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SUBSTITUTE
SENATE BILL 5056
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Passed
Legislature - 1997 Regular Session
State of Washington 55th
Legislature 1997 Regular Session
By
Read first time 01/31/97.
Limiting
property assessments to permitted land use.
AN
ACT Relating to limiting property assessments to permitted land use; and
amending RCW 84.40.030.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
84.40.030 and 1994 c 124 s 20 are each amended to read as follows:
All
property shall be valued at one hundred percent of its true and fair value in
money and assessed on the same basis unless specifically provided otherwise by
law.
Taxable
leasehold estates shall be valued at such price as they would bring at a fair,
voluntary sale for cash without any deductions for any indebtedness owed
including rentals to be paid.
The
true and fair value of real property for taxation purposes (including property
upon which there is a coal or other mine, or stone or other quarry) shall be
based upon the following criteria:
(1)
Any sales of the property being appraised or similar properties with respect to
sales made within the past five years. The appraisal shall be consistent with
the comprehensive land use plan, development regulations under chapter 36.70A
RCW, zoning, and any other governmental policies or practices in effect at the
time of appraisal that affect the use of property, as well as physical and
environmental influences. An assessment may not be determined by a method
that assumes a land usage not permitted, for that property being appraised,
under existing zoning or land use planning ordinances or statutes. The
appraisal shall also take into account: (a) In the use of sales by real estate
contract as similar sales, the extent, if any, to which the stated selling
price has been increased by reason of the down payment, interest rate, or other
financing terms; and (b) the extent to which the sale of a similar property
actually represents the general effective market demand for property of such
type, in the geographical area in which such property is located. Sales
involving deed releases or similar seller-developer financing arrangements
shall not be used as sales of similar property.
(2)
In addition to sales as defined in subsection (1), consideration may be given
to cost, cost less depreciation, reconstruction cost less depreciation, or
capitalization of income that would be derived from prudent use of the
property. In the case of property of a complex nature, or being used under
terms of a franchise from a public agency, or operating as a public utility, or
property not having a record of sale within five years and not having a
significant number of sales of similar property in the general area, the
provisions of this subsection (2) shall be the dominant factors in valuation.
When provisions of this subsection (2) are relied upon for establishing values
the property owner shall be advised upon request of the factors used in
arriving at such value.
(3) In valuing any tract or parcel of real property, the value of
the land, exclusive of structures thereon shall be determined; also the value
of structures thereon, but the valuation shall not exceed the value of the
total property as it exists. In valuing agricultural land, growing crops shall
be excluded.
