H-1908

AN ACT Relating to ad valorem property taxes imposed on commercial watercraft; amending RCW 84.40.065; adding a new section to chapter 84.56 RCW; prescribing penalties; and providing an effective date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 84.40.065 and 1986 c 229 s 3 are each amended to read as follows:

(1) Every individual, corporation, association, partnership, trust, and estate shall list with the department of revenue all ships and vessels which are subject to their ownership, possession, or control and which are not entirely exempt from property taxation, and such listing shall be subject to the same requirements((,)) and penalties((~~, and liens~~)) provided in this chapter ((~~and chapter 84.60 RCW~~)) for all other personal property in the same manner as provided therein.

(2) The listing of ships and vessels shall be accomplished in the manner and upon forms prescribed by the department. Upon listing, the department shall assign a tax identification number and issue a decal for each vessel listed. The identification number and decal shall be issued and affixed to the vessel in a manner prescribed by the department consistent with the standard numbering system for vessels set forth in 33 C.F.R. Part 174 (1990). A decal affixed as prescribed shall indicate compliance with the listing requirements of this section. Failure to display a valid decal as required by this section shall subject the vessel owner to the penalties and enforcement provisions of RCW 88.02.110.

(3) The department shall assess all ships and vessels and ((~~shall certify to the respective county assessors~~)) determine the equalized values thereof((~~, subject to the same rules as other state-assessed properties~~)) in accordance with RCW ((~~84.12.370 and 84.16.130 and chapter 84.48 RCW~~)) 84.48.080.

((~~(3)~~)) (4) Any ship or vessel owner disputing the assessment under this section shall have the same rights of review as any other vessel owner subject to the excise tax contained in chapter 82.49 RCW in accordance with RCW 82.49.060.

NEW SECTION. Sec. 2. A new section is added to chapter 84.56 RCW to read as follows:

(1) The department of revenue shall collect all ad valorem taxes upon ships and vessels listed with the department in accordance with RCW 84.40.065 and all applicable interest and penalties.

(a) The taxes shall be due and payable to the department on or before the thirtieth day of April and shall be delinquent after that date.

(b) When the total amount of the tax is thirty dollars or more, and if one-half of such tax is paid on or before the thirtieth day of April, the remainder of the tax shall be due and payable on or before the thirty-first day of the following October and shall be delinquent after that date.

(2) If payment of the tax is not received by the department by the due date, there shall be imposed a penalty of five percent of the amount of the tax; and if the tax is not received within thirty days after the due date, there shall be imposed a total penalty of ten percent of the amount of the tax; and if the tax is not received within sixty days after the due date, there shall be imposed a total penalty of twenty percent of the amount of the tax. No penalty so added shall be less than two dollars.

(3) Delinquent taxes under this section are subject to interest at the rate set forth in RCW 82.32.050 from the date of delinquency until paid. Interest or penalties collected on delinquent taxes under this section shall be paid by the department into the general fund of the state treasury.

(4) If upon information obtained by the department it appears that any ship or vessel required to be listed according to the provisions of RCW 84.40.065 is not so listed, the department shall assess against the owner of the vessel the taxes found to be due and shall add thereto interest at the rate set forth in RCW 82.32.050 from the original due date of the tax until the date of payment. The department shall notify the vessel owner by mail of the additional amount and the same shall become due and shall be paid by the vessel owner within thirty days of the date of the notice. If payment is not received by the department by the due date specified in the notice, the department shall add a penalty of ten percent of the tax found due. This penalty shall be in lieu of the penalty imposed by RCW 84.40.130(1). A person who willfully gives a false listing or willfully fails to list a ship or vessel as required by RCW 84.40.065 shall be subject to the penalty imposed by RCW 84.40.130(2) which shall be assessed and collected by the department.

(5) Delinquent taxes under this section, along with all penalties and interest thereon, shall be collected by the department according to the procedures set forth in chapter 82.32 RCW for the filing and execution of tax warrants, including the imposition of warrant interest. In the event a warrant is issued by the department for the collection of taxes under this section, the department shall add a penalty of five percent of the amount of the delinquent tax, but not less than ten dollars.

(6) The department shall also collect all delinquent taxes pertaining to ships and vessels appearing on the records of the county treasurers for each of the counties of this state as of December 31, 1991, including any applicable interest or penalties. The provisions of subsection (5) of this section shall apply to the collection of such delinquent taxes.

NEW SECTION. Sec. 3. This act shall take effect January 1, 1992.