AN ACT Relating to
reducing property tax assessments in response to government restrictions; and
amending RCW 84.48.065 and 84.69.020.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
Sec. 1. RCW 84.48.065 and 1992 c
206 s 12 are each amended to read as follows:
(1) The county assessor
or treasurer may cancel or correct assessments on the assessment or tax rolls
which are erroneous due to manifest errors in description, double assessments,
clerical errors in extending the rolls, and such manifest errors in the listing
of the property which do not involve a revaluation of property, ((such as))
except in the case that a taxpayer produces proof that an authorized land
use authority has made a definitive change in the property's land use
designation. In such a case, correction of the assessment or tax rolls may be
made notwithstanding the fact that the action involves a revaluation of
property. Manifest errors that do not involve a revaluation of property
include the assessment of property exempted by law from taxation or the
failure to deduct the exemption allowed by law to the head of a family. When
the county assessor cancels or corrects an assessment, the assessor shall send
a notice to the taxpayer in accordance with RCW 84.40.045, advising the
taxpayer that the action has been taken and notifying the taxpayer of the right
to appeal the cancellation or correction to the county board of equalization,
in accordance with RCW 84.40.038. When the county assessor or treasurer
cancels or corrects an assessment, a record of such action shall be prepared,
setting forth therein the facts relating to the error. The record shall also
set forth by legal description all property belonging exclusively to the state,
any county, or any municipal corporation whose property is exempt from
taxation, upon which there remains, according to the tax roll, any unpaid
taxes. No manifest error cancellation or correction, including a
cancellation or correction made due to a definitive change of land use
designation, shall be made for any period more than three years preceding
the year in which the error is discovered.
(2)(a) In the case
of a definitive change of land use designation, an assessor shall make
corrections that involve a revaluation of property to the assessment roll when:
(i) The assessor and
taxpayer have signed an agreement as to the true and fair value of the
taxpayer's property setting forth in the agreement the valuation information
upon which the agreement is based; and
(ii) The assessment
roll has previously been certified in accordance with RCW 84.40.320.
(b) In all other
cases, an assessor shall make corrections that involve a revaluation of
property to the assessment roll when:
(((a))) (i)
The assessor and taxpayer have signed an agreement as to the true and fair
value of the taxpayer's property setting forth in the agreement the valuation
information upon which the agreement is based; and
(((b))) (ii)
The following conditions are met:
(((i))) (A)
The assessment roll has previously been certified in accordance with RCW
84.40.320;
(((ii))) (B)
The taxpayer has timely filed a petition with the county board of equalization
pursuant to RCW 84.40.038 for the current assessment year;
(((iii))) (C)
The county board of equalization has not yet held a hearing on the merits of
the taxpayer's petition.
(3) The assessor shall
issue a supplementary roll or rolls including such cancellations and
corrections, and the assessment and levy shall have the same force and effect
as if made in the first instance, and the county treasurer shall proceed to
collect the taxes due on the rolls as modified.
Sec. 2. RCW 84.69.020 and 1994 c
301 s 55 are each amended to read as follows:
On the order of the
county treasurer, ad valorem taxes paid before or after delinquency shall be
refunded if they were:
(1) Paid more than
once; or
(2) Paid as a result of
manifest error in description; or
(3) Paid as a result of
a clerical error in extending the tax rolls; or
(4) Paid as a result of
other clerical errors in listing property; or
(5) Paid with respect
to improvements which did not exist on assessment date; or
(6) Paid under levies
or statutes adjudicated to be illegal or unconstitutional; or
(7) Paid as a result of
mistake, inadvertence, or lack of knowledge by any person exempted from paying
real property taxes or a portion thereof pursuant to RCW 84.36.381 through
84.36.389, as now or hereafter amended; or
(8) Paid as a result of
mistake, inadvertence, or lack of knowledge by either a public official or
employee or by any person with respect to real property in which the person
paying the same has no legal interest; or
(9) Paid on the basis
of an assessed valuation which was appealed to the county board of equalization
and ordered reduced by the board; or
(10) Paid on the basis
of an assessed valuation which was appealed to the state board of tax appeals
and ordered reduced by the board: PROVIDED, That the amount refunded under
subsections (9) and (10) of this section shall only be for the difference
between the tax paid on the basis of the appealed valuation and the tax payable
on the valuation adjusted in accordance with the board's order; or
(11) Paid as a state
property tax levied upon property, the assessed value of which has been
established by the state board of tax appeals for the year of such levy:
PROVIDED, HOWEVER, That the amount refunded shall only be for the difference
between the state property tax paid and the amount of state property tax which
would, when added to all other property taxes within the one percent limitation
of Article VII, section 2 of the state Constitution equal one percent of the
assessed value established by the board;
(12) Paid on the basis
of an assessed valuation which was adjudicated to be unlawful or excessive:
PROVIDED, That the amount refunded shall be for the difference between the
amount of tax which was paid on the basis of the valuation adjudged unlawful or
excessive and the amount of tax payable on the basis of the assessed valuation
determined as a result of the proceeding; or
(13) Paid on property
acquired under RCW 84.60.050, and canceled under RCW 84.60.050(2); or
(14) Paid on the
basis of an assessed valuation that was reduced under section 1 of this act.
No refunds under the
provisions of this section shall be made because of any error in determining
the valuation of property, except as authorized in subsections (9), (10), (11),
and (12) of this section nor may any refunds be made if a bona fide purchaser
has acquired rights that would preclude the assessment and collection of the
refunded tax from the property that should properly have been charged with the
tax. Any refunds made on delinquent taxes shall include the proportionate
amount of interest and penalties paid. The county treasurer may deduct from
moneys collected for the benefit of the state's levy, refunds of the state levy
including interest on the levy as provided by this section and chapter 84.68
RCW.
The county
treasurer of each county shall make all refunds determined to be authorized by
this section, and by the first Monday in January of each year, report to the
county legislative authority a list of all refunds made under this section during
the previous year. The list is to include the name of the person receiving the
refund, the amount of the refund, and the reason for the refund.
