SENATE BILL REPORT

HB 1283

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.

As of March 10, 2017

Title: An act relating to eliminating the collection of anticipated taxes and assessments.

Brief Description: Eliminating the collection of anticipated taxes and assessments.

Sponsors: Representatives Chapman, Orcutt, Nealey and Lytton.

Brief History: Passed House: 2/09/17, 98-0.

Committee Activity: Local Government: 3/09/17.

Brief Summary of Bill

  • Removes the advance tax requirement for newly subdivided real property.

SENATE COMMITTEE ON LOCAL GOVERNMENT

Staff: Bonnie Kim (786-7316)

Background: Subdivisions - Advance Tax Deposit. Generally, every person who files a document with a county auditor that results in any division or alteration of real property boundary lines must also present a certificate of payment from the assessor or other officer in charge of collecting taxes and assessments for the affected property or properties. All taxes, current and delinquent, must be paid. Any tax not yet levied and certified is collected as an advance tax.

When real property is subdivided into two or more separate lots, the county assessor must investigate and assess each resulting lot at its true and fair value. Unless an exception applies, all resulting lots should be assessed on the same basis.

For each lot on which an advance tax deposit has been paid, the assessor must establish the true and fair value by October 30th of the year following the recording of the plat. The value established is the value of the lot as of January 1st of the year the original parcel of real property was last revalued. An additional property tax will not be due on the land until the calendar year following the year for which the advance tax deposit was paid if the deposit was sufficient to pay the full amount of the taxes due on the property.

For each lot on which an advance tax deposit has not been paid, the assessor must establish the true and fair value not later than the calendar year following the recording of the plat, map, subdivision, or replat.

Summary of Bill: The advance tax requirement for subdivided real property is removed. The assessor must establish the true and fair value of all newly subdivided property according the schedule previously set for lots on which an advance tax deposit had been paid.

Appropriation: None.

Fiscal Note: Available.

Creates Committee/Commission/Task Force that includes Legislative members: No.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: PRO: This bill is the number one priority for county treasurers and would mean a lot to local government in terms of efficiency. This bill does eliminate a tax; the tax will still be collected in due course. This bill should make the process much more efficient for the treasurer's office. This bill is a WACO priority bill as well.

Persons Testifying: PRO: Representative Mike Chapman, Prime Sponsor; Arny Davis, WSACT; Monty Cobb, WA Assn. of County Officials.

Persons Signed In To Testify But Not Testifying: No one.