WSR 08-10-114

EXPEDITED RULES

DEPARTMENT OF REVENUE


[ Filed May 7, 2008, 11:45 a.m. ]

Title of Rule and Other Identifying Information: WAC 458-18-020 Deferral of special assessments and/or property taxes -- Qualifications for deferral, lists the qualifications for deferring payment of special assessments or real property taxes on a percentage of the taxpayer's equity in residential property. WAC 458-18-100 Deferral of special assessments and/or property taxes -- When payable -- Collection -- Partial payment, explains when deferred taxes on residential property and interest become payable, the effects of the deferment, and the procedure for collecting and paying the deferred taxes.

NOTICE

THIS RULE IS BEING PROPOSED UNDER AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS USE OF THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Jim Winterstein, Department of Revenue, P.O. Box 47453, Olympia, WA 98504-7453, fax (360) 586-0127, e-mail JimWi@DOR.WA.GOV , AND RECEIVED BY July 7, 2008.


Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: WAC 458-18-020 and 458-18-100 are being amended to conform to SSHB [2SHB] 3104 (chapter 6, Laws of 2008). SSHB [2SHB] 3104 extended the rights and liabilities of spouses under RCW 84.38.030, 84.38.130, and 84.38.150 to domestic partners. In addition, subsection (5) of WAC 458-18-020 has been changed to reflect the 2004 amendment to RCW 84.38.030, which increased the amount of combined disposable income claimants may have in order to qualify for the deferral from thirty thousand dollars to forty thousand dollars.

Copies of draft rules are available for viewing and printing on our web site at http://dor.wa.gov/content/FindALawOrRule/RuleMaking/agenda.aspx.

Reasons Supporting Proposal: To incorporate legislative changes.

Statutory Authority for Adoption: RCW 84.38.180.

Statute Being Implemented: RCW 84.38.130, 84.38.150.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: Department of revenue, governmental.

Name of Agency Personnel Responsible for Drafting: Marilou Rickert, 1025 Union Avenue S.E., Suite #544, Olympia, WA, (360) 570-6115; Implementation and Enforcement: Brad Flaherty, 1025 Union Avenue S.E., Suite #200, Olympia, WA, (360) 570-5860.

May 7, 2008

Alan R. Lynn

Rules Coordinator


AMENDATORY SECTION(Amending WSR 92-15-057, filed 7/13/92, effective 8/13/92)

WAC 458-18-020   Deferral of special assessments and/or property taxes -- Qualifications for deferral.   A person may defer payment of special assessments and/or real property taxes on up to eighty percent of the amount of his equity value in said property 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)) a state registered domestic partnership, or ((owned by)) cotenants shall be deemed to be owned by each spouse, each domestic partner, and each 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) If the amount deferred is to exceed one hundred percent of the claimant's equity value in the land or lot only, the claimant must have and keep in force fire and casualty insurance in sufficient amount to protect the interest of the state of Washington and shall designate the state as a loss payee upon said policy. In no case shall the deferred amount exceed the amount of the insured value of the improvement plus the land value.

(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.

(4) The claimant must meet all requirements for an exemption for the residence under RCW 84.36.381, other than the income requirements, and to the extent eligible, must have first applied for the exemptions under RCW 84.36.381 through 84.36.389 prior to filing a declaration to defer.

(5) The claimant must have a combined disposable income, as defined in RCW 84.36.383 ((and WAC 458-16-010 and 458-16-013)), of ((thirty)) forty thousand dollars or less.

[Statutory Authority: RCW 84.38.180. 92-15-057, 458-18-020, filed 7/13/92, effective 8/13/92; 88-13-042 (Order PT 88-9), 458-18-020, filed 6/9/88; 84-21-010 (Order PT 84-4), 458-18-020, filed 10/5/84; 81-05-020 (Order PT 81-8), 458-18-020, filed 2/11/81; Order PT 76-1, 458-18-020, filed 4/7/76.]

Reviser's note: RCW 34.05.395 requires the use of underlining and deletion marks to indicate amendments to existing rules. The rule published above varies from its predecessor in certain respects not indicated by the use of these markings.
AMENDATORY SECTION(Amending WSR 84-21-010, filed 10/5/84)

WAC 458-18-100   Deferral of special assessments and/or property taxes -- When payable -- Collection -- Partial payment.   (1) Any special assessments and/or real property taxes deferred shall become payable together with interest:

(a) Upon the conveyance of property which has a deferred special assessment and/or real property tax lien upon it.

(b) Upon the death of the claimant except when the surviving spouse or surviving domestic partner is qualified and elects to incur the lien and continue the deferment by (i) filing an original "declaration to defer" within ninety days of the claimant's death and (ii) continuing to meet the qualifications of WAC 458-18-010 through 458-18-100.

When a surviving spouse or surviving domestic partner elects to continue the deferment, the spouse or domestic partner then becomes the claimant and is fully subject to the conditions of WAC 458-18-010 through 458-18-100.

(c) Upon condemnation of property with a deferred special assessment and/or real property tax lien upon it by a public or private body exercising the power of eminent domain: Provided, That if the assessed value of the property not condemned exceeds the amount of the liens, including interest, the claimant may elect to have the liens set over to the property retained: Provided further, That the amount of the lien allowed to be set over shall not exceed 80% of the claimant's equity in the retained property.

(d) At such time as the claimant ceases to reside permanently in the residence upon which the deferral has been granted. If the cessation occurs between filing the declaration and the date the taxes are payable, the deferral shall not be allowed.

(e) Upon the failure of the claimant to have or keep in force fire and casualty insurance in sufficient amount to protect the interest of the state of Washington or failure to keep the state listed as a loss payee upon said policy. Subsection (1)(b) shall take precedence over subsection (1)(d).

(2) Once a deferral has been granted, the various conditions contained within WAC 458-18-010 through 458-18-100 may prohibit the claimant from qualifying for further deferrals, but any obligations resulting from deferrals previously granted will become due and payable only upon occurrence of the conditions set forth in subsection (1) of this section.

(3) Upon occurrence of any condition requiring the payment of any deferred special assessments and/or real property taxes, the county treasurer shall proceed to collect the same in the manner provided for in chapter 84.56 RCW. For purposes of collection of the deferred taxes and interest, provisions of chapters 84.56, 84.60, and 84.64 RCW shall be applicable. When these moneys are collected, they shall be credited to a special account in the county treasury and shall then be remitted to the state treasurer within thirty days from collection with remittance advice to the department of revenue. The state treasurer shall deposit the moneys in the state general fund.

(4) Any person may at any time pay a part or all of the deferred assessments and/or taxes including the interest, but such payment shall not affect the deferred tax status of the property. Any payment made shall be credited to the oldest deferred amount and shall be prorated between interest and the deferred assessments and/or taxes.

[Statutory Authority: RCW 84.38.180. 84-21-010 (Order PT 84-4), 458-18-100, filed 10/5/84; 81-05-020 (Order PT 81-8), 458-18-100, filed 2/11/81; Order PT 76-1, 458-18-100, filed 4/7/76.]

Washington State Code Reviser's Office