AN ACT Relating to agricultural property tax payments; amending RCW 84.56.020; adding a new section to chapter 84.56 RCW; and creating a new section.

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

NEW SECTION. Sec. 1. The legislature finds that as a result of public agricultural policies, agricultural market conditions, and other causes, the condition of the farm economy of the state of Washington jeopardizes the continued existence and successful operation of family-owned and operated farms in this state. It is therefore necessary that the legislature revise the payment schedule and waive the penalties, as prescribed in RCW 84.56.020, for the real property tax obligations of farmers and ranchers on their agricultural property. This payment program and waiver of penalties is intended to assist farmers and ranchers in maintaining their dignity while keeping their farms and ranches during the farm credit crisis.

NEW SECTION. Sec. 2. A new section is added to chapter 84.56 RCW to read as follows:

(1) For the purposes of this section:

(a) "Agricultural property" means farm and agricultural land, as defined in RCW 84.34.020, that qualifies for current use classification under chapter 84.34 RCW, and any buildings on such land. "Agricultural property" also includes the claimant's principal residence and the land upon which it sits if such land is less than two acres and is contiguous or related to other land of the claimant which qualifies for current use classification.

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

(2) All taxes upon real and personal agricultural property made payable under this title shall be due and payable to the county treasurer in quarterly installments with each installment representing one-fourth of the total tax due in the tax year. The first installment shall be due and payable on the fifteenth day of March; the second installment shall be due and payable on the fifteenth day of June; the third installment shall be due and payable on the fifteenth day of September; and the fourth installment shall be due and payable on the fifteenth day of December for that tax year. Any installment not paid to the treasurer on or before the date required in this section shall cause the entire remaining balance of the tax due for that year to be delinquent after that due date: PROVIDED, That when the delinquent installment is so paid in full together with the applicable accrued interest on the remaining tax, the remainder of the tax due for that year shall no longer be considered delinquent and the remaining installments shall be due and payable as required.

(3) The penalties for delinquencies on property taxes as provided in RCW 84.56.020 shall be waived by the county treasurer on agricultural property.

Sec. 3. Section 84.56.020, chapter 15, Laws of 1961 as last amended by section 1, chapter 131, Laws of 1984 and RCW 84.56.020 are each amended to read as follows:

The county treasurer shall be the receiver and collector of all taxes extended upon the tax rolls of the county, whether levied for state, county, school, bridge, road, municipal or other purposes, and also of all fines, forfeitures or penalties received by any person or officer for the use of his or her county. Except as provided in section 2 of this 1987 act, all taxes upon real and personal property made payable by the provisions of this title shall be due and payable to the treasurer as aforesaid on or before the thirtieth day of April and shall be delinquent after that date: PROVIDED, That when the total amount of tax on personal property or on any lot, block or tract of real property payable by one person is ten dollars or more, and if one-half of such tax be paid on or before the said thirtieth day of April, the remainder of such tax shall be due and payable on or before the thirty-first day of October following and shall be delinquent after that date: PROVIDED FURTHER, That when the total amount of tax on any lot, block or tract of real property payable by one person is ten dollars or more, and if one-half of such tax be paid after the thirtieth day of April but before the thirty-first day of October, together with the applicable interest and penalty on the full amount of such tax, the remainder of such tax shall be due and payable on or before the thirty-first day of October following and shall be delinquent after that date.

Delinquent taxes under this section are subject to interest at the rate of twelve percent per annum computed on a monthly basis from the date of delinquency until paid. Interest shall be calculated at the rate in effect at the time of payment of the tax, regardless of when the taxes were first delinquent. In addition, delinquent taxes under this section are subject to penalties as follows:

(1) A penalty of three percent shall be assessed on the amount of tax delinquent on May 31st of the year in which the tax is due.

(2) An additional penalty of eight percent shall be assessed on the total amount of tax delinquent on November 30th of the year in which the tax is due.

(3) Penalties under this section shall not be assessed on taxes that were first delinquent prior to 1982.

For purposes of this chapter, "interest" means both interest and penalties.

All collections of interest on delinquent taxes shall be credited to the county current expense fund; but the cost of foreclosure and sale of real property, and the fees and costs of distraint and sale of personal property, for delinquent taxes, shall, when collected, be credited to the operation and maintenance fund of the county treasurer prosecuting the foreclosure or distraint or sale; and shall be used by the county treasurer as a revolving fund to defray the cost of further foreclosure, distraint and sale for delinquent taxes without regard to budget limitations.