1570-S

AN ACT Relating to the collection of taxes owed to taxing agencies; amending RCW 50.24.060, 51.16.155, 51.48.140, 51.48.160, 51.48.210, 51.48.230, 82.32.090, 82.32.215, 82.32.235, 82.32.330, 82.32.340, 84.64.080, 40.14.027, 49.52.040, 50.12.220, 50.44.060, 82.32.265, and 82.42.060; adding new sections to chapter 61.24 RCW; adding a new chapter to Title 60 RCW; repealing RCW 46.87.340, 46.87.360, 46.87.370, 50.24.040, 50.24.050, 50.24.080, 50.24.090, 50.24.100, 50.24.115, 51.16.170, 51.16.180, 51.48.170, 51.48.180, 51.48.190, 51.48.200, 51.48.220, 82.32.210, 82.32.220, 82.32.230, 82.32.245, 82.36.047, 82.36.110, 82.36.130, 82.37.090, 82.38.210, 82.38.230, and 82.38.235; and providing an effective date.

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

NEW SECTION. Sec. 1. This chapter shall be known as the taxpayer fairness and relief act.

NEW SECTION. Sec. 2. The legislature finds that complexities in applying the existing state tax statutes is preventing the state from collecting significant amounts of taxes owed by taxpayers who fail to voluntarily pay their taxes as they come due. As a result other taxpayers must pay more than their fair share. The intention of the legislature in this chapter is to provide a more effective, uniform, and fair collection of state taxes, thereby protecting taxpayers who pay their taxes voluntarily and enhancing the revenues of the state.

NEW SECTION. Sec. 3. Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Tax" means the following taxes and contributions:

(a) Employers' contributions under Title 50 RCW;

(b) Premiums under Title 51 RCW;

(c) Taxes subject to the provisions of chapter 82.32 RCW, under RCW 82.32.010, except the watercraft excise tax under chapter 82.49 RCW;

(d) Motor vehicle fuel tax under chapter 82.36 RCW;

(e) Special fuel tax under chapter 82.38 RCW;

(f) Motor vehicle fuel importer tax under chapter 82.37 RCW; and

(g) Taxes required under the proportional registration provisions of chapter 46.87 RCW.

(2) "Taxpayer" means any person or entity, other than a taxing agency of the state, liable for the payment or collection of any tax.

NEW SECTION. Sec. 4. If any person or entity liable for a tax fails to pay the tax, after demand, a lien in favor of the state of Washington shall arise and be fully perfected on the date of the demand for the tax. The lien amount shall include any unpaid interest, penalties, and costs including subsequent collection costs and attorneys' fees as provided in section 18 of this act. The lien shall attach to all property and rights to property, whether real or personal, belonging to the person or entity or thereafter acquired during the existence of the lien. The lien created by this section shall be subordinate to:

(1) Any consensual security interest in real property or personal property (including rents and fixtures) and the interest of any bona fide purchaser for value (including a purchaser under a real estate contract) that is recorded or filed against such property pursuant to applicable law or is otherwise perfected in accordance with Title 62A RCW; and

(2) Any lien arising under a statute of the state of Washington, including the lien of any judgment, execution, attachment, or garnishment, that attaches to real or personal property, and any right of setoff or common law possessory lien on securities or documents that arises prior to the recording or filing of notice of the lien in accordance with sections 5 and 6 of this act, as applicable.

NEW SECTION. Sec. 5. Notice of the lien created by section 4 of this act may be recorded as to real property and fixtures with the county auditor in any county in which the taxpayer owns real property.

NEW SECTION. Sec. 6. Notice of the lien created by section 4 of this act may be filed as to tangible or intangible personal property with the department of licensing in Olympia. All such filed liens shall be indexed by the department of licensing in the same manner of indexing as financing statements pursuant to RCW 62A.9-402(4) and such other tax lien recordings, including but not limited to liens claimed by the United States under 26 U.S.C. Sec. 6321 et seq.

NEW SECTION. Sec. 7. The lien created in section 4 of this act shall remain in full force and effect until satisfied, until released as uncollectible or legally unenforceable, or until twenty years after the date on which the lien was recorded or filed if applicable, whichever occurs first.

NEW SECTION. Sec. 8. The pendency of any tax appeal shall not affect the perfection or priority of the lien. The lien may be removed, pending appeal, upon the posting of suitable bond or other security acceptable to the taxing agency. The amount of the bond shall include the amount of the lien as of the date of posting of the bond, and interest provided for by statute for the expected duration of the appeal. The bond shall be provided by a surety acceptable to the taxing agency. Any issue as to the bond shall be decided by motion to the person or entity having jurisdiction to decide the appeal.

NEW SECTION. Sec. 9. Notice of the lien created by section 4 of this act may be filed with the clerk of the superior court in any county in the state. The clerk shall index the lien as if it were a judgment obtained in the superior court by the taxing agency against the taxpayer. Filing the lien, or failure to file the lien, as a judgment lien, shall not impair the prior perfected lien of the state or alter the rights or remedies otherwise provided for. This provision for filing the lien as a judgment is intended to facilitate recording the tax claim as a foreign judgment in another state or country. Nothing contained in this section shall be construed to permit the taxing agency to foreclose or otherwise realize upon a lien filed under this section as a judgment lien unless and until the liability of the taxpayer and the validity and priority of the lien have been determined in accordance with applicable law.

NEW SECTION. Sec. 10. A lien recorded as provided in section 9 of this act shall be fully perfected against any homestead property of an individual taxpayer when recorded with the county auditor. No further filing of such lien under county judgment dockets shall be required, nor shall any further legal action be required of the taxing agency in order to perfect a lien against homestead property.

NEW SECTION. Sec. 11. Any taxing agency recording or filing a notice of lien pursuant to this chapter shall use a document conforming in substantial part to the following format:

FOR USE BY RECORDING OFFICE

┌──────────────────────────┐ │ │

│ │

└──────────────────────────┘

WASHINGTON STATE UNIFORM NOTICE OF TAX LIEN

G Department of Revenue

G Department of Labor and Industries

G Department of Employment Security

G OTHER:. . . . . . . . . . . . . .

District Office:. . . . . . . . . . . UBI:. . . . . . . . . . .

Acct. No. . . . . . . . . . . . . . .

As provided for under RCW . . . . . . . et seq. NOTICE IS HEREBY GIVEN that taxes, including interest and penalties, have been assessed against the following named taxpayer. The taxpayer has failed to pay taxes after demand dated . . . . . . . . which was served on the taxpayer on . . . . . . . . . Regardless of any subsequent appeal, absent a posting of bond, THE FAILURE TO PAY TAXES TIMELY HAS CREATED A LIEN IN FAVOR OF THE STATE OF WASHINGTON AGAINST ANY AND ALL REAL PROPERTY LOCATED IN THE COUNTY IN WHICH THIS NOTICE IS FILED, AND ALL PERSONAL PROPERTY LOCATED IN THE STATE OF WASHINGTON BELONGING TO THIS TAXPAYER.

NAME OF TAXPAYER: . . . . . . . . . . . . . .

BUSINESS ADDRESS: . . . . . . . . . . . . . .

. . . . . . . . . . . . . .

GIf this section is marked and completed, the taxing agency is asserting that the individual or entity named below holds property of the taxpayer that is subject to this lien.

(THE RECORDING OFFICE SHALL INDEX THIS LIEN IN THE NAMES OF BOTH THE TAXPAYER AND THE ENTITY OR INDIVIDUAL(S) SET FORTH BELOW.)

NAME OF ENTITY/INDIVIDUAL: . . . . . . . . . . . . . . . .

BUSINESS ADDRESS: . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . .

TAX ' TAX BEGAN ENDED ASSESSMENT AMOUNT INTEREST

PERIOD DATE DUE

TOTAL DUE: $ . . . . . . .

BASIS FOR TAX:

G TAXPAYER REPORT

G ESTIMATED TAX

G JEOPARDY ASSESSMENT

I hereby certify that I have the authority to prepare and record and file this notice of lien against the above-referenced account and that information set forth herein is accurate to the best of my knowledge, based on records maintained by the agency of the State of Washington specified above.

Dated: . . . . . . . . . . . . .

Signature: . . . . . . . . . . . . .

Agent Name: . . . . . . . . . . . . .

Address: . . . . . . . . . . . . .

. . . . . . . . . . . . .

Telephone Number: . . . . . . . . . . . . .

NEW SECTION. Sec. 12. The lien created by section 4 of this act may be foreclosed either judicially or nonjudicially under applicable state statute, at the sole discretion of the taxing agency. In instances of non-judicial foreclosure under chapter 61.24 RCW, the taxing agency may designate as trustee any employee of the state of Washington, so long as the foreclosure process otherwise complies with chapter 61.24 RCW.

NEW SECTION. Sec. 13. The taxing agency may distrain, seize, and sell any personal property of the taxpayer without specific court order or further administrative hearing after the lien arises using any designated agent of the agency. A department in its discretion may also issue an order under its official seal designating the sheriff of the county in which property is located as its agent to levy upon and sell such property as may be necessary to satisfy payment of outstanding tax liability, costs of sale, and any other costs of collection including attorneys' fees.

NEW SECTION. Sec. 14. (1) Upon seizing personal property, the designated agent shall:

(a) Prepare a notice providing an inventory of the property seized and a statement of the time and place of the sale of the property;

(b) Post in at least two public places in the county in which the seizure has been made a notice specifying the property to be sold and the time and place of sale; and

(c) Publish the notice twice in a newspaper of general circulation within the county, between twenty-five and twenty-two days before sale and between eleven and eight days before sale;

(d) Upon obtaining a certificate of UCC filing pursuant to RCW 62A.9-407, send such notice to any other secured party claiming an interest that is junior or subordinate to the lien of the state. In the notice, it shall be prominently stated that the disposition by sale shall transfer all the debtor/taxpayer's rights, discharge all such remaining junior or subordinate lien claims, and cause purchaser to take free of all such rights and interests.

(2) The time of the sale shall be as follows:

(a) If nonperishable goods are involved, no sale shall be set earlier than twenty-eight days after posting.

(b) If the goods involved are perishable, of a type that are customarily sold on a recognized market, or threaten to decline speedily in value, the goods may be sold as early as five days after the later of posting or publication; but in any event there must be at least one publication of notice of sale, at least five days before sale.

(3) Upon a showing of good cause the superior court of the county in which the sale is to be conducted may authorize a sale waiving or modifying any or all of the time, notice, or publication requirements of this section.

NEW SECTION. Sec. 15. (1) The sale of personal property may be continued from time to time without further notice or publication, but the sale must be held within sixty days of the date originally set.

(2) The agent may sell by parcel, lot, or unit at public auction and may set a minimum bid price to include costs of the sale and storage of the property.

(3) If not otherwise prohibited by applicable statute, the agent may cause the property to be included, in whole or in part, in a commercial auction, subject to the procedures set forth in this chapter, if the taxing agency has reason to believe the highest and best price can be obtained by this process in lieu of public auction by the agency itself.

(4) If no bid is received, or if no bid is received meeting a minimum price that was set, the taxing agency shall be deemed to be the successful bidder at the minimum price, or at the amount of the costs of storing and selling the property if no minimum price was set. The tax lien shall be reduced by the amount received from the sale or the amount deemed to constitute the taxing agency's successful bid.

(5) Successful bidders shall be entitled to a bill of sale, or deed without warranty, stating that the sale is without warranty as to status of title or condition of property, and that transfer is only of such right, title, or interest as the taxing agency may have in the property.

NEW SECTION. Sec. 16. Any proceeds of the personal property sale shall be used, first, to pay the costs of the sale; second, to satisfy the lien of the taxing agency, including all accrued penalties, interest, attorneys' fees, and costs. Any surplus remaining thereafter shall be returned to the taxpayer, unless a party holding a junior or subordinate security interest in the collateral sends written notification of demand to the taxing agency for payment of remaining proceeds, before distribution is completed. Upon receipt of such demand, the state shall deposit the remaining funds into the registry of the court by interpleader and thereafter be exonerated from any further liability in relation thereto. The state may deduct from the interpleader deposit its legal costs and fees incurred in preparing the interpleader action.

Written notification shall be given by the court to all junior lien holders of record on the date of sale using the following procedure:

(1) No later than five days after the funds are deposited, the clerk of the court shall notify all claimants of the surplus sales proceeds, identifying the taxpayer, tax account, reasonably identifying the personal property previously sold by the taxing agency.

(2) The notification shall set forth a bar date, for filing demand for payment, which shall be no later than forty-five days after deposit of funds with the court.

(3) Prior to the deadline, claimants must file pleadings with the court and serve upon other claimants of record, asserting their right, title, and priority in the surplus sales proceeds.

(4) The court shall determine the right, title, and interest of claimants in the surplus proceeds. All court costs, including the filing fee, shall be paid as the first priority.

NEW SECTION. Sec. 17. The taxing agency may seek the appointment of a receiver pursuant to Title 7 RCW, to operate a business or retain possession and control of property for an initial term of up to six months, renewable thereafter. Property may be sold by the receiver free and clear of liens, with rights attaching to the proceeds in the same nature, rank, and priority as the liens had on the property.

(1) The taxpayer shall be liable for all federal and state taxes on any gain realized by the sale of such property.

(2) It shall not be a defense or bar to the proposed sale of property that the liens attaching to the property exceed the property's value.

NEW SECTION. Sec. 18. When a lien arises under this chapter, the taxing agency shall be entitled to all reasonable attorneys' fees and costs related to collection of the amounts due.

Such fees and costs shall attach with the lien in the same priority as the lien and shall accrue in connection with nonjudicial collection efforts and collection efforts in all state or federal court proceedings, including appeals.

NEW SECTION. Sec. 19. If the agent responsible for collection has reason to believe that cause exists that the collection of any taxes accrued will be jeopardized by delaying collection, the taxing agency may make an immediate demand and may proceed to enforce collection immediately under the provisions of this chapter, but interest and penalties will not begin to accrue upon any taxes until the date when such taxes would normally have become delinquent. There shall be no sale of property seized until the date when such taxes would normally have become delinquent and until the resolution of any appeal from the jeopardy assessment. Cause includes, but is not limited to the following events:

(1) The taxpayer has transferred assets to another entity or individual outside the ordinary course of business;

(2) The taxpayer has manifested an intent to transfer assets outside the state of Washington outside the ordinary course of business;

(3) A tax payment has been returned "insufficient funds" or "account closed";

(4) The taxpayer has transferred property with intent to hinder, delay, or defraud present or future creditors;

(5) The taxpayer has absconded or absented itself from the state with intent to hinder, delay, or defraud creditors;

(6) The taxpayer has manifested an intent to discontinue business;

(7) The taxpayer has failed, refused, or neglected to timely file reports as required by any state, local, federal, or other governmental unit under applicable law;

(8) The taxpayer has been charged with any of the following offenses:

(a) Failure to report or pay taxes;

(b) Fraud;

(d) Consumer fraud; or

(e) Securities fraud;

(9) The taxpayer has made an assignment for the benefit of creditors;

(10) The taxpayer has lost control of the business entity to a court-appointed receiver; or

(11) The taxpayer has been served with pleadings to revoke its state certificate of registration or has been served with pleadings to revoke any other state-granted certificate or license.

NEW SECTION. Sec. 20. When:

(1) A tax lien remains unsatisfied;

(2) There is probable cause to believe that property or business records of the taxpayer have been removed or secreted from their premises or are in the possession of a third party; or

(3) The taxpayer has prevented access to the business premises,

any judge of the superior or district court in the county in which the property is located, may, upon request of the agent of a taxing agency, issue a warrant authorizing the sheriff or officers of the department to search for and seize the property described in the request for warrant. Application for, issuance, and execution and return of this warrant shall be made in accordance with criminal rules of the superior or district court from which the warrant issues.

NEW SECTION. Sec. 21. The provisions of this chapter regarding the perfection, priority, and collection of state tax liens, and the recovery of the costs of collection, apply to every state tax lien existing on the effective date of this act including liens arising from the filing of warrants and claims of liens, and liens arising from other procedures authorized by statute.

NEW SECTION. Sec. 22. Statutory rights of administrative garnishment, offset, recoupment, notices to withhold and deliver, and other collection mechanisms are preserved with the adoption of this chapter, along with other rights afforded a creditor under state law for supplemental proceedings.

NEW SECTION. Sec. 23. A new section is added to chapter 61.24 RCW to read as follows:

When the state of Washington holds a lien, claim of lien, warrant, prejudgment attachment, encumbrance, or judgment of record at the time a notice of trustee sale issues from the trustee of record, the trustee must concurrently send to the state of Washington the following information:

(1) Notice of trustee's sale;

(2) Notice of foreclosure;

(3) Title report; and

(4) Such other information as the internal revenue service then requires under applicable statute or regulation.

The information shall be served upon the state at an address and in a manner designated by rules set forth in the Washington Administrative Code.

NEW SECTION. Sec. 24. A new section is added to chapter 61.24 RCW to read as follows:

The trustee shall obtain a title report update thirty days prior to sale. Should a state of Washington lien, claim of lien, warrant, prejudgment attachment, encumbrance, or judgment then appear of record for the first time, the trustee must concurrently send to the state of Washington the documents and information set forth in section 23 of this act within the same deadlines then established by the internal revenue service under applicable statute or rule.

NEW SECTION. Sec. 25. The provisions of this chapter insofar as they are substantially the same as statutory provisions repealed by this act, and relate to the same subject matter, shall be construed as restatements and continuations of the law, and not as new enactments.

Sec. 26. RCW 50.24.060 and 1983 1st ex.s. c 23 s 15 are each amended to read as follows:

In the event of any distribution of an employer's assets pursuant to an order of any court, including any receivership, probate, legal dissolution, or similar proceeding, or in case of any assignment for the benefit of creditors, composition, or similar proceeding, contributions, interest, or penalties then or thereafter due shall be a lien upon all the assets of such employer. Said lien will be prior to all other liens or claims except prior tax liens, other liens provided by this title, and claims for remuneration for services of not more than two hundred and fifty dollars to each claimant earned within six months of the commencement of the proceeding. The mere existence of a condition of insolvency or the institution of any judicial proceeding for legal dissolution or of any proceeding for distribution of assets shall cause such a lien to attach without action on behalf of the commissioner or the state. ((In the event of an employer's adjudication in bankruptcy, judicially confirmed extension proposal, or composition, under the federal bankruptcy act of 1898, as amended, contributions, interest, or penalties then or thereafter due shall be entitled to such priority as provided in that act, as amended.))

Sec. 27. RCW 51.16.155 and 1985 c 315 s 3 are each amended to read as follows:

In every case where an employer insured with the state fails or refuses to file any report of payroll required by the department and fails or refuses to pay the premiums due on such unreported payroll, the department shall have authority to estimate such payroll and the premiums due thereon and collect premiums on the basis of such estimate.

If the report required and the premiums due thereon are not made within ten days from the mailing of such demand by the department, which shall include the amount of premiums estimated by the department, the employer shall be in default as provided by this title and the department may have and recover judgment((~~, warrant,~~)) or file liens for such estimated premium or the actual premium, whichever is greater.

Sec. 28. RCW 51.48.140 and 1989 c 175 s 121 are each amended to read as follows:

If a notice of appeal is not served on the director and the board of industrial insurance appeals pursuant to RCW 51.48.131 within thirty days from the date of service of the notice of assessment, or if a final decision and order of the board of industrial insurance appeals in favor of the department is not appealed to superior court in the manner specified in RCW 34.05.510 through 34.05.598, or if a final decision of any court in favor of the department is not appealed within the time allowed by law, then the amount of the unappealed assessment, or such amount of the assessment as is found due by the final decision and order of the board of industrial insurance appeals or final decision of the court shall be deemed final ((and the director or the director's designee may file with the clerk of any county within the state a warrant in the amount of the notice of assessment. The clerk of the county wherein the warrant is filed shall immediately designate a superior court cause number for such warrant, and the clerk shall cause to be entered in the judgment docket under the superior court cause number assigned to the warrant, the name of such employer mentioned in the warrant, the amount of the taxes and penalties due thereon, and the date when such warrant was filed. The aggregate amount of such warrant as docketed shall become a lien upon the title to, and interest in all real and personal property of the employer against whom the warrant is issued, the same as a judgment in a civil case duly docketed in the office of such clerk. The sheriff shall thereupon proceed upon the same in all respects and with like effect as prescribed by law with respect to execution or other process issued against rights or property upon judgment in the superior court. Such warrant so docketed shall be sufficient to support the issuance of writs of garnishment in favor of the state in a manner provided by law in case of judgment, wholly or partially unsatisfied. The clerk of the court shall be entitled to a filing fee of five dollars, which shall be added to the amount of the warrant. A copy of such warrant shall be mailed to the employer within three days of filing with the clerk)).

Sec. 29. RCW 51.48.160 and 1986 c 9 s 13 are each amended to read as follows:

If any ((~~warrant~~)) lien issued under this title is not paid within thirty days after it has been filed ((~~with the clerk of the superior court~~)), or if any employer is delinquent, for three consecutive reporting periods, in the transmission to the department of taxes due, the department may, by order issued under its official seal, revoke the certificate of coverage of the employer against whom the ((~~warrant~~)) lien was issued; and if the order is entered, a copy thereof shall be posted in a conspicuous place at the main entrance to the employer's place of business and shall remain posted until such time as the ((~~warrant~~)) lien has been paid. Any certificate so revoked shall not be reinstated, nor shall a new certificate of coverage be issued to the employer, until the amount due on the ((~~warrant~~)) lien has been paid, or provisions for payment satisfactory to the department have been entered, and until the taxpayer has deposited with the department such security for payment of any taxes, increases, and penalties, due or which may become due in an amount and under such terms and conditions as the department may require, but the amount of the security shall not be greater than one-half the estimated average annual taxes of the employer.

Sec. 30. RCW 51.48.210 and 1987 c 111 s 8 are each amended to read as follows:

If payment of any tax due is not received by the department by the due date, there shall be assessed a penalty of five percent of the amount of the tax for the first month or part thereof of delinquency; there shall be assessed a total penalty of ten percent of the amount of the tax for the second month or part thereof of delinquency; and there shall be assessed a total penalty of twenty percent of the amount of the tax for the third month or part thereof of delinquency. No penalty so added may be less than ten dollars. If a ((~~warrant~~)) lien is issued by the department for the collection of taxes, increases, and penalties, there shall be added thereto a penalty of five percent of the amount of the tax, but not less than five dollars nor greater than one hundred dollars. In addition, delinquent taxes shall bear interest at the rate of one percent of the delinquent amount per month or fraction thereof from and after the due date until payment, increases, and penalties are received by the department.

Sec. 31. RCW 51.48.230 and 1986 c 9 s 22 are each amended to read as follows:

In the discretion of the department, an order of execution of like terms, force, and effect may be issued and directed to any agent of the department authorized to collect taxes, and in the execution thereof such agent shall have all the powers conferred by law upon sheriffs, but shall not be entitled to any fee or compensation in excess of the actual expenses paid in the performance of such duty, which shall be added to the amount of the ((~~warrant~~)) lien.

Sec. 32. RCW 82.32.090 and 1992 c 206 s 3 are each amended to read as follows:

(1) If payment of any tax due on a return to be filed by a taxpayer is not received by the department of revenue by the due date, there shall be assessed 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 assessed 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 assessed a total penalty of twenty percent of the amount of the tax. No penalty so added shall be less than five dollars.

(2) If payment of any tax assessed by the department of revenue is not received by the department by the due date specified in the notice, or any extension thereof, the department shall add a penalty of ten percent of the amount of the additional tax found due. No penalty so added shall be less than five dollars.

(3) If a ((~~warrant~~)) notice of lien be issued by the department of revenue for the collection of taxes, ((~~increases~~)) interest, and penalties, there shall be added thereto a penalty of five percent of the amount of the tax, but not less than ten dollars, together with interest on the unpaid sums at the rate of one percent per month in addition to the interest that accrued prior to the date of issuance of the notice of lien.

(4) If the department finds that all or any part of a deficiency resulted from the disregard of specific written instructions as to reporting or tax liabilities, the department shall add a penalty of ten percent of the amount of the additional tax found due because of the failure to follow the instructions. A taxpayer disregards specific written instructions when the department of revenue has informed the taxpayer in writing of the taxpayer's tax obligations and the taxpayer fails to act in accordance with those instructions unless the department has not issued final instructions because the matter is under appeal pursuant to this chapter or departmental regulations. The department shall not assess the penalty under this section upon any taxpayer who has made a good faith effort to comply with the specific written instructions provided by the department to that taxpayer. Specific written instructions may be given as a part of a tax assessment, audit, determination, or closing agreement, provided that such specific written instructions shall apply only to the taxpayer addressed or referenced on such documents. Any specific written instructions by the department of revenue shall be clearly identified as such and shall inform the taxpayer that failure to follow the instructions may subject the taxpayer to the penalties imposed by this subsection.

(5) If the department finds that all or any part of the deficiency resulted from an intent to evade the tax payable hereunder, a further penalty of fifty percent of the additional tax found to be due shall be added.

(6) The aggregate of penalties imposed under this section for failure to pay a tax due on a return by the due date, late payment of any tax, increase, or penalty, or issuance of a ((~~warrant~~)) lien shall not exceed thirty-five percent of the tax due, or twenty dollars, whichever is greater.

(7) The department of revenue may not impose both the evasion penalty and the penalty for disregarding specific written instructions on the same tax found to be due.

Sec. 33. RCW 82.32.215 and 1983 1st ex.s. c 55 s 9 are each amended to read as follows:

If any ((~~warrant~~)) lien issued under this chapter is not paid within thirty days after it has been filed ((~~with the clerk of the superior court~~)), or if any taxpayer is delinquent, for three consecutive reporting periods, in the transmission to the department of revenue of retail sales tax collected by ((~~him~~)) the taxpayer, the department ((~~of revenue~~)) may, by order issued under its official seal, revoke the certificate of registration of the taxpayer against whom the warrant was issued, and, if the order is entered, a copy thereof shall be posted in a conspicuous place at the main entrance to the taxpayer's place of business and shall remain posted until such time as the ((~~warrant has~~)) lien and all related taxes have been paid. Any certificate so revoked shall not be reinstated, nor shall a new certificate of registration be issued to the taxpayer, until the amount due on the ((~~warrant has~~)) lien and all related taxes have been paid, or provisions for payment satisfactory to the department of revenue have been entered, and until the taxpayer has deposited with the department of revenue such security for payment of any taxes, increases, and penalties, due or which may become due in an amount and under such terms and conditions as the department of revenue may require, but the amount of the security shall not be greater than one-half the estimated average annual liability of the taxpayer.

Sec. 34. RCW 82.32.235 and 1987 c 208 s 1 are each amended to read as follows:

In addition to the remedies provided in this chapter the department is hereby authorized to issue to any person, or to any political subdivision or department of the state, a notice and order to withhold and deliver property of any kind whatsoever when there is reason to believe that there is in the possession of such person, political subdivision or department, property which is or shall become due, owing, or belonging to any taxpayer against whom a ((~~warrant~~)) lien has been filed.

The notice and order to withhold and deliver shall be served by the sheriff of the county wherein the service is made, or by his or her deputy, or by any duly authorized representative of the department, provided that service by such persons may also be made by certified mail, with return receipt requested, upon those persons, or political subdivision or department, to whom the notice ((~~and order to~~)) of withhold and deliver is directed. Any person, or any political subdivision or department upon whom service has been made is hereby required to answer the notice within twenty days exclusive of the day of service, under oath and in writing, and shall make true answers to the matters inquired of in the notice.

In the event there is in the possession of any such person or political subdivision or department, any property which may be subject to the claim of the department, such property shall be delivered forthwith to the department of revenue or its duly authorized representative upon demand to be held in trust by the department for application on the indebtedness involved or for return, without interest, in accordance with final determination of liability or nonliability, or in the alternative, there shall be furnished a good and sufficient bond ((~~satisfactory~~)) to the department conditioned upon final determination of liability.

Should any person or political subdivision fail to make answer to an order to withhold and deliver within the time prescribed herein, it shall be lawful for the court, after the time to answer ((~~such order~~)) has expired, to render judgment by default against such person or political subdivision for the full amount claimed by the department in the notice to withhold and deliver, together with costs.

Sec. 35. RCW 82.32.330 and 1991 c 330 s 1 are each amended to read as follows:

(1) For purposes of this section:

(a) "Disclose" means to make known to any person in any manner whatever a return or tax information;

(b) "Return" means a tax or information return or claim for refund required by, or provided for or permitted under, the laws of this state which is filed with the department of revenue by, on behalf of, or with respect to a person, and any amendment or supplement thereto, including supporting schedules, attachments, or lists that are supplemental to, or part of, the return so filed;

(c) "Tax information" means (i) a taxpayer's identity, (ii) the nature, source, or amount of the taxpayer's income, payments, receipts, deductions, exemptions, credits, assets, liabilities, net worth, tax liability deficiencies, overassessments, or tax payments, whether taken from the taxpayer's books and records or any other source, (iii) whether the taxpayer's return was, is being, or will be examined or subject to other investigation or processing, (iv) a part of a written determination that is not designated as a precedent and disclosed pursuant to RCW 82.32.410, or a background file document relating to a written determination, and (v) other data received by, recorded by, prepared by, furnished to, or collected by the department of revenue with respect to the determination of the existence, or possible existence, of liability, or the amount thereof, of a person under the laws of this state for a tax, penalty, interest, fine, forfeiture, or other imposition, or offense: PROVIDED, That data, material, or documents that do not disclose information related to a specific or identifiable taxpayer do not constitute tax information under this section. Except as provided by RCW 82.32.410, nothing in this chapter shall require any person possessing data, material, or documents made confidential and privileged by this section to delete information from such data, material, or documents so as to permit its disclosure;

(d) "State agency" means every Washington state office, department, division, bureau, board, commission, or other state agency; and

(e) "Taxpayer identity" means the taxpayer's name, address, telephone number, registration number, or any combination thereof, or any other information disclosing the identity of the taxpayer.

(2) Returns and tax information shall be confidential and privileged, and except as authorized by this section, neither the department of revenue nor any officer, employee, agent, or representative thereof nor any other person may disclose any return or tax information.

(3) The foregoing, however, shall not prohibit the department of revenue or an officer, employee, agent, or representative thereof from:

(a) Disclosing such return or tax information in a civil or criminal judicial proceeding or an administrative proceeding:

(i) In respect of any tax imposed under the laws of this state if the taxpayer or its officer or other person liable under Title 82 RCW is a party in the proceeding; or

(ii) In which the taxpayer about whom such return or tax information is sought and another state agency are adverse parties in the proceeding;

(b) Disclosing, subject to such requirements and conditions as the director shall prescribe by rules adopted pursuant to chapter 34.05 RCW, such return or tax information regarding a taxpayer to such taxpayer or to such person or persons as that taxpayer may designate in a request for, or consent to, such disclosure, or to any other person, at the taxpayer's request, to the extent necessary to comply with a request for information or assistance made by the taxpayer to such other person: PROVIDED, That tax information not received from the taxpayer shall not be so disclosed if the director determines that such disclosure would compromise any investigation or litigation by any federal, state, or local government agency in connection with the civil or criminal liability of the taxpayer or another person, or that such disclosure is contrary to any agreement entered into by the department that provides for the reciprocal exchange of information with other government agencies which agreement requires confidentiality with respect to such information unless such information is required to be disclosed to the taxpayer by the order of any court;

(c) Disclosing the name of a taxpayer with a deficiency greater than five thousand dollars and against whom a ((~~warrant under RCW 82.32.210 has been~~)) lien has either issued or ((~~failed [filed] and~~)) where tax debt remains outstanding for a period of at least ten working days. The department shall not be required to disclose any information under this subsection if a taxpayer: (i) Has been issued a tax assessment; (ii) has been issued a ((~~warrant~~)) lien that has not been filed; and (iii) has entered a deferred payment arrangement with the department of revenue and is making payments upon such deficiency that will fully satisfy the indebtedness within twelve months;

(d) Disclosing the name of a taxpayer with a deficiency greater than five thousand dollars ((~~and~~)) against whom a ((~~warrant under RCW 82.32.210~~)) lien has been filed ((~~with a court of record~~)) and remains outstanding;

(e) Publishing statistics so classified as to prevent the identification of particular returns or reports or items thereof;

(f) Disclosing such return or tax information, for official purposes only, to the governor or attorney general, or to any state agency, or to any committee or subcommittee of the legislature dealing with matters of taxation, revenue, trade, commerce, the control of industry or the professions;

(g) Permitting the department of revenue's records to be audited and examined by the proper state officer, his or her agents and employees;

(h) Disclosing any such return or tax information to the proper officer of the internal revenue service of the United States, the Canadian government or provincial governments of Canada, or to the proper officer of the tax department of any state or city or town or county, for official purposes, but only if the statutes of the United States, Canada or its provincial governments, or of such other state or city or town or county, as the case may be, grants substantially similar privileges to the proper officers of this state; or

(i) Disclosing any such return or tax information to the Department of Justice, the Bureau of Alcohol, Tobacco and Firearms of the Department of the Treasury, the Department of Defense, the United States customs service, the coast guard of the United States, and the United States department of transportation, or any authorized representative thereof, for official purposes;

(j) Publishing or otherwise disclosing the text of a written determination designated by the director as a precedent pursuant to RCW 82.32.410; or

(k) Disclosing, in a manner that is not associated with other tax information, the taxpayer name, business address, mailing address, revenue tax registration numbers, standard industrial classification code of a taxpayer, and the dates of opening and closing of business.

(4) Any person acquiring knowledge of any return or tax information in the course of his or her employment with the department of revenue and any person acquiring knowledge of any return or tax information as provided under subsection (3) (f), (g), (h), or (i) of this section, who discloses any such return or tax information to another person not entitled to knowledge of such return or tax information under the provisions of this section, shall upon conviction be punished by a fine not exceeding one thousand dollars and, if the person guilty of such violation is an officer or employee of the state, such person shall forfeit such office or employment and shall be incapable of holding any public office or employment in this state for a period of two years thereafter.

Sec. 36. RCW 82.32.340 and 1989 c 78 s 3 are each amended to read as follows:

(1) Any tax or penalty which the department of revenue deems to be uncollectible may be transferred from accounts receivable to a suspense account and cease to be accounted an asset. Any item transferred shall continue to be a debt due the state from the taxpayer and may at any time within twelve years from the filing of a ((~~warrant~~)) lien covering such amount with the clerk of the superior court be transferred back to accounts receivable for the purpose of collection. The department of revenue may charge off as finally uncollectible any tax or penalty which it deems uncollectible at any time after twelve years from the date that the last tax return for the delinquent taxpayer was or should have been filed if the department of revenue is satisfied that there are no cost-effective means of collecting the tax or penalty.

After any tax or penalty has been charged off as finally uncollectible under the provisions of this section, the department of revenue may destroy any or all files and records pertaining to the liability of any taxpayer for such tax or penalty.

The department of revenue, subject to the approval of the state records committee, may at the expiration of five years after the close of any taxable year, destroy any or all files and records pertaining to the tax liability of any taxpayer for such taxable year, who has fully paid all taxes, penalties and interest for such taxable year, or any preceding taxable year for which such taxes, penalties and interest have been fully paid. In the event that such files and records are reproduced on film pursuant to RCW 40.20.020 for use in accordance with RCW 40.20.030, the original files and records may be destroyed immediately after reproduction and such reproductions may be destroyed at the expiration of the above five-year period, subject to the approval of the state records committee.

(2) Notwithstanding subsection (1) of this section, the department may charge off any tax within its jurisdiction to collect that is owed by a taxpayer, including any penalty or interest thereon, if the department ascertains that the cost of collecting that tax would be greater than the total amount which is owed or likely in the near future to be owed by, and collectible from, the taxpayer.

Sec. 37. RCW 84.64.080 and 1991 c 245 s 27 are each amended to read as follows:

The court shall examine each application for judgment foreclosing tax lien, and if defense (specifying in writing the particular cause of objection) be offered by any person interested in any of the lands or lots to the entry of judgment against the same, the court shall hear and determine the matter in a summary manner, without other pleadings, and shall pronounce judgment as the right of the case may be; or the court may, in its discretion, continue such individual cases, wherein defense is offered, to such time as may be necessary, in order to secure substantial justice to the contestants therein; but in all other cases the court shall proceed to determine the matter in a summary manner as above specified. In all judicial proceedings of any kind for the collection of taxes, and interest and costs thereon, all amendments which by law can be made in any personal action pending in such court shall be allowed, and no assessments of property or charge for any of the taxes shall be considered illegal on account of any irregularity in the tax list or assessment rolls or on account of the assessment rolls or tax list not having been made, completed or returned within the time required by law, or on account of the property having been charged or listed in the assessment or tax lists without name, or in any other name than that of the owner, and no error or informality in the proceedings of any of the officers connected with the assessment, levying or collection of the taxes, shall vitiate or in any manner affect the tax or the assessment thereof, and any irregularities or informality in the assessment rolls or tax lists or in any of the proceedings connected with the assessment or levy of such taxes or any omission or defective act of any officer or officers connected with the assessment or levying of such taxes, may be, in the discretion of the court, corrected, supplied and made to conform to the law by the court. The court shall give judgment for such taxes, interest and costs as shall appear to be due upon the several lots or tracts described in the notice of application for judgment or complaint, and such judgment shall be a several judgment against each tract or lot or part of a tract or lot for each kind of tax included therein, including all interest and costs, and the court shall order and direct the clerk to make and enter an order for the sale of such real property against which judgment is made, or vacate and set aside the certificate of delinquency or make such other order or judgment as in the law or equity may be just. The order shall be signed by the judge of the superior court, shall be delivered to the county treasurer, and shall be full and sufficient authority for him or her to proceed to sell the property for the sum as set forth in the order and to take such further steps in the matter as are provided by law. The county treasurer shall immediately after receiving the order and judgment of the court proceed to sell the property as provided in this chapter to the highest and best bidder for cash. The acceptable minimum bid shall be the total amount of taxes, interest, penalties, and costs. All sales shall be made at a location in the county on a date and time (except Saturdays, Sundays, or legal holidays) as the county treasurer may direct, and shall continue from day to day (Saturdays, Sundays, and legal holidays excepted) during the same hours until all lots or tracts are sold, after first giving notice of the time, and place where such sale is to take place for ten days successively by posting notice thereof in three public places in the county, one of which shall be in the office of the treasurer. The notice shall be substantially in the following form:

TAX JUDGMENT SALE

Public notice is hereby given that pursuant to real property tax judgment of the superior court of the county of . . . . . . in the state of Washington, and an order of sale duly issued by the court, entered the . . . . day of . . . . . ., . . . ., in proceedings for foreclosure of tax liens upon real property, as per provisions of law, I shall on the . . . . day of . . . . . ., . . . ., at . . . . o'clock a.m., at . . . . . . in the city of . . . . . ., and county of . . . . . ., state of Washington, sell the real property to the highest and best bidder for cash, to satisfy the full amount of taxes, interest and costs adjudged to be due.

In witness whereof, I have hereunto affixed my hand and seal this . . . . day of . . . . . ., . . . . .

..............................................

Treasurer of .................................

county.

No county officer or employee shall directly or indirectly be a purchaser of such property at such sale.

If any buildings or improvements are upon an area encompassing more than one tract or lot, the same must be advertised and sold as a single unit.

If the highest amount bid for any such separate unit tract or lot is in excess of the minimum bid due upon the whole property included in the certificate of delinquency, the excess shall be refunded ((~~following payment of all water and sewer district liens~~)), on application therefor, to the record owner of the property. The record owner of the property is the person who held title on the date of issuance of the certificate of delinquency.

If the highest amount bid for any such separate unit tract or lot is in excess of the minimum bid due upon the whole property included in the certificate of delinquency, and there are competing claims for the surplus funds, all surplus funds shall be deposited in the registry of the court with written notification given by the court to all junior lien holders of record on the date of sale using the following procedure:

(1) No later than five days after the funds are deposited, the clerk of the court shall notify all claimants of the surplus sales proceeds, identifying the taxpayer and tax account and appending a legal description of the property.

(2) The notification shall set forth a bar date for filing demand for payment, which shall be no later than forty-five days after deposit of funds with the court.

(3) Prior to the deadline, claimants must file pleadings with the court and serve upon other claimants of record, asserting their right, title, and priority in the surplus sales proceeds.

(4) The court shall determine the right, title, and interest of claimants in the surplus proceeds. All court costs, including the filing fee, shall be paid as the first priority.

(5) In the event that surplus proceeds remain after the satisfaction of all liens and payment of all court costs, the clerk of the court shall return the excess to the county treasurer.

In the event no claim for the excess is received by the county treasurer within three years after the date of the sale he or she shall at expiration of the three year period deposit such excess in the current expense fund of the county. The county treasurer shall execute to the purchaser of any piece or parcel of land a tax deed. The deed so made by the county treasurer, under the official seal of his or her office, shall be recorded in the same manner as other conveyances of real property, and shall vest in the grantee, his or her heirs and assigns the title to the property therein described, without further acknowledgment or evidence of such conveyance, and shall be substantially in the following form:

State of Washington B

C ss.

County of D

This indenture, made this . . . . day of . . . . . ., . . . . . ., between . . . . . ., as treasurer of . . . . . . county, state of Washington, party of the first part, and . . . . . ., party of the second part:

Witnesseth, that, whereas, at a public sale of real property held on the . . . . day of . . . . . ., . . . ., pursuant to a real property tax judgment entered in the superior court in the county of . . . . . . on the . . . . day of . . . . . ., . . . ., in proceedings to foreclose tax liens upon real property and an order of sale duly issued by the court, . . . . . . duly purchased in compliance with the laws of the state of Washington, the following described real property, to wit: (Here place description of real property conveyed) and that the . . . . . . has complied with the laws of the state of Washington necessary to entitle (him, or her or them) to a deed for the real property.

Now, therefore, know ye, that, I . . . . . ., county treasurer of the county of . . . . . ., state of Washington, in consideration of the premises and by virtue of the statutes of the state of Washington, in such cases provided, do hereby grant and convey unto . . . . . ., his or her heirs and assigns, forever, the real property hereinbefore described.

Given under my hand and seal of office this . . . . day of . . . . . ., A.D. . . . .

........................................

County Treasurer.

Sec. 38. RCW 40.14.027 and 1994 c 193 s 2 are each amended to read as follows:

State agencies shall collect a surcharge of twenty dollars from the ((~~judgment~~)) debtor upon the satisfaction of a warrant filed in superior court or a notice of lien filed with a county auditor, for unpaid taxes or liabilities. The surcharge is imposed on the ((~~judgment~~)) debtor in the form of a penalty in addition to the filing fee provided in RCW 36.18.010 and 36.18.020(4). The surcharge revenue shall be transmitted to the state treasurer for deposit in the archives and records management account, or procedures for the collection and transmittal of surcharge revenue to the archives and records management account shall be established cooperatively between the filing agencies and clerks of superior court and county auditors.

Surcharge revenue deposited in the archives and records management account shall be expended by the secretary of state exclusively for the payment of costs and expenses incurred in the provision of public archives and records management services to local government agencies by the division of archives and records management. The secretary of state shall work with local government representatives to establish a committee to advise the state archivist on the local government archives and records management program. Surcharge revenue shall be allocated exclusively to:

(1) Appraise, process, store, preserve, and provide public research access to original records designated by the state archivist as archival which are no longer required to be kept by the agencies which originally made or filed them;

(2) Protect essential records, as provided by chapters 40.10 and 40.20 RCW. Permanent facsimiles of essential records shall be produced and placed in security storage with the state archivist;

(3) Coordinate records retention and disposition management and provide support for the following functions under RCW 40.14.070:

(a) Advise and assist individual agencies on public records management requirements and practices; and

(b) Compile, maintain, and regularly update general records retention schedules and destruction authorizations; and

(4) Develop and maintain standards for the application of recording media and records storage technologies.

Sec. 39. RCW 49.52.040 and 1929 c 136 s 2 are each amended to read as follows:

If any such employer shall default in any such payment to any physician, surgeon, hospital, hospital association or any other parties to whom any such payment is due, the sum so due may be collected by an action at law in the name of the physician, surgeon, hospital, hospital association or any other party to whom such payment is owing, or their assigns and against such defaulting employer, and in addition to such action, such claims shall have the same priority and lien rights as granted to the state for claims due the accident and medical aid funds ((~~by section 7682 of Remington's Compiled Statutes of Washington, 1922 [RCW 51.16.150 through 51.16.170], and acts amendatory thereto~~)) as provided under RCW 51.16.150, 51.16.155, and 51.16.160 and chapter 60.‑- RCW (sections 1 through 22 and 25 of this act), which priority and lien rights shall be enforced in the same manner and under the same conditions as provided in ((~~said section 7682 [RCW 51.16.150 through 51.16.170]~~)) RCW 51.16.150, 51.16.155, and 51.16.160 and chapter 60.-- RCW (sections 1 through 22 and 25 of this act): PROVIDED, HOWEVER, That the said claims for physicians, surgeons, hospitals and hospital associations and others shall be secondary and inferior to any claims of the state and to any claims for labor. Such right of action shall be in addition to any other right of action or remedy.

Sec. 40. RCW 50.12.220 and 1987 c 111 s 2 are each amended to read as follows:

(1) If an employer fails to file in a timely and complete manner a report required by RCW 50.12.070 as now or hereafter amended or the rules adopted pursuant thereto, the employer shall be subject to a minimum penalty of ten dollars per violation.

(2) If contributions are not paid on the date on which they are due and payable as prescribed by the commissioner, there shall be assessed a penalty of five percent of the amount of the contributions for the first month or part thereof of delinquency; there shall be assessed a total penalty of ten percent of the amount of the contributions for the second month or part thereof of delinquency; and there shall be assessed a total penalty of twenty percent of the amount of the contributions for the third month or part thereof of delinquency. No penalty so added shall be less than ten dollars. These penalties are in addition to the interest charges assessed under ((~~RCW 50.24.040~~)) applicable statutes.

(3) Penalties shall not accrue on contributions from an estate in the hands of a receiver, executor, administrator, trustee in bankruptcy, common law assignee, or other liquidating officer subsequent to the date when such receiver, executor, administrator, trustee in bankruptcy, common law assignee, or other liquidating officer qualifies as such, but contributions accruing with respect to employment of persons by a receiver, executor, administrator, trustee in bankruptcy, common law assignee, or other liquidating officer shall become due and shall be subject to penalties in the same manner as contributions due from other employers.

(4) Where adequate information has been furnished to the department and the department has failed to act or has advised the employer of no liability or inability to decide the issue, penalties shall be waived by the commissioner. Penalties may also be waived for good cause if the commissioner determines that the failure to timely file reports or pay contributions was not due to the employer's fault.

(5) Any decision to assess a penalty as provided by this section shall be made by the chief administrative officer of the tax branch or his or her designee.

(6) Nothing in this section shall be construed to deny an employer the right to appeal the assessment of any penalty. Such appeal shall be made in the manner provided in RCW 50.32.030.

Sec. 41. RCW 50.44.060 and 1990 c 245 s 9 are each amended to read as follows:

Benefits paid to employees of "nonprofit organizations" shall be financed in accordance with the provisions of this section. For the purpose of this section and RCW 50.44.070, the term "nonprofit organization" is limited to those organizations described in RCW 50.44.010, and joint accounts composed exclusively of such organizations.

(1) Any nonprofit organization which is, or becomes subject to this title on or after January 1, 1972 shall pay contributions under the provisions of RCW 50.24.010 and chapter 50.29 RCW, unless it elects, in accordance with this subsection, to pay to the commissioner for the unemployment compensation fund an amount equal to the full amount of regular and additional benefits and one-half of the amount of extended benefits paid to individuals for weeks of unemployment that are based upon wages paid or payable during the effective period of such election to the extent that such payments are attributable to service in the employ of such nonprofit organization.

(a) Any nonprofit organization which becomes subject to this title after January 1, 1972 may elect to become liable for payments in lieu of contributions for a period of not less than twelve months beginning with the date on which such subjectivity begins by filing a written notice of its election with the commissioner not later than thirty days immediately following the date of the determination of such subjectivity.

(b) Any nonprofit organization which makes an election in accordance with paragraph (a) of this subsection will continue to be liable for payments in lieu of contributions until it files with the commissioner a written notice terminating its election not later than thirty days prior to the beginning of the taxable year for which such termination shall first be effective.

(c) Any nonprofit organization which has been paying contributions under this title for a period subsequent to January 1, 1972 may change to a reimbursable basis by filing with the commissioner not later than thirty days prior to the beginning of any taxable year a written notice of election to become liable for payments in lieu of contributions. Such election shall not be terminable by the organization for that and the next year.

(d) The commissioner may for good cause extend the period within which a notice of election, or a notice of termination, must be filed and may permit an election to be retroactive but not any earlier than with respect to benefits paid after December 31, 1969.

(e) The commissioner, in accordance with such regulations as the commissioner may prescribe, shall notify each nonprofit organization of any determination which the commissioner may make of its status as an employer and of the effective date of any election which it makes and of any termination of such election. Any nonprofit organization subject to such determination and dissatisfied with such determination may file a request for review and redetermination with the commissioner within thirty days of the mailing of the determination to the organization. Should such request for review and redetermination be denied, the organization may, within ten days of the mailing of such notice of denial, file with the appeal tribunal a petition for hearing which shall be heard in the same manner as a petition for denial of refund. The appellate procedure prescribed by this title for further appeal shall apply to all denials of review and redetermination under this paragraph.

(2) Payments in lieu of contributions shall be made in accordance with the provisions of this section including either paragraph (a) or (b) of this subsection.

(a) At the end of each calendar quarter, the commissioner shall bill each nonprofit organization or group of such organizations which has elected to make payments in lieu of contributions for an amount equal to the full amount of regular and additional benefits plus one-half of the amount of extended benefits paid during such quarter that is attributable to service in the employ of such organization.

(b) (i) Each nonprofit organization that has elected payments in lieu of contributions may request permission to make such payments as provided in this paragraph. Such method of payment shall become effective upon approval by the commissioner.

(ii) At the end of each calendar quarter, or at the end of such other period as determined by the commissioner, the commissioner shall bill each nonprofit organization for an amount representing one of the following:

(A) The percentage of its total payroll for the immediately preceding calendar year as the commissioner shall determine. Such determination shall be based each year on the average benefit costs attributable to service in the employ of nonprofit organizations during the preceding calendar year.

(B) For any organization which did not pay wages throughout the four calendar quarters of the preceding calendar year, such percentage of its payroll during such year as the commissioner shall determine.

(iii) At the end of each taxable year, the commissioner may modify the quarterly percentage of payroll thereafter payable by the nonprofit organization in order to minimize excess or insufficient payments.

(iv) At the end of each taxable year, the commissioner shall determine whether the total of payments for such year made by a nonprofit organization is less than, or in excess of, the total amount of regular and additional benefits plus one-half of the amount of extended benefits paid to individuals during such taxable year based on wages attributable to service in the employ of such organization. Each nonprofit organization whose total payments for such year are less than the amount so determined shall be liable for payment of the unpaid balance to the fund in accordance with paragraph (c). If the total payments exceed the amount so determined for the taxable year, all of the excess payments will be retained in the fund as part of the payments which may be required for the next taxable year, or a part of the excess may, at the discretion of the commissioner, be refunded from the fund or retained in the fund as part of the payments which may be required for the next taxable year.

(c) Payment of any bill rendered under paragraph (a) or (b) shall be made not later than thirty days after such bill was mailed to the last known address of the nonprofit organization or was otherwise delivered to it, and if not paid within such thirty days, the reimbursement payments itemized in the bill shall be deemed to be delinquent and the whole or part thereof remaining unpaid shall bear interest and penalties from and after the end of such thirty days at the rate and in the manner set forth in RCW 50.12.220 and ((~~50.24.040~~)) any other applicable statutes.

(d) Payments made by any nonprofit organization under the provisions of this section shall not be deducted or deductible, in whole or in part, from the remuneration of individuals in the employ of the organization. Any deduction in violation of the provisions of this paragraph shall be unlawful.

(3) Each employer that is liable for payments in lieu of contributions shall pay to the commissioner for the fund the total amount of regular and additional benefits plus the amount of one-half of extended benefits paid that are attributable to service in the employ of such employer. If benefits paid to an individual are based on wages paid by more than one employer and one or more of such employers are liable for payments in lieu of contributions, the amount payable to the fund by each employer that is liable for such payments shall be determined in accordance with the provisions of paragraphs (a) and (b) of this subsection.

(a) If benefits paid to an individual are based on wages paid by one or more employers that are liable for payments in lieu of contributions and on wages paid by one or more employers who are liable for contributions, the amount of benefits payable by each employer that is liable for payments in lieu of contributions shall be an amount which bears the same ratio to the total benefits paid to the individual as the total base-period wages paid to the individual by such employer bear to the total base-period wages paid to the individual by all of his base-period employers.

(b) If benefits paid to an individual are based on wages paid by two or more employers that are liable for payments in lieu of contributions, the amount of benefits payable by each such employer shall be an amount which bears the same ratio to the total benefits paid to the individual as the total base-period wages paid to the individual by such employer bear to the total base-period wages paid to the individual by all of his base-period employers.

Sec. 42. RCW 82.32.265 and 1987 c 80 s 5 are each amended to read as follows:

(1) The department may retain, by written contract, collection agencies licensed under chapter 19.16 RCW or licensed under the laws of another state or the District of Columbia for the purpose of collecting from sources outside the state of Washington taxes including interest and penalties thereon imposed under this title and RCW 84.33.041.

(2) Only accounts represented by ((~~tax warrants~~)) liens filed ((~~in the superior court of a county in the state~~)) as provided by ((~~RCW 82.32.210~~)) chapter 60.-- RCW (sections 1 through 22 and 25 of this act) may be assigned to a collection agency, and no such assignment may be made unless the department has previously notified or has attempted to notify the taxpayer of his or her right to petition for correction of assessment within the time provided and in accordance with the procedures set forth in chapter 82.32 RCW.

(3) Collection agencies assigned accounts for collection under this section shall have only those remedies and powers that would be available to them as assignees of private creditors. However, nothing in this section limits the right to enforce the liability for taxes lawfully imposed under the laws of this state in the courts of another state or the District of Columbia as provided by the laws of such jurisdictions and RCW 4.24.140 and 4.24.150.

(4) The account of the taxpayer shall be credited with the amounts collected by a collection agency before reduction for reasonable collection costs, including attorneys fees, that the department is authorized to negotiate on a contingent fee or other basis.

Sec. 43. RCW 82.42.060 and 1969 ex.s. c 254 s 5 are each amended to read as follows:

The amount of aircraft fuel excise tax imposed under RCW 82.42.020 for each month shall be paid to the director on or before the twenty-fifth day of the month thereafter, and if not paid prior thereto, shall become delinquent at the close of business on that day, and a penalty of ten percent of such excise tax must be added thereto for delinquency. Any aircraft fuel tax, penalties, and interest payable under the provisions of this chapter shall bear interest at the rate of one percent per month, or fraction thereof, from the first day of the calendar month after the close of the monthly period for which the amount or any portion thereof should have been paid until the date of payment. The provisions of ((~~RCW 82.36.110~~)) chapter 60.-- RCW (sections 1 through 22 and 25 of this act) relating to a lien for taxes, interests or penalties due, shall be applicable to the collection of the aircraft fuel excise tax provided in RCW 82.42.020, and the provisions of RCW 82.36.120((~~, 82.36.130~~)) and 82.36.140 shall apply to any distributor of aircraft fuel with respect to the aircraft fuel excise tax imposed under RCW 82.42.020.

NEW SECTION. Sec. 44. The following acts or parts of acts are each repealed:

(1) RCW 46.87.340 and 1993 c 307 s 16 & 1987 c 244 s 47;

(2) RCW 46.87.360 and 1987 c 244 s 49;

(3) RCW 46.87.370 and 1987 c 244 s 50;

(4) RCW 50.24.040 and 1987 c 111 s 3, 1973 1st ex.s. c 158 s 8, 1953 ex.s. c 8 s 16, & 1945 c 35 s 92;

(5) RCW 50.24.050 and 1981 c 302 s 39, 1979 ex.s. c 190 s 2, 1973 1st ex.s. c 158 s 9, 1947 c 215 s 19, & 1945 c 35 s 95;

(6) RCW 50.24.080 and 1979 ex.s. c 190 s 4 & 1945 c 35 s 96;

(7) RCW 50.24.090 and 1979 ex.s. c 190 s 5 & 1945 c 35 s 97;

(8) RCW 50.24.100 and 1979 ex.s. c 190 s 6, 1949 c 214 s 20, & 1945 c 35 s 98;

(9) RCW 50.24.115 and 1983 1st ex.s. c 23 s 16, 1979 ex.s. c 190 s 8, & 1975 1st ex.s. c 228 s 15;

(10) RCW 51.16.170 and 1986 c 9 s 5 & 1961 c 23 s 51.16.170;

(11) RCW 51.16.180 and 1971 ex.s. c 289 s 79 & 1961 c 23 s 51.16.180;

(12) RCW 51.48.170 and 1986 c 9 s 14;

(13) RCW 51.48.180 and 1986 c 9 s 15;

(14) RCW 51.48.190 and 1986 c 9 s 16;

(15) RCW 51.48.200 and 1986 c 9 s 17;

(16) RCW 51.48.220 and 1986 c 9 s 21;

(17) RCW 82.32.210 and 1987 c 405 s 15, 1983 1st ex.s. c 55 s 8, 1967 ex.s. c 89 s 3, & 1961 c 15 s 82.32.210;

(18) RCW 82.32.220 and 1983 1st ex.s. c 55 s 10, 1961 c 304 s 6, & 1961 c 15 s 82.32.220;

(19) RCW 82.32.230 and 1983 1st ex.s. c 55 s 11, 1975 1st ex.s. c 278 s 84, & 1961 c 15 s 82.32.230;

(20) RCW 82.32.245 and 1985 c 414 s 3;

(21) RCW 82.36.047 and 1991 c 339 s 4;

(22) RCW 82.36.110 and 1993 c 54 s 3 & 1961 c 15 s 82.36.110;

(23) RCW 82.36.130 and 1961 c 15 s 82.36.130;

(24) RCW 82.37.090 and 1963 ex.s. c 22 s 9;

(25) RCW 82.38.210 and 1979 c 40 s 15 & 1971 ex.s. c 175 s 22;

(26) RCW 82.38.230 and 1979 c 40 s 17 & 1971 ex.s. c 175 s 24; and

(27) RCW 82.38.235 and 1979 c 40 s 22.

NEW SECTION. Sec. 45. If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected.

NEW SECTION. Sec. 46. Sections 1 through 22 and 25 of this act shall constitute a new chapter in Title 60 RCW.

NEW SECTION. Sec. 47. This act shall take effect on January 2, 1996.