BP BHEAD INT H [atlas:bill]

AN ACT Relating to ad valorem taxation of certain property that would otherwise be subject to leasehold excise tax; amending RCW 84.36.451; adding a new section to chapter 82.29A RCW; adding a new section to chapter 84.40 RCW; adding a new section to chapter 84.55 RCW; creating a new section; and providing an effective date.

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

NEW SECTION. Sec. 1. A new section is added to chapter 82.29A RCW to read as follows:

All leasehold interests consisting of three thousand or more residential and recreational lots that are or may be subleased for residential and recreational purposes are exempt from tax under this chapter.

Sec. 2. RCW 84.36.451 and 1979 ex.s. c 196 s 10 are each amended to read as follows:

(1) The following property shall be exempt from taxation: Any and all rights to occupy or use any real or personal property owned in fee or held in trust by:

((~~(1)~~)) (a) The United States, the state of Washington, or any political subdivision or municipal corporation of the state of Washington; or

((~~(2)~~)) (b) A public corporation, commission, or authority created under RCW 35.21.730 or 35.21.660 if the property is listed on or is within a district listed on any federal or state register of historical sites; and

((~~(3)~~)) (c) Including any leasehold interest arising from the property identified in (a) and (b) of this subsection((~~s (1) and (2) of this section~~)) as defined in RCW 82.29A.020((~~: PROVIDED, That~~)).

(2) The exemption under this section shall not apply to:

(a) Any such leasehold interests which are a part of operating properties of public utilities subject to assessment under chapter 84.12 RCW ((~~nor~~)); or

(b) Any such leasehold interest consisting of three thousand or more residential and recreational lots that are or may be subleased for residential and recreational purposes.

(3) The exemption under this section shall not be construed to modify the provisions of RCW 84.40.230.

NEW SECTION. Sec. 3. A new section is added to chapter 84.40 RCW to read as follows:

A leasehold interest consisting of three thousand or more residential and recreational lots that are or may be subleased for residential and recreational purposes, together with any improvements thereon, shall be assessed and taxed in the same manner as privately owned real property. The sublessee of each lot, or the lessee if not subleased, is liable for the property tax on the lot and improvements thereon. If property tax for a lot or improvements thereon remains unpaid for more than three years from the date of delinquency, including any property taxes that are delinquent as of the effective date of this section, the county treasurer may proceed to collect the tax in the same manner as for other property, except that the lessor's interest in the property shall not be extinguished as a result of any action for the collection of tax. Collection of property taxes assessed on any such lot shall be enforceable by foreclosure proceedings against any improvement located on such lot, in accordance with real property foreclosure proceedings authorized in chapter 84.64 RCW. Collection of property taxes assessed against any mobile home located on any such lot shall proceed in the same manner as with mobile homes located on private property.

NEW SECTION. Sec. 4. A new section is added to chapter 84.55 RCW to read as follows:

For taxes levied for collection in 2001, the limitation set forth in RCW 84.55.010 for a taxing district shall be increased by an amount equal to the aggregate assessed valuation of leasehold interests subject to tax by the district under section 3 of this act, multiplied by the regular property tax levy rate of that district for the preceding year.

NEW SECTION. Sec. 5. Sections 2 and 3 of this act apply to taxes levied for collection in 2001 and thereafter.

NEW SECTION. Sec. 6. Section 1 of this act takes effect January 1, 2001.