WSR 97-21-098

EXPEDITED ADOPTION

DEPARTMENT OF REVENUE

[Filed October 20, 1997, 12:05 p.m.]

Title of Rule: Amendatory section WAC 458-18-220 Refunds--Rate of interest.

Purpose: To update rule so it reflects the rate of interest for auction year 1997 that will be included when property taxes paid during 1998 are refunded.

Statutory Authority for Adoption: RCW 84.08.010, 84.08.070.

Statute Being Implemented: RCW 84.69.100.

Summary: The rates of interest set forth in this rule are used when property taxes are refunded. The rates of interest are listed according to the year in which the property taxes are paid.

Reasons Supporting Proposal: RCW 84.69.100 requires interest to be included when property taxes are refunded. This statute also requires the department to adopt the rate of interest by rule.

Name of Agency Personnel Responsible for Drafting: Kim M. Qually, 711 Capitol Way South, #303, Olympia, WA, (360) 664-0086; Implementation and Enforcement: Sandy Guilfoil, 6004 Capitol Boulevard, Tumwater, WA, (360) 753-5503.

Name of Proponent: Department of Revenue, governmental.

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

Explanation of Rule, its Purpose, and Anticipated Effects: RCW 84.69.100 directs interest to be paid when property taxes are refunded. WAC 458-18-220 sets forth the rate of interest on a yearly basis and is used by county officials to calculate the total amount of property tax and interest to be refunded to the taxpayer.

Proposal Changes the Following Existing Rules: This proposed rule amends the current version of WAC 458-18-220. The amendments to this rule specify the rate of interest to be paid when taxes paid in 1998 are refunded in accordance with RCW 84.69.100.

THIS RULE IS BEING PROPOSED TO BE ADOPTED USING 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 RULE BEING ADOPTED USING THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Kim M. Qually, Department of Revenue, P.O. Box 47467, Olympia, WA 98504-7467, FAX (360) 664-0693, AND RECEIVED BY December 20, 1997.

October 20, 1997

Russell W. Brubaker

Assistant Director

Legislation and Policy Division

AMENDATORY SECTION (Amending WSR 97-02-068, filed 12/31/96, effective 1/1/97)

WAC 458-18-220 Refunds--Rate of interest. The following rates of interest shall apply on refunds of taxes made pursuant to RCW 84.69.010 through 84.69.090 in accordance with RCW 84.69.100. The following rates shall also apply to judgments entered in favor of the plaintiff pursuant to RCW 84.68.030. The interest rate is derived from the equivalent coupon issue yield of the average bill rate for twenty-six week treasury bills as determined at the first bill market auction conducted after June 30th of the calendar year preceding the date the taxes were paid ((or the claim for refund is filed, whichever is later)). The rate thus determined shall be applied to the amount of the judgment or the amount of the refund, until paid:

Year tax paid (((chapter

84.68 RCW); Year tax

paid or claim filed

(whichever is later) Auction

(chapter 84.69 RCW))) Year Rate

1985 1984 11.27%

1986 1985 7.36%

1987 1986 6.11%

1988 1987 5.95%

1989 1988 7.04%

1990 1989 8.05%

1991 1990 8.01%

1992 1991 5.98%

1993 1992 3.42%

1994 1993 3.19%

1995 1994 4.92%

1996 1995 5.71%

1997 1996 5.22%

1998 1997 5.14%