S-4477               _______________________________________________

                                                   SENATE BILL NO. 6759

                        _______________________________________________

State of Washington                               51st Legislature                              1990 Regular Session

By Senator Moore

Read first time 1/24/90 and referred to Committee on Ways & Means.

AN ACT Relating to the deferral of special assessments and property taxes; and amending RCW 84.38.020 and 84.38.030.

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

        Sec. 1.  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:

(a) Who is receiving a property tax exemption under RCW 84.36.381 through 84.36.389 or who would be eligible to receive a property tax exemption under RCW 84.36.381 through 84.36.389 if the maximum income limit under RCW 84.36.381(5) were thirty thousand dollars; and

(b) 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 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) "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.

        Sec. 2.  Section 28, chapter 291, Laws of 1975 1st ex. sess. as last amended by section 11, chapter 222, Laws of 1988 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 or her equity value in ((said)) property that is receiving an exemption under RCW 84.36.381 through 84.36.389, or that would be eligible to receive an exemption under RCW 84.36.381 through 84.36.389 if the maximum income limit under RCW 84.36.381(5) were thirty thousand dollars, 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, the claimant must have opted for payment of such special assessments on the installment method if such method was available.