WSR 03-22-025

PERMANENT RULES

DEPARTMENT OF REVENUE


[ Filed October 27, 2003, 11:31 a.m. ]

Date of Adoption: October 27, 2003.

Purpose: WAC 458-07-020 provides information about the revaluation of real property for purposes of property taxation in counties that do not revalue all real property each year. It provides information about when an assessor is authorized to revalue real property, using appraisal judgment, outside of the approved revaluation cycle. It also provides information about incomplete revaluations and the requirement to provide taxpayers with a revaluation notice when there is any change in the assessed value of real property. This rule has been revised to delete a reference to RCW 90.60.160, a statute that was decodified in September 2001.

WAC 458-07-035 provides information about the listing and valuing of real property for purposes of property taxation, including specific information about the valuation of subdivisions of real property. It also provides information about paying property taxes on a partial interest in real property. This rule has been revised to incorporate recent legislation (chapter 23, Laws of 2003). The legislation provided that, except in certain circumstances, no segregation of real property can be made for purposes of paying property taxes on a partial interest in the property unless all current year and delinquent taxes and assessments on the entire parcel have been paid in full. The law previously only required that all delinquent taxes and assessments on the entire parcel be paid in full before a segregation could be made.

Citation of Existing Rules Affected by this Order: Amending WAC 458-07-020 Revaluation of real property--Multiyear counties and 458-07-035 Listing of property--Subdivisions and segregation of interests.

Statutory Authority for Adoption: RCW 84.08.010 and 84.08.070.

Adopted under notice filed as WSR 03-17-096 on August 20, 2003; and WSR 03-17-097 on August 20, 2003.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 1, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 2, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 2, Repealed 0.
Effective Date of Rule: Thirty-one days after filing.

October 27, 2003

Russell W. Brubaker

Assistant Director

Legislation and Policy Division

OTS-6592.1


AMENDATORY SECTION(Amending WSR 00-01-043, filed 12/7/99, effective 1/7/00)

WAC 458-07-020   Revaluation of real property -- Multiyear counties.   (1) Introduction. This rule provides information about the revaluation of real property in a county where all real property is not revalued each year. It explains when an assessor is authorized to revalue real property using appraisal judgment outside of the approved revaluation cycle. It also explains what happens when the area of the county being physically inspected and revalued in a particular year is not completed in that year. Finally, this rule explains the requirement that revaluation notices be mailed by the assessor to the taxpayer when there is any change in the assessed value of real property.

(2) Revaluation cycles. In a county where all real property is not revalued each year, all real property must be physically inspected and revalued at current true and fair market value on a proportional basis within the county each year of a two, three, or four-year cycle. Approximately equal portions of the taxable property of the county must be physically inspected and revalued each year of the cycle. Alternatively, the department may approve a plan whereby the county assessor physically inspects and revalues all real property in the county once every two years.

(((2))) (3) Revaluation outside of approved cycle. In certain circumstances the assessor is authorized to revalue real property, using appraisal judgment, outside of the approved revaluation cycle. These revaluations must not be arbitrary or capricious, nor violate the equal protection clauses of the federal and state Constitutions, nor the uniformity clause of the state Constitution. The assessor may disregard the revaluation cycle and change a property valuation, as appropriate, in the following situations:

(a) If requested by a property owner, when a notice of decision pertaining to the value of real property is received under RCW 36.70B.130 (Notice of decision -- Distribution; local project review), ((RCW 90.60.160 (Final permit decision -- Notice forwarded to county assessor; environmental permit assistance),)) chapter 35.22 RCW (First Class Cities), chapter 35.63 RCW (Planning Commissions), chapter 35A.63 RCW (Planning and Zoning in Code Cities), or chapter 36.70 RCW (Planning Enabling Act);

(b) When the owner or person responsible for payment of taxes on any real property petitions the assessor for a reduction in the assessed value in accordance with RCW 84.40.039, within three years of adoption of a restriction by a government entity;

(c) When there has been a "definitive change of land use designation" by an authorized land use authority, and the revaluation is in accordance with RCW 84.48.065;

(d) When a bona fide mistake has been made by the assessor in a prior valuation made within the current valuation cycle. The change in property valuation is not retroactive to the prior year;

(e) When property has been destroyed, in whole or in part, and is entitled to a reduction in value in accordance with chapter 84.70 RCW; or

(f) When property has been subdivided or merged.

(((3))) (4) Revaluation areas -- Incomplete revaluation. In any year, when the area of the county being physically inspected and revalued is not completed in that year, the portion remaining must be completed before beginning the physical inspection and revaluation of another area in the succeeding year. For any portion of a revaluation area that was not completed in the year intended, the value of real property in that portion is still determined as of January 1st of the assessment year originally intended, but the new appraised value is placed on the assessment rolls, and is subject to appeal by the taxpayer, in the assessment year the property is actually inspected and revalued. All areas of the county must be physically inspected and revalued within the cycle established in the revaluation plan filed with the department.

(((4))) (5) Change of value notice. In a county that revalues all real property on a multiyear cycle, revaluation notices must be mailed by the assessor to the taxpayer when there is any change in the assessed value of real property, not later than thirty days after an appraisal. For additional information about revaluation notices, refer to WAC 458-12-360.

[Statutory Authority: RCW 84.08.070. 00-01-043, 458-07-020, filed 12/7/99, effective 1/7/00.]

OTS-6593.2


AMENDATORY SECTION(Amending WSR 00-01-043, filed 12/7/99, effective 1/7/00)

WAC 458-07-035   Listing of property -- Subdivisions and segregation of interests.   (1) Introduction. This rule explains when the assessor must begin the listing and valuation of property in the county. It also provides information relating to the listing and valuation of subdivisions of real property. Finally, this rule explains when a person will be allowed to pay property taxes on their partial interest in a parcel of real property.

(2) Listing of property. The assessor must begin the listing and valuation of all property in the county, except new construction and mobile homes not previously assessed in this state, not later than December 1st of each year, and complete the listing and valuation not later than May 31st of the succeeding year. The listing and valuation of new construction and mobile homes not previously assessed in this state must be completed by August 31st of each year.

(((2))) (3) Valuation of subdivisions. The assessor must list and value all subdivisions of real property at one hundred percent of true and fair value as follows:

(a) If an advance tax deposit was paid in accordance with RCW 58.08.040, each lot of a subdivision must be valued by October 30th of the year following the recording of the plat, replat, altered plat, or binding site plan. The value established ((shall)) will be the value of the lot as of January 1st of the year the original parcel was last revalued. Each lot of a subdivision that is valued on or before May 31st, or the closing of the assessment roll, whichever is later, ((shall)) must be placed on the roll for that assessment year. Each lot of a subdivision that is valued after May 31st, or the closing of the assessment roll, whichever is later, ((shall)) must be placed on the roll for the succeeding assessment year; and

(b) If no advance tax deposit was paid, each lot of a subdivision must be valued by the end of the calendar year following the recording of the plat, map, subdivision, or replat. The value established ((shall)) must be the value of the lot as of January 1st of the year the original parcel was last revalued. Each lot of a subdivision that is valued on or before May 31st, or the closing of the assessment roll, whichever is later, ((shall)) must be placed on the roll for that assessment year. Each lot of a subdivision that is valued after May 31st, or the closing of the assessment roll, whichever is later, ((shall)) must be placed on the roll for the succeeding assessment year.

(((3))) (4) Petition for payment of taxes on partial interest. Any person desiring to pay taxes on only their interest in a parcel of real property, whether their interest is a divided interest or an undivided interest, may do so by applying to the assessor of the county where the property is located. The assessor ((shall)) must determine the value of the applicant's interest and certify that value to the county treasurer who ((shall)) will accept payment of taxes for the applicant's interest in the property. No segregation of the property ((shall)) can be made unless all current year and delinquent taxes and assessments on the entire parcel have been paid in full, except for the following situations, in which all current year and delinquent taxes and assessments on the entire parcel need not first be paid in full:

(a) When property is being acquired for public use; and

(b) When a person or financial institution desires to pay the taxes and any penalties and interest on a mobile home upon which they have a lien by mortgage or otherwise.

[Statutory Authority: RCW 84.08.070. 00-01-043, 458-07-035, filed 12/7/99, effective 1/7/00.]

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