CERTIFICATION OF ENROLLMENT

 

                  SUBSTITUTE SENATE BILL 5056

 

 

                   Chapter 134, Laws of 1997

 

 

                        55th Legislature

                      1997 Regular Session

 

 

PROPERTY ASSESSMENTS--LIMIT TO PERMITTED LAND USE

 

 

 

                    EFFECTIVE DATE:  7/27/97

Passed by the Senate February 26, 1997

  YEAS 46   NAYS 0

 

 

 

              BOB MORTON

 

President of the Senate

 

Passed by the House April 10, 1997

  YEAS 98   NAYS 0

             CERTIFICATE

 

I, Mike O=Connell, Secretary of the Senate of the State of Washington, do hereby certify that the attached is  SUBSTITUTE SENATE BILL 5056 as passed by the Senate and the House of Representatives on the dates hereon set forth.

 

 

 

             CLYDE BALLARD

 

Speaker of the

      House of Representatives

           MIKE O'CONNELL

 

                            Secretary

 

 

Approved April 22, 1997 Place Style On Codes above, and Style Off Codes below.   

                                FILED          

 

 

           April 22, 1997 - 4:33 p.m.

 

 

 

              GARY LOCKE

Governor of the State of Washington

                   Secretary of State

                  State of Washington


          _______________________________________________

 

                    SUBSTITUTE SENATE BILL 5056

          _______________________________________________

 

             Passed Legislature - 1997 Regular Session

 

State of Washington      55th Legislature     1997 Regular Session

 

By Senate Committee on Government Operations (originally sponsored by Senators McCaslin and Roach)

 

Read first time 01/31/97.

Limiting property assessments to permitted land use.   


    AN ACT Relating to limiting property assessments to permitted land use; and amending RCW 84.40.030.

 

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

 

    Sec. 1.  RCW 84.40.030 and 1994 c 124 s 20 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.

    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 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.  An assessment may not be determined by a method that assumes a land usage not permitted, for that property being appraised, under existing zoning or land use planning ordinances or statutes.  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.


    Passed the Senate February 26, 1997.

    Passed the House April 10, 1997.

Approved by the Governor April 22, 1997.

    Filed in Office of Secretary of State April 22, 1997.