FINAL BILL REPORT

SHB 2433

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.

Background:

There are multiple methods for municipal annexations. While cities that operate under the Optional Municipal Code (code cities) have statutory requirements for governance and operation that are separate from those that do not, the annexation methods that all cities and towns may employ are generally similar.

When territory that is part of a fire protection district (fire district) is annexed to a code city, noncode city, or town, the fire district taxes on the annexed property that were levied, but have not been collected and are not delinquent at the time of annexation, must be paid to the annexing city or town. Similar payment provisions also exist for county road district and library district taxes that were levied and not collected at the time of annexation.

Additionally, all cities and towns that have annexed territory have notification obligations and must provide, by certified mail, a list of the annexed parcels to the county treasurer and assessor, and to the fire and library district, as appropriate, at least 30 days before the effective date of the annexation. The treasurer is only required to remit to the annexing city or town those fire district, library district, and county road district taxes collected 30 days or more after receipt of the notification.

Summary:

The list of entities that must be notified of an annexation by a code city, noncode city, or town is expanded to include light and power businesses and gas distribution businesses.

The required notification, which must include a list of the annexed parcel numbers and street addresses, may be provided by certified mail or by electronic means, a term defined to mean an electronic format agreed to by the sender and recipient that conveys all applicable information

Also, the amount of time before the effective date of the annexation that the notification must be provided to the recipients is increased from at least 30 days to at least 60 days.

The county treasurer is only required to remit to the annexing city or town those road taxes, fire district taxes, and library districts taxes collected 60 or more days, rather than 30 or more days, after receipt of the annexation notification.

Light and power businesses and gas distribution businesses are only required to remit to an annexing city or town those utility taxes collected 60 or more days after receipt of the notification. In the event of an error or accidental omission by a code city, noncode city, or town in the transmitted annexation notice, the city, noncode city, or town may correct the notice by providing an amended notice to the county treasurer and assessor, the light and power businesses, the gas distribution businesses, and the fire district and library district, as appropriate. The recipient of the amended notice is only required to remit applicable taxes to the code city, noncode city, or town, in accordance with the corrected information, 60 days after its receipt of the amended notice.

Votes on Final Passage:

House	97	0
Senate	49	0