WSR 22-20-104
EXPEDITED RULES
DEPARTMENT OF REVENUE
[Filed October 4, 2022, 2:54 p.m.]
Title of Rule and Other Identifying Information: WAC 458-18-220 Refunds—Rate of interest, 458-30-262 Agricultural land valuation—Interest rate—Property tax component, and 458-30-590 Rates of inflation—Publication—Interest rate—Calculation.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The department proposes to amend:
| |
| • | WAC 458-18-220 to provide the rate of interest for treasury bill auction year 2022, which is used when refunding property taxes paid in 2023, as required by RCW 84.69.100. |
| • | WAC 458-30-262 to provide the interest rate and property tax component used when valuing classified farm and agricultural land during the 2023 assessment year, as required by RCW 84.34.065. |
| • | WAC 458-30-590 to provide the rate of inflation published in 2022, which is used in calculating interest for deferred special benefit assessments of land removed or withdrawn from classification during 2023, as required by RCW 84.34.310. |
Reasons Supporting Proposal: The department is specifically and explicitly required by statute to annually update these rules to provide the information identified above.
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: Leslie Mullin, 6400 Linderson Way S.W., Tumwater, WA, 360-534-1589; Implementation and Enforcement: Heidi Geathers, 6400 Linderson Way S.W., Tumwater, WA, 360-534-1615.
This notice meets the following criteria to use the expedited adoption process for these rules:
Adopts or incorporates by reference without material change federal statutes or regulations, Washington state statutes, rules of other Washington state agencies, shoreline master programs other than those programs governing shorelines of statewide significance, or, as referenced by Washington state law, national consensus codes that generally establish industry standards, if the material adopted or incorporated regulates the same subject matter and conduct as the adopting or incorporating rule.
Content is explicitly and specifically dictated by statute.
Explanation of the Reason the Agency Believes the Expedited Rule-Making Process is Appropriate: The department is required by Washington state statutes to annually update these rules.
NOTICE
THIS RULE IS BEING PROPOSED UNDER AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS USE OF THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO Leslie Mullin, Department of Revenue, P.O. Box 47453, Olympia, WA 98504-7453, phone 360-534-1589, fax 360-534-1606, email LeslieMu@dor.wa.gov, AND RECEIVED BY December 5, 2022.
October 4, 2022
Atif Aziz
Rules Coordinator
OTS-4133.1
AMENDATORY SECTION(Amending WSR 22-04-028, filed 1/24/22, effective 1/1/22)
WAC 458-18-220Refunds—Rate of interest.
(1)
Introduction. Interest applies to refunds of taxes made pursuant to RCW
84.69.010 through
84.69.090 in accordance with RCW
84.69.100. Interest also applies to judgments entered in favor of the plaintiff pursuant to RCW
84.68.030.
(2) Calculation of interest rate. The interest rate is calculated from the equivalent coupon issue yield of the average bill rate for ((twenty-six week))26-week treasury bills as determined at the first bill market auction conducted after June 30th of the calendar year preceding the date the taxes were paid.
(3) Interest rates. The following rates are applied to the amount of the judgment or the amount of the refund, until paid:
Year tax paid | Auction Year | Rate |
1984 | 1983 | 9.29% | |
1985 | 1984 | 11.27% | |
1986 | 1985 | 7.36% | |
1987 | 1986 | 6.11% | |
1988 | 1987 | 5.95% | |
1989 | 1988 | 7.04% | |
1990 | 1989 | 8.05% | |
1991 | 1990 | 8.01% | |
1992 | 1991 | 5.98% | |
1993 | 1992 | 3.42% | |
1994 | 1993 | 3.19% | |
1995 | 1994 | 4.92% | |
1996 | 1995 | 5.71% | |
1997 | 1996 | 5.22% | |
1998 | 1997 | 5.14% | |
1999 | 1998 | 5.06% | |
2000 | 1999 | 4.96% | |
2001 | 2000 | 5.98% | |
2002 | 2001 | 3.50% | |
2003 | 2002 | 1.73% | |
2004 | 2003 | 0.95% | |
2005 | 2004 | 1.73% | |
2006 | 2005 | 3.33% | |
2007 | 2006 | 5.09% | |
2008 | 2007 | 4.81% | |
2009 | 2008 | 2.14% | |
2010 | 2009 | 0.29% | |
2011 | 2010 | 0.21% | |
2012 | 2011 | 0.08% | |
2013 | 2012 | 0.15% | |
2014 | 2013 | 0.085% | |
2015 | 2014 | 0.060% | |
2016 | 2015 | 0.085% | |
2017 | 2016 | 0.340% | |
2018 | 2017 | 1.130% | |
2019 | 2018 | 2.085% | |
2020 | 2019 | 2.040% | |
2021 | 2020 | 0.165% | |
2022 | 2021 | 0.050% | |
2023 | 2022 | 2.50% | |
OTS-4132.1
AMENDATORY SECTION(Amending WSR 22-04-028, filed 1/24/22, effective 1/1/22)
WAC 458-30-262Agricultural land valuation—Interest rate—Property tax component.
For assessment year ((2022))2023, the interest rate and the property tax component that are used to value classified farm and agricultural lands are as follows:
(1) The interest rate is ((5.62))5.53 percent; and
(2) The property tax component for each county is:
county | percent | county | percent |
Adams | ((1.25))1.19 | Lewis | ((0.97))0.93 |
Asotin | ((1.15))1.12 | Lincoln | ((1.15))1.10 |
Benton | ((1.09))1.06 | Mason | ((1.04))0.98 |
Chelan | ((0.99))0.93 | Okanogan | ((1.17))1.13 |
Clallam | ((1.03))0.98 | Pacific | ((1.10))1.03 |
Clark | ((1.08))1.02 | Pend Oreille | ((0.98))0.94 |
Columbia | ((1.16))1.15 | Pierce | ((1.22))1.11 |
Cowlitz | ((1.07))0.99 | San Juan | ((0.72))0.71 |
Douglas | ((1.11))1.03 | Skagit | ((1.06))0.99 |
Ferry | ((1.06))0.96 | Skamania | ((1.04))1.01 |
Franklin | ((0.99))0.89 | Snohomish | ((0.97))0.93 |
Garfield | ((1.25))1.05 | Spokane | ((1.17))1.13 |
Grant | ((1.10))1.03 | Stevens | 0.91 |
Grays Harbor | ((1.19))1.08 | Thurston | ((1.24))1.14 |
Island | ((0.90))0.91 | Wahkiakum | ((0.79))0.74 |
Jefferson | ((0.99))0.94 | Walla Walla | ((1.24))1.16 |
King | ((1.01))0.95 | Whatcom | ((1.01))0.94 |
Kitsap | ((1.02))0.96 | Whitman | ((1.42))1.41 |
Kittitas | ((0.91))0.86 | Yakima | ((1.14))1.09 |
Klickitat | ((0.97))0.98 | | |
AMENDATORY SECTION(Amending WSR 22-04-028, filed 1/24/22, effective 1/1/22)
WAC 458-30-590Rate of inflation—Publication—Interest rate—Calculation.
(1)
Introduction. This rule provides the rates of inflation discussed in RCW
84.34.330 and WAC 458-30-550 Exemption
—Removal or withdrawal. It also explains the department of revenue's (department) obligation to annually publish a rate of inflation and the manner in which this rate is determined.
(2) General duty of department - Basis for inflation rate. Each year the department determines and publishes a rule establishing an annual rate of inflation. This rate of inflation is used in computing the interest that is assessed when farm and agricultural or timber land, which are exempt from special benefit assessments, is withdrawn or removed from current use classification.
(a) The rate of inflation is based on the implicit price deflator for personal consumption expenditures calculated by the United States Department of Commerce. This rate is used to calculate the rate of interest collected on exempt special benefit assessments.
(b) The rate is published by December 31st of each year and applies to all withdrawals or removals from the farm and agricultural or timber land classifications that occur the following year.
(3) Assessment of rate of interest. An owner of classified farm and agricultural or timber land is liable for interest on the exempt special benefit assessment. Interest accrues from the date the local improvement district is created until the land is withdrawn or removed from classification. Interest accrues and is assessed in accordance with WAC 458-30-550.
(a) Interest is assessed only for the time (years and months) the land remains classified under RCW
84.34.020 (2) or (3).
(b) If the classified land is exempt from the special benefit assessment for more than one year, the annual inflation rates are used to calculate an average rate of interest. This average is determined by adding the inflation rate for each year the classified land was exempt from the special benefit assessment after the local improvement district was created. The sum of the inflation rates is then divided by the number of years involved to determine the applicable rate of interest.
(c) Example. A local improvement district for a domestic water supply system was created in January 2010 and the owner used the statutory exemption provided in RCW
84.34.320. On July 1, 2017, the land was removed from the farm and agricultural classification. An average interest rate was calculated using the inflation rates for 2010 through 2017. The owner was then notified of the amount of previously exempt special benefit assessment, plus the average interest rate.
(4) Rates of inflation. The rates of inflation used to calculate the interest as required by WAC 458-30-550 are as follows:
YEAR | PERCENT | YEAR | PERCENT |
1976 | 5.6 | 1977 | 6.5 |
1978 | 7.6 | 1979 | 11.3 |
1980 | 13.5 | 1981 | 10.3 |
1982 | 6.2 | 1983 | 3.2 |
1984 | 4.3 | 1985 | 3.5 |
1986 | 1.9 | 1987 | 3.7 |
1988 | 4.1 | 1989 | 4.8 |
1990 | 5.4 | 1991 | 4.2 |
1992 | 3.3 | 1993 | 2.7 |
1994 | 2.2 | 1995 | 2.3 |
1996 | 2.2 | 1997 | 2.1 |
1998 | 0.85 | 1999 | 1.42 |
2000 | 2.61 | 2001 | 1.89 |
2002 | 1.16 | 2003 | 1.84 |
2004 | 2.39 | 2005 | 2.54 |
2006 | 3.42 | 2007 | 2.08 |
2008 | 4.527 | 2009 | -0.85 (negative) |
2010 | 1.539 | 2011 | 2.755 |
2012 | 1.295 | 2013 | 1.314 |
2014 | 1.591 | 2015 | 0.251 |
2016 | 0.953 | 2017 | 1.553 |
2018 | 2.169 | 2019 | 1.396 |
2020 | 0.602 | 2021 | 3.860 |
2022 | 6.457 | | |