 34   RCW 82.49.060 and 1993 c 33 s 1 are each amended to read as follows:
     (1) Any vessel owner disputing an appraised value under RCW 82.49.050 or disputing whether the vessel is taxable, may petition for a conference with the department as provided under RCW 82.32.160, or for reduction of the tax due as provided under RCW 82.32.170.
     (2) Any vessel owner having received a notice of denial of a petition or a notice of determination made for the owner's vessel under RCW 82.32.160 or 82.32.170 may appeal to the ((board of tax appeals)) tax tribunal created in section 3 of this act as provided under ((RCW 82.03.190)) chapter 82.--- RCW (the new chapter created in section 48 of this act). In deciding a case appealed under this section, the ((board of tax appeals)) tax tribunal may require an independent appraisal of the vessel. The cost of the independent appraisal ((shall)) must be apportioned between the department and the vessel owner as provided by the ((board)) tax tribunal.

Sec. 35   RCW 84.08.060 and 1988 c 222 s 9 are each amended to read as follows:
     (1) The department ((of revenue shall have)) has power to direct and to order any county board of equalization to raise or lower the valuation of any taxable property, or to add any property to the assessment list, or to perform or complete any other duty required by statute. The department ((of revenue)) may require any such board of equalization to reconvene after its adjournment for the purpose of performing any order or requirement made by the department ((of revenue)) and may make such orders as it ((shall)) determines to be just and necessary.
     (2) The department may require any county board of equalization to reconvene at any time for the purpose of performing or completing any duty or taking any action it might lawfully have performed or taken at any of its previous meetings. No board may be reconvened later than three years after the date of adjournment of its regularly convened session. If such board of equalization ((shall)) fails or refuses ((forthwith)) to comply with any such order or requirement of the department ((of revenue)), the department ((of revenue shall have)) has the power to take any other appropriate action, or to make such correction or change in the assessment list, and such corrections and changes ((shall)) must be a part of the record of the proceedings of the ((said)) board of equalization((: PROVIDED, That)). However, in all cases where the department ((of revenue shall)) raises the valuation of any property or adds property to the assessment list, ((it shall)) the department must give notice either for the same time and in the same manner as is now required in like cases of county boards of equalization, or if ((it shall)) the department deems such method of giving notice impracticable it ((shall)) must give notice by publication thereof in a newspaper of general circulation within the county in which the property affected is situated once each week for two consecutive weeks, and the department ((of revenue shall)) may not proceed to raise such valuation or add such property to the assessment list until a period of five days ((shall have)) has elapsed subsequent to the date of the last publication of such notice((: PROVIDED FURTHER, That)). Moreover, appeals to the ((board of tax appeals)) tax tribunal created in section 3 of this act by any taxpayer or taxing unit concerning any action of the county board of equalization ((shall)) may not raise the valuation of the property to an amount greater than the larger of either the valuation of the property by the county assessor or the valuation of the property assigned by the county board of equalization. Such notice ((shall)) must give the legal description of each tract of land involved, or a general description in case of personal property; the tax record-owner thereof; the assessed value thereof determined by the county board of equalization in case the property is on the assessment roll; and the assessed value thereof as determined by the department ((of revenue)) and ((shall)) must state that the department ((of revenue)) proposes to increase the assessed valuation of such property to the amount stated and to add such property to the assessment list at the assessed valuation stated. The necessary expense incurred by the department of revenue in making such reassessment and/or adding such property to the assessment list ((shall)) must be borne by the county or township in which the property as reassessed and/or so added to the assessment list is situated and ((shall)) must be paid out of the proper funds of such county upon the order of the department ((of revenue)).

Sec. 36   RCW 84.08.130 and 1998 c 54 s 3 are each amended to read as follows:
     (1) Any taxpayer or taxing unit feeling aggrieved by the action of any county board of equalization may appeal to the ((board of tax appeals)) tax tribunal created in section 3 of this act by filing with the ((board of tax appeals)) tax tribunal in accordance with RCW 1.12.070 a notice of appeal within thirty days after the mailing of the decision of such board of equalization, which notice ((shall)) must specify the actions complained of; and in like manner any county assessor may appeal to the ((board of tax appeals)) tax tribunal from any action of any county board of equalization. ((There shall be)) No fee may be charged for the filing of an appeal. The board ((shall)) must transmit a copy of the notice of appeal to all named parties within thirty days of its receipt by the board. Appeals which are not filed as provided in this section ((shall)) must be dismissed. The ((board of tax appeals shall)) tax tribunal must require the board appealed from to file a true and correct copy of its decision in such action and all evidence taken in connection therewith, and may receive further evidence, and ((shall)) must make such order as in its judgment is just and proper.
     (2) The ((board of tax appeals)) tax tribunal may enter an order, pursuant to subsection (1) of this section, that has effect up to the end of the assessment cycle used by the assessor, if there has been no intervening change in the value during that time.

Sec. 37   RCW 84.33.091 and 1998 c 311 s 13 are each amended to read as follows:
     (1) The department ((of revenue shall)) must designate areas containing timber having similar growing, harvesting, and marketing conditions to be used as units for the preparation and application of stumpage values. Each year on or before December 31st for use the following January through June 30th, and on or before June 30th for use the following July through December 31st, the department ((shall)) must prepare tables of stumpage values of each species or subclassification of timber within these units. The stumpage value ((shall be)) is the amount that each such species or subclassification would sell for at a voluntary sale made in the ordinary course of business for purposes of immediate harvest. These stumpage values, expressed in terms of a dollar amount per thousand board feet or other unit measure, ((shall)) must be determined in a manner which makes reasonable and adequate allowances for age, size, quality, costs of removal, accessibility to point of conversion, market conditions, and all other relevant factors from:
     (a) Gross proceeds from sales on the stump of similar timber of like quality and character at similar locations, and in similar quantities;
     (b) Gross proceeds from sales of logs adjusted to reflect only the portion of such proceeds attributable to value on the stump immediately prior to harvest; or
     (c) A combination of (a) and (b) of this subsection.
     (2) Upon application from any person who plans to harvest damaged timber, the stumpage values for which have been materially reduced from the values shown in the applicable tables due to damage resulting from fire, blow down, ice storm, flood, or other sudden unforeseen cause, the department ((shall)) must revise the stumpage value tables for any area in which such timber is located and ((shall)) must specify any additional accounting or other requirements to be complied with in reporting and paying the tax.
     (3) The preliminary area designations and stumpage value tables and any revisions thereof are subject to review by the ways and means committees of the house of representatives and senate prior to finalization. Tables of stumpage values ((shall)) must be signed by the director or the director's designee. A copy thereof ((shall)) must be mailed to anyone who has submitted to the department a written request for a copy.
     (4) On or before the sixtieth day after the date of final adoption of any stumpage value tables, any harvester may appeal to the ((board of tax appeals)) tax tribunal created in section 3 of this act for a revision of stumpage values for an area determined pursuant to subsection (3) of this section.

Sec. 38   RCW 84.34.065 and 2001 c 249 s 13 are each amended to read as follows:
     (1) The true and fair value of farm and agricultural land ((shall)) must be determined by consideration of the earning or productive capacity of comparable lands from crops grown most typically in the area averaged over not less than five years, capitalized at indicative rates. The earning or productive capacity of farm and agricultural lands ((shall be)) is the "net cash rental," capitalized at a "rate of interest" charged on long term loans secured by a mortgage on farm or agricultural land plus a component for property taxes. The current use value of land under RCW 84.34.020(2)(((e) shall)) (f) must be established as: The prior year's average value of open space farm and agricultural land used in the county plus the value of land improvements such as septic, water, and power used to serve the residence. This ((shall)) may not be interpreted to require the assessor to list improvements to the land with the value of the land.
     (2) For the purposes of the ((above)) computation in subsection (1) of this section:
     (((1) The term)) (a)(i) "Net cash rental" ((shall)) means the average rental paid on an annual basis, in cash, for the land being appraised and other farm and agricultural land of similar quality and similarly situated that is available for lease for a period of at least three years to any reliable person without unreasonable restrictions on its use for production of agricultural crops. There ((shall)) must be allowed as a deduction from the rental received or computed any costs of crop production charged against the landlord if the costs are such as are customarily paid by a landlord. If "net cash rental" data is not available, the earning or productive capacity of farm and agricultural lands ((shall be)) is determined by the cash value of typical or usual crops grown on land of similar quality and similarly situated averaged over not less than five years. Standard costs of production ((shall)) must be allowed as a deduction from the cash value of the crops.
     (ii) The current "net cash rental" or "earning capacity" ((shall)) is be determined by the assessor with the advice of the advisory committee as provided in RCW 84.34.145, and through a continuing internal study, assisted by studies of the department ((of revenue)). This net cash rental figure as it applies to any farm and agricultural land may be challenged before the same boards or authorities as would be the case with regard to assessed values on general property.
     (((2) The term)) (b)(i) "Rate of interest" ((shall)) means the rate of interest charged by the farm credit administration and other large financial institutions regularly making loans secured by farm and agricultural lands through mortgages or similar legal instruments, averaged over the immediate past five years.
     (ii) The "rate of interest" ((shall be)) is determined annually by a rule adopted by the department ((of revenue)) and such rule ((shall)) must be published in the state register not later than January 1st of each year for use in that assessment year. The department ((of revenue)) determination may be appealed to the ((state board of tax appeals)) tax tribunal created in section 3 of this act within thirty days after the date of publication by any owner of farm or agricultural land or the assessor of any county containing farm and agricultural land.
     (((3) The)) (c) "Component for property taxes" ((shall be)) means a figure obtained by dividing the assessed value of all property in the county into the property taxes levied within the county in the year preceding the assessment and multiplying the quotient obtained by one hundred.

Sec. 39   RCW 84.36.850 and 2013 c 23 s 352 are each amended to read as follows:
     (1) Any applicant aggrieved by the department's ((of revenue's)) denial of an exemption application may petition the ((state board of tax appeals)) tax tribunal created in section 3 of this act to review an application for either real or personal property tax exemption and the ((board shall)) tribunal must consider any appeals to determine (((1))): If the property is entitled to an exemption((,)); and (((2))) the amount or portion thereof.
     (2) A county assessor of the county in which the exempted property is located ((shall be)) is empowered to appeal to the ((state board of tax appeals)) tax tribunal to review any real or personal property tax exemption approved by the department ((of revenue which)) that he or she feels is not warranted.
     (3) Appeals from a department ((of revenue)) decision must be made within thirty days after the mailing of the approval or denial.

Sec. 40   RCW 84.39.020 and 2005 c 253 s 2 are each amended to read as follows:
     (1) Each claimant applying for assistance under RCW 84.39.010 ((shall)) must file a claim with the department, on forms prescribed by the department, no later than thirty days before the tax is due. The department may waive this requirement for good cause shown. The department ((shall)) must supply forms to the county assessor to allow persons to apply for the program at the county assessor's office.
     (2) The claim ((shall)) must designate the property to which the assistance applies and shall include a statement setting forth (((a))): A list of all members of the claimant's household((, (b))); facts establishing the eligibility under this section((,)); and (((c))) any other relevant information required by the rules of the department. Each copy ((shall)) must be signed by the claimant subject to the penalties as provided in chapter 9A.72 RCW for false swearing. The first claim ((shall)) must include proof of the claimant's age acceptable to the department.
     (3)(a) The following documentation ((shall)) must be filed with a claim along with any other documentation required by the department:
     (((a))) (i) The deceased veteran's DD 214 report of separation, or its equivalent, that must be under honorable conditions;
     (((b))) (ii) A copy of the applicant's certificate of marriage to the deceased;
     (((c))) (iii) A copy of the deceased veteran's death certificate; and
     (((d))) (iv) A letter from the United States veterans' administration certifying that the death of the veteran meets the requirements of RCW 84.39.010(2).
     (b) The department of veterans affairs ((shall)) must assist an eligible widow or widower in the preparation and submission of an application and the procurement of necessary substantiating documentation.
     (4) The department ((shall)) must determine if each claimant is eligible each year. Any applicant aggrieved by the department's denial of assistance may petition the ((state board of tax appeals)) tax tribunal created in section 3 of this act to review the denial and the ((board shall)) tax tribunal must consider any appeals to determine (((a))): If the claimant is entitled to assistance; and (((b))) the amount or portion thereof.

Sec. 41   RCW 84.40.0301 and 1994 c 301 s 35 are each amended to read as follows:
     Upon review by any court, or appellate body, of a determination of the valuation of property for purposes of taxation, it ((shall be)) is presumed that the determination of the public official charged with the duty of establishing such value is correct but this presumption ((shall)) is not ((be)) a defense against any correction indicated by ((clear, cogent and convincing)) a preponderance of the evidence.

Sec. 42   RCW 84.40.038 and 2011 c 84 s 1 are each amended to read as follows:
     (1) The owner or person responsible for payment of taxes on any property may petition the county board of equalization for a change in the assessed valuation placed upon such property by the county assessor or for any other reason specifically authorized by statute. Such petition must be made on forms prescribed or approved by the department of revenue and any petition not conforming to those requirements or not properly completed may not be considered by the board. The petition must be filed with the board on or before July 1st of the year of the assessment or determination, within thirty days after the date an assessment, value change notice, or other notice has been mailed, or within a time limit of up to sixty days adopted by the county legislative authority, whichever is later. If a county legislative authority sets a time limit, the authority may not change the limit for three years from the adoption of the limit.
     (2) The board of equalization may waive the filing deadline if the petition is filed within a reasonable time after the filing deadline and the petitioner shows good cause for the late filing. However, the board of equalization must waive the filing deadline for the circumstance described under (f) of this subsection if the petition is filed within a reasonable time after the filing deadline. The decision of the board of equalization regarding a waiver of the filing deadline is final and not appealable under RCW 84.08.130. Good cause may be shown by one or more of the following events or circumstances:
     (a) Death or serious illness of the taxpayer or his or her immediate family;
     (b) The taxpayer was absent from the address where the taxpayer normally receives the assessment or value change notice, was absent for more than fifteen days of the days allowed in subsection (1) of this section before the filing deadline, and the filing deadline is after July 1;
     (c) Incorrect written advice regarding filing requirements received from board of equalization staff, county assessor's staff, or staff of the property tax advisor designated under RCW 84.48.140;
     (d) Natural disaster such as flood or earthquake;
     (e) Delay or loss related to the delivery of the petition by the postal service, and documented by the postal service;
     (f) The taxpayer was not sent a revaluation notice under RCW 84.40.045 for the current assessment year and the taxpayer can demonstrate both of the following:
     (i) The taxpayer's property value did not change from the previous year; and
     (ii) The taxpayer's property is located in an area revalued by the assessor for the current assessment year; or
     (g) Other circumstances as the department may provide by rule.
     (3) The owner or person responsible for payment of taxes on any property may request that the appeal be heard by ((the state board of tax appeals)) tax tribunal created in section 3 of this act without a hearing by the county board of equalization when the assessor, the owner or person responsible for payment of taxes on the property, and a majority of the county board of equalization agree that a direct appeal to the ((state board of tax appeals)) tax tribunal is appropriate. The ((state board of tax appeals)) tax tribunal may reject the appeal, in which case the county board of equalization must consider the appeal under RCW 84.48.010. Notice of such a rejection, together with the reason therefor, ((shall)) must be provided to the affected parties and the county board of equalization within thirty days of receipt of the direct appeal by the ((state board)) tax tribunal.

Sec. 43   RCW 84.48.080 and 2008 c 86 s 502 are each amended to read as follows:
     (1) Annually during the months of September and October, the department ((of revenue shall)) must examine and compare the returns of the assessment of the property in the several counties of the state, and the assessment of the property of railroad and other companies assessed by the department, and proceed to equalize the same, so that each county in the state ((shall)) pays its due and just proportion of the taxes for state purposes for such assessment year, according to the ratio the valuation of the property in each county bears to the total valuation of all property in the state.
     (a) The department ((shall)) must classify all property, real and personal, and ((shall)) must raise and lower the valuation of any class of property in any county to a value that ((shall be)) equals, so far as possible, to the true and fair value of such class as of January 1st of the current year for the purpose of ascertaining the just amount of tax due from each county for state purposes. In equalizing personal property as of January 1st of the current year, the department ((shall)) must use valuation data with respect to personal property from the three years immediately preceding the current assessment year in a manner it deems appropriate. Such classification may be on the basis of types of property, geographical areas, or both. For purposes of this section, for each county that has not provided the department with an assessment return by December 1st, the department ((shall)) must proceed, using facts and information and in a manner it deems appropriate, to estimate the value of each class of property in the county.
     (b) The department ((shall)) must keep a full record of its proceedings and the same ((shall)) must be published annually by the department.
     (2) The department ((shall)) must levy the state taxes authorized by law. The amount levied in any one year for general state purposes ((shall)) may not exceed the lawful dollar rate on the dollar of the assessed value of the property of the entire state, which assessed value ((shall)) must be one hundred percent of the true and fair value of the property in money. The department ((shall)) must apportion the amount of tax for state purposes levied by the department, among the several counties, in proportion to the valuation of the taxable property of the county for the year as equalized by the department((: PROVIDED, That)). However, for purposes of this apportionment, the department ((shall)) must recompute the previous year's levy and the apportionment thereof to correct for changes and errors in taxable values reported to the department after October 1st of the preceding year and ((shall)) must adjust the apportioned amount of the current year's state levy for each county by the difference between the apportioned amounts established by the original and revised levy computations for the previous year. For purposes of this section, changes in taxable values mean a final adjustment made by a county board of equalization, the ((state board of tax appeals)) tax tribunal created in section 3 of this act, or a court of competent jurisdiction and ((shall)) must include additions of omitted property, other additions or deletions from the assessment or tax rolls, any assessment return provided by a county to the department subsequent to December 1st, or a change in the indicated ratio of a county. Errors in taxable values mean errors corrected by a final reviewing body.
     (3) The department ((shall have)) has authority to adopt rules and regulations to enforce obedience to its orders in all matters in relation to the returns of county assessments, the equalization of values, and the apportionment of the state levy by the department.
     (4) After the completion of the duties prescribed in this section, the director of the department ((shall)) must certify the record of the proceedings of the department under this section, the tax levies made for state purposes and the apportionment thereof among the counties, and the certification ((shall)) must be available for public inspection.

Sec. 44   RCW 84.52.018 and 1994 c 124 s 37 are each amended to read as follows:
     (1) Whenever any property value or claim for exemption or cancellation of a property assessment is appealed to the ((state board of tax appeals or court of competent jurisdiction)) tax tribunal created in section 3 of this act or court of competent jurisdiction and the dollar difference between the total value asserted by the taxpayer and the total value asserted by the opposing party exceeds one-fourth of one percent of the total assessed value of property in the county, the assessor ((shall)) may use only that portion of the total value which is not in controversy for purposes of computing the levy rates and extending the tax on the tax roll in accordance with this chapter, unless the ((state board of tax appeals)) tax tribunal or court of competent jurisdiction has issued its determination at the time of extending the tax.
     (2) When the ((state board of tax appeals or court of competent jurisdiction)) tax tribunal makes its final determination, the proper amount of tax ((shall)) must be extended and collected for each taxing district if this has not already been done. The amount of tax collected and extended ((shall)) must include interest at the rate of nine percent per year on the amount of the ((board's)) tax tribunal's final determination minus the amount not in controversy. The interest ((shall)) accrues from the date the taxes on the amount not in controversy were first due and payable. Any amount extended in excess of that permitted by chapter 84.55 RCW ((shall)) must be held in abeyance and used to reduce the levy rates of the next succeeding levy.

Sec. 45   RCW 84.56.290 and 1991 c 245 s 37 are each amended to read as follows:
     (1) Whenever any tax ((shall have been heretofore, or shall be hereafter,)) has been canceled, reduced or modified in any final judicial, county board of equalization, ((state board of tax appeals)) tax tribunal created in section 3 of this act, or administrative proceeding; or whenever any tax ((shall have been heretofore, or shall be hereafter)) has been canceled by sale of property to any irrigation district under foreclosure proceedings for delinquent irrigation district assessments; or whenever any contracts or leases on public lands ((shall have been heretofore, or shall be hereafter,)) has been canceled and the tax thereon remains unpaid for a period of two years, the director of revenue ((shall)) must, upon receipt from the county treasurer of a certified copy of the final judgment, order, or decree canceling, reducing, or modifying taxes, or of a certificate from the county treasurer of the cancellation by sale to an irrigation district, or of a certificate from the commissioner of public lands and the county treasurer of the cancellation of public land contracts or leases and nonpayment of taxes thereon, as the case may be, make corresponding entries and corrections on the director's records of the state's portion of reduced or canceled tax.
     (2) Upon canceling taxes deemed uncollectible, the county commissioners ((shall)) must notify the county treasurer of such action, whereupon the county treasurer ((shall)) must deduct on the treasurer's records the amount of such uncollectible taxes due the various state funds and ((shall)) must immediately notify the department ((of revenue)) of the treasurer's action and of the reason therefor; which uncollectible tax ((shall not then nor thereafter be)) is not due or owing the various state funds and the necessary corrections ((shall)) must be made by the county treasurer upon the quarterly settlement next following.
     (3) When any assessment of property is made which does not appear on the assessment list certified by the county board of equalization to the department ((of revenue)) the county assessor ((shall)) must indicate to the county treasurer the assessments and the taxes due therefrom when the list is delivered to the county treasurer on December 15th. The county treasurer ((shall)) must then notify the department ((of revenue)) of the taxes due the state from the assessments which did not appear on the assessment list certified by the county board of equalization to the department ((of revenue)). The county treasurer ((shall)) must make proper accounting of all sums collected as either advance tax, compensating or additional tax, or supplemental or omitted tax and ((shall)) must notify the department ((of revenue)) of the amounts due the various state funds according to the levy used in extending such tax, and those amounts ((shall)) immediately become due and owing to the various state funds, to be paid to the state treasurer in the same manner as taxes extended on the regular tax roll.

Sec. 46   RCW 84.69.020 and 2005 c 502 s 9 are each amended to read as follows:
     (1) On the order of the county treasurer, ad valorem taxes paid before or after delinquency ((shall)) must be refunded if they were:
     (((1))) (a) Paid more than once;
     (((2)) (b) Paid as a result of manifest error in description;
     (((3))) (c) Paid as a result of a clerical error in extending the tax rolls;
     (((4))) (d) Paid as a result of other clerical errors in listing property;
     (((5))) (e) Paid with respect to improvements which did not exist on assessment date;
     (((6))) (f) Paid under levies or statutes adjudicated to be illegal or unconstitutional;
     (((7))) (g) Paid as a result of mistake, inadvertence, or lack of knowledge by any person exempted from paying real property taxes or a portion thereof pursuant to RCW 84.36.381 through 84.36.389, as now or hereafter amended;
     (((8))) (h) Paid as a result of mistake, inadvertence, or lack of knowledge by either a public official or employee or by any person with respect to real property in which the person paying the same has no legal interest;
     (((9))) (i) Paid on the basis of an assessed valuation which was appealed to the county board of equalization and ordered reduced by the board;
     (((10))) (j) Paid on the basis of an assessed valuation which was appealed to the ((state board of tax appeals)) tax tribunal created in section 3 of this act and ordered reduced by the ((board: PROVIDED, That)) tax tribunal. However, the amount refunded under this subsection((s (9) and (10))) and (j) of this subsection (1) of this section ((shall)) may only be for the difference between the tax paid on the basis of the appealed valuation and the tax payable on the valuation adjusted in accordance with the board's order;
     (((11))) (k) Paid as a state property tax levied upon property, the assessed value of which has been established by the ((state board of tax appeals)) tax tribunal for the year of such levy((: PROVIDED, HOWEVER, That)). However, the amount refunded ((shall)) may only be for the difference between the state property tax paid and the amount of state property tax which would, when added to all other property taxes within the one percent limitation of Article VII, section 2 of the state Constitution equal one percent of the assessed value established by the board;
     (((12))) (l) Paid on the basis of an assessed valuation which was adjudicated to be unlawful or excessive((: PROVIDED, That)). However, the amount refunded ((shall)) must be for the difference between the amount of tax which was paid on the basis of the valuation adjudged unlawful or excessive and the amount of tax payable on the basis of the assessed valuation determined as a result of the proceeding;
     (((13))) (m) Paid on property acquired under RCW 84.60.050, and canceled under RCW 84.60.050(2);
     (((14))) (n) Paid on the basis of an assessed valuation that was reduced under RCW 84.48.065;
     (((15))) (o) Paid on the basis of an assessed valuation that was reduced under RCW 84.40.039; or
     (((16))) (p) Abated under RCW 84.70.010.
     (2) No refunds under the provisions of this section ((shall)) may be made because of any error in determining the valuation of property, except as authorized in subsection((s (9), (10), (11), and (12))) (1)(i), (j), (k), and (l) of this section nor may any refunds be made if a bona fide purchaser has acquired rights that would preclude the assessment and collection of the refunded tax from the property that should properly have been charged with the tax. Any refunds made on delinquent taxes ((shall)) must include the proportionate amount of interest and penalties paid. However, no refunds as a result of an incorrect payment authorized under subsection (((8))) (1)(h) of this section made by a third party payee ((shall)) may be granted. The county treasurer may deduct from moneys collected for the benefit of the state's levy, refunds of the state levy including interest on the levy as provided by this section and chapter 84.68 RCW.
     (3) The county treasurer of each county ((shall)) must make all refunds determined to be authorized by this section, and by the first Monday in February of each year, report to the county legislative authority a list of all refunds made under this section during the previous year. The list is to include the name of the person receiving the refund, the amount of the refund, and the reason for the refund.

NEW SECTION.  Sec. 47   The following acts or parts of acts are each repealed:
     (1) RCW 82.03.010 (Board created) and 1967 ex.s. c 26 s 30;
     (2) RCW 82.03.020 (Members -- Number -- Qualifications -- Appointment) and 1967 ex.s. c 26 s 31;
     (3) RCW 82.03.030 (Terms -- Vacancies) and 1967 ex.s. c 26 s 32;
     (4) RCW 82.03.040 (Removal of members -- Grounds -- Procedure) and 1967 ex.s. c 26 s 33;
     (5) RCW 82.03.050 (Operation on part-time or full-time basis--Salary -- Compensation -- Travel expenses) and 2013 c 23 s 311, 1975-'76 2nd ex.s. c 34 s 176, 1970 ex.s. c 65 s 2, & 1967 ex.s. c 26 s 34;
     (6) RCW 82.03.060 (Members not to be candidate or hold public office, engage in inconsistent occupation nor be on political committee -- Restriction on leaving board) and 2013 c 23 s 312 & 1967 ex.s. c 26 s 35;
     (7) RCW 82.03.070 (Executive director, tax referees, clerk, assistants) and 1988 c 222 s 2 & 1967 ex.s. c 26 s 36;
     (8) RCW 82.03.080 (Chair) and 2013 c 23 s 313 & 1967 ex.s. c 26 s 37;
     (9) RCW 82.03.090 (Office of board -- Quorum -- Hearings) and 1967 ex.s. c 26 s 38;
     (10) RCW 82.03.100 (Findings and decisions -- Signing -- Filing -- Public inspection) and 1967 ex.s. c 26 s 39;
     (11) RCW 82.03.110 (Publication of findings and decisions) and 1967 ex.s. c 26 s 40;
     (12) RCW 82.03.120 (Journal of final findings and decisions) and 1988 c 222 s 3 & 1967 ex.s. c 26 s 41;
     (13) RCW 82.03.130 (Appeals to board -- Jurisdiction as to types of appeals -- Filing) and 2005 c 253 s 7, 1998 c 54 s 1, 1994 c 123 s 3, 1992 c 206 s 9, 1989 c 378 s 4, 1982 1st ex.s. c 46 s 6, 1977 ex.s. c 284 s 2, & 1967 ex.s. c 26 s 42;
     (14) RCW 82.03.140 (Appeals to board -- Election of formal or informal hearing) and 2000 c 103 s 1, 1988 c 222 s 4, 1982 1st ex.s. c 46 s 8, & 1967 ex.s. c 26 s 43;
     (15) RCW 82.03.150 (Appeals to board -- Informal hearings, powers of board or tax referees -- Assistance) and 2000 c 103 s 2, 1988 c 222 s 5, & 1967 ex.s. c 26 s 44;
     (16) RCW 82.03.160 (Appeals to board -- Formal hearings, powers of board or tax referees -- Assistance) and 2000 c 103 s 3, 1989 c 175 s 175, 1988 c 222 s 6, & 1967 ex.s. c 26 s 45;
     (17) RCW 82.03.170 (Rules of practice and procedure) and 1988 c 222 s 7 & 1967 ex.s. c 26 s 46;
     (18) RCW 82.03.180 (Judicial review) and 2000 c 103 s 4, 1989 c 175 s 176, 1982 1st ex.s. c 46 s 9, & 1967 ex.s. c 26 s 47;
     (19) RCW 82.03.190 (Appeal to board from denial of petition or notice of determination as to reduction or refund -- Procedure -- Notice) and 2012 c 39 s 3, 1998 c 54 s 2, 1989 c 378 s 5, 1983 c 3 s 211, 1979 ex.s. c 209 s 50, 1975 1st ex.s. c 158 s 3, & 1967 ex.s. c 26 s 48; and
     (20) RCW 82.03.200 (Appeals from county board of equalization--Evidence submission in advance of hearing) and 1994 c 301 s 17.

NEW SECTION.  Sec. 48   Sections 1 through 24 of this act constitute a new chapter in Title 82 RCW.

NEW SECTION.  Sec. 49   (1) Except for section 4 of this act, this act takes effect January 1, 2015.
     (2) Section 4 of this act takes effect July 1, 2014.