SENATE BILL REPORT

                                  2ESSB 5812

                      AS PASSED SENATE, FEBRUARY 11, 1992

Brief Description:  Deferring interest and penalties on certain delinquent property taxes.

SPONSORS:Senate Committee on Ways & Means (originally sponsored by Senators Williams and Wojahn).

SENATE COMMITTEE ON WAYS & MEANS

Majority Report:  That Substitute Senate Bill No. 5812 be substituted therefor, and the substitute bill do pass.

      Signed by Senators McDonald, Chairman; Craswell, Vice Chairman; Bauer, Bluechel, Cantu, Gaspard, Hayner, Johnson, L. Kreidler, Metcalf, Murray, Niemi, Rinehart, Talmadge, West, Williams, and Wojahn. 

Staff:  Terry Wilson (786‑7715)

Hearing Dates:February 27, 1991; March 8, 1991

BACKGROUND:

Property taxes are due on April 30 but may be paid in two installments.  If one-half of the taxes are paid on April 30, the remaining one-half is due on October 31.

Delinquent taxes are subject to interest at 12 percent per year compounded monthly.  In addition, a penalty of 3 percent is assessed on the amount of tax delinquent on May 31 and a penalty of 8 percent is assessed on the amount of tax delinquent on November 30.

SUMMARY:

Provisions on the payment of taxes on property shall be applied separately for the amount that 1993 taxes do not exceed 150 percent of 1992 taxes and for the remaining amount.

Taxes payable in 1993 over 150 percent of taxes payable in 1992 are not subject to interest and penalties until April 30, 1994.  This provision does not apply to 1993 taxes attributable to value increases due to new construction, improvements to property, or the subdivision of land.

To receive the benefits under this bill, the taxpayer must apply to the county assessor before April 30, 1993.

Appropriation:  none

Revenue:  none

Fiscal Note:  available

Effective Date:  The bill contains an emergency clause and takes effect immediately.

TESTIMONY FOR:  None

TESTIMONY AGAINST:  None

TESTIFIED:  No one