SENATE BILL REPORT

                   SB 6205

              As Reported By Senate Committee On:

            Government Operations, January 29, 1998

Title:  An act relating to waiver of interest on residential property taxes that are delinquent because of hardship due to the death of the taxpayer's spouse.

Brief Description:  Allowing waiver of interest and penalties on property taxes delinquent because of hardship.

Sponsors:  Senators McCaslin, Haugen, Patterson, Benton, Bauer, Winsley and Oke.

Brief History:

Committee Activity:  Government Operations:  1/23/98, 1/29/98 [DPS].

SENATE COMMITTEE ON GOVERNMENT OPERATIONS

Majority Report:  That Substitute Senate Bill No. 6205 be substituted therefor, and the substitute bill do pass.

  Signed by Senators McCaslin, Chair; Hale, Vice Chair; Haugen, Horn, Patterson and T. Sheldon.

Staff:  Eugene Green (786-7405)

Background:  Property taxes are due April 30 each year.  If one-half the tax is paid by April 30, the other half is due October 31.  However, if the first half is not paid on time, the entire tax is delinquent and interest is charged at the rate of 12 percent per year.  In addition, delinquent taxes are subject to penalties.

Summary of Substitute Bill:  Interest and penalties on delinquent property taxes are waived by the county treasurer on the taxpayer=s personal residence if the taxpayer claims that the delinquency is due to hardship caused by the death of the taxpayer=s spouse or parent and the taxpayer notifies the county treasurer of the hardship within 60 days of the tax due date.

Substitute Bill Compared to Original Bill:  The substitute bill makes technical clarifications and adds death of parents as a hardship.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The Association of Treasurers is neutral on the substance but pro on the clarifications in the substitute bill.

Testimony Against:  None.

Testified:  Robin Hunt, Thurston County Treasurer/Washington Association of Treasurers.