Preproposal statement of inquiry was filed as WSR 03-03-100.
Title of Rule: Amending WAC 458-12-060 ((
personalty -- Burden on taxpayer to list.)) Listing of personal
property; and repealing WAC 458-12-065 Listing personal
property -- Form and notice, 458-12-070 Listing of
personalty -- When due -- Late filing, 458-12-075
Personalty -- Filing by corporations, partnerships, firms or
agents, and 458-12-080 Listing of personalty -- Manufacturers.
Purpose: To provide information about the listing of personal property for purposes of ad valorem property taxation.
Statutory Authority for Adoption: RCW 84.08.010 and 84.08.070.
Statute Being Implemented: RCW 84.40.020, 84.40.040, 84.40.060, 84.40.070, 84.40.120, 84.40.185, 84.40.190, 84.40.200, 84.40.210, 84.40.340, and 84.44.080 as they apply to the listing of personal property for property taxation.
Summary: These rules provide information about the listing of personal property for purposes of ad valorem property taxation.
Reasons Supporting Proposal: These rules need to be revised to incorporate changes to the statutes being implemented. In addition, consolidating these rules into a single document will provide information about the listing of personal property in a more efficient and user-friendly manner by reducing the need for readers to consult multiple rules for information about the listing of personal property.
Name of Agency Personnel Responsible for Drafting: Mark Mullin, 1025 Union Avenue S.E., Suite #400, Olympia, WA, (360) 570-6112; Implementation and Enforcement: Gary O'Neil, 1025 Union Avenue S.E., Suite #200, Olympia, WA, (360) 570-5860.
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: These rules provide important information for county assessors, their staff, taxpayers, and the general public regarding the listing of personal property for purposes of ad valorem property taxation. These rules provide information about who is required to list personal property with the county assessor, how property should be identified on the listing form and what other information should be included on the form, when the listing is due, the assessor's duty to maintain a list of persons liable to assessment of personal property, the assessor's duties upon receipt of a listing, and specific information regarding the listing of personal property by manufacturers.
These rules are being revised to reflect legislation affecting the statutes being implemented, including chapter 302, Laws of 2003 (SHB 1278), which eliminated the requirement that personal property listing forms be signed and verified under penalty of perjury, provided that assessors may electronically transmit listing forms to property owners, and provided that property owners may electronically transmit listing forms to the assessor. In addition, these rules are being consolidated into a single comprehensive document, which will provide information about the listing of personal property in a more efficient and user-friendly manner by reducing the need for readers to consult multiple rules for information about the listing of personal property.
Proposal Changes the Following Existing Rules: This is a revision to update information and to consolidate WAC 458-12-060, 458-12-065, 458-12-070, 458-12-075, and 458-12-080 into a single rule. As a result, WAC 458-12-060 will address the information currently contained in WAC 458-12-065, 458-12-070, 458-12-075, and 458-12-080, and these latter rules will be cancelled.
No small business economic impact statement has been prepared under chapter 19.85 RCW. Proposed WAC 458-12-060 does not impose a responsibility or require a small business to perform something that is not already required by law.
RCW 34.05.328 does not apply to this rule adoption. WAC 458-12-060 is an interpretive rule as defined in RCW 34.05.328.
Hearing Location: Capital Plaza Building, 4th Floor, Large Conference Room, 1025 Union Avenue S.E., Olympia, WA, on Thursday, September 25, 2003, at 1:30 p.m.
Assistance for Persons with Disabilities: Contact Sandy Davis no later than ten days before the hearing date, TTY 1-800-451-7985 or (360) 725-7499.
Submit Written Comments to: Mark Mullin, Department of Revenue, P.O. Box 47467, Olympia, WA 98504-7467, fax (360) 664-0693, e-mail MarkM@dor.wa.gov, by September 25, 2003.
Date of Intended Adoption: October 2, 2003.
August 7, 2003
Alan R. Lynn
Legislation and Policy Division
AMENDATORY SECTION(Amending Order PT 68-6, filed 4/29/68)
WAC 458-12-060 Listing of ((
personalty -- Burden on
taxpayer to list)) personal property.
(( Every person, firm or
corporation regardless of residency who owns or controls
personal property not specifically exempted by law located in
this state as of 12 noon on the first day of January shall be
required to annually submit a personal property listing and
statement. Such listing and statement shall be due regardless
of whether or not the assessor has provided notice of such
listing to the individual taxpayer. (RCW 84.40.190.))) (1)
Introduction. This rule provides information about the
listing of personal property subject to ad valorem taxation.
This rule also provides specific information about the listing
of personal property by manufacturers. For information about
the listing of ships and vessels subject to property taxation,
refer to WAC 458-17-101.
(2) Who is required to list personal property with the county assessor? Every person is required to list all taxable (i.e., nonexempt) personal property in the person's ownership, possession, or control. RCW 84.40.185 and 84.40.190. Every person required to list personal property must deliver to the county assessor a form listing all of the person's taxable personal property that was located in the county as of 12:00 p.m. on January 1st of the assessment year. The listing may be delivered to the assessor either in person, by mail, or by electronic transmittal (e.g., Internet-based application, e-mail, or facsimile) if available. The listing does not need to be signed or verified under penalty of perjury. (Chapter 302, Laws of 2003.)
For purposes of this rule, the term "person" includes natural persons and artificial persons such as partnerships, corporations, limited liability companies, associations, trusts, and estates.
(a) How should property be identified on the listing form? Each category of taxable personal property must be separately identified on the listing form. For example, office equipment must be separately identified as computers, desks, facsimile machines, and the like. RCW 84.08.020 and 84.40.040.
(b) What other information must be included in the personal property listing? In addition to a listing of all items of taxable personal property identified by category, a listing form must also include:
(i) The date of acquisition for each item of personal property; and
(ii) The total original cost of each item of personal property. The value of any trade-in is not to be deducted from the acquisition cost. For purposes of listing taxable personal property, the total original cost of an item includes all costs associated with making the property operational but excludes sales tax. For example, installation, freight, and engineering charges are costs that may be incurred while placing property into operation. RCW 84.08.020 and 84.40.040.
(c) When are personal property listings due? RCW 84.40.040 provides that personal property listings are due on or before April 30th. A penalty may be added to the amount of tax assessed if listing is not made by the due date. RCW 84.40.130. Refer to WAC 458-12-110 for detailed information about the penalties imposed under RCW 84.40.130.
(d) How do the exemptions for household goods, furnishings, and personal effects and for the head of a family affect listing? RCW 84.36.110 provides exemptions for the head of a family and for household goods, furnishings, and personal effects. Information about these exemptions and their effect on listing is provided in WAC 458-16-115.
(e) What if the assessor believes that an incomplete or inaccurate listing has been made? When the assessor believes that an incomplete or inaccurate listing has been made, the assessor has the following options:
(i) If the assessor believes that a person listing personal property for himself or herself, or on behalf of a principal (e.g., any other person, company, or corporation), has not made a full, fair, and complete listing of such property, the assessor may examine the person under oath in regard to the amount of the property the person is required to list. If the person refuses to answer under oath, the assessor may list the property of that person, or of that person's principal, according to the assessor's best judgment and information. RCW 84.40.110. Any oath authorized to be administered under Title 84 RCW may be administered by any assessor or deputy assessor, or by any other officer having authority to administer oaths. Any person willfully making a false list, schedule, or statement under oath is subject to the penalties of perjury. RCW 84.40.120.
(ii) For the purpose of verifying any list, statement, or schedule required to be furnished to the assessor by any taxpayer, any assessor or the assessor's trained and qualified deputy may visit, investigate, and examine any personal property at any reasonable time. For the purposes of this verification, the records, accounts, and inventories, which will aid in determining the amount and valuation of the property, will also be subject to visitation, investigation, and examination. The visitation, investigation, and examination may be performed at any office of the taxpayer in this state. The taxpayer is required to furnish or make available all the information pertaining to property in this state to the assessor even though the records may be maintained at any office outside this state. RCW 84.40.340.
(f) What if the owner of personal property moves to another county or into this state after January 1st? The owner of taxable personal property who moves from one county to another between January 1st and July 1st will be assessed in the county whose assessor first calls upon the owner to make a listing. The owner of personal property who moves into this state from another state between January 1st and July 1st must make a listing of taxable personal property that the person owned on January 1st of the assessment year with the assessor in the county in which the person resides.
If the owner of personal property moves to another county or into this state after January 1st and can satisfy the assessor that the owner's property has been assessed and will be held liable for the tax on the current year in another state or county, the owner cannot be assessed again for the current year. RCW 84.44.080.
(3) Assessor's duty to maintain list of persons liable to assessment. Assessors must maintain an alphabetical list of the names and last known addresses of all property owners in the county who are subject to assessment of personal property. On or before January 1st of each year, the assessor is required to mail or electronically transmit (e.g., e-mail) a notice to such persons that a listing is required along with a listing form. The notice and listing form must be in accordance with forms prescribed by the department of revenue. If practicable, the notice and listing form mailed or electronically transmitted to each taxpayer must include a copy of the previous year's listing. RCW 84.40.040. A copy of the taxpayer's previous year's listing must also be provided to the taxpayer upon the taxpayer's request.
(a) What if I do not receive a listing form from the assessor? Property owners who are subject to assessment of personal property and any other person required to list personal property are responsible for making a listing regardless of whether or not the person receives a listing form from the assessor.
(b) What are the assessor's duties upon receipt of a personal property listing? Upon receipt of a personal property listing, the assessor will determine the true and fair value of the property listed and enter one hundred percent of the true and fair value of the property on the assessment roll opposite the name of the party assessed (i.e., the owner of the property). The assessor may, after giving written notice of the action to the person assessed, add to the assessment list any taxable property that should have been included in the list but was omitted by the taxpayer. RCW 84.40.040.
RCW 84.40.200 requires that a copy of the completed personal property listing containing the assessor's determination of the true and fair value of the property assessed must be provided to the person assessed, or to the person listing the property. The information may be provided in person, by mail, or by electronic transmittal if available.
(4) Listing of personal property by manufacturers. This subsection provides specific information about the listing of taxable personal property by manufacturers. A manufacturer must make and deliver to the assessor a personal property listing. The listing is made in the county where the personal property is situated. RCW 84.44.010. The listing must include the manufacturer's stock, engines, machinery, and other nonexempt personal property, together with the date of acquisition and total original cost for each item. Detailed information about the cost of personal property is contained in subsection (2)(b)(ii) of this rule. Manufacturer's stock that constitutes "business inventories," as that term is defined in RCW 84.36.477, is exempt from ad valorem taxation and need not be included in the personal property listing.
Fixtures considered by the assessor as part of any parcel of real property should not be included in a manufacturer's personal property listing. For detailed information about fixtures or trade fixtures, refer to WAC 458-12-005 and 458-12-010.
(a) Who is a "manufacturer"? A "manufacturer" is any person who purchases, receives, or holds personal property of any description for the purpose of adding to the value thereof by any process of manufacturing, refining, rectifying, or by the combination of different materials with the view of making gain or profit by so doing. RCW 84.40.210.
(b) What is "manufacturer's stock"? "Manufacturer's stock" includes all articles purchased, received, or otherwise held for the purpose of being used in whole or in part in any process or processes of manufacturing, combining, rectifying, or refining.
(c) What if property identified on the personal property listing has also been listed and assessed as part of any parcel of real property? On receipt of the manufacturer's personal property listing, the assessor will delete from the assessment the value of any engines and machinery that the assessor knows to have been assessed as part of any parcel of real property (i.e., as a fixture). A copy of the corrected assessment will be provided to the manufacturer.
[Order PT 68-6, § 458-12-060, filed 4/29/68.]