HOUSE BILL REPORT

SSB 5866

As Amended by the House

BYSenate Committee on Governmental Operations (originally sponsored by Senators Rasmussen, Pullen and Talmadge)

Permitting the use of credit cards to pay certain taxes.

House Committe on Revenue

Majority Report:  Do pass with amendments. (13)

      Signed by Representatives Wang, Chair; Pruitt, Vice Chair; Holland, Ranking Republican Member; Horn, Assistant Ranking Republican Member; Appelwick, Fraser, Grant, Haugen, Morris, Phillips, Rust, H. Sommers and Van Luven.

Minority Report:  Do not pass.  (2)

      Signed by Representatives Brumsickle and Silver.

House Staff:Rick Wickman and Bob Longman (786-7136)

AS PASSED HOUSE APRIL 11, 1989

BACKGROUND:

Detailed requirements exist for tax valuations, assessment changes, refund notices, tax exemption procedures, tax waivers, and tax appeals.

Current law provides for prepayment of county property taxes, subject to county legislative body authorization, if the taxpayer wishes to do so.  Prepayment is required when a plat is filed after May 31 of any year but prior to the next due date for property taxes.  This latter prepayment is to be at 125 percent of the current year's levy on the affected property.  Current law also provides for adjustments due to overpayments or underpayments is such cases.  No such options, requirements or adjustment mechanisms exist for the state portion of property tax levies.

In certain circumstances, public institutions, courts and state agencies are authorized to accept payment of fees and fines by credit card and are authorized to use credit cards for purchases. State bank credit cards may be used by students to pay tuition, fees and other expenses at public colleges and universities. Credit cards may be used by courts of limited jurisdiction for billing and collecting unpaid penalties and costs.  State agencies are authorized to make purchases with credit cards. Credit cards may not be used for paying property taxes, interest or penalties.

SUMMARY:

Time periods for completing administrative actions, providing notices, or initiating appeals are modified or clarified.  Generally, "date of receipt" is replaced by "date of mailing."

Statutory cross-references, gender references, and outdated terminology are corrected.

Requirements relating to paying property taxes for new subdivisions are extended to replats, altered plats, binding site plans, and condominium plans.

"Legal description" for property tax purposes is defined as the parcel number of the property in question.

No fee may be charged for property tax appeals to a county board of equalization.

In determining the current use valuation of farmland by capitalizing the earning capacity of the farmland, the county assessor must use a rate of interest published by the department by rule.

The county assessor or treasurer must inform the county board of equalization of all publicly owned property for which taxes have not been paid and provide an annual list of all property tax refunds.

The county assessor must provide to the county legislative authority an annual list of all property tax refunds.

Optional prepayment of property taxes by taxpayers is extended to include amounts owed on the state levy portion of total property taxes.

Use of credit cards is authorized for taxpayers paying taxes, interest and penalties to a county treasurer so long as: 1) the county is not charged for the credit card service; 2) guarantees of full payment are made by the financial institution or bank; and 3) the amount paid is not discounted by the financial institution or bank.

The $30 statutory fee charged by counties to applicants for agricultural current use classification is eliminated.  Counties may charge a reasonable fee for application and review of current use classifications.  A requirement that the fee is refundable is eliminated.

Fiscal Note:      Requested April 3, 1989.

House Committee ‑ Testified For:    None Presented.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    None Presented.

House Committee - Testimony Against:      None Presented.