BILL REQ. #:  H-1912.1 

READ FIRST TIME 02/25/11.   

     AN ACT Relating to adjusting timber tax account distribution calculations; and amending RCW 84.33.081 and 84.52.080.

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

Sec. 1   RCW 84.33.081 and 2007 c 69 s 5 are each amended to read as follows:
     (1) On the last business day of the second month of each calendar quarter, the state treasurer ((shall)) must distribute from the timber tax distribution account to each county the amount of tax collected on behalf of each county under RCW 84.33.051, less each county's proportionate share of appropriations for collection and administration activities under RCW 84.33.051, and ((shall)) must transfer to the state general fund the amount of tax collected on behalf of the state under RCW 84.33.041, less the amount of the distribution under subsection (((7))) (8) of this section and the state's proportionate share of appropriations for collection and administration activities under RCW 84.33.041. The county treasurer ((shall)) must deposit moneys received under this section in a county timber tax account which ((shall)) must be established by each county. Following receipt of moneys under this section, the county treasurer ((shall)) must make distributions from any moneys available in the county timber tax account to taxing districts in the county, except the state, under subsections (2) through (((4))) (5) of this section.
     (2) From moneys available, there first ((shall)) must be a distribution to each taxing district having debt service payments due during the calendar year, based upon bonds issued under authority of a vote of the people conducted pursuant to RCW 84.52.056 and based upon excess levies for a capital project fund authorized pursuant to RCW 84.52.053, of an amount equal to the timber assessed value of the district multiplied by the tax rate levied for payment of the debt service and capital projects((: PROVIDED, That)). However, in respect to levies for a debt service or capital project fund authorized before July 1, 1984, the amount allocated ((shall)) may not be less than an amount equal to the same percentage of such debt service or capital project fund represented by timber tax allocations to such payments in calendar year 1984. Distribution under this subsection (2) ((shall)) may be used only for debt service and capital projects payments. The distribution under this subsection ((shall)) must be made as follows: One-half of such amount ((shall)) must be distributed in the first quarter of the year and one-half ((shall)) must be distributed in the third quarter of the year.
     (3) From the moneys remaining after the distributions under subsection (2) of this section, the county treasurer ((shall)) must distribute to each school district an amount equal to one-half of the timber assessed value of the district ((or eighty percent of the timber roll of such district in calendar year 1983 as determined under this chapter, whichever is greater,)) multiplied by the tax rate, if any, levied by the district under RCW 84.52.052 or 84.52.053 for purposes other than debt service payments and capital projects supported under subsection (2) of this section. The distribution under this subsection ((shall)) must be made as follows: One-half of such amount ((shall)) must be distributed in the first quarter of the year and one-half ((shall)) must be distributed in the third quarter of the year.
     (4)(a) From the moneys remaining after the distributions under subsections (2) and (3) of this section, an amount must be placed in reserve status, to the extent possible, as follows:
     (i) In the first full calendar year following the effective date of this section, an amount sufficient to make the reserve balance equal to twenty percent of the current calendar year distributions required under subsections (2) and (3) of this section;
     (ii) In the second full calendar year following the effective date of this section, an amount sufficient to make the reserve balance equal to forty percent of the current calendar year distributions required under subsections (2) and (3) of this section;
     (iii) In the third full calendar year following the effective date of this section an amount sufficient to make the reserve balance equal to sixty percent of the current calendar year distributions required under subsections (2) and (3) of this section;
     (iv) In the fourth full calendar year following the effective date of this section, an amount sufficient to make the reserve balance equal to eighty percent of the current calendar year distributions required under subsections (2) and (3) of this section; and
     (v) In the fifth full calendar year following the effective date of this section and every year thereafter, an amount sufficient to make the reserve balance equal to one hundred percent of the subsequent calendar year distributions required under subsections (2) and (3) of this section;
     (b) Distributions under this subsection (4) may begin in the first full calendar year following the effective date of this section to offset any shortfall in moneys necessary to make the distributions under subsections (2) and (3) of this section. Distributions from the reserve under this subsection (4) must be made as follows: One-half of such amount must be distributed in the first quarter of the year and one-half must be distributed in the third quarter of the year.
     (5) After the distributions directed under subsections (2) ((and (3))) through (4) of this section, if any, each taxing district ((shall)) must receive an amount equal to the timber assessed value of the district multiplied by the tax rate, if any, levied as a regular levy of the district or as a special levy not included in subsection (2) or (3) of this section.
     (((5))) (6) If there are insufficient moneys in the county timber tax account to make full distribution under subsection (((4))) (5) of this section, the county treasurer ((shall)) must multiply the amount to be distributed to each taxing district under that subsection by a fraction. The numerator of the fraction is the county timber tax account balance before making the distribution under that subsection. The denominator of the fraction is the account balance which would be required to make full distribution under that subsection.
     (((6) After making the distributions under subsections (2) through (4) of this section in the full amount indicated for the calendar year, the county treasurer shall place any excess revenue up to twenty percent of the total distributions made for the year under subsections (2) through (4) of this section in a reserve status until the beginning of the next calendar year.)) (7) Any moneys remaining in the county timber tax account after ((this amount is placed in reserve shall)) making the distributions under subsections (2) through (5) of this section must be distributed to each taxing district in the county in the same proportions as the distributions made under subsection (((4))) (5) of this section.
     (((7))) (8) On the last business day of the second month of each calendar quarter, the state treasurer ((shall)) must distribute from the timber tax distribution account to each county an amount of tax collected by the state under RCW 84.33.041 equal to the amount of any tribal tax credited against the county's tax under an agreement entered into under RCW 43.06.480.

Sec. 2   RCW 84.52.080 and 2010 c 106 s 314 are each amended to read as follows:
     (1) The county assessor must extend the taxes upon the tax rolls in the form prescribed in this section. The rate percent necessary to raise the amounts of taxes levied for state and county purposes, and for purposes of taxing districts coextensive with the county, must be computed upon the assessed value of the property of the county. The rate percent necessary to raise the amount of taxes levied for any taxing district within the county must be computed upon the assessed value of the property of the district. All taxes assessed against any property must be added together and extended on the rolls in a column headed consolidated or total tax. In extending any tax, whenever the tax amounts to a fractional part of a cent greater than one-half of a cent it must be rounded up to one cent, and whenever it amounts to one-half of a cent or less it must be dropped. The amount of all taxes must be entered in the proper columns, as shown by entering the rate percent necessary to raise the consolidated or total tax and the total tax assessed against the property.
     (2) For the purpose of computing the rate necessary to raise the amount of any excess levy in a taxing district entitled to a distribution under RCW 84.33.081, other than the state, the county assessor must add the district's timber assessed value, as defined in RCW 84.33.035, to the assessed value of the property. However, for school districts maintenance and operations levies, only one-half of the district's timber assessed value ((or eighty percent of the timber roll of the district in calendar year 1983 as determined under chapter 84.33 RCW, whichever is greater,)) must be added to the assessed value of the property.
     (3) Upon the completion of such tax extension, it is the duty of the county assessor to make in each assessment book, tax roll or list a certificate in the following form: