WSR 07-13-023

PERMANENT RULES

DEPARTMENT OF REVENUE


[ Filed June 11, 2007, 3:52 p.m. , effective July 12, 2007 ]


Effective Date of Rule: Thirty-one days after filing.

Purpose: WAC 458-18-060 explains how equity value is determined relative to the deferral of property taxes on residences of qualifying (senior or disabled) claimants. Equity value takes the interest on the deferred taxes into account. In 2006, the legislature amended the statute (RCW 84.38.100) to change the interest rate on deferred taxes from 8% to 5%. This amendment to the rule implements the legislative change (chapter 275, Laws of 2006).

Citation of Existing Rules Affected by this Order: Amending WAC 458-18-060 Deferral of special assessments and/or property taxes -- Limitations of deferral -- Interest.

Statutory Authority for Adoption: RCW 84.38.180.

Adopted under notice filed as WSR 07-08-092 on April 3, 2007.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 1, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 1, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 1, Repealed 0.

Date Adopted: June 11, 2007.

Janis P. Bianchi

Assistant Director

Interpretations and

Technical Advice Division

OTS-9621.2


AMENDATORY SECTION(Amending Order PT 88-9, filed 6/9/88)

WAC 458-18-060   Deferral of special assessments and/or property taxes -- Limitations of deferral -- Interest.   No deferral shall be granted if the liens created by the deferrals of special assessments and/or real property taxes equal or exceed eighty percent of the claimant's equity value in said property. Equity value will be determined as of January 1 in the year the taxes are to be deferred.

The liens shall include:

(1) The total amount of special assessments and/or real property taxes deferred, plus

(2) Interest on the amount deferred. For deferrals granted before June 7, 2006, the interest accrues at the rate of eight percent per year, from the time it could have been paid before delinquency until ((said)) the lien is paid. For deferrals granted after June 7, 2006, involving special assessments or taxes due prior to January 1, 2007, the interest accrues at the rate of eight percent per year, from the time it could have been paid before delinquency until the lien is paid. For deferrals granted after June 7, 2006, involving special assessments or taxes to be collected in 2007 and thereafter, the interest accrues at the rate of five percent per year, from the time it could have been paid before delinquency until the lien is paid. When a declaration is filed ((after the taxes are delinquent, interest at the rate of eight percent per year on the amount deferred will begin accruing on)) as a result of the requirement under RCW 84.64.050 related to a treasurer's foreclosure action, the interest accrues from the date the declaration is filed and ((will)) continues until the obligation is paid, at the appropriate rate as set forth above.

[Statutory Authority: RCW 84.38.180. 88-13-042 (Order PT 88-9), 458-18-060, filed 6/9/88; 84-21-010 (Order PT 84-4), 458-18-060, filed 10/5/84; 81-21-008 (Order 81-12), 458-18-060, filed 10/8/81; Order PT 76-1, 458-18-060, filed 4/7/76.]

Washington State Code Reviser's Office