S-3113.1  _______________________________________________


                         SENATE BILL 6358



State of Washington   57th Legislature        2002 Regular Session


By Senators Stevens, Hale, Benton, Hewitt, Honeyford, Oke, McCaslin, Long, Hochstatter, Swecker and Roach


Read first time 01/16/2002.  Referred to Committee on Ways & Means.

Reducing property values by amounts spent on certain fees.

    AN ACT Relating to reducing the assessed value of property by amounts spent on mitigation fees, impact fees, and system improvement charges; and amending RCW 84.40.030.




    Sec. 1.  RCW 84.40.030 and 2001 c 187 s 17 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) of this section, 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 shall be the dominant factors in valuation.  When provisions of this subsection 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 true and fair value of the land, exclusive of structures thereon shall be determined; also the true and fair value of structures thereon, but the valuation shall not exceed the true and fair value of the total property as it exists.  In valuing agricultural land, growing crops shall be excluded.

    (4) In valuing any tract or parcel of real property, the assessed value shall be reduced by amounts expended on mitigation fees, impact fees, or system improvement charges during the assessment year.  The department of revenue may adopt rules necessary to implement this subsection (4).


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