BILL REQ. #:  H-4402.1 

Read first time 01/19/10.   Referred to Committee on Local Government & Housing.

     AN ACT Relating to allowing county treasurers to use electronic bill presentment and payment that includes an automatic electronic payment option for property taxes; amending RCW 84.56.020; adding a new section to chapter 84.04 RCW; and adding a new section to chapter 84.56 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 84.04 RCW to read as follows:
     "Electronic bill presentment and payment" means statements, invoices, or bills that are created, delivered, and paid using the internet. The term includes an automatic electronic payment from a person's checking account, debit account, or credit card.

Sec. 2   RCW 84.56.020 and 2008 c 181 s 510 are each amended to read as follows:
     (1) The county treasurer ((shall)) must be the receiver and collector of all taxes extended upon the tax rolls of the county, whether levied for state, county, school, bridge, road, municipal or other purposes, and also of all fines, forfeitures or penalties received by any person or officer for the use of his or her county. No treasurer ((shall)) may accept tax payments or issue receipts for the same until the treasurer has completed the tax roll for the current year's collection and provided notification of the completion of the roll. Notification may be accomplished electronically, by posting a notice in the office, or through other written communication as determined by the treasurer. All taxes upon real and personal property made payable by the provisions of this title ((shall be)) are due and payable to the treasurer on or before the thirtieth day of April and, except as provided in this section, shall be delinquent after that date.
     (2) Each tax statement ((shall)) must include a notice that checks for payment of taxes may be made payable to "Treasurer of . . . . . . County" or other appropriate office, but tax statements ((shall)) may not include any suggestion that checks may be made payable to the name of the individual holding the office of treasurer nor any other individual.
     (3) When the total amount of tax or special assessments on personal property or on any lot, block or tract of real property payable by one person is fifty dollars or more, and if one-half of such tax be paid on or before the thirtieth day of April, the remainder of such tax ((shall be)) is due and payable on or before the thirty-first day of October following and shall be delinquent after that date.
     (4) When the total amount of tax or special assessments on any lot, block or tract of real property or on any mobile home payable by one person is fifty dollars or more, and if one-half of such tax be paid after the thirtieth day of April but before the thirty-first day of October, together with the applicable interest and penalty on the full amount of tax payable for that year, the remainder of such tax ((shall be)) is due and payable on or before the thirty-first day of October following and ((shall be)) is delinquent after that date.
     (5) Delinquent taxes under this section are subject to interest at the rate of twelve percent per annum computed on a monthly basis on the full year amount of tax unpaid from the date of delinquency until paid. Interest ((shall)) must be calculated at the rate in effect at the time of payment of the tax, regardless of when the taxes were first delinquent. In addition, delinquent taxes under this section are subject to penalties as follows:
     (a) A penalty of three percent of the full year amount of tax unpaid ((shall be)) is assessed on the tax delinquent on June 1st of the year in which the tax is due.
     (b) An additional penalty of eight percent ((shall be)) is assessed on the amount of tax delinquent on December 1st of the year in which the tax is due.
     (6) Subsection (5) of this section notwithstanding, no interest or penalties may be assessed during any period of armed conflict on delinquent taxes imposed on the personal residences owned by active duty military personnel who are participating as part of one of the branches of the military involved in the conflict and assigned to a duty station outside the territorial boundaries of the United States.
     (7) During a state of emergency declared under RCW 43.06.010(12), the county treasurer, on his or her own motion or at the request of any taxpayer affected by the emergency, may grant extensions of the due date of any taxes payable under this section as the treasurer deems proper.
     (8) For purposes of this chapter, "interest" means both interest and penalties.
     (9) All collections of interest on delinquent taxes ((shall)) must be credited to the county current expense fund; but the cost of foreclosure and sale of real property, and the fees and costs of distraint and sale of personal property, for delinquent taxes, ((shall)) must, when collected, be credited to the operation and maintenance fund of the county treasurer prosecuting the foreclosure or distraint or sale; and ((shall)) must be used by the county treasurer as a revolving fund to defray the cost of further foreclosure, distraint and sale for delinquent taxes without regard to budget limitations.
     (10)(a) For the purposes of this chapter, as provided in this chapter and RCW 36.29.190, a county treasurer is authorized, but not required, to collect taxes, assessments, fees, rates, and charges by electronic bill presentment and payment.
     (b) Electronic bill presentment and payment may be monthly or such other periodic basis as the county treasurer deems proper as a prepayment and held in escrow by the county treasurer until all prepayments are paid in full by the due date as defined in this section.
     (c) The county treasurer must provide by electronic means a payment agreement which must be approved by the taxpayer prior to the sending of an electronic bill.
     (d) All taxes upon real and personal property made payable by the provisions of this title are due and payable to the county treasurer on or before the thirtieth day of April and are delinquent after that date. The remainder of such tax is due and payable on or before the thirty-first day of October following and is delinquent after that date. All other assessments, fees, rates, and charges are delinquent after the due date.
     (e) Any administrative savings and any investment earnings on prepayments must be paid to the credit of a special interest account in the operation and maintenance account of the state treasury to be used without budget limitation by the county treasurer only for the payment of expenses incurred in creating, administering, or expanding the system for collecting prepayments.

NEW SECTION.  Sec. 3   A new section is added to chapter 84.56 RCW to read as follows:
     (1) To the extent that funds are collected, the department of revenue must administer a grant program for counties to assist in the development and implementation of an electronic bill presentment and payment system and to assist in complying with the requirements of RCW 84.56.020(10).
     (2) Subject to the limits in subsection (3) of this section, the amount of the grant is equal to the amount paid by a county to:
     (a) Purchase computer hardware or software, or to repair or upgrade existing computer hardware or software, used for the electronic bill presentment and payment system to collect taxes, assessments, fees, rates, and charges; and
     (b) Make changes to existing software that are necessary to comply with the requirements of RCW 84.56.020(10).
     (3) No county is eligible for grants under this section totaling more than one hundred thousand dollars.
     (4) No more than three million nine hundred thousand dollars in grants may be awarded under this section.
     (5) The source of funds for this grant program is the electronic bill presentment and payment technology grant account created in subsection (6) of this section.
     (6) The electronic bill presentment and payment technology grant account is created in the state treasury. Moneys in the account may be spent only after appropriation. After July 1, 2011, expenditures from the account may be used only for grants authorized under RCW 84.56.020(10) in the manner provided for in this section and RCW 84.56.020(10).
     (7) Any funds remaining in the electronic bill presentment and payment technology grant account on July 1, 2016, must be deposited in the general fund.