Passed by the House February 25, 2011 Yeas 97   ________________________________________ Speaker of the House of Representatives Passed by the Senate April 7, 2011 Yeas 47   ________________________________________ President of the Senate | I, Barbara Baker, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 1239 as passed by the House of Representatives and the Senate on the dates hereon set forth. ________________________________________ Chief Clerk | |
Approved ________________________________________ Governor of the State of Washington | Secretary of State State of Washington |
State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 01/17/11. Referred to Committee on Ways & Means.
AN ACT Relating to allowing the department of revenue to issue a notice of lien to secure payment of delinquent excise taxes in lieu of a warrant; amending RCW 82.32.210; adding a new section to chapter 82.32 RCW; and providing an effective date.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 82.32.210 and 2001 c 146 s 12 are each amended to read
as follows:
(1) If any fee, tax, increase, or penalty or any portion thereof is
not paid within fifteen days after it becomes due, the department ((of
revenue)) may issue a warrant in the amount of ((such)) the unpaid
sums, together with interest thereon from the date the warrant is
issued until the date of payment. If, however, the department ((of
revenue)) believes that a taxpayer is about to cease business, leave
the state, or remove or dissipate the assets out of which fees, taxes
or penalties might be satisfied and that any tax or penalty will not be
paid when due, it may declare the fee, tax or penalty to be immediately
due and payable and may issue a warrant immediately.
(a) Interest imposed before January 1, 1999, ((shall be)) is
computed at the rate of one percent of the amount of the warrant for
each thirty days or portion thereof.
(b) Interest imposed after December 31, 1998, ((shall be)) is
computed on a daily basis on the amount of outstanding tax or fee at
the rate as computed under RCW 82.32.050(2). The rate so computed
((shall)) must be adjusted on the first day of January of each year for
use in computing interest for that calendar year. As used in this
subsection, "fee" does not include an administrative filing fee such as
a court filing fee and warrant fee.
(2) Except as provided in section 2 of this act, the department
((shall)) must file a copy of the warrant with the clerk of the
superior court of any county of the state in which real and/or personal
property of the taxpayer may be found. The clerk is entitled to a
filing fee under RCW 36.18.012(10). Upon filing, the clerk ((shall))
will enter in the judgment docket, the name of the taxpayer mentioned
in the warrant and in appropriate columns the amount of the fee, tax or
portion thereof and any increases and penalties for which the warrant
is issued and the date when the copy is filed((, and thereupon)). The
amount of the warrant so docketed ((shall become)) is a specific lien
upon all goods, wares, merchandise, fixtures, equipment, or other
personal property used in the conduct of the business of the taxpayer
against whom the warrant is issued, including property owned by third
persons who have a beneficial interest, direct or indirect, in the
operation of the business, and no sale or transfer of the personal
property in any way affects the lien.
(3) The lien ((shall)) is not ((be)) superior, however, to bona
fide interests of third persons ((which had)) that vested ((prior to))
before the filing of the warrant when the third persons do not have a
beneficial interest, direct or indirect, in the operation of the
business, other than ((the securing of the)) to secure payment of a
debt or ((the receiving of)) to receive a regular rental on equipment.
The phrase "bona fide interests of third persons" does not include any
mortgage of real or personal property or any other credit transaction
that results in the mortgagee or the holder of the security acting as
trustee for unsecured creditors of the taxpayer mentioned in the
warrant who executed the chattel or real property mortgage or the
document evidencing the credit transaction.
(4) The amount of the warrant so docketed ((shall thereupon)) is
also ((become)) a lien upon the title to and interest in all other real
and personal property of the taxpayer against whom it is issued the
same as a judgment in a civil case duly docketed in the office of the
clerk. The warrant so docketed ((shall be)) is sufficient to support
the issuance of writs of garnishment in favor of the state ((in the
manner)) as provided by law ((in the case of)) for judgments wholly or
partially unsatisfied.
NEW SECTION. Sec. 2 A new section is added to chapter 82.32 RCW
to read as follows:
(1) To secure payment of a tax warrant issued by the department
under RCW 82.32.210, the department may issue a notice of lien against
any real property in which the taxpayer against whom the warrant was
issued has an ownership interest, if the total amount for which the
warrant was issued exceeds twenty-five thousand dollars and the
department determines that issuing the notice of lien would best
protect the state's interest in collecting the amount due on the
warrant. The department must file the notice of lien with the
recording officer of the county where the real property is located.
The recording officer is entitled to a filing fee as provided under RCW
36.18.010.
(2)(a) Except as otherwise provided in this section, recording a
notice of lien as authorized in this section is in lieu of filing with
the clerk of the superior court a copy of the warrant secured by the
notice of lien.
(b) Notwithstanding (a) of this subsection (2), the department may
file with the superior court a warrant that is secured by a notice of
lien under this section if: (i) The department determines that filing
the warrant is in the best interest of collecting the amount due on the
tax warrant; or (ii) the warrant remains unpaid six months after the
notice of lien was issued.
(3) If a warrant has been filed with the clerk of the superior
court, the department may issue and record a notice of lien against
real property of the taxpayer and file a conditional satisfaction of
the warrant with the clerk of the superior court of the county in which
the warrant was filed, if the department determines that such actions
are in the best interest of collecting the amount due on the warrant.
(a) A warrant for which a conditional satisfaction is filed will
continue to accrue interest on the unpaid balance as provided in RCW
82.32.210.
(b)(i) The department may refile a warrant for which a conditional
satisfaction has been filed if: (A) The department determines that
refiling the warrant is in the best interest of collecting the amount
due on the warrant; or (B) the warrant remains unpaid six months after
the notice of lien was issued.
(ii) A warrant is refiled in the same manner as it was originally
filed.
(c) A warrant that is refiled as provided in this subsection (3)
reinstates the liens provided under RCW 82.32.210 as of the date the
warrant is refiled.
(d) For the purposes of this subsection (3), a "conditional
satisfaction" is a document issued by the department, which, when filed
with the clerk of the superior court of the county in which the warrant
was filed, releases the liens provided under RCW 82.32.210 without
prejudice to refile the warrant at a later date.
(4) When a taxpayer has requested the department to use the
collection authority under this section, in order to determine if the
issuance of a notice of lien would best protect the state's interest in
collecting the amount due on the warrant, the department may require
the taxpayer to:
(a) Provide, at the taxpayer's expense, the department with a
current abstract of title as defined by RCW 48.29.010 from a title
insurer that possesses a certificate of authority issued under Title 48
RCW; and
(b) Authorize the department to obtain the taxpayer's current
credit report.
(5) A notice of lien issued under this section must include the
following information:
(a) The name of the taxpayer who has an interest in the real
property against which the notice of lien is filed;
(b) The taxpayer's tax registration number issued as provided in
RCW 82.32.030;
(c) The number of the warrant issued by the department;
(d) The amount for which the warrant was issued;
(e) The legal description, tax parcel number assigned under RCW
84.40.160, and the street address, if available, of the real property
against which the notice of lien is issued; and
(f) Any other information the department determines would be
useful.
(6) The notice of lien issued under this section is superior to all
other liens and encumbrances, except:
(a) Bona fide interests of third persons that had vested prior to
the recording of the notice of lien, if the third persons do not have
a beneficial interest, direct or indirect, in the operation of the
taxpayer's business, other than the securing of the payment of a debt
or the receiving of a regular rental on equipment. For purposes of
this subsection, "bona fide interests of third persons" has the same
meaning as in RCW 82.32.210; and
(b) Property taxes and special assessments against the property.
(7) The department must release a notice of lien issued under this
section as soon as practicable after receipt of payment in full of the
amount due on the warrant secured by the notice of lien, including
interest accrued as provided in RCW 82.32.210(1) and all recording fees
claimed by the recording officer for the recording of the notice of
lien and the release of the lien.
(8) The department must release a notice of lien issued under this
section within fourteen days if the notice of lien was issued in error.
NEW SECTION. Sec. 3 This act takes effect January 1, 2012.