BILL REQ. #:  H-3091.1 

Read first time 12/06/11.   Referred to Committee on Ways & Means.

     AN ACT Relating to personal property tax assessment administration, authorizing waiver of penalties and interest under specified circumstances; and amending RCW 84.40.130.

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

Sec. 1   RCW 84.40.130 and 2004 c 79 s 5 are each amended to read as follows:
     (1) If any person or corporation ((shall)) fails or refuses to deliver to the assessor, on or before the date specified in RCW 84.40.040, a list of the taxable personal property which is required to be listed under this chapter, unless it is shown that such failure is due to reasonable cause and not due to ((wilful)) willful neglect, there ((shall)) must be added to the amount of tax assessed against the taxpayer on account of such personal property five percent of the amount of such tax, not to exceed fifty dollars per calendar day, if the failure is for not more than one month, with an additional five percent for each additional month or fraction thereof during which such failure continues not exceeding twenty-five percent in the aggregate. Such penalty ((shall)) must be collected in the same manner as the tax to which it is added and distributed in the same manner as other property tax interest and penalties.
     (2) If any person or corporation ((shall wilfully)) willfully gives a false or fraudulent list, schedule or statement required by this chapter, or ((shall)), with intent to defraud, fails or refuses to deliver any list, schedule or statement required by this chapter, such person or corporation ((shall be)) is liable for the additional tax properly due or, in the case of ((wilful)) willful failure or refusal to deliver such list, schedule or statement, the total tax properly due; and in addition such person or corporation ((shall be)) is liable for a penalty of one hundred percent of such additional tax or total tax as the case may be. Such penalty ((shall be)) is in lieu of the penalty provided for in subsection (1) of this section. A person or corporation giving a false list, schedule or statement ((shall)) is not ((be)) subject to this penalty if it is shown that the misrepresentations contained therein are entirely attributable to reasonable cause. The taxes and penalties provided for in this subsection ((shall)) must be recovered in an action in the name of the state of Washington on the complaint of the county assessor or the county legislative authority and ((shall)) must, when collected, be paid into the county treasury to the credit of the current expense fund. The provisions of this subsection ((shall be)) are additional and supplementary to any other provisions of law relating to recovery of property taxes.
     (3)(a) The assessor may waive penalties otherwise due under this section for assessment years 2011 and prior for a person or corporation failing or refusing to deliver to the assessor a list of taxable personal property, if all of the following circumstances are met:
     (i) On or before July 1, 2012, the taxpayer files with the assessor:
     (A) A correct list and statement of the taxable personal property required to be listed under this chapter; and
     (B) A completed application for penalty waiver in the form and manner prescribed by the assessor; and
     (ii) On or before September 1, 2012, the taxpayer remits full payment to the county of the entire balance due on all tax liabilities for which a penalty waiver under this section is requested, other than the penalty amount eligible for waiver under this section.
     (b) A taxpayer receiving penalty relief under this subsection (3) may not seek a refund or otherwise challenge the amount of any tax liability paid under (a)(ii) of this subsection (3). Personal property listed under (a)(i) of this subsection (3) is subject to verification by the assessor, and any unreported or misreported property discovered by the assessor remains subject to taxes, penalties, and interest.
     (c) The assessor may, in his or her discretion, establish a process for waiving penalties otherwise due under this section, at a time or times other than specified in this subsection (3). Such a process must:
     (i) Generally follow the filing and payment requirements in (a) of this subsection (3), except as to timing; and
     (ii) Is subject to the provisions of (b) of this subsection (3).