_______________________________________________
SENATE
BILL 5638
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Passed
Legislature - 1993 Regular Session
State
of Washington 53rd Legislature 1993
Regular Session
By
Read
first time 02/05/93. Referred to Committee on Government Operations.
Modifying property tax valuation of property affected by growth management
regulations.
AN ACT Relating to taxation of property
affected by growth management regulations; and amending RCW 84.40.030.
BE
IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1.
RCW 84.40.030 and 1988 c 222 s 14 are each amended to read as follows:
All property shall be valued at one hundred
percent of its true and fair value in money and assessed on the same basis
unless specifically provided otherwise by law.
Taxable leasehold estates shall be valued at
such price as they would bring at a fair, voluntary sale for cash without any
deductions for any indebtedness owed including rentals to be paid.
Notwithstanding any other provisions of this section or of any other statute,
when the value of any taxable leasehold estate created prior to January 1, 1971
is being determined for assessment years prior to the assessment year 1973,
there shall be deducted from what would otherwise be the value thereof the
present worth of the rentals and other consideration which may be required of
the lessee by the lessor for the unexpired term thereof: PROVIDED, That the
foregoing provisions of this sentence shall not apply to any extension or
renewal, made after December 31, 1970 of the term of any such estate, or to any
such estate after the date, if any, provided for in the agreement for rental
renegotiation.
The true and fair value of real property for
taxation purposes (including property upon which there is a coal or other mine,
or stone or other quarry) shall be based upon the following criteria:
(1) Any sales of the property being appraised
or similar properties with respect to sales made within the past five years.
The appraisal shall ((take into consideration political restrictions such as))
be consistent with the comprehensive land use plan, development regulations
under chapter 36.70A RCW, zoning, and any other governmental policies or
practices in effect at the time of appraisal that affect the use of property,
as well as physical and environmental influences. The appraisal shall also
take into account, (a) in the use of sales by real estate contract as similar
sales, the extent, if any, to which the stated selling price has been increased
by reason of the down payment, interest rate, or other financing terms; and (b)
the extent to which the sale of a similar property actually represents the
general effective market demand for property of such type, in the geographical
area in which such property is located. Sales involving deed releases or
similar seller-developer financing arrangements shall not be used as sales of
similar property.
(2) In addition to sales as defined in
subsection (1), consideration may be given to cost, cost less depreciation,
reconstruction cost less depreciation, or capitalization of income that would
be derived from prudent use of the property. In the case of property of a
complex nature, or being used under terms of a franchise from a public agency,
or operating as a public utility, or property not having a record of sale
within five years and not having a significant number of sales of similar
property in the general area, the provisions of this subsection (2) shall be
the dominant factors in valuation. When provisions of this subsection (2) are
relied upon for establishing values the property owner shall be advised upon
request of the factors used in arriving at such value.
(3) In valuing any tract or parcel of real
property, the value of the land, exclusive of structures thereon shall be
determined; also the value of structures thereon, but the valuation shall not
exceed the value of the total property as it exists. In valuing agricultural
land, growing crops shall be excluded.
