AN
ACT Relating to reducing property tax assessments in response to government
restrictions; amending RCW 84.69.020; and adding a new section to chapter 84.40
RCW.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. A
new section is added to chapter 84.40 RCW to read as follows:
(1)
The owner or person responsible for payment of taxes on any real property may
petition the assessor for a reduction in the assessed value of the real
property at any time within three years of adoption of a restriction by a
government entity.
(2)
Notwithstanding the revaluation cycle for the county, the assessor shall
reconsider the valuation of the real property within one hundred twenty days of
the filing of a petition under subsection (1) of this section. If the new
valuation is established for the real property after this review, the assessor
shall notify the property owner in the manner provided in RCW 84.40.045.
Unless the real property would otherwise be revalued that year as a result of
the revaluation cycle or new construction, the valuation of the real property
shall not be increased as a result of this revaluation. If the new valuation
is established after June 1st in any year, the new valuation shall be used for
purposes of imposing property taxes in the following year, but the property
owner shall be eligible for a refund under RCW 84.69.020.
(3)
A new valuation established under this section may be appealed under RCW
84.40.038.
(4)
If the assessor reduces the valuation of real property using the process under
this section, the property owner shall be entitled to a refund on property
taxes paid on this property calculated as follows:
(a)
A property owner is entitled to receive a refund for each year after the
restriction was adopted, but not to exceed three years, that the taxpayer paid
property taxes on the real property based upon the prior higher valuation; and
(b)
The amount of the refund in each year shall be the amount of reduced valuation
on the real property for that year, multiplied by the rate of property taxes
imposed on the property in that year.
(5)
As used in this section, "restriction" means a limitation,
requirement, regulation, or restriction that limits the use of the property,
including those imposed by the application of ordinances, resolutions, rules,
regulations, policies, statutes, and conditions of land use approval.
Sec.
2. RCW
84.69.020 and 1996 c 296 s 2 are each amended to read as follows:
On
the order of the county treasurer, ad valorem taxes paid before or after
delinquency shall be refunded if they were:
(1)
Paid more than once; ((or))
(2)
Paid as a result of manifest error in description; ((or))
(3)
Paid as a result of a clerical error in extending the tax rolls; ((or))
(4)
Paid as a result of other clerical errors in listing property; ((or))
(5)
Paid with respect to improvements which did not exist on assessment date; ((or))
(6)
Paid under levies or statutes adjudicated to be illegal or unconstitutional; ((or))
(7)
Paid as a result of mistake, inadvertence, or lack of knowledge by any person
exempted from paying real property taxes or a portion thereof pursuant to RCW
84.36.381 through 84.36.389, as now or hereafter amended; ((or))
(8)
Paid as a result of mistake, inadvertence, or lack of knowledge by either a
public official or employee or by any person with respect to real property in
which the person paying the same has no legal interest; ((or))
(9)
Paid on the basis of an assessed valuation which was appealed to the county
board of equalization and ordered reduced by the board; ((or))
(10)
Paid on the basis of an assessed valuation which was appealed to the state
board of tax appeals and ordered reduced by the board: PROVIDED, That the
amount refunded under subsections (9) and (10) of this section shall only be
for the difference between the tax paid on the basis of the appealed valuation
and the tax payable on the valuation adjusted in accordance with the board's
order; ((or))
(11)
Paid as a state property tax levied upon property, the assessed value of which
has been established by the state board of tax appeals for the year of such
levy: PROVIDED, HOWEVER, That the amount refunded shall only be for the
difference between the state property tax paid and the amount of state property
tax which would, when added to all other property taxes within the one percent
limitation of Article VII, section 2 of the state Constitution equal one
percent of the assessed value established by the board;
(12)
Paid on the basis of an assessed valuation which was adjudicated to be unlawful
or excessive: PROVIDED, That the amount refunded shall be for the difference
between the amount of tax which was paid on the basis of the valuation adjudged
unlawful or excessive and the amount of tax payable on the basis of the
assessed valuation determined as a result of the proceeding; ((or))
(13)
Paid on property acquired under RCW 84.60.050, and canceled under RCW
84.60.050(2); ((or))
(14)
Paid on the basis of an assessed valuation that was reduced under RCW 84.48.065;
or
(15)
Paid on the basis of an assessed valuation that was reduced under section 1 of
this act.
No
refunds under the provisions of this section shall be made because of any error
in determining the valuation of property, except as authorized in subsections
(9), (10), (11), and (12) of this section nor may any refunds be made if a bona
fide purchaser has acquired rights that would preclude the assessment and
collection of the refunded tax from the property that should properly have been
charged with the tax. Any refunds made on delinquent taxes shall include the
proportionate amount of interest and penalties paid. The county treasurer may
deduct from moneys collected for the benefit of the state's levy, refunds of
the state levy including interest on the levy as provided by this section and
chapter 84.68 RCW.
The
county treasurer of each county shall make all refunds determined to be
authorized by this section, and by the first Monday in January of each year,
report to the county legislative authority a list of all refunds made under
this section during the previous year. The list is to include the name of the
person receiving the refund, the amount of the refund, and the reason for the
refund.
