AN ACT Relating to the deferral of special assessments and property taxes for senior citizens; and adding a new chapter to Title 84 RCW.

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

NEW SECTION. Sec. 1. Unless a different meaning is plainly required by the context, the following words and phrases as used in this chapter shall have the following meanings:

(1) "Claimant" means a person who elects to defer payment of the special assessments and/or real property taxes accrued on his or her 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) "Principal residence" means a residence, as defined in RCW 84.36.383, which was occupied by the claimant as a principal place of residence as of January 1st of the year for which deferral is claimed.

(4) "Real property taxes" means ad valorem property taxes levied on a residence in this state in the preceding calendar year.

(5) "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.

NEW SECTION. Sec. 2. (1) A claimant may defer payment of special assessments and/or real property taxes on the claimant's principal residence if the following conditions are met:

(a) 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.

(b) The claimant must have and keep in force fire and casualty insurance in an amount equal to the value of the structures on the property for which deferral is claimed.

(c) 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.

(2) The amount of the deferral for any year shall be equal to a percentage of the special assessments and/or real property taxes due in that year based on the claimant's age on January 1st of that year as follows:

!tp1,1,1 !tl@beAg!tte@ee!tl@bePercentag!tte!sc ,1Deferred@ee

!tc65!sc ,1through!sc ,00169 !tc20%

!tc70!sc ,1through!sc ,00174 !tc40%

!tc75!sc ,1through!sc ,00179 !tc60%

!tc80!sc ,1through!sc ,00184 !tc80%

!tc85!sc ,1and!sc ,001older !tc100%

NEW SECTION. Sec. 3. (1) Each claimant electing to defer payment of special assessments and/or real property tax obligations under this chapter shall file with the county assessor, on forms prescribed by the department and supplied by the assessor, a written declaration thereof. The declaration to defer special assessments and/or real property taxes for any year shall be filed no later than thirty days before the tax or assessment is due: PROVIDED, That for good cause shown, the department may waive this requirement.

(2) The declaration shall designate the property to which the deferral applies and shall include a statement setting forth a list of all members of the claimant's household and any other relevant information required by the rules of the department. Each copy shall be signed by the claimant subject to the penalties as provided in chapter 9.72 RCW for the false swearing. The first declaration to defer filed in a county shall include proof of the claimant's age acceptable to the assessor.

(3) The county assessor shall determine if each claimant shall be granted a deferral for each year but the claimant shall have the right to appeal this determination to the county board of equalization whose decision shall be final as to the deferral of that year.

NEW SECTION. Sec. 4. (1) 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 and supplied by the county assessor, which affirms the continued eligibility of the claimant. In January of each year, the county assessor shall send to each claimant who has been granted deferral of ad valorem taxes 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 and supplied by the county assessor.

NEW SECTION. Sec. 5. If the claimant is unable to make his or her own declaration of deferral, it may be made by a duly authorized agent or by a guardian or other person charged with the care of the person or property of such claimant.

NEW SECTION. Sec. 6. If the claimant declaring his or her intention to defer special assessments or real property tax obligations under this chapter ceases to reside permanently on the property for which the declaration to defer is made between the date of filing the declaration and December 15th of that year, the deferral otherwise allowable under this chapter shall not be allowed on such tax roll. However, this section shall not apply where the claimant dies, leaving a spouse surviving, who is also eligible for deferral of special assessment and/or property taxes.

NEW SECTION. Sec. 7. If any residence is under mortgage or purchase contract requiring accumulation of reserves out of which the holder of the mortgage or contract is required to pay real estate taxes, the holder shall cosign the declaration of deferral either before a notary public or the county assessor or his or her deputy in the county where the real property is located.

NEW SECTION. Sec. 8. 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 section 7 of this act shall have priority to this lien. This lien may accumulate regardless of the amount of the claimant's equity value in the property but shall bear interest at the rate of eight percent per year from the time it could have been paid before delinquency until the obligation is paid. 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.

NEW SECTION. Sec. 9. The county assessor shall:

(1) Immediately transmit one copy of each declaration to defer to the department. The department may audit any declaration and shall notify the assessor as soon as possible of any claim where any factor appears to disqualify the claimant for the deferral sought.

(2) Transmit one copy of each declaration to defer a special assessment to the local improvement district which imposed such assessment.

(3) Compute the dollar tax rate for the county as if any deferrals provided by this chapter did not exist.

(4) As soon as possible notify the department and the county treasurer of the amount of real property taxes deferred for that year and notify the department and the respective treasurers of municipal corporations of the amount of special assessments deferred for each local improvement district within such unit.

NEW SECTION. Sec. 10. After receipt of the notification from the county assessor of the amount of deferred special assessments and/or real property taxes the department shall pay, from amounts appropriated for that purpose, to the treasurers of such municipal corporations these amounts, equivalent to the amount of special assessments and/or real property taxes deferred, to be distributed to the local improvement or taxing districts which imposed the assessments or levied the taxes so deferred.

NEW SECTION. Sec. 11. Special assessments and/or real property tax obligations deferred under this chapter shall become payable together with interest as provided in section 8 of this act:

(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 section 2 of this act.

NEW SECTION. Sec. 12. (1) The county treasurer shall collect all the amounts deferred together with interest under this chapter, in the manner provided in chapter 84.56 RCW. For purposes of collection of deferred taxes, the provisions of chapters 84.56, 84.60, and 84.64 RCW shall be applicable.

(2) When any deferred special assessment and/or real property taxes together with interest are collected the moneys shall be credited to a special account in the county treasury. The county treasurer shall remit the amount of deferred special assessment and/or real property taxes together with interest to the department within thirty days from the date of collection.

(3) The department shall deposit the deferred taxes in the state general fund.

NEW SECTION. Sec. 13. (1) A surviving spouse of the claimant may elect to continue the property in its deferred tax status if the property is the residence of the spouse of the claimant and the spouse meets the requirements of this chapter.

(2) The election under this section to continue the property in its deferred status by the spouse of the claimant shall be filed in the same manner as an original claim for deferral is filed under this chapter, not later than ninety days from the date of the claimant's death. Thereupon, the property with respect to which the deferral of special assessments and/or real property taxes is claimed shall continue to be treated as deferred property. When the property has been continued in its deferred status by the filing of the spouse of the claimant of an election under this section, the spouse of the claimant may continue the property in its deferred status in subsequent years by filing a claim under this chapter so long as the spouse meets the qualifications set out in this section.

NEW SECTION. Sec. 14. Any person may at any time pay a part or all of the deferred taxes but such payment shall not affect the deferred tax status of the property.

NEW SECTION. Sec. 15. Nothing in this chapter is intended to or shall be construed to prevent the collection, by foreclosure, of personal property taxes which become a lien against tax-deferred property.

NEW SECTION. Sec. 16. This chapter is an alternate program to the one established in chapter 84.38 RCW and a person may elect in any given year to take the deferral under this chapter or chapter 84.38 RCW.

NEW SECTION. Sec. 17. The department shall devise the forms and adopt such rules as may be necessary or desirable to administer this chapter.

NEW SECTION. Sec. 18. Sections 1 through 17 of this act shall constitute a new chapter in Title 84 RCW.