H-3398.1          _______________________________________________

                                  HOUSE BILL 2116

                  _______________________________________________

State of Washington              54th Legislature             1996 Regular Session

By Representatives Dyer, Ballasiotes, Hankins, Lisk, D. Schmidt, Cooke, Crouse, Hymes, Lambert, Huff, Foreman, Horn, Pennington, Elliot, L. Thomas, Mulliken, Blanton, Cairnes, Johnson, Buck, Skinner, Pelesky, Reams, Clements, Mitchell, McMorris, Robertson, Sherstad, Hargrove, Backlund, D. Sommers, B. Thomas, Schoesler, Honeyford, McMahan, Talcott, Smith, Goldsmith, Dickerson, Romero, Koster, Carrell, Delvin, Basich, Campbell, Sheahan, Quall, Morris, Fuhrman, Carlson, Hickel, Thompson, Stevens, Costa and Benton

Read first time 01/08/96.  Referred to Committee on Finance.

Allowing an exception due to good cause for late payment of property taxes.

     AN ACT Relating to an exception due to good cause for late payment of property taxes; reenacting and amending RCW 84.56.020; and creating a new section.

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

     Sec. 1.  RCW 84.56.020 and 1991 c 245 s 16 and 1991 c 52 ' 1 are each reenacted and amended to read as follows:

     (1) The county treasurer shall be the receiver and collector of all taxes extended upon the tax rolls of the county, whether levied for state, county, school, bridge, road, municipal or other purposes, and also of all fines, forfeitures or penalties received by any person or officer for the use of his or her county.  All taxes upon real and personal property made payable by the provisions of this title shall be due and payable to the treasurer on or before the thirtieth day of April and shall be delinquent after that date:  PROVIDED, That each tax statement shall include a notice that checks for payment of taxes may be made payable to "Treasurer of . . . . . . County" or other appropriate office, but tax statements shall not include any suggestion that checks may be made payable to the name of the individual holding the office of treasurer nor any other individual:  PROVIDED FURTHER, That when the total amount of tax or special assessments on personal property or on any lot, block or tract of real property payable by one person is thirty dollars or more, and if one-half of such tax be paid on or before the thirtieth day of April, the remainder of such tax shall be due and payable on or before the thirty-first day of October following and shall be delinquent after that date:  PROVIDED FURTHER, That when the total amount of tax or special assessments on any lot, block or tract of real property payable by one person is thirty dollars or more, and if one-half of such tax be paid after the thirtieth day of April but before the thirty-first day of October, together with the applicable interest and penalty on the full amount of such tax, the remainder of such tax shall be due and payable on or before the thirty-first day of October following and shall be delinquent after that date.

     (2) Delinquent taxes under this section are subject to interest at the rate of twelve percent per annum computed on a monthly basis from the date of delinquency until paid.  Interest shall be calculated at the rate in effect at the time of payment of the tax, regardless of when the taxes were first delinquent.  In addition, delinquent taxes under this section are subject to penalties as follows:

     (a) A penalty of three percent shall be assessed on the amount of tax delinquent on June 1st of the year in which the tax is due.

     (b) An additional penalty of eight percent shall be assessed on the total amount of tax delinquent on December 1st of the year in which the tax is due.

     (3) No interest or penalties may be assessed if the tax is paid within one month of the due date and the taxpayer shows good cause for late payment.  Good cause may be shown by one or more of the following events or circumstances:

(a) Death or serious illness of the taxpayer or the taxpayer's immediate family;

(b) Incorrect written advice regarding payment of property taxes received from county treasurer's staff, county assessor's staff, or staff of the property tax advisor designated under RCW 84.48.140;

(c) Natural disaster such as flood or earthquake that prevented timely payment; or

(d) Delay or loss related to the delivery of the tax payment by the postal service and documented by the postal service.

(4) Subsection (2) of this section notwithstanding, no interest or penalties may be assessed for the period April 30, 1991, through December 31, 1991, on delinquent 1991 taxes which are imposed on personal residences owned by military personnel who participated in the situation known as "Operation Desert Shield," "Operation Desert Storm," or any following operation from August 2, 1990, to a date specified by an agency of the federal government as the end of such operations.

     (((4))) (5) For purposes of this chapter, "interest" means both interest and penalties.

     (((5))) (6) All collections of interest on delinquent taxes shall be credited to the county current expense fund; but the cost of foreclosure and sale of real property, and the fees and costs of distraint and sale of personal property, for delinquent taxes, shall, when collected, be credited to the operation and maintenance fund of the county treasurer prosecuting the foreclosure or distraint or sale; and shall be used by the county treasurer as a revolving fund to defray the cost of further foreclosure, distraint and sale for delinquent taxes without regard to budget limitations.

NEW SECTION. Sec. 2.  This act is effective for taxes levied for collection in 1996 and thereafter.

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