AN ACT Relating to property taxation; and amending RCW 84.40.060, 84.38.020, 84.38.030, 84.38.050, 84.38.100, 84.38.130, 84.48.110, 84.48.120 and 84.56.290.

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

Sec. 1. Section 84.40.060, chapter 15, Laws of 1961 as amended by section 37, chapter 149, Laws of 1967 ex. sess. and RCW 84.40.060 are each amended to read as follows:

Upon receipt of the verified statement of personal property, the assessor shall assess the value of such property and enter ((~~fifty~~)) one hundred percent of the same in his books: PROVIDED, If any property is listed or assessed on or after the 31st day of May, the same shall be legal and binding as if listed and assessed before that time: PROVIDED, FURTHER, That any statement of taxable property which is not signed by the person listing the property and which is not verified under penalty of perjury shall not be accepted by the assessor nor shall it be considered in any way to constitute compliance, or an attempt at compliance, with the listing requirements of this chapter.

Sec. 2. Section 27, chapter 291, Laws of 1975 1st ex. sess. as last amended by section 20, chapter 220, Laws of 1984 and RCW 84.38.020 are each amended to read as follows:

Unless a different meaning is plainly required by the context, the following words and phrases as hereinafter used in this chapter shall have the following meanings:

(1) "Claimant" means a person who is receiving a property tax exemption under RCW 84.36.381 through 84.36.389 and who either elects or is required under RCW 84.64.030 or 84.64.050 to defer payment of the special assessments and/or real property taxes accrued on his residence by filing a declaration to defer as provided by this chapter.

When two or more individuals of a household file or seek to file a declaration to defer, they may determine between them as to who the claimant shall be.

(2) "Department" means the state department of revenue.

(3) "Equity value" means the amount by which the fair market value of a residence as determined from the records of the county assessor exceeds the total amount of any liens or other obligations against the property.

(4) "Special assessment" means the charge or obligation imposed by a city, town, county, or other municipal corporation upon property specially benefited by a local improvement, including assessments under chapters 35.44, 36.88, 36.94, 53.08, 54.16, 56.20, 57.16, 86.09, and 87.03 RCW and any other relevant chapter.

(5) "Real property taxes" means ad valorem property taxes levied on a residence in this state in ((~~the preceding calendar year~~)) accordance with chapter 84.52 RCW.

Sec. 3. Section 28, chapter 291, Laws of 1975 1st ex. sess. as last amended by section 21, chapter 220, Laws of 1984 and RCW 84.38.030 are each amended to read as follows:

A claimant may defer payment of special assessments and/or real property taxes on his property that is receiving an exemption under RCW 84.36.381 through 84.36.389 on up to eighty percent of the amount of his equity value in said property if the following conditions are met:

(1) The claimant must have owned, at the time of filing, the residence on which the special assessment and/or real property taxes have been imposed. For purposes of this subsection, a residence owned by a marital community or owned by cotenants shall be deemed to be owned by each spouse or cotenant. A claimant who has only a share ownership in cooperative housing, a life estate, a lease for life, or a revocable trust does not satisfy the ownership requirement.

(2) The claimant must have and keep in force fire and casualty insurance in sufficient amount to protect the interest of the state in the claimant's equity value: PROVIDED, That if the claimant fails to keep fire and casualty insurance in force to the extent of the state's interest in the claimant's equity value, the amount deferred shall not exceed one hundred percent of the claimant's equity value in the land or lot only.

(3) In the case of special assessment deferral, claimant must have opted for payment of such special assessments on the installment method if such method was available.

Sec. 4. Section 30, chapter 291, Laws of 1975 1st ex. sess. as amended by section 8, chapter 214, Laws of 1979 ex. sess. and RCW 84.38.050 are each amended to read as follows:

(1) (a) Declarations to defer property taxes for all years following the first year may be made by filing with the county assessor no later than thirty days before the tax is due a renewal form in duplicate, prescribed by the department of revenue and supplied by the county assessor, which affirms the continued eligibility of the claimant.

(b) ((~~In January of each year~~)) No later than two months before a tax or assessment is due, the county assessor shall send to each claimant who has been granted deferral of ad valorem taxes or special assessments for the previous year renewal forms and notice to renew.

(2) Declarations to defer special assessments shall be made by filing with the assessor no later than thirty days before the special assessment is due on a form to be prescribed by the department of revenue and supplied by the county assessor. Upon approval, the full amount of special assessments upon such claimant's residence shall be deferred but not to exceed an amount equal to eighty percent of the claimant's equity value in said property.

Sec. 5. Section 35, chapter 291, Laws of 1975 1st ex. sess. as last amended by section 23, chapter 220, Laws of 1984 and RCW 84.38.100 are each amended to read as follows:

Whenever a person's special assessment and/or real property tax obligation is deferred under the provisions of this chapter, it shall become a lien in favor of the state upon his or her property and shall have priority as provided in chapters 35.50 and 84.60 RCW: PROVIDED, That the interest of a mortgage or purchase contract holder who is required to cosign a declaration of deferral under RCW 84.38.090, shall have priority to said deferred lien. This lien may accumulate up to eighty percent of the amount of the claimant's equity value in said property and shall bear interest at the rate of eight percent per year from the time it could have been paid before delinquency until said obligation is paid: PROVIDED, That when taxes are deferred as required by RCW 84.64.030 or 84.64.050, the department shall reimburse the county for all taxes, interest, and penalties to the date the declaration to defer is filed. This amount shall bear interest at the rate of eight percent per year from the date the declaration is filed until the obligation is paid and the lien for such amount shall also have the priority provided in chapters 35.50 and 84.60 RCW. In the case of a mobile home, the department of licensing shall show the state's lien on the certificate of ownership for the mobile home. In the case of all other property, the department of revenue shall file a notice of the deferral with the county recorder or auditor.

Sec. 6. Section 38, chapter 291, Laws of 1975 1st ex. sess. as amended by section 26, chapter 220, Laws of 1984 and RCW 84.38.130 are each amended to read as follows:

Special assessments and/or real property tax obligations deferred under this chapter shall become payable together with interest as provided in RCW 84.38.100:

(1) Upon the sale of property which has a deferred special assessment and/or real property tax lien upon it.

(2) Upon the death of the claimant with an outstanding deferred special assessment and/or real property tax lien except a surviving spouse who is qualified under this chapter may elect to incur the special assessment and/or real property tax lien which shall then be payable by that spouse as provided in this section.

(3) Upon the condemnation of property with a deferred special assessment and/or real property tax lien upon it by a public or private body exercising eminent domain power, except as otherwise provided in RCW 84.60.070.

(4) At such time as the claimant ceases to reside permanently in the residence upon which the deferral has been granted.

(5) Upon the failure of any condition set forth in RCW 84.38.030: PROVIDED, That if the claimant fails to keep fire and casualty insurance in force, repayment shall not be required if the lien does not exceed one hundred percent of the claimant's equity value in the land or lot only.

Sec. 7. Section 17, chapter 260, Laws of 1981 as amended by section 4, chapter 132, Laws of 1984 and RCW 84.48.110 are each amended to read as follows:

Within three days after the record of the proceedings of the state board of equalization is certified by the director of the department, the department shall transmit to each county assessor a copy of the record of the proceedings of the board, specifying the amount to be levied and collected on said assessment books for state purposes for such year, and in addition thereto it shall certify to each county assessor the amount due to each state fund and unpaid from such county for the ((~~seventh~~)) fifth preceding year, and such delinquent state taxes shall be added to the amount levied for the current year. The department shall close the account of each county for the ((~~seventh~~)) fifth preceding year and charge the amount of such delinquency to the tax levy of the current year. All taxes collected on and after the first day of July last preceding such certificate, on account of delinquent state taxes for the ((~~seventh~~)) fifth preceding year shall belong to the county and by the county treasurer be credited to the current expense fund of the county in which collected.

((For taxes due in 1985, the department shall add the delinquent taxes for the fifth, sixth, and seventh preceding year to the taxes due, and beginning with taxes due in 1986, the department shall add only the delinquent taxes for the fifth preceding year to the amount of taxes due each year.))

Sec. 8. Section 84.48.120, chapter 15, Laws of 1961 as last amended by section 5, chapter 86, Laws of 1979 ex. sess. and RCW 84.48.120 are each amended to read as follows:

It shall be the duty of the county assessor of each county, when he shall have received from the state department of revenue the assessed valuation of the property of railroad and other companies assessed by the department of revenue and apportioned to the county, and placed the same on the tax rolls, and received the report of the department of revenue of the amount of taxes levied for state purposes, to compute the required percent on the assessed value of property in the county, and such state taxes shall be extended on the tax rolls in the proper column: PROVIDED, That the rates so computed shall not be such as to raise a surplus of more than five percent over the total amount required by the state board of equalization: PROVIDED FURTHER, That any surplus raised shall be remitted to the state in accordance with RCW 84.56.280.

Sec. 9. Section 84.56.290, chapter 15, Laws of 1961 as amended by section 8, chapter 86, Laws of 1979 ex. sess. and RCW 84.56.290 are each amended to read as follows:

Whenever any tax shall have been heretofore, or shall be hereafter, canceled, reduced or modified in any final judicial, board of equalization, state board of tax appeals, or administrative proceeding; or whenever any tax shall have been heretofore, or shall be hereafter 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, canceled and the tax thereon remains unpaid for a period of two years, the director of revenue shall, upon receipt from the county ((~~auditor~~)) 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 his records of the state's portion of reduced or canceled tax and shall notify the ((~~county auditor thereof~~)) director of revenue who shall make like entries and corrections on his ((~~tax roll~~)) records.

Upon canceling taxes deemed uncollectible, the county commissioners shall notify the county ((~~auditor~~)) treasurer of such action, whereupon the county ((~~auditor~~)) treasurer shall deduct on his records the amount of such uncollectible taxes due the various state funds and shall immediately notify the department of revenue of his action and of the reason therefor; which uncollectible tax shall not then nor thereafter be due or owing the various state funds and the necessary corrections shall be made by the county treasurer upon the quarterly settlement next following.

When any assessment of property is made which does not appear on the assessment list certified by the county board of equalization to the state board of equalization the county assessor shall indicate to the county ((~~auditor~~)) treasurer the assessments and the taxes due therefrom when the list is delivered to the county ((~~auditor~~)) treasurer on December 15th. The county ((~~auditor~~)) treasurer shall 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 state board of equalization. The county treasurer shall make proper accounting ((~~to the county auditor~~)) of all sums collected as either advance tax, compensating or additional tax, or supplemental or omitted tax((~~, whereupon the county auditor~~)) and shall 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.