FINAL BILL REPORT

SSB 5866

                              C 378 L 89

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

Permitting the use of credit cards to pay certain taxes.

Senate Committee on Governmental Operations

House Committe on State Government

Rereferred House Committee on Revenue

SYNOPSIS AS ENACTED

BACKGROUND:

Detailed procedures are specified for tax valuations, changes in assessment, notices of refunds, approval of exemptions and waivers, and the appeal of administrative determinations. 

Taxpayers may prepay the county portion of property tax levies if the county legislative body authorizes prepayment.  There is no similar option to prepay the state portion of property tax levies.  Prepayment of property taxes is required when a plat for a new subdivision is filed after May 31 of any year but prior to the next due date for property taxes. 

Cities and counties may impose a maximum processing fee of $30 upon applications for open space designation for property tax assessment purposes.  If an application is not approved, the processing fee must be returned to the applicant.

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.  Credit cards may not be used for paying property taxes, interest or penalties.

SUMMARY:

Numerous provisions concerning tax valuations, changes in assessment, notices of refunds, approval of exemptions and waivers and the appeal of administrative determinations are revised.  Time periods for completing administrative actions, providing notices and 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  Statutory cross-references, gender references, and outdated terminology are corrected.  "Legal description" for property tax purposes is defined as the parcel number of the property in question.  No fee may be charged for appeals of decisions of county boards of equalization to the state Board of Tax Appeals.  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 of Revenue by rule.  The county assessor or treasurer must inform the county board of equalization of all publicly owned property exempt from taxation upon which there remains, according to the tax roll, any unpaid taxes.  Interest on refunded property tax payments is altered from 6 percent to a varying rate determined by the sale of U.S. Treasury bills.  The county treasurer must annually provide to the county legislative authority a list of all property tax refunds.

The $30 limitation upon the processing fee that may be imposed by a city or county upon applications for open space designation for property tax assessment purposes is deleted.  Also deleted is the requirement that the application fee be returned to an unsuccessful applicant.

County treasurers are given the option of accepting payment of taxes, interest and penalties by credit card, provided that the financial institution issuing the card guarantees full payment, without discount or other cost or charge.

Taxpayers may prepay the state portion of property tax levies if the county legislative authority authorizes prepayment.  Requirements for the prepayment of property taxes for plats filed after May 31 but prior to the next tax due date are extended to replats, altered plats, binding site plans, and condominium plans.

VOTES ON FINAL PASSAGE:

     Senate   46    0

     House 93  4 (House amended)

     Senate   48    0 (Senate concurred)

EFFECTIVE:July 23, 1989

           January 1, 1990 (Section 13)