Title of Rule: WAC 458-07-035 Listing of property -- Subdivisions and segregation of interests.

     Purpose: To provide information about the listing and valuation of real property for purposes of property taxation.

     Statutory Authority for Adoption: RCW 84.08.010 and 84.08.070.

     Statute Being Implemented: RCW 36.21.080, 36.21.090, 84.40.040, 84.40.042, and 84.56.340.

     Summary: This rule 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.

     Reasons Supporting Proposal: To incorporate recent legislation, chapter 23, Laws of 2003.

     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 listing and valuing of real property for purposes of property taxation. This rule provides 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.

     RCW 84.56.340 allows a person to apply to the county assessor to pay taxes on any part or parts of real property, assessed as one parcel, upon the person's undivided fractional interest in the property. With certain exceptions, the assessor may not segregate property for purposes of allowing a person to pay taxes on the person's undivided fractional interest in a parcel of real property unless all delinquent taxes and assessments on the entire parcel are paid in full. Chapter 23, Laws of 2003, amended RCW 84.56.340 to require that, in addition to all delinquent taxes and assessments, all taxes and assessments for the current year must be paid in full before property can be segregated for purposes of allowing a person to pay taxes on the person's undivided fractional interest in a parcel of real property.

     This proposal incorporates the revision to RCW 84.56.340 by chapter 23, Laws of 2003. The revised rule will therefore be consistent with the statutes that the rule implements.

     Proposal Changes the Following Existing Rules: This proposal incorporates a revision to RCW 84.56.340 by chapter 23, Laws of 2003, 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-6593.1

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)) will shall 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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