S 1500

S‑1500.1 _____________________________________________

SUBSTITUTE SENATE BILL 5638

_____________________________________________

State of Washington 57th Legislature 2001 Regular Session

By Senate Committee on State & Local Government (originally sponsored by Senators Gardner, Swecker and Snyder)

READ FIRST TIME 02/28/01.

_1 AN ACT Relating to county treasurer technical corrections;

_2 amending RCW 35.13.270, 35A.14.801, 36.29.010, 36.29.050,

_3 36.29.090, 36.29.100, 36.29.160, 36.29.170, 36.35.120, 36.35.150,

_4 39.44.200, 39.46.020, 39.50.010, 39.50.030, 84.38.140, 84.40.042,

_5 and 84.56.250; and repealing RCW 84.36.015.

_6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_7 Sec. 1. RCW 35.13.270 and 1998 c 106 s 1 are each amended to read

_8 as follows:

_9 ((~~Whenever any territory is annexed to a city or town which is~~

10 ~~part of a road district of the county and road district taxes have~~

11 ~~been levied but not collected on any property within the annexed~~

12 ~~territory, the same shall when collected by the county treasurer~~

13 ~~be paid to the city or town and by the city or town placed in the~~

14 ~~city or town street~~)) Road district taxes levied before the date

15 of annexation to a code city of property within a county road

16 district shall be paid, when collected by the county treasurer, to

17 the county road fund: PROVIDED, That this section shall not apply

18 to any special assessments due in behalf of such property. The city

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_1 or town is required to provide notification, by certified mail,

_2 that includes a list of annexed parcel numbers, to the county

_3 treasurer and assessor at least thirty days before the effective

_4 date of the annexation. ((~~The county treasurer is only required to~~

_5 ~~remit to the city or town those road taxes collected thirty days~~

_6 ~~or more after receipt of the notification.~~))

_7 Sec. 2. RCW 35A.14.801 and 1998 c 106 s 2 are each amended to read

_8 as follows:

_9 ((~~Whenever any territory is annexed to a code city which is~~

10 ~~part of a road district of the county and road district taxes have~~

11 ~~been levied but not collected on any property within the annexed~~

12 ~~territory, the same shall when collected by the county treasurer~~

13 ~~be paid to the code city and by the city placed in the city~~

14 ~~street~~)) Road district taxes levied before the date of annexation

15 to a code city of property within a county road district shall be

16 paid, when collected by the county treasurer, to the county road

17 fund: PROVIDED, That this section shall not apply to any special

18 assessments due in behalf of such property. The code city is

19 required to provide notification, by certified mail, that includes

20 a list of annexed parcel numbers, to the county treasurer and

21 assessor at least thirty days before the effective date of the

22 annexation. ((~~The county treasurer is only required to remit to the~~

23 ~~code city those road taxes collected thirty or more days after~~

24 ~~receipt of the notification.~~))

25 Sec. 3. RCW 36.29.010 and 1998 c 106 s 3 are each amended to read

26 as follows:

27 The county treasurer:

28 (1) Shall receive all money due the county and disburse it on

29 warrants issued and attested by the county auditor and electronic

30 funds transfer under RCW 39.58.750 as attested by the county

31 auditor;

32 (2) Shall issue a receipt in duplicate for all money received

33 other than taxes; the treasurer shall deliver immediately to the

34 person making the payment the original receipt and the duplicate

35 shall be retained by the treasurer;

36 (3) Shall affix on the face of all paid warrants the date of

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_1 redemption or, in the case of proper contract between the

_2 treasurer and a qualified public depositary, the treasurer may

_3 consider the date affixed by the financial institution as the date

_4 of redemption;

_5 (4) Shall ((~~indorse~~)) endorse, before the date of issue by the

_6 county or by any taxing district for whom the county treasurer

_7 acts as treasurer, on the face of all warrants for which there are

_8 not sufficient funds for payment, "interest bearing warrant." When

_9 there are funds to redeem outstanding warrants, the county

10 treasurer shall give notice:

11 (a) By publication in a legal newspaper published or circulated

12 in the county; or

13 (b) By posting at three public places in the county if there is

14 no such newspaper; or

15 (c) By notification to the financial institution holding the

16 warrant;

17 (5) Shall pay interest on all interest-bearing warrants from

18 the date of issue to the date of notification;

19 (6) Shall maintain financial records reflecting receipts and

20 disbursement by fund in accordance with generally accepted

21 accounting principles;

22 (7) Shall account for and pay all bonded indebtedness for the

23 county and all special districts for which the county treasurer

24 acts as treasurer;

25 (8) Shall invest all funds of the county or any special

26 district in the treasurer's custody, not needed for immediate

27 expenditure, in a manner consistent with appropriate statutes. If

28 cash is needed to redeem warrants issued from any fund in the

29 custody of the treasurer, the treasurer shall liquidate

30 investments in an amount sufficient to cover such warrant

31 redemptions; and

32 (9) May provide certain collection services for county

33 departments.

34 The treasurer, at the expiration of the term of office, shall

35 make a complete settlement with the county legislative authority,

36 and shall deliver to the successor all public money, books, and

37 papers in the treasurer's possession.

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_1 Sec. 4. RCW 36.29.050 and 1969 ex.s. c 48 s 1 are each amended to

_2 read as follows:

_3 When the county treasurer redeems any warrant on which interest

_4 is due, ((he)) the treasurer shall enter on ((~~his~~)) the warrant

_5 register account the amount of interest paid, distinct from the

_6 principal.

_7 Sec. 5. RCW 36.29.090 and 1963 c 4 s 36.29.090 are each amended to

_8 read as follows:

_9 Whenever an action based upon official misconduct is commenced

10 against any county treasurer the county commissioners may suspend

11 ((~~him~~)) the treasurer from office until such suit is determined,

12 and may appoint some person to fill the vacancy.

13 Sec. 6. RCW 36.29.100 and 1963 c 4 s 36.29.100 are each amended to

14 read as follows:

15 The county treasurer of each county in which there is a city of

16 the first class is ex officio collector of city taxes of such

17 city, and before entering upon the duties of ((~~his~~)) office ((he))

18 the treasurer shall execute in favor of the city and file with the

19 clerk thereof a good and sufficient bond, the penal sum to be

20 fixed by the city council, such bond to be approved by the mayor

21 of such city or other authority thereof by whom the bond of the

22 city treasurer is required to be approved. All special assessments

23 and special taxation for local improvements assessed on property

24 benefited shall be collected by the city treasurer.

25 Sec. 7. RCW 36.29.160 and 1998 c 106 s 4 are each amended to read

26 as follows:

27 The county treasurer shall make segregation, collect, and

28 receive from any owner or owners of any subdivision or portion of

29 any lot, tract or parcel of land upon which assessments or charges

30 have been made or may be made by public utility districts, water-

31 sewer districts, or the county, under the terms of Title 54 RCW,

32 Title 57 RCW, or chapter 36.88, 36.89, or 36.94 RCW, such portion

33 of the assessments or charges levied or to be levied against such

34 lot, tract or parcel of land in payment of such assessment or

35 charges as the board of commissioners of the public utility

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_1 district, the water-sewer district commissioners or the board of

_2 county commissioners, respectively, shall certify to be chargeable

_3 to such subdivision, which certificate shall state that such

_4 property as segregated is sufficient security for the assessment

_5 or charges. Upon making collection upon any such subdivision the

_6 county treasurer shall note such payment upon ((~~his~~)) the records

_7 of the office of the treasurer and give receipt therefor. When a

_8 segregation is required, a certified copy of the resolution shall

_9 be delivered to the treasurer of the county in which the real

10 property is located who shall proceed to make the segregation

11 ordered upon being tendered a fee of three dollars for each tract

12 of land for which a segregation is to be made.

13 Sec. 8. RCW 36.29.170 and 1963 c 4 s 36.29.170 are each amended

14 to read as follows:

15 The county treasurer shall keep ((~~his~~)) the office of the

16 treasurer at the ((~~seat of justice of his~~)) county seat, and shall

17 keep the same open for transaction of business during business

18 hours; and ((~~he and his~~)) the treasurer and the treasurer's deputy

19 are authorized to administer all oaths necessary in the discharge

20 of the duties of ((~~his~~)) the office.

21 Sec. 9. RCW 36.35.120 and 1993 c 310 s 1 are each amended to read

22 as follows:

23 Real property acquired by any county of this state by

24 foreclosure of delinquent taxes may be sold by order of the county

25 legislative authority of the county when in the judgment of the

26 county legislative authority it is deemed in the best interests of

27 the county to sell the real property.

28 When the legislative authority desires to sell any such

29 property it may, if deemed advantageous to the county, combine any

30 or all of the several lots and tracts of such property in one or

31 more units, and may reserve from sale coal, oil, gas, gravel,

32 minerals, ores, fossils, timber, or other resources on or in the

33 lands, and the right to mine for and remove the same, and it shall

34 then enter an order on its records fixing the unit or units in

35 which the property shall be sold and the minimum price for each of

36 such units, and whether the sale will be for cash or whether a

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_1 contract will be offered, and reserving from sale such of the

_2 resources as it may determine and from which units such

_3 reservations shall apply, and directing the county treasurer to

_4 sell such property in the unit or units and at not less than the

_5 price or prices and subject to such reservations so fixed by the

_6 county legislative authority. The order shall be subject to the

_7 approval of the county treasurer if several lots or tracts of land

_8 are combined in one unit.

_9 Except in cases where the sale is to be by direct negotiation

10 as provided in ((~~this chapter~~)) RCW 36.35.150, it shall be the

11 duty of the county treasurer upon receipt of such order to publish

12 once a week for three consecutive weeks a notice of the sale of

13 such property in a newspaper of general circulation in the county

14 where the land is situated. The notice shall describe the property

15 to be sold, the unit or units, the reservations, and the minimum

16 price fixed in the order, together with the time and place and

17 terms of sale, in the same manner as foreclosure sales as provided

18 by RCW 84.64.080.

19 The person making the bid shall state whether he or she will

20 pay cash for the amount of his or her bid or accept a real estate

21 contract of purchase in accordance with the provisions hereinafter

22 contained. The person making the highest bid shall become the

23 purchaser of the property. If the highest bidder is a contract

24 bidder the purchaser shall be required to pay thirty percent of

25 the total purchase price at the time of the sale and shall enter

26 into a contract with the county as vendor and the purchaser as

27 vendee which shall obligate and require the purchaser to pay the

28 balance of the purchase price in ten equal annual installments

29 commencing November 1st and each year following the date of the

30 sale, and shall require the purchaser to pay twelve percent

31 interest on all deferred payments, interest to be paid at the time

32 the annual installment is due; and may contain a provision

33 authorizing the purchaser to make payment in full at any time of

34 any balance due on the total purchase price plus accrued interest

35 on such balance. The contract shall contain a provision requiring

36 the purchaser to pay before delinquency all subsequent taxes and

37 assessments that may be levied or assessed against the property

38 subsequent to the date of the contract, and shall contain a

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_1 provision that time is of the essence of the contract and that in

_2 event of a failure of the vendee to make payments at the time and

_3 in the manner required and to keep and perform the covenants and

_4 conditions therein required of him or her that the contract may be

_5 forfeited and terminated at the election of the vendor, and that

_6 in event of the election all sums theretofore paid by the vendee

_7 shall be forfeited as liquidated damages for failure to comply

_8 with the provisions of the contract; and shall require the vendor

_9 to execute and deliver to the vendee a deed of conveyance covering

10 the property upon the payment in full of the purchase price, plus

11 accrued interest.

12 The county legislative authority may, by order entered in its

13 records, direct the coal, oil, gas, gravel, minerals, ores,

14 timber, or other resources sold apart from the land, such sale to

15 be conducted in the manner hereinabove prescribed for the sale of

16 the land. Any such reserved minerals or resources not exceeding two

17 hundred dollars in value may be sold, when the county legislative

18 authority deems it advisable, either with or without such

19 publication of the notice of sale, and in such manner as the

20 county legislative authority may determine will be most beneficial

21 to the county.

22 Sec. 10. RCW 36.35.150 and 1997 c 244 s 2 are each amended to read

23 as follows:

24 The county legislative authority may dispose of tax foreclosed

25 property by private negotiation, without a call for bids, for not

26 less than the principal amount of the unpaid taxes in any of the

27 following cases: (1) When the sale is to any governmental agency

28 and for public purposes; (2) when the county legislative authority

29 determines that it is not practical to build on the property due

30 to the physical characteristics of the property or legal

31 restrictions on construction activities on the property; (3) when

32 the property has an assessed value of less than five hundred

33 dollars and the property is sold to an adjoining landowner; or (4)

34 when no acceptable bids were received at the attempted public

35 auction of the property, if the sale is made within ((~~six~~)) twelve

36 months from the date of the attempted public auction.

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_1 Sec. 11. RCW 39.44.200 and 1990 c 220 s 1 are each amended to read

_2 as follows:

_3 Unless the context clearly requires otherwise, the definitions

_4 in this section apply throughout RCW 39.44.200 through 39.44.240.

_5 (1) "Bond" means "bond" as defined in RCW 39.46.020, but also

_6 includes any other indebtedness that may be issued by any local

_7 government to fund private activities or purposes where the

_8 indebtedness is of a nonrecourse nature payable from private

_9 sources, including debt issued under chapter 39.50 RCW.

10 (2) "Local government" means "local government" as defined in

11 RCW 39.46.020.

12 (3) "Type of bond" includes: (a) General obligation bonds,

13 including councilmanic and voter-approved bonds; (b) revenue

14 bonds; (c) local improvement district bonds; (d) special

15 assessment bonds such as those issued by irrigation districts and

16 diking districts; and (e) other classes of bonds.

17 (4) "State" means "state" as defined in RCW 39.46.020 but also

18 includes any commissions or other entities of the state.

19 Sec. 12. RCW 39.46.020 and 1995 c 38 s 6 are each amended to read

20 as follows:

21 Unless the context clearly requires otherwise, the definitions

22 in this section apply throughout this chapter.

23 (1) "Bond" means any agreement which may or may not be

24 represented by a physical instrument, including notes, warrants,

25 or certificates of indebtedness, that evidences an indebtedness of

26 the state or a local government or a fund thereof, where the state

27 or local government agrees to pay a specified amount of money,

28 with or without interest, at a designated time or times to either

29 registered owners or bearers, including debt issued under chapter

30 39.50 RCW.

31 (2) "Local government" means any county, city, town, special

32 purpose district, political subdivision, municipal corporation, or

33 quasi municipal corporation, including any public corporation

34 created by such an entity.

35 (3) "Obligation" means an agreement that evidences an

36 indebtedness of the state or a local government, other than a

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_1 bond, and includes, but is not limited to, conditional sales

_2 contracts, lease obligations, and promissory notes.

_3 (4) "State" includes the state, agencies of the state, and

_4 public corporations created by the state or agencies of the state.

_5 (5) "Treasurer" means the state treasurer, county treasurer,

_6 city treasurer, or treasurer of any other municipal corporation.

_7 Sec. 13. RCW 39.50.010 and 1999 c 153 s 54 are each amended to read

_8 as follows:

_9 As used in this chapter, the following terms have the meanings

10 indicated unless the context clearly requires otherwise.

11 (1) "Governing body" means the legislative authority of a

12 municipal corporation by whatever name designated;

13 (2) "Local improvement district" includes local improvement

14 districts, utility local improvement districts, road improvement

15 districts, and other improvement districts that a municipal

16 corporation is authorized by law to establish;

17 (3) "Municipal corporation" means any city, town, county, water-

18 sewer district, school district, port district, public utility

19 district, metropolitan municipal corporation, public

20 transportation benefit area, park and recreation district,

21 irrigation district, fire protection district or any other

22 municipal or quasi municipal corporation described as such by

23 statute, or regional transit authority, except joint operating

24 agencies under chapter 43.52 RCW;

25 (4) "Ordinance" means an ordinance of a city or town or

26 resolution or other instrument by which the governing body of the

27 municipal corporation exercising any power under this chapter

28 takes formal action and adopts legislative provisions and matters

29 of some permanency; and

30 (5) "Short-term obligations" are warrants, notes, capital

31 leases, or other evidences of indebtedness, except bonds.

32 Sec. 14. RCW 39.50.030 and 1995 c 38 s 9 are each amended to read

33 as follows:

34 (1) The issuance of short-term obligations shall be authorized

35 by ordinance of the governing body which ordinance shall fix the

36 maximum amount of the obligations to be issued or, if applicable,

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_1 the maximum amount which may be outstanding at any time, the

_2 maximum term and interest rate or rates to be borne thereby, the

_3 manner of sale, maximum price, form including bearer or registered

_4 as provided in RCW 39.46.030, terms, conditions, and the covenants

_5 thereof. For those municipalities and taxing and assessment

_6 districts for which the county treasurer is not the designated

_7 treasurer by law, the ordinance may provide for designation and

_8 employment of a paying agent for the short-term obligations and

_9 may authorize a designated representative of the municipal

10 corporation, ((~~or if the county, the county treasurer to act on~~

11 ~~its behalf and~~)) subject to the terms of the ordinance in selling

12 and delivering short-term obligations authorized and fixing the

13 dates, price, interest rates, and other details as may be

14 specified in the ordinance. For the county and those taxing and

15 assessment districts for which the county treasurer is the

16 designated treasurer by law or other appointment, the county

17 treasurer shall be notified thirty days in advance of borrowing

18 under this chapter and will be the designated paying agent to act

19 on its behalf for all payments of principal, interest, and

20 penalties for that obligation, subject to the terms of the

21 ordinance in selling and delivering short-term obligations

22 authorized and fixing the dates, price, interest rates, and other

23 details as may be specified in the ordinance. Short-term

24 obligations issued under this section shall bear such fixed or

25 variable rate or rates of interest as the governing body considers

26 to be in the best interests of the municipal corporation. Variable

27 rates of interest may be fixed in relationship to such standard or

28 index as the governing body designates.

29 The governing body may make contracts for the future sale of

30 short-term obligations pursuant to which the purchasers are

31 committed to purchase the short-term obligations from time to time

32 on the terms and conditions stated in the contract, and may pay

33 such consideration as it considers proper for the commitments.

34 Short-term obligations issued in anticipation of the receipt of

35 taxes shall be paid within six months from the end of the fiscal

36 year in which they are issued. For the purpose of this subsection,

37 short-term obligations issued in anticipation of the sale of

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_1 general obligation bonds shall not be considered to be obligations

_2 issued in anticipation of the receipt of taxes.

_3 (2) Notwithstanding subsection (1) of this section, such short-

_4 term obligations may be issued and sold in accordance with chapter

_5 39.46 RCW.

_6 Sec. 15. RCW 84.38.140 and 1984 c 220 s 27 are each amended to read

_7 as follows:

_8 (1) The ((~~county treasurer~~)) department shall collect all the

_9 amounts deferred together with interest under this

10 chapter((,)). However, in the event that the department is unable

11 to collect an amount deferred together with interest, that amount

12 deferred together with interest shall be collected by the county

13 treasurer in the manner provided for in chapter 84.56 RCW. For

14 purposes of collection of deferred taxes, the provisions of

15 chapters 84.56, 84.60, and 84.64 RCW shall be applicable.

16 (2) When any deferred special assessment and/or real property

17 taxes together with interest are collected the moneys shall be

18 ((~~credited to a special account in the county treasury. The county~~

19 ~~treasurer shall remit the amount of deferred special assessment~~

20 ~~and/or real property taxes together with interest to the~~

21 ~~department within thirty days from the date of collection.~~

22 ~~(3) The department shall deposit the deferred taxes~~)) deposited

23 in the state general fund.

24 Sec. 16. RCW 84.40.042 and 1997 c 393 s 17 are each amended to read

25 as follows:

26 (1) When real property is divided in accordance with chapter

27 58.17 RCW, the assessor shall carefully investigate and ascertain

28 the true and fair value of each lot and assess each lot on that

29 same basis, unless specifically provided otherwise by law. For

30 purposes of this section, "lot" has the same definition as in RCW

31 58.17.020.

32 (a) For each lot on which an advance tax deposit has been paid

33 in accordance with RCW 58.08.040, the assessor shall establish the

34 true and fair value by October 30 of the year following the

35 recording of the plat, replat, altered plat, or binding site

36 plan. The value established shall be the value of the lot as of

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_1 January 1 of the year the original parcel of real property was

_2 last revalued. An additional property tax shall not be due on the

_3 land until the calendar year following the year for which the

_4 advance tax deposit was paid if the deposit was sufficient to pay

_5 the full amount of the taxes due on the property.

_6 (b) For each lot on which an advance tax deposit has not been

_7 paid, the assessor shall establish the true and fair value not

_8 later than the calendar year following the recording of the plat,

_9 map, subdivision, or replat. For purposes of this section,

10 "subdivision" means a division of land into two or more lots or

11 boundary line adjustments between two or more parcels.

12 (c) For each subdivision, all current year and delinquent taxes

13 and assessments on the entire tract must be paid in full in

14 accordance with RCW 58.17.160 and 58.08.030. For purposes of this

15 section, "current year taxes" means taxes that are collectible

16 under RCW 84.56.010 subsequent to February 14.

17 (2) When the assessor is required by law to segregate any part

18 or parts of real property, assessed before or after July 27, 1997,

19 as one parcel or when the assessor is required by law to combine

20 parcels of real property assessed before or after July 27, 1997,

21 as two or more parcels, the assessor shall carefully investigate

22 and ascertain the true and fair value of each part or parts of the

23 real property and each combined parcel and assess each part or

24 parts or each combined parcel on that same basis.

25 Sec. 17. RCW 84.56.250 and 1961 c 15 s 84.56.250 are each amended

26 to read as follows:

27 If any county treasurer ((~~shall~~)) willfully refuses or neglects

28 to collect any taxes assessed upon personal property, where the

29 same is collectible, or to file the delinquent list and affidavit,

30 as herein provided, ((he)) the treasurer shall be held, in his or

31 her next settlement with the ((~~auditor~~)) county legislative

32 authority, liable for the whole amount of such taxes uncollected,

33 and the same shall be deducted from his or her salary and applied

34 to the several funds for which they were levied.

35 NEW SECTION. Sec. 18. RCW 84.36.015 (Property valued at less than

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_1 five hundred dollars‑-Exceptions) and 1997 c 244 s 1 are each

_2 repealed.

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