WSR 05-11-007

PROPOSED RULES

DEPARTMENT OF REVENUE


[ Filed May 4, 2005, 3:48 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 05-06-017.

Title of Rule and Other Identifying Information: Amending WAC 458-12-342 New construction -- Assessment.

Hearing Location(s): Capital Plaza Building, 4th Floor, L&P Large Conference Room, 1025 Union Avenue S.E., Olympia, WA, on June 21, 2005, at 9:30 a.m.

Date of Intended Adoption: June 28, 2005.

Submit Written Comments to: James A. Winterstein, P.O. Box 47453, Olympia, WA 98504-7453, e-mail JimWi@dor.wa.gov, fax (360) 586-5543, by June 21, 2005.

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.

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: WAC 458-12-342 is proposed to be amended to conform to the law and allow new construction, for which a building permit is required, to be added to the assessment roll when the new construction is located on leased public land. The proposed amendment also clarifies when new construction, that is not completed before July 31, is added to the assessment roll. The proposed amendment to the rule also brings it up to date with the law regarding the time period for filing appeals of the value placed on new construction by the assessor.

Reasons Supporting Proposal: The proposed amendments to the rule bring it into conformity with current law and provide guidance to assessors and taxpayers with respect to the assessment of new construction.

Statutory Authority for Adoption: RCW 84.08.010 and 84.41.090.

Statute Being Implemented: RCW 84.40.040.

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: James A. Winterstein, 1025 Union Avenue S.E., Suite #544, Olympia, WA, (360) 570-5880; Implementation and Enforcement: Peri Maxey, 1025 Union Avenue S.E., Suite #200, Olympia, WA, (360) 570-5860.

No small business economic impact statement has been prepared under chapter 19.85 RCW. A small business economic impact statement is not required for the reason that the rule does not impose any new performance requirement or administrative burden on any small business.

A cost-benefit analysis is not required under RCW 34.05.328. The proposed rule is not a significant legislative rule as defined by RCW 34.05.328.

May 4, 2005

Alan R. Lynn

Rules Coordinator

OTS-8043.1


AMENDATORY SECTION(Amending WSR 93-08-049, filed 4/2/93, effective 5/3/93)

WAC 458-12-342   New construction -- Assessment.   (1) New construction covered under the provisions of RCW 36.21.070 and 36.21.080, and defined in WAC 458-19-005 (2)(q), shall be assessed at its true and fair value as of July 31st each year regardless of its percentage of completion. In instances when new construction continues after July 31 of any year, the increase in value of the property due to the new construction that occurs between August 1 of that year through July 31 of the following year is added to the assessment roll as "new construction" in the following year. New construction as used in this section refers only to real property, as defined in RCW 84.04.090 and further defined in WAC 458-12-010, and also to improvements, as described in WAC 458-12-005(4), located on leased public land, for which a building permit was issued or should have been issued pursuant to chapter 19.27, 19.27A, or 19.28 RCW or other laws providing for building permits.

(2) The assessor is authorized to place new construction on the assessment rolls up to August 31st each year and shall notify the owner, or person responsible for payment of taxes, of the value of any new construction that has been assessed. The notice shall advise the owner, or person responsible for payment of taxes, that ((he)) such owner or person has thirty days from the date of mailing of the notice, or up to sixty days when the county legislative authority has adopted a longer time period, whichever is later, to appeal the valuation to the county board of equalization as provided in WAC 458-14-056.

[Statutory Authority: RCW 84.41.090 and 84.08.010. 93-08-049, 458-12-342, filed 4/2/93, effective 5/3/93; 83-22-004 (Order PT 83-6), 458-12-342, filed 10/20/83.]

Washington State Code Reviser's Office