Title of Rule: WAC 458-07-020 Revaluation of real property -- Multiyear counties.

     Purpose: To provide information about the revaluation of real property.

     Statutory Authority for Adoption: RCW 84.08.010 and 84.08.070.

     Statute Being Implemented: RCW 84.41.030, 84.41.041, and 84.40.045.

     Summary: This rule 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.

     Reasons Supporting Proposal: This rule cites a statute (RCW 90.60.160) that was decodified in September 2001.

     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: This rule provides important information to county assessors, their staff, Department of Revenue personnel, and the public about the revaluation of real property for purposes of property taxation in counties that do not revalue all real property each year. The rule provides information about 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 is not completed in that year. Finally, the rule explains requirement that assessors provide taxpayers with a revaluation notice when there is any change in the assessed value of real property.

     WAC 458-07-020 contains a citation in subsection (2)(a) to RCW 90.60.160, a statute that was decodified in September 2001. This rule is being amended to delete the citation to RCW 90.60.160, which will increase the accuracy of the rule and reduce the potential for confusion.

     Proposal Changes the Following Existing Rules: This is a revision to WAC 458-07-020, as explained above. An introduction is being added to explain the purpose of the rule.

August 20, 2003

Alan R. Lynn

Rules Coordinator

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.]

© Washington State Code Reviser's Office