HOUSE BILL REPORT
HB 2611
This analysis was prepared by non-partisan legislative staff for the use of legislative members in
their deliberations. This analysis is not a part of the legislation nor does it constitute a
statement of legislative intent.
As Reported by House Committee On:
Finance
Title: An act relating to annual revaluations of property for property tax purposes.
Brief Description: Requiring annual revaluations of property for property tax purposes.
Sponsors: Representatives McIntire, Condotta, Hunt, Lantz, Haigh and Chase.
Brief History:
Finance: 1/25/08, 2/12/08 [DPS].
Brief Summary of Substitute Bill |
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HOUSE COMMITTEE ON FINANCE
Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 9 members: Representatives Hunter, Chair; Hasegawa, Vice Chair; Orcutt, Ranking Minority Member; Condotta, Assistant Ranking Minority Member; Conway, Ericks, McIntire, Roach and Santos.
Staff: Rick Peterson (786-7150).
Background:
Property subject to property tax is assessed at its true and fair value. In most cases, this is the
market value in the property's highest and best use. The values are set as of January 1. These
values are used for determining property bills to be collected in the following year.
County assessors establish new assessed values on a regular revaluation cycle. The length of
revaluation cycles vary by county. Nineteen counties revalue every four years, one county
uses a three-year revaluation cycle and one county is on a two-year schedule. For these
counties a proportionate share of the county is revalued during each year of the cycle.
Individual property values are not changed during the intervening years of the revaluation
cycle. Eighteen counties are on a program of annual updates. Values are adjusted annually
based on market value statistical data.
As part of the revaluation plan properties are physically inspected. Physical inspections must
be done at least once every four years for counties using four, three, or two- year revaluation
cycles. Annual revaluation counties must physically inspect each property at least once every
six years.
Summary of Substitute:
By January 1, 2012, all counties must revalue real property annually. The Department of
Revenue (DOR) will provide guidance and financial assistance to counties converting to
annual revaluations. The mandate for annual revaluations is conditional upon the state
providing funding and guidance. The DOR will operate a grant program to assist counties with converting to annual
revaluations and for replacing computer systems used for revaluations. The DOR is required
to explore cost-effective ways to purchase software and hardware on behalf of counties.
Substitute Bill Compared to Original Bill:
The appropriations are eliminated. The Annual Property Revaluation Grant Account is
eliminated. A null and void clause is added making the bill null and void unless funded in
the budget. The $500,000 for individual counties is eliminated. The Department of Revenue
is required to explore cost-effective ways to purchase hardware and software on behalf of
counties.
Appropriation: None.
Fiscal Note: Available.
Effective Date of Substitute Bill: The bill takes effect 90 days after adjournment of session in which bill is passed. However, the bill is null and void unless funded in the budget.
Staff Summary of Public Testimony:
(In support) We have spent considerable time studying the multi-year counties and what it
will take and what it will cost to allow them to adopt assessment practices that will take the
spikes out of the property tax assessment process. Annual revaluation will provide taxpayers
with greater certainty. It will be a helpful tool for taxpayers and counties, and especially
helpful for those taxpayers experiencing a lot of angst about their property tax bills. This bill
is essentially a one time funding request. Many property owners in Lewis County will have
to wait two or three years to get their flood damaged property revalued because the county is
on four year revaluation cycle and cannot revalue out of cycle. Annual revaluation promotes
a more uniform valuation process. All counties need to be on the same page regarding
revaluation cycles. It will make sharing of data and resources more accessible. It will
smooth out the tax valuation process for taxpayers.
(Opposed) None.
Persons Testifying: Representative McIntire, prime sponsor; Diane Dorey, Lewis County Assessor; Terry McLaughlin, Cowlitz County Assessor; Robert Carlton, Washington Association of County Officials; and Amber Carter, Association of Washington Business.