PREPROPOSAL STATEMENT OF INQUIRY
Subject of Possible Rule Making: WAC 458-61-230 Bankruptcy.
Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 82.45.150.
Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: Federal law preempts the imposition of real estate excise tax on "a plan confirmed under" Chapter 11 or Chapter 12 of the Bankruptcy Code. A bankruptcy rule summarizing this preemption was adopted to inform the counties and taxpayers of this federal law. The current rule does not discuss the federal requirement that the bankruptcy plan be confirmed. This failure to state that the plan must be confirmed has misled some taxpayers and counties about how and when the tax is preempted by federal law. We anticipate amending the current rule to eliminate this confusion and clarify how and when the real estate excise tax is preempted.
Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: This is not a subject of regulation, but tax exemption. There is no other federal or state agency regulating this subject. We have reviewed and follow interpretations by the federal courts in directing the county agencies and taxpayers in how this preemtion must be applied. The county offices processing this tax and the county treasurers will be invited to participate in the rule-making process.
Process for Developing New Rule: Modified negotiated rule making.
Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. Written comments may be submitted by mail, fax, or at the public meeting. Oral comments will be accepted at the public meeting. A preliminary draft of the proposed changes is available upon request. Written comments on and/or requests for copies of the rule may be directed to Ed Ratcliffe, Legislation and Policy, P.O. Box 47467, Olympia, WA 98504-7467, phone (360) 586-3505, fax (360) 664-0693.
Location and Date of Public Meeting: January 4, 2000, at 1 p.m., Evergreen Plaza Building, 2nd Floor Conference Room, 711 Capitol Way, Olympia, WA 98504.
Assistance for Persons with Disabilities: Contact Ginny Dale no later that ten days before the hearing date, TDD 1-800-451-7985, or (360) 586-0721.
November 30, 1999
Claire Hesselholt
Rules Manager
Legislation and Policy Division