| Washington State House of Representatives Office of Program Research |
BILL ANALYSIS |
| Finance Committee | |
HB 2986
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.
Brief Description: Concerning property tax collection and assessment.
Sponsors: Representatives Takko and Schindler.
Brief Summary of Bill |
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Hearing Date: 2/1/08
Staff: Rick Peterson (786-7150).
Background:
County treasurers operate under the authority of various state statutes relating to the receipt,
processing, and disbursement of funds. County treasurers are the custodian of the county's
money and the administrator of the county's financial transactions. In addition to his or her
duties relating to county functions, the county treasurers provide financial services to special
purpose districts and other units of local government, including receipt, disbursement,
investment, and accounting of the funds of each of these entities. County treasurers are
responsible for the collection of various taxes (including legal proceedings to collect past due
amounts) and other miscellaneous duties, such as conducting bond sales and sales of surplus
county property.
Among a county treasurer's duties in collecting taxes is the establishment of the county's tax
rolls. The treasurer's establishment of the yearly tax rolls is the prerequisite to the treasurer
having the authority to levy and receive taxes. Until 2007 the county treasurer could not receive
tax payments prior to February 15. The 2007 Legislature eliminated this requirement. The
treasurer may receive tax payments once the tax roll for the current year's collection is complete.
The first half property taxes are due by April 30 and the second half on October 31. The rate of
interest on delinquent property taxes is 12 percent.
Property tax refunds can be made if there has been mistake or error in the tax bill. Also refunds
are given if the property's value has been reduced due to an appeal. The claim for refund must be
made within three years after the taxpayer paid the property tax.
Diking, drainage, or sewerage improvement district assessments for construction or maintenance
of improvements are collected in the same manner as property taxes. The annual assessments or
installments of assessments for construction and maintenance and repairs are due in two equal
installments. The first is payable by May 30 and the second half by November 30. The rate of
interest on late delinquencies is 10 percent.
The real estate excise tax is collected by the county treasurer. The tax generally applies to the
sales of real property. The treasurer must put a stamp on the instrument of sale or conveyance
showing the tax has been paid before the instrument can be filed with the county auditor.
Summary of Bill:
Statutes that reference the February 15 property tax collection date are changed to reference the
date of the completion of the tax roll.
Property tax refund claims must be made within three years of the due date for payment.
The payment dates for diking, drainage, or sewerage improvement district assessment is changed
to the dates used for property tax collections; April 30 for the first half payment and October 31
for the second half. The interest rate charged on delinquent assessments is changed to 12
percent.
The stamp required to show evidence of payment of the real estate excise tax is replace by a
verification of payment by the county treasurer.
Appropriation: None.
Fiscal Note: Requested on January 21, 2008.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.