AN ACT Relating to procedures for the collection of the conveyance tax; amending RCW 82.20.040; adding new sections to chapter 82.20 RCW; repealing RCW 82.20.020, 82.20.030, 82.20.050, and 82.20.060; prescribing penalties; providing an effective date; and declaring an emergency.

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

NEW SECTION. Sec. 1. A new section is added to chapter 82.20 RCW to read as follows:

The tax imposed by this chapter shall be paid to and collected by the treasurer of the county within which is located the real property which was sold, as agent for the state. The county treasurer shall cause a stamp or notation to be made on the deed, instrument, document, paper, or writing of conveyance evidencing payment of the tax prescribed in this chapter.

The department shall prescribe minimum standards for uniformity in reporting, application, and collection of the tax imposed by this chapter. The department shall make such rules consistent with this chapter as are necessary to permit its effective administration including procedures for payment, collection, and remittance of the tax. The department shall also prescribe a form for use in collecting the tax imposed by this chapter or, in its discretion, may authorize the use of the real estate excise tax affidavit form prescribed in RCW 82.45.120.

No deed, instrument, document, paper, or writing of sale or conveyance evidencing a transaction subject to tax shall be accepted by the county auditor for filing or recording until the tax has been paid and the stamp or notation made. If the tax imposed by this chapter is not due on the conveyance, sale, or transfer, the instrument shall not be so accepted by the county auditor for filing or recording until a suitable stamp or notation of the fact has been made by the treasurer on the deed, instrument, document, paper, or writing.

The county treasurer shall place one percent of the proceeds of the tax imposed by this chapter in the county current expense fund to defray costs of collection and shall pay over to the state treasurer and account to the department for the remainder of the proceeds at the same time the county treasurer remits funds to the state under RCW 84.56.280.

Sec. 2. Section 82.20.040, chapter 15, Laws of 1961 as amended by section 59, chapter 278, Laws of 1975 1st ex. sess. and RCW 82.20.040 are each amended to read as follows:

The department of revenue may, upon receipt of satisfactory evidence of the facts, ((~~make allowance for or~~)) redeem such of the stamps, issued under authority of law prior to the effective date of this 1987 act, to denote the payment of any tax, as may have been spoiled, destroyed or rendered useless or unfit for the purpose intended, or for which the owner may have no use, or which, through mistake, have been improperly or unnecessarily used, or where the returns or duties represented thereby have been excessive in amount, paid in error, or in any manner wrongfully collected. Such ((~~allowance or~~)) redemption ((~~may~~)) shall be made((~~, either by giving other stamps in lieu of the stamps so allowed for or redeemed or~~)) by refunding the amount of value to the owner thereof; but no ((~~allowance or~~)) redemption shall be made in any case until the stamps so spoiled or rendered useless have been returned to the department, or until satisfactory proof has been made showing the reason why they cannot be returned. No claim for the redemption of ((~~or allowance for~~)) stamps shall be allowed unless presented within two years after the purchase of the stamps from the department and prior to July 1, 1988.

This section shall expire July 1, 1988.

NEW SECTION. Sec. 3. A new section is added to chapter 82.20 RCW to read as follows:

The tax levied under this chapter shall be a lien on the property transferred from the time of transfer until the tax shall have been paid and shall be the obligation of the seller and the department of revenue may, at the department's option, enforce the obligation through an action of debt against the seller or the department may proceed in the manner prescribed for the foreclosure of mortgages and resort to one course of enforcement shall not be an election not to pursue the other.

NEW SECTION. Sec. 4. A new section is added to chapter 82.20 RCW to read as follows:

(1) The tax imposed under this chapter is due and payable immediately at the date of the instrument of conveyance or sale, and if not paid within thirty days thereafter shall bear interest at the rate of one percent per month from the time of conveyance until the date of payment.

(2) If upon examination of any affidavits or from either information obtained by the department or its agents it appears that all or a portion of the tax is unpaid, the department shall assess against the taxpayer the additional amount found to be due plus interest as provided in subsection (1) of this section. If the department finds that all or any part of the deficiency resulted from an intent to evade the tax payable under this chapter, a penalty of fifty percent of the additional tax found to be due shall be added.

(3) No assessment or refund may be made by the department more than four years after the date of sale except upon a showing of fraud or of misrepresentation of a material fact by the taxpayer or a failure by the taxpayer to record documentation of a sale or otherwise report the sale to the county treasurer.

NEW SECTION. Sec. 5. The following acts or parts of acts are each repealed:

(1) Section 82.20.020, chapter 15, Laws of 1961, section 57, chapter 278, Laws of 1975 1st ex. sess. and RCW 82.20.020;

(2) Section 82.20.030, chapter 15, Laws of 1961, section 58, chapter 278, Laws of 1975 1st ex. sess. and RCW 82.20.030;

(3) Section 82.20.050, chapter 15, Laws of 1961 and RCW 82.20.050; and

(4) Section 82.20.060, chapter 15, Laws of 1961, section 60, chapter 278, Laws of 1975 1st ex. sess. and RCW 82.20.060.

This section shall not be construed as affecting any existing right acquired or liability or obligation incurred under the sections repealed in this section or under any rule, regulation, or order adopted under those sections, nor as affecting any proceeding instituted under those sections.

NEW SECTION. Sec. 6. This act is necessary for the immediate preservation of the public peace, health, and safety, the support of the state government and its existing public institutions, and shall take effect July 1, 1987. The director of revenue may immediately take such steps as are necessary to insure that this act is implemented on its effective date.