AN
ACT Relating to improving property tax administration by correcting terminology
and deleting obsolete provisions; amending RCW 79.01.132, 84.04.030, 84.12.270,
84.12.280, 84.12.310, 84.12.330, 84.12.350, 84.12.360, 84.16.040, 84.16.050,
84.16.090, 84.16.110, 84.16.120, 84.36.477, 84.40.030, 84.40.040, 84.40.045,
84.40.405, 84.41.041, 84.48.010, 84.48.065, 84.48.075, 84.52.063, 84.70.010,
and 84.70.010; reenacting and amending RCW 84.40.020; reenacting RCW 84.36.041;
creating new sections; repealing RCW 84.04.018, 84.36.140, 84.36.150,
84.36.160, 84.36.161, 84.36.162, 84.36.176, 84.36.181, 84.36.190, 84.36.191,
84.36.270, 84.36.280, 84.36.290, 84.36.473, 84.36.490, 84.40.0305, 84.36.140,
84.36.150, 84.36.160, 84.36.161, 84.36.162, 84.36.176, 84.36.181, 84.36.190, 84.36.191,
84.36.270, 84.36.280, 84.36.290, 84.36.473, and 84.36.490; and providing a
contingent effective date.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
79.01.132 and 1999 c 51 s 1 are each amended to read as follows:
When
any timber, fallen timber, stone, gravel, or other valuable material on state
lands is sold separate from the land, it may be sold as a lump sum sale or as a
scale sale. Lump sum sales under five thousand dollars appraised value shall
be paid for in cash. The initial deposits required in RCW 79.01.204, not to
exceed twenty-five percent of the actual or projected purchase price, but in
the case of lump sum sales over five thousand dollars not less than five
thousand dollars, shall be made on the day of the sale, and in the case of
those sales appraised below the amount specified in RCW 79.01.200, the
department of natural resources may require full cash payment on the day of
sale. The purchaser shall notify the department of natural resources before
any timber is cut and before removal or processing of any valuable materials on
the sale area, at which time the department of natural resources may require,
in the amount determined by the department, advance payment for the removal,
processing, and/or cutting of timber or other valuable materials, or bank
letters of credit, payment bonds, or assignments of savings accounts acceptable
to the department as adequate security. The amount of such advance payments
and/or security shall at all times equal or exceed the value of timber cut and
other valuable materials processed or removed until paid for. The initial
deposit shall be maintained until all contract obligations of the purchaser are
satisfied: PROVIDED HOWEVER, That all or a portion of said initial deposit may
be applied as the final payment for said materials in the event the department
of natural resources determines that adequate security exists for the
performance or fulfillment of any remaining obligations of the purchaser under
the sale contract.
In
all cases where timber, fallen timber, stone, gravel, or other valuable
material is sold separate from the land, the same shall revert to the state if
not removed from the land within the period specified in the sale contract.
Said specified period shall not exceed five years from the date of the purchase
thereof: PROVIDED, That the specified periods in the sale contract for stone,
sand, fill material, or building stone shall not exceed twenty years: PROVIDED
FURTHER, That in all cases where, in the judgment of the department of natural
resources, the purchaser is acting in good faith and endeavoring to remove such
materials, the department of natural resources may extend the time for the
removal thereof for any period not exceeding twenty years from the date of
purchase for the stone, sand, fill material or building stone or for a total of
ten years beyond the normal termination date specified in the original sale
contract for all other material, upon payment to the state of a sum to be fixed
by the department of natural resources, based on the estimated loss of income
per acre to the state resulting from the granting of the extension but in no
event less than fifty dollars per extension, plus interest on the unpaid
portion of the contract. The interest rate shall be fixed, from time to time,
by rule adopted by the board of natural resources and shall not be less than
six percent per annum. The applicable rate of interest as fixed at the date of
sale and the maximum extension payment shall be set forth in the contract. The
method for calculating the unpaid portion of the contract upon which such
interest shall be paid by the purchaser shall be set forth in the contract.
The department of natural resources shall pay into the state treasury all sums
received for such extension and the same shall be credited to the fund to which
was credited the original purchase price of the material so sold. However, a
direct sale of valuable materials may be sold to the applicant for cash at full
appraised value without notice or advertising. The board of natural resources
shall, by resolution, establish the value amount of a direct sale not to exceed
twenty thousand dollars in appraised sale value, and establish procedures to
assure that competitive market prices and accountability will be guaranteed.
Any
time that the department of natural resources sells timber by contract that
includes a performance bond, the department shall require the purchaser to
present proof of any and all property taxes paid prior to the release of
the performance bond. Within thirty days of payment of taxes due by the timber
purchaser, the county treasurer shall provide certified evidence of property
taxes paid, clearly disclosing the sale contract number.
The
provisions of this section apply unless otherwise provided by statute.
The
board of natural resources shall establish procedures to protect against cedar
theft and to ensure adequate notice is given for persons interested in
purchasing cedar.
Sec.
2. RCW
84.04.030 and 1997 c 3 s 102 are each amended to read as follows:
"Assessed
value of property" shall be held and construed to mean the aggregate
valuation of the property subject to taxation by any taxing district as ((determined
under RCW 84.40.0305, reduced by the value of any applicable exemptions under
RCW 84.36.381 or other law, and)) placed on the last completed and balanced
tax rolls of the county preceding the date of any tax levy.
Sec.
3. RCW
84.12.270 and 1997 c 3 s 113 are each amended to read as follows:
The
department of revenue shall annually make an assessment of the operating
property of all companies; and between the fifteenth day of March and the first
day of July of each ((of said)) year((s)) shall prepare an
assessment roll upon which it shall enter ((the assessed)) and assess
the true and fair value of all the operating property of each of such
companies as of the first day of January of the year in which the assessment is
made. For the purpose of determining the ((assessed)) true and fair
value of such property the department of revenue may inspect the property
belonging to said companies and may take into consideration any information or
knowledge obtained by it from such examination and inspection of such property,
or of the books, records, and accounts of such companies, the statements
filed as required by this chapter, the reports, statements, or returns
of such companies filed in the office of any board, office, or
commission of this state or any county thereof, the earnings and earning power
of such companies, the franchises owned or used by such companies, the ((assessed))
true and fair valuation of any and all property of such companies,
whether operating or nonoperating property, and whether situated within or
outside the state, and any other facts, evidence, or information that
may be obtainable bearing upon the value of the operating property: PROVIDED,
That in no event shall any statement or report required from any company by
this chapter be conclusive upon the department of revenue in determining the
amount, character, and ((assessed)) true and fair value of
the operating property of such company.
Sec.
4. RCW
84.12.280 and 1998 c 335 s 2 are each amended to read as follows:
(((1)))
In making the assessment of the operating property of any railroad or logging
railroad company and in the apportionment of the values and the taxation
thereof, all land occupied and claimed exclusively as the right-of-way for
railroads, with all the tracks and substructures and superstructures which
support the same, together with all side tracks, second tracks, turn-outs,
station houses, depots, round houses, machine shops, or other buildings
belonging to the company, used in the operation thereof, without separating the
same into land and improvements, shall be assessed as real property. And the
rolling stock and other movable property belonging to any railroad or logging
railroad company shall be considered as personal property and taxed as such:
PROVIDED, That all of the operating property of street railway companies shall
be assessed and taxed as personal property.
(((2)))
All of the operating property of airplane companies, telegraph companies, pipe
line companies, and all of the operating property other than lands and
buildings of electric light and power companies, telephone companies, and gas
companies shall be assessed and taxed as personal property.
(((3)
Notwithstanding subsections (1) and (2) of this section, the limit provided
under RCW 84.40.0305 shall be applied in the assessment of property under this
section to the same extent as that limit is generally applied to property not
assessed under this chapter.))
Sec.
5. RCW
84.12.310 and 1997 c 3 s 115 are each amended to read as follows:
For
the purpose of determining the system value of the operating property of any
such company, the department of revenue shall deduct from the ((assessed))
true and fair value of the total assets of such company, the ((assessed))
actual cash value of all nonoperating property owned by such company.
For such purpose the department of revenue may require of the assessors of the
various counties within this state a detailed list of such company's properties
assessed by them, together with the assessable or assessed value thereof:
PROVIDED, That such assessed or assessable value shall be advisory only and not
conclusive on the department of revenue as to the value thereof.
Sec.
6. RCW
84.12.330 and 1998 c 335 s 3 are each amended to read as follows:
Upon
the assessment roll shall be placed after the name of each company a general
description of the operating property of the company, which shall be considered
sufficient if described in the language of RCW 84.12.200(12), as applied to the
company, following which shall be entered the ((assessed)) true and
fair value of the operating property as determined by the department of
revenue. No assessment shall be invalidated by reason of a mistake in the name
of the company assessed, or the omission of the name of the owner or by the
entry as owner of a name other than that of the true owner. When the department
of revenue shall have prepared the assessment roll and entered thereon the ((assessed))
true and fair value of the operating property of the company, as herein
required, it shall notify the company by mail of the valuation determined by it
and entered upon the roll.
Sec.
7. RCW
84.12.350 and 1997 c 3 s 117 are each amended to read as follows:
Upon
determination by the department of revenue of the ((assessed)) true
and fair value of the property appearing on such rolls it shall apportion
such value to the respective counties entitled thereto, as hereinafter
provided, and shall determine the equalized assessed valuation of such property
in each such county and in the several taxing districts therein, by applying to
such actual apportioned value the same ratio as the ratio of assessed to ((the
correct assessed)) actual value of the general property in such
county: PROVIDED, That, whenever the amount of the true and ((correct assessed))
fair value of the operating property of any company otherwise
apportionable to any county or other taxing district shall be less than two
hundred fifty dollars, such amount need not be apportioned to such county or
taxing district but may be added to the amount apportioned to an adjacent
county or taxing district.
Sec.
8. RCW
84.12.360 and 1998 c 335 s 4 are each amended to read as follows:
The
true and fair value of the operating property assessed to a company, as
fixed and determined by the department of revenue, shall be apportioned by the
department of revenue to the respective counties and to the taxing districts
thereof wherein such property is located in the following manner:
(1)
Property of all railroad companies other than street railroad companies,
telegraph companies and pipe line companies‑-upon the basis of that
proportion of the value of the total operating property within the state which
the mileage of track, as classified by the department of revenue (in case of
railroads), mileage of wire (in the case of telegraph companies), and mileage
of pipe line (in the case of pipe line companies) within each county or taxing
district bears to the total mileage thereof within the state, at the end of the
calendar year last past. For the purpose of such apportionment the department
may classify railroad track.
(2)
Property of street railroad companies, telephone companies, electric light and
power companies, and gas companies‑-upon the basis of relative value of the
operating property within each county and taxing district to the value of the
total operating property within the state to be determined by such factors as
the department of revenue shall deem proper.
(3)
Planes or other aircraft of airplane companies‑-upon the basis of such
factor or factors of allocation, to be determined by the department of revenue,
as will secure a substantially fair and equitable division between counties and
other taxing districts.
All
other property of airplane companies‑-upon the basis set forth in
subsection (2) of this section.
The
basis of apportionment with reference to all public utility companies above
prescribed shall not be deemed exclusive and the department of revenue in
apportioning values of such companies may also take into consideration such
other information, facts, circumstances, or allocation factors as will enable
it to make a substantially just and correct valuation of the operating property
of such companies within the state and within each county thereof.
Sec.
9. RCW
84.16.040 and 1997 c 3 s 119 are each amended to read as follows:
The
department of revenue shall annually make an assessment of the operating
property of each private car company; and between the first day of May and the
first day of July of each ((of said)) year((s)) shall prepare an
assessment roll upon which it shall enter and assess the ((assessed))
true and fair value of all the operating property of each of such
companies as of the first day of January of the year in which the assessment is
made. For the purpose of determining the ((assessed)) true and fair
value of such property the department of revenue may take into consideration
any information or knowledge obtained by it from an examination and inspection
of such property, or of the books, records, and accounts of such
companies, the statements filed as required by this chapter, the reports,
statements, or returns of such companies filed in the office of any
board, office, or commission of this state or any county thereof, the
earnings and earning power of such companies, the franchises owned or used by
such companies, the ((assessed)) true and fair valuation of any
and all property of such companies, whether operating property or nonoperating
property, and whether situated within or without the state, and any other
facts, evidences, or information that may be obtainable bearing upon the
value of the operating property: PROVIDED, That in no event shall any
statement or report required from any company by this chapter be conclusive
upon the department of revenue in determining the amount, character, and
((assessed)) true and fair value of the operating property of
such company.
Sec.
10. RCW
84.16.050 and 1997 c 3 s 120 are each amended to read as follows:
The
department of revenue may, in determining the ((assessed)) true and
fair value of the operating property to be placed on the assessment roll
value the entire property as a unit. If the company owns, leases, operates or
uses property partly within and partly without the state, the department of
revenue may determine the value of the operating property within this state by
the proportion that the value of such property bears to the value of the entire
operating property of the company, both within and without this state. In
determining the operating property which is located within this state the
department of revenue may consider and base such determination on the
proportion which the number of car miles of the various classes of cars made in
this state bears to the total number of car miles made by the same cars within
and without this state, or to the total number of car miles made by all cars of
the various classes within and without this state. If the value of the
operating property of the company cannot be fairly determined in such manner
the department of revenue may use any other reasonable and fair method to
determine the value of the operating property of the company within this state.
Sec.
11. RCW
84.16.090 and 1997 c 3 s 121 are each amended to read as follows:
Upon
the assessment roll shall be placed after the name of each company a general
description of the operating property of the company, which shall be considered
sufficient if described in the language of RCW 84.16.010(3) or otherwise,
following which shall be entered the ((assessed)) true and fair
value of the operating property as determined by the department of revenue. No
assessment shall be invalid by a mistake in the name of the company assessed,
by omission of the name of the owner or by the entry of a name other than that
of the true owner. When the department of revenue shall have prepared the
assessment roll and entered thereon the ((assessed)) true and fair
value of the operating property of the company, as required, it shall notify
the company by mail of the valuation determined by it and entered upon the
roll; and thereupon such ((assessed)) valuation shall become the ((assessed))
true and fair value of the operating property of the company, subject to
revision or correction by the department of revenue as hereinafter provided;
and shall be the valuation upon which, after equalization by the department of
revenue as hereinafter provided, the taxes of such company shall be based and
computed.
Sec.
12. RCW
84.16.110 and 1997 c 3 s 122 are each amended to read as follows:
Upon
determination by the department of revenue of the true and ((correct assessed))
fair value of the property appearing on such rolls the department shall
apportion such value to the respective counties entitled thereto as hereinafter
provided, and shall determine the equalized or assessed valuation of such
property in such counties by applying to such actual apportioned value the same
ratio as the ratio of assessed to ((the correct assessed)) actual
value of the general property of the respective counties: PROVIDED, That,
whenever the amount of the true and ((correct assessed)) fair
value of the operating property of any company otherwise apportionable to any
county shall be less than two hundred fifty dollars, such amount need not be
apportioned to such county but may be added to the amount apportioned to an
adjacent county.
Sec.
13. RCW
84.16.120 and 1997 c 3 s 123 are each amended to read as follows:
The
((assessed)) true and fair value of the property of each company
as fixed and determined by the department of revenue as herein provided shall
be apportioned to the respective counties in the following manner:
(1)
If all the operating property of the company is situated entirely within a
county and none of such property is located within, extends into, or through or
is operated into or through any other county, the entire value thereof shall be
apportioned to the county within which such property is situated, located, and
operated.
(2)
If the operating property of any company is situated or located within, extends
into or is operated into or through more than one county, the value thereof
shall be apportioned to the respective counties into or through which its cars
are operated in the proportion that the length of main line track of the
respective railroads moving such cars in such counties bears to the total
length of main line track of such respective railroads in this state.
(3)
If the property of any company is of such character that it will not be
reasonable, feasible or fair to apportion the value as hereinabove provided,
the value thereof shall be apportioned between the respective counties into or
through which such property extends or is operated or in which the same is located
in such manner as may be reasonable, feasible and fair.
Sec.
14. RCW
84.36.041 and 1999 c 358 s 16 and 1999 c 356 s 1 are each reenacted to read as
follows:
(1)
All real and personal property used by a nonprofit home for the aging that is
reasonably necessary for the purposes of the home is exempt from taxation if
the benefit of the exemption inures to the home and:
(a)
At least fifty percent of the occupied dwelling units in the home are occupied
by eligible residents; or
(b)
The home is subsidized under a federal department of housing and urban
development program. The department of revenue shall provide by rule a
definition of homes eligible for exemption under this subsection (1)(b),
consistent with the purposes of this section.
(2)
All real and personal property used by a nonprofit home for the aging that is
reasonably necessary for the purposes of the home is exempt from taxation if
the benefit of the exemption inures to the home and the construction,
rehabilitation, acquisition, or refinancing of the home is financed under a
program using bonds exempt from federal income tax if at least seventy-five
percent of the total amount financed uses the tax exempt bonds and the
financing program requires the home to reserve a percentage of all dwelling
units so financed for low-income residents. The initial term of the exemption
under this subsection shall equal the term of the tax exempt bond used in
connection with the financing program, or the term of the requirement to reserve
dwelling units for low-income residents, whichever is shorter. If the
financing program involves less than the entire home, only those dwelling units
included in the financing program are eligible for total exemption. The
department of revenue shall provide by rule the requirements for monitoring
compliance with the provisions of this subsection and the requirements for
exemption including:
(a)
The number or percentage of dwelling units required to be occupied by
low-income residents, and a definition of low income;
(b)
The type and character of the dwelling units, whether independent units or
otherwise; and
(c)
Any particular requirements for continuing care retirement communities.
(3)
A home for the aging is eligible for a partial exemption on the real property
and a total exemption for the home's personal property if the home does not
meet the requirements of subsection (1) of this section because fewer than
fifty percent of the occupied dwelling units are occupied by eligible
residents, as follows:
(a)
A partial exemption shall be allowed for each dwelling unit in a home occupied
by a resident requiring assistance with activities of daily living.
(b)
A partial exemption shall be allowed for each dwelling unit in a home occupied
by an eligible resident.
(c)
A partial exemption shall be allowed for an area jointly used by a home for the
aging and by a nonprofit organization, association, or corporation currently
exempt from property taxation under one of the other provisions of this
chapter. The shared area must be reasonably necessary for the purposes of the
nonprofit organization, association, or corporation exempt from property
taxation under one of the other provisions of this chapter, such as kitchen,
dining, and laundry areas.
(d)
The amount of exemption shall be calculated by multiplying the assessed value
of the property reasonably necessary for the purposes of the home, less the
assessed value of any area exempt under (c) of this subsection, by a fraction.
The numerator of the fraction is the number of dwelling units occupied by
eligible residents and by residents requiring assistance with activities of
daily living. The denominator of the fraction is the total number of occupied
dwelling units as of December 31st of the first assessment year the home
becomes operational for which exemption is claimed and January 1st of each
subsequent assessment year for which exemption is claimed.
(4)
To be exempt under this section, the property must be used exclusively for the
purposes for which the exemption is granted, except as provided in RCW
84.36.805.
(5)
A home for the aging is exempt from taxation only if the organization operating
the home is exempt from income tax under section 501(c) of the federal internal
revenue code as existing on January 1, 1989, or such subsequent date as the
director may provide by rule consistent with the purposes of this section.
(6)
In order for the home to be eligible for exemption under subsections (1)(a) and
(3)(b) of this section, each eligible resident of a home for the aging shall
submit an income verification form to the county assessor by July 1st of the
assessment year for which exemption is claimed. However, during the first year
a home becomes operational, the county assessor shall accept income verification
forms from eligible residents up to December 31st of the assessment year. The
income verification form shall be prescribed and furnished by the department of
revenue. An eligible resident who has filed a form for a previous year need
not file a new form until there is a change in status affecting the person's
eligibility.
(7)
In determining the true and fair value of a home for the aging for purposes of
the partial exemption provided by subsection (3) of this section, the assessor
shall apply the computation method provided by RCW 84.34.060 and shall consider
only the use to which such property is applied during the years for which such
partial exemptions are available and shall not consider potential uses of such
property.
(8)
As used in this section:
(a)
"Eligible resident" means a person who:
(i)
Occupied the dwelling unit as a principal place of residence as of December
31st of the first assessment year the home becomes operational. In each
subsequent year, the eligible resident must occupy the dwelling unit as a
principal place of residence as of January 1st of the assessment year for which
the exemption is claimed. Confinement of the person to a hospital or nursing
home does not disqualify the claim of exemption if the dwelling unit is
temporarily unoccupied or if the dwelling unit is occupied by a spouse, a
person financially dependent on the claimant for support, or both; and
(ii)
Is sixty-one years of age or older on December 31st of the year in which the
exemption claim is filed, or is, at the time of filing, retired from regular
gainful employment by reason of physical disability. Any surviving spouse of a
person who was receiving an exemption at the time of the person's death shall
qualify if the surviving spouse is fifty-seven years of age or older and
otherwise meets the requirements of this subsection; and
(iii)
Has a combined disposable income of no more than the greater of twenty-two
thousand dollars or eighty percent of the median income adjusted for family
size as most recently determined by the federal department of housing and urban
development for the county in which the person resides. For the purposes of
determining eligibility under this section, a "cotenant" means a
person who resides with an eligible resident and who shares personal financial
resources with the eligible resident.
(b)
"Combined disposable income" means the disposable income of the
person submitting the income verification form, plus the disposable income of
his or her spouse, and the disposable income of each cotenant occupying the
dwelling unit for the preceding calendar year, less amounts paid by the person
submitting the income verification form or his or her spouse or cotenant during
the previous year for the treatment or care of either person received in the
dwelling unit or in a nursing home. If the person submitting the income
verification form was retired for two months or more of the preceding year, the
combined disposable income of such person shall be calculated by multiplying
the average monthly combined disposable income of such person during the months
such person was retired by twelve. If the income of the person submitting the
income verification form is reduced for two or more months of the preceding
year by reason of the death of the person's spouse, the combined disposable
income of such person shall be calculated by multiplying the average monthly
combined disposable income of such person after the death of the spouse by
twelve.
(c)
"Disposable income" means adjusted gross income as defined in the
federal internal revenue code, as amended prior to January 1, 1989, or such
subsequent date as the director may provide by rule consistent with the purpose
of this section, plus all of the following items to the extent they are not
included in or have been deducted from adjusted gross income:
(i)
Capital gains, other than gain excluded from income under section 121 of the
federal internal revenue code to the extent it is reinvested in a new principal
residence;
(ii)
Amounts deducted for loss;
(iii)
Amounts deducted for depreciation;
(iv)
Pension and annuity receipts;
(v)
Military pay and benefits other than attendant-care and medical-aid payments;
(vi)
Veterans benefits other than attendant-care and medical-aid payments;
(vii)
Federal social security act and railroad retirement benefits;
(viii)
Dividend receipts; and
(ix)
Interest received on state and municipal bonds.
(d)
"Resident requiring assistance with activities of daily living" means
a person who requires significant assistance with the activities of daily
living and who would be at risk of nursing home placement without this
assistance.
(e)
"Home for the aging" means a residential housing facility that (i)
provides a housing arrangement chosen voluntarily by the resident, the
resident's guardian or conservator, or another responsible person; (ii) has
only residents who are at least sixty-one years of age or who have needs for
care generally compatible with persons who are at least sixty-one years of age;
and (iii) provides varying levels of care and supervision, as agreed to at the
time of admission or as determined necessary at subsequent times of
reappraisal.
(9)
A for-profit home for the aging that converts to nonprofit status after June
11, 1992, and would otherwise be eligible for tax exemption under this section
may not receive the tax exemption until five years have elapsed since the
conversion. The exemption shall then be ratably granted over the next five
years.
Sec.
15. RCW
84.36.477 and 1983 1st ex.s. c 62 s 6 are each amended to read as follows:
(1)
Business inventories ((as defined in RCW 84.36.473)) are exempt from
property taxation.
(2)
As used in this section:
(a)(i)
"Business inventories" means all livestock, inventories of finished
goods and work in process, and personal property not under lease or rental,
acquired, or produced solely for the purpose of sale or lease or for the
purpose of consuming the property in producing for sale or lease a new article
of tangible personal property of which the property becomes an ingredient or
component.
(ii)
"Business inventories" also includes:
(A)
All grains and flour, fruit and fruit products, unprocessed timber, vegetables
and vegetable products, and fish and fish products, while being transported to
or held in storage in a public or private warehouse or storage area if actually
shipped to points outside the state on or before April 30th of the first year
for which they would otherwise be taxable;
(B)
All finished plywood, hardboard, and particleboard panels shipped from outside
this state to any processing plant within this state, if the panels are moving
under a through freight rate to final destination outside this state and the
carrier grants the shipper the privilege of stopping the shipment in transit
for the purpose of storing, milling, manufacturing, or other processing, while
the panels are in the process of being treated or shaped into flat component
parts to be incorporated into finished products outside this state and for
thirty days after completion of the processing or treatment;
(C)
All ore or metal shipped from outside this state to any smelter or refining
works within this state, while in process of reduction or refinement and for
thirty days after completion of the reduction or refinement; and
(D)
All metals refined by electrolytic process into cathode or bar form while in
this form and held under negotiable warehouse receipt in a public or private
warehouse recognized by an established incorporated commodity exchange and for
sale through the exchange.
(iii)
"Business inventories" does not include personal property acquired or
produced for the purpose of lease or rental if the property was leased or
rented at any time during the calendar year immediately preceding the year of
assessment and was not thereafter remanufactured, nor does it include property
held within the normal course of business for lease or rental for periods of
less than thirty days.
(iv)
"Business inventories" does not include agricultural or horticultural
property fully or partially exempt under RCW 84.36.470.
(v)
"Business inventories" does not include timber that is standing on
public land and that is sold under a contract entered into after August 1,
1982;
(b)
"Fish and fish products" means all fish and fish products suitable
and designed for human consumption, excluding all others;
(c)
"Fruit and fruit products" means all raw edible fruits, berries, and
hops and all processed products of fruits, berries, or hops, suitable and
designed for human consumption, while in the hands of the first processor;
(d)
"Processed" means canning, barreling, bottling, preserving, refining,
freezing, packing, milling, or any other method employed to keep any grain,
fruit, vegetable, or fish in an edible condition or to put it into more
suitable or convenient form for consuming, storing, shipping, or marketing;
(e)
"Remanufactured" means the restoration of property to essentially its
original condition, but does not mean normal maintenance or repairs; and
(f)
"Vegetables and vegetable products" means all raw edible vegetables
such as peas, beans, beets, sugar beets, and other vegetables, and all
processed products of vegetables, suitable and designed for human consumption,
while in the hands of the first processor.
Sec.
16. RCW
84.40.020 and 1997 c 239 s 2 and 1997 c 3 s 103 are each reenacted and amended
to read as follows:
All
real property in this state subject to taxation shall be listed and assessed
every year, with reference to its ((appraised and assessed)) value((s))
on the first day of January of the year in which it is assessed. Such listing
and all supporting documents and records shall be open to public inspection
during the regular office hours of the assessor's office: PROVIDED, That
confidential income data is hereby exempted from public inspection as noted in
RCW 42.17.260 and 42.17.310. All personal property in this state subject to
taxation shall be listed and assessed every year, with reference to its value
and ownership on the first day of January of the year in which it is assessed:
PROVIDED, That if the stock of goods, wares, merchandise or material, whether
in a raw or finished state or in process of manufacture, owned or held by any
taxpayer on January 1 of any year does not fairly represent the average stock
carried by such taxpayer, such stock shall be listed and assessed upon the
basis of the monthly average of stock owned or held by such taxpayer during the
preceding calendar year or during such portion thereof as the taxpayer was
engaged in business.
Sec.
17. RCW
84.40.030 and 1998 c 320 s 9 are each amended to read as follows:
All
((personal)) 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.
((All
real property shall be appraised at one hundred percent of its true and fair
value in money and assessed as provided in RCW 84.40.0305 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) of this section,
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 shall be the dominant factors in
valuation. When provisions of this subsection 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 true and fair value of the
land, exclusive of structures thereon shall be determined; also the true and
fair value of structures thereon, but the ((appraised)) valuation shall
not exceed the true and fair value of the total property as it exists. In
valuing agricultural land, growing crops shall be excluded.
Sec.
18. RCW
84.40.040 and 1997 c 3 s 106 are each amended to read as follows:
The
assessor shall begin the preliminary work for each assessment not later than
the first day of December of each year in all counties in the state. The
assessor shall also complete the duties of listing and placing valuations on
all property by May 31st of each year, except that the listing and valuation of
construction and mobile homes under RCW 36.21.080 and 36.21.090 shall be completed
by August 31st of each year, and in the following manner, to wit:
The
assessor shall actually determine as nearly as practicable the true and fair
value of each tract or lot of land listed for taxation and of each improvement
located thereon and shall enter ((as the appraised value)) one hundred
percent of the true and fair value of such land and ((of the total true and
fair)) value of such improvements, together with the total of such one
hundred percent valuations, opposite each description of property on the
assessment list and tax roll.
((The
assessor shall determine the assessed value, under RCW 84.40.0305, for each
tract or lot of land listed for taxation, including improvements located
thereon, and shall also enter this value opposite each description of property
on the assessment list and tax roll.))
The
assessor shall make an alphabetical list of the names of all persons in the
county liable to assessment of personal property, and require each person to
make a correct list and statement of such property according to the standard
form prescribed by the department of revenue, which statement and list shall
include, if required by the form, the year of acquisition and total original
cost of personal property in each category of the prescribed form, and shall be
signed and verified under penalty of perjury by the person listing the
property: PROVIDED, That the assessor may list and value improvements on
publicly owned land in the same manner as real property is listed and valued,
including conformance with the revaluation program required under chapter 84.41
RCW. Such list and statement shall be filed on or before the last day of
April. The assessor shall on or before the 1st day of January of each year
mail a notice to all such persons at their last known address that such
statement and list is required, such notice to be accompanied by the form on
which the statement or list is to be made: PROVIDED, That the notice mailed by
the assessor to each taxpayer each year shall, if practicable, include the
statement and list of personal property of the taxpayer for the preceding
year. Upon receipt of such statement and list the assessor shall thereupon
determine the true and fair value of the property included in such statement
and enter one hundred percent of the same on the assessment roll opposite the
name of the party assessed; and in making such entry in the assessment list,
the assessor shall give the name and post office address of the party listing
the property, and if the party resides in a city the assessor shall give the
street and number or other brief description of the party's residence or place
of business. The assessor may, after giving written notice of the action to
the person to be assessed, add to the assessment list any taxable property
which should be included in such list.
Sec.
19. RCW
84.40.045 and 1997 c 3 s 107 are each amended to read as follows:
The
assessor shall give notice of any change in the ((assessed)) true and
fair value of real property for the tract or lot of land and any
improvements thereon no later than thirty days after appraisal: PROVIDED, That
no such notice shall be mailed during the period from January 15 to February 15
of each year: PROVIDED FURTHER, That no notice need be sent with respect to
changes in valuation of forest land made pursuant to chapter 84.33 RCW.
The
notice shall contain a statement of both the prior and the new ((appraised
and assessed values)) true and fair value, stating separately land
and improvement ((appraised)) values, and a brief statement of the
procedure for appeal to the board of equalization and the time, date, and place
of the meetings of the board.
The
notice shall be mailed by the assessor to the taxpayer.
If any taxpayer, as shown by the tax rolls, holds solely a security
interest in the real property which is the subject of the notice, pursuant to a
mortgage, contract of sale, or deed of trust, such taxpayer shall, upon written
request of the assessor, supply, within thirty days of receipt of such request,
to the assessor the name and address of the person making payments pursuant to
the mortgage, contract of sale, or deed of trust, and thereafter such person
shall also receive a copy of the notice provided for in this section. Willful
failure to comply with such request within the time limitation provided for
herein shall make such taxpayer subject to a maximum civil penalty of five
thousand dollars. The penalties provided for herein shall be recoverable in an
action by the county prosecutor, and when recovered shall be deposited in the
county current expense fund. The assessor shall make the request provided for
by this section during the month of January.
Sec.
20. RCW
84.40.405 and 2000 c 103 s 28 are each amended to read as follows:
The
department of revenue shall promulgate such rules and regulations, and
prescribe such procedures as it deems necessary to carry out RCW 84.36.470((,
84.36.473,)) and 84.36.477((, and this section)).
Sec.
21. RCW
84.41.041 and 1997 c 3 s 108 are each amended to read as follows:
Each
county assessor shall cause taxable real property to be physically inspected
and valued at least once every six years in accordance with RCW 84.41.030, and
in accordance with a plan filed with and approved by the department of
revenue. Such revaluation plan shall provide that a reasonable portion of all
taxable real property within a county shall be revalued and these
newly-determined values placed on the assessment rolls each year. The
department may approve a plan that provides that all property in the county be
revalued every two years. If the revaluation plan provides for physical
inspection at least once each four years, during the intervals between each
physical inspection of real property, the ((appraised)) valuation of
such property may be adjusted to its current true and fair value, such
adjustments to be based upon appropriate statistical data. If the revaluation
plan provides for physical inspection less frequently than once each four
years, during the intervals between each physical inspection of real property,
the ((appraised)) valuation of such property shall be adjusted to its
current true and fair value, such adjustments to be made once each year and to
be based upon appropriate statistical data. ((If the appraised valuation is
changed, the assessed value shall be recalculated under RCW 84.40.0305.))
The
assessor may require property owners to submit pertinent data respecting
taxable property in their control including data respecting any sale or
purchase of said property within the past five years, the cost and
characteristics of any improvement on the property and other facts necessary
for appraisal of the property.
Sec.
22. RCW
84.48.010 and 1997 c 3 s 109 are each amended to read as follows:
Prior
to July 15th, the county legislative authority shall form a board for the
equalization of the assessment of the property of the county. The members of
said board shall receive a per diem amount as set by the county legislative
authority for each day of actual attendance of the meeting of the board of
equalization to be paid out of the current expense fund of the county:
PROVIDED, That when the county legislative authority constitute the board they
shall only receive their compensation as members of the county legislative
authority. The board of equalization shall meet in open session for this
purpose annually on the 15th day of July and, having each taken an oath fairly
and impartially to perform their duties as members of such board, they shall
examine and compare the returns of the assessment of the property of the county
and proceed to equalize the same, so that ((the appraised value of))
each tract or lot of real property and each article or class of personal
property shall be entered on the assessment list at its true and fair value,
according to the measure of value used by the county assessor in such
assessment year, ((and so that the assessed value of each tract or lot of
real property is entered on the assessment list at its correct amount)) which
is presumed to be correct under RCW 84.40.0301, and subject to the
following rules:
First.
They shall raise the ((appraised)) valuation of each tract or lot or
item of real property which is returned below its true and fair value to such
price or sum as to be the true and fair value thereof, ((and raise the
assessed valuation of each tract or lot or item of real property which is
returned below its correct amount to the correct amount)) after at least
five days' notice shall have been given in writing to the owner or agent.
Second.
They shall reduce the ((appraised)) valuation of each tract or lot or
item which is returned above its true and fair value to such price or sum as to
be the true and fair value thereof ((and reduce the assessed valuation of
each tract or lot or item of real property which is returned above its correct
amount to the correct amount)).
Third.
They shall raise the valuation of each class of personal property which is
returned below its true and fair value to such price or sum as to be the true
and fair value thereof, and they shall raise the aggregate value of the
personal property of each individual whenever the aggregate value is less than
the true valuation of the taxable personal property possessed by such
individual, to such sum or amount as to be the true value thereof, after at
least five days' notice shall have been given in writing to the owner or agent
thereof.
Fourth.
They shall reduce the valuation of each class of personal property enumerated
on the detail and assessment list of the current year, which is returned above
its true and fair value, to such price or sum as to be the true and fair value
thereof; and they shall reduce the aggregate valuation of the personal property
of such individual who has been assessed at too large a sum to such sum or
amount as was the true and fair value of the personal property.
Fifth.
The board may review all claims for either real or personal property tax
exemption as determined by the county assessor, and shall consider any taxpayer
appeals from the decision of the assessor thereon to determine (1) if the
taxpayer is entitled to an exemption, and (2) if so, the amount thereof.
The
clerk of the board shall keep an accurate journal or record of the proceedings
and orders of said board showing the facts and evidence upon which their action
is based, and the said record shall be published the same as other proceedings
of county legislative authority, and shall make a true record of the changes of
the descriptions and ((appraised)) assessed values ordered by the
county board of equalization. The assessor shall ((recalculate assessed
values and)) correct the real and personal assessment rolls in accordance
with the changes made by the said county board of equalization, and the
assessor shall make duplicate abstracts of such corrected values, one copy of
which shall be retained in the office, and one copy forwarded to the department
of revenue on or before the eighteenth day of August next following the meeting
of the county board of equalization.
The
county board of equalization shall meet on the 15th day of July and may
continue in session and adjourn from time to time during a period not to exceed
four weeks, but shall remain in session not less than three days: PROVIDED,
That the county board of equalization with the approval of the county
legislative authority may convene at any time when petitions filed exceed
twenty-five, or ten percent of the number of appeals filed in the preceding
year, whichever is greater.
No
taxes, except special taxes, shall be extended upon the tax rolls until the
property valuations are equalized by the department of revenue for the purpose
of raising the state revenue.
County
legislative authorities as such shall at no time have any authority to change
the valuation of the property of any person or to release or commute in whole
or in part the taxes due on the property of any person.
Sec.
23. RCW
84.48.065 and 1997 c 3 s 110 are each amended to read as follows:
(1)
The county assessor or treasurer may cancel or correct assessments on the
assessment or tax rolls which are erroneous due to manifest errors in
description, double assessments, clerical errors in extending the rolls, ((clerical
errors in calculating the assessed value under RCW 84.40.0305,)) and such
manifest errors in the listing of the property which do not involve a
revaluation of property, except in the case that a taxpayer produces proof that
an authorized land use authority has made a definitive change in the property's
land use designation. In such a case, correction of the assessment or tax
rolls may be made notwithstanding the fact that the action involves a
revaluation of property. Manifest errors that do not involve a revaluation of
property include the assessment of property exempted by law from taxation or
the failure to deduct the exemption allowed by law to the head of a family.
When the county assessor cancels or corrects an assessment, the assessor shall
send a notice to the taxpayer in accordance with RCW 84.40.045, advising the
taxpayer that the action has been taken and notifying the taxpayer of the right
to appeal the cancellation or correction to the county board of equalization,
in accordance with RCW 84.40.038. When the county assessor or treasurer
cancels or corrects an assessment, a record of such action shall be prepared,
setting forth therein the facts relating to the error. The record shall also
set forth by legal description all property belonging exclusively to the state,
any county, or any municipal corporation whose property is exempt from
taxation, upon which there remains, according to the tax roll, any unpaid
taxes. No manifest error cancellation or correction, including a cancellation
or correction made due to a definitive change of land use designation, shall be
made for any period more than three years preceding the year in which the error
is discovered.
(2)(a)
In the case of a definitive change of land use designation, an assessor shall
make corrections that involve a revaluation of property to the assessment roll
when:
(i)
The assessor and taxpayer have signed an agreement as to the true and fair value
of the taxpayer's property setting forth in the agreement the valuation
information upon which the agreement is based; and
(ii)
The assessment roll has previously been certified in accordance with RCW
84.40.320.
(b)
In all other cases, an assessor shall make corrections that involve a
revaluation of property to the assessment roll when:
(i)
The assessor and taxpayer have signed an agreement as to the true and fair
value of the taxpayer's property setting forth in the agreement the valuation
information upon which the agreement is based; and
(ii)
The following conditions are met:
(A)
The assessment roll has previously been certified in accordance with RCW
84.40.320;
(B)
The taxpayer has timely filed a petition with the county board of equalization pursuant
to RCW 84.40.038 for the current assessment year;
(C)
The county board of equalization has not yet held a hearing on the merits of
the taxpayer's petition.
(3)
The assessor shall issue a supplementary roll or rolls including such
cancellations and corrections, and the assessment and levy shall have the same
force and effect as if made in the first instance, and the county treasurer
shall proceed to collect the taxes due on the rolls as modified.
Sec.
24. RCW
84.48.075 and 1997 c 3 s 111 are each amended to read as follows:
(1)
The department of revenue shall annually, prior to the first Monday in
September, determine and submit to each assessor a preliminary indicated ratio
for each county: PROVIDED, That the department shall establish rules and
regulations pertinent to the determination of the indicated ratio, the
indicated real property ratio and the indicated personal property ratio:
PROVIDED FURTHER, That these rules and regulations may provide that data, as is
necessary for said determination, which is available from the county assessor
of any county and which has been audited as to its validity by the department,
shall be utilized by the department in determining the indicated ratio.
(2)
To such extent as is reasonable, the department may define use classes of
property for the purposes of determination of the indicated ratio. Such use
classes may be defined with respect to property use and may include
agricultural, open space, timber and forest lands.
(3)
The department shall review each county's preliminary ratio with the assessor,
a landowner, or an owner of an intercounty public utility or private car
company of that county, if requested by the assessor, a landowner, or an owner
of an intercounty public utility or private car company of that county,
respectively, between the first and third Mondays of September. Prior to
equalization of assessments pursuant to RCW 84.48.080 and after the third
Monday of September, the department shall certify to each county assessor the
real and personal property ratio for that county.
(4)
The department of revenue shall also examine procedures used by the assessor to
assess real and personal property in the county, including calculations, use of
prescribed value schedules, and efforts to locate all taxable property in the
county. If any examination by the department discloses other than market value
is being listed ((as appraised value)) on the county assessment rolls of
the county by the assessor and, after due notification by the department, is
not corrected, the department of revenue shall, in accordance with rules
adopted by the department, adjust the ratio of that type of property, which
adjustment shall be used for determining the county's indicated ratio.
Sec.
25. RCW
84.52.063 and 1997 c 3 s 125 are each amended to read as follows:
A
rural library district may impose a regular property tax levy in an amount
equal to that which would be produced by a levy of fifty cents per thousand
dollars of assessed value multiplied by an ((equalized)) assessed
valuation equal to one hundred percent of the true and fair value of the
taxable property in the rural library district, as determined by the
department of revenue's indicated county ratio: PROVIDED, That when any county
assessor shall find that the aggregate rate of levy on any property will exceed
the limitation set forth in RCW 84.52.043 and 84.52.050, as now or hereafter
amended, before recomputing and establishing a consolidated levy in the manner
set forth in RCW 84.52.010, the assessor shall first reduce the levy of any
rural library district, by such amount as may be necessary, but the levy of any
rural library district shall not be reduced to less than fifty cents per
thousand dollars against the value of the taxable property, as determined by
the county, prior to any further adjustments pursuant to RCW 84.52.010. For
purposes of this section "regular property tax levy" shall mean a
levy subject to the limitations provided for in Article VII, section 2 of the
state Constitution and/or by statute.
Sec.
26. RCW
84.70.010 and 1999 sp.s. c 8 s 1 are each amended to read as follows:
(1)
If, on or before December 31 in any calendar year, any real or personal
property placed upon the assessment roll of that year is destroyed in whole or
in part, or is in an area that has been declared a disaster area by the
governor and has been reduced in value by more than twenty percent as a result
of a natural disaster, the ((assessed)) true and fair value of
such property shall be reduced for that assessment year by an amount determined
by taking the ((assessed)) true and fair value of such taxable
property before destruction or reduction in value and deduct therefrom the true
and fair value of the remaining property after destruction or reduction in
value.
(2)
Taxes levied for collection in the year in which the ((assessed)) true
and fair value has been reduced under subsection (1) of this section shall
be abated in whole or in part as provided in this subsection. The amount of
taxes to be abated shall be determined by first multiplying the amount deducted
from ((assessed)) the true and fair value under subsection (1) of
this section by the rate of levy applicable to the property in the tax year.
Then divide the product by the number of days in the year and multiply the
quotient by the number of days remaining in the calendar year after the date of
the destruction or reduction in value of the property. If taxes abated under
this section have been paid, the amount paid shall be refunded under RCW
84.69.020. For taxes levied for collection in 1998 and 1999, this subsection
(2) applies to property that is destroyed in whole or in part, or is in an area
that has been declared a disaster area by the governor and has been reduced in
value by more than twenty percent as a result of a natural disaster. For taxes
levied for collection in 2000 through 2004, this subsection (2) applies to
property that is destroyed in whole or in part, or is in an area that has been
declared a federal disaster area and has been reduced in value by more than
twenty percent as a result of a natural disaster. This subsection (2) does not
apply to taxes levied for collection in 2005 and thereafter.
(3)
No reduction in the ((assessed)) true and fair value or
abatements shall be made more than three years after the date of destruction or
reduction in value.
(4)
The assessor shall make such reduction on his or her own motion; however, the
taxpayer may make application for reduction on forms prepared by the department
and provided by the assessor. The assessor shall notify the taxpayer of the
amount of reduction.
(5)
If destroyed property is replaced prior to the valuation dates contained in RCW
36.21.080 and 36.21.090, the total taxable value for that assessment year shall
not exceed the value as of the appropriate valuation date in RCW 36.21.080 or
36.21.090, whichever is appropriate.
(6)
The taxpayer may appeal the amount of reduction to the county board of
equalization ((within thirty days of notification or July 1st of the year of
reduction, whichever is later)) in accordance with the provisions of RCW
84.40.038. The board shall reconvene, if necessary, to hear the appeal.
NEW
SECTION. Sec. 27. The
following acts or parts of acts are each repealed:
(1) RCW
84.04.018 ("Appraised value of property") and 1997 c 3
s 101;
(2) RCW
84.36.140 (Exemption of grains, flour, fruit, vegetables, fish,
and unprocessed timber--Limitation--Proof of shipment) and 1972 ex.s. c 30 s 2
& 1961 c 15 s 84.36.140;
(3) RCW
84.36.150 (Exemption of grains, flour, fruit, vegetables, fish,
and unprocessed timber--Listing and subsequent cancellation--Proof) and 1967
ex.s. c 149 s 32 & 1961 c 15 s 84.36.150;
(4) RCW
84.36.160 (Exemption of grains, flour, fruit, vegetables, fish,
and unprocessed timber--Definitions) and 1972 ex.s. c 30 s 1, 1971 ex.s. c 137
s 1, & 1961 c 15 s 84.36.160;
(5) RCW
84.36.161 (Exemption of grains, flour, fruit, vegetables, fish,
and unprocessed timber--Construction of RCW 84.36.140, 84.36.150, 84.36.160 and
84.36.162--Effect on other acts) and 1998 c 311 s 21 & 1961 c 15 s
84.36.161;
(6) RCW 84.36.162
(Exemption of grains, flour, fruit, vegetables, fish, and unprocessed
timber--Purpose) and 1961 c 15 s 84.36.162;
(7) RCW
84.36.176 (Plywood, hardboard and particle board panels in
transit) and 1967 ex.s. c 149 s 34;
(8) RCW
84.36.181 (Ores, metals from out-of-state in process of reduction
or refinement) and 1961 c 168 s 2;
(9) RCW
84.36.190 (Metals in cathode or bar form for sale and held under
negotiable warehouse receipt) and 1961 c 15 s 84.36.190;
(10) RCW
84.36.191 (Metals in cathode or bar form for sale and held under
negotiable warehouse receipt--Purpose and construction) and 1961 c 15 s
84.36.191;
(11) RCW 84.36.270 (Real
property beneath air space dedicated to public body for stadium facilities) and
1973 1st ex.s. c 195 s 95 & 1967 ex.s. c 117 s 1;
(12) RCW
84.36.280 (Real property beneath air space dedicated to public
body for stadium facilities--Exemption effective only on completion of
construction of facility) and 1967 ex.s. c 117 s 2;
(13) RCW
84.36.290 (Real property beneath air space dedicated to public
body for stadium facilities--Taxes for school purposes not affected) and 1967
ex.s. c 117 s 3;
(14) RCW
84.36.473 ("Business inventories" and
"successor" defined) and 1998 c 311 s 23, 1983 1st ex.s. c 62 s 2,
1982 c 174 s 1, 1975 1st ex.s. c 291 s 8, & 1974 ex.s. c 169 s 4;
(15) RCW
84.36.490 (Land, buildings, machinery, etc., used to manufacture
alcohol fuel--Exceptions--Limitations--Claims--Administrative rules) and 1985 c
371 s 7 & 1980 c 157 s 1; and
(16) RCW 84.40.0305
(Assessed value--Determination--Limited value) and 1997 c 3 s 105.
NEW
SECTION. Sec. 28. The
repeals in section 27 of this act do not affect any existing right acquired or
liability or obligation incurred under the sections repealed or under any rule
or order adopted under those sections, nor do they affect any proceeding
instituted under those sections.
Sec.
29. RCW
84.70.010 and 1999 sp.s. c 8 s 1 are each amended to read as follows:
(1)
If, on or before December 31 in any calendar year, any real or personal
property placed upon the assessment roll of that year is destroyed in whole or
in part, or is in an area that has been declared a disaster area by the
governor and has been reduced in value by more than twenty percent as a result
of a natural disaster, the assessed value of such property shall be reduced for
that assessment year by an amount determined by taking the assessed value of
such taxable property before destruction or reduction in value and deduct
therefrom the true and fair value of the remaining property after destruction
or reduction in value.
(2)
Taxes levied for collection in the year in which the assessed value has been
reduced under subsection (1) of this section shall be abated in whole or in
part as provided in this subsection. The amount of taxes to be abated shall be
determined by first multiplying the amount deducted from assessed value under
subsection (1) of this section by the rate of levy applicable to the property
in the tax year. Then divide the product by the number of days in the year and
multiply the quotient by the number of days remaining in the calendar year
after the date of the destruction or reduction in value of the property. If
taxes abated under this section have been paid, the amount paid shall be
refunded under RCW 84.69.020. For taxes levied for collection in 1998 and
1999, this subsection (2) applies to property that is destroyed in whole or in
part, or is in an area that has been declared a disaster area by the governor
and has been reduced in value by more than twenty percent as a result of a
natural disaster. For taxes levied for collection in 2000 through 2004, this
subsection (2) applies to property that is destroyed in whole or in part, or is
in an area that has been declared a federal disaster area and has been reduced
in value by more than twenty percent as a result of a natural disaster. This
subsection (2) does not apply to taxes levied for collection in 2005 and
thereafter.
(3)
No reduction in the assessed value or abatements shall be made more than three
years after the date of destruction or reduction in value.
(4)
The assessor shall make such reduction on his or her own motion; however, the
taxpayer may make application for reduction on forms prepared by the department
and provided by the assessor. The assessor shall notify the taxpayer of the
amount of reduction.
(5)
If destroyed property is replaced prior to the valuation dates contained in RCW
36.21.080 and 36.21.090, the total taxable value for that assessment year shall
not exceed the value as of the appropriate valuation date in RCW 36.21.080 or
36.21.090, whichever is appropriate.
(6)
The taxpayer may appeal the amount of reduction to the county board of
equalization ((within thirty days of notification or July 1st of the year of
reduction, whichever is later)) in accordance with the provisions of RCW
84.40.038. The board shall reconvene, if necessary, to hear the appeal.
NEW
SECTION. Sec. 30. The
following acts or parts of acts are each repealed:
(1) RCW
84.36.140 (Exemption of grains, flour, fruit, vegetables, fish,
and unprocessed timber--Limitation--Proof of shipment) and 1972 ex.s. c 30 s 2
& 1961 c 15 s 84.36.140;
(2) RCW
84.36.150 (Exemption of grains, flour, fruit, vegetables, fish,
and unprocessed timber--Listing and subsequent cancellation--Proof) and 1967
ex.s. c 149 s 32 & 1961 c 15 s 84.36.150;
(3) RCW
84.36.160 (Exemption of grains, flour, fruit, vegetables, fish,
and unprocessed timber--Definitions) and 1972 ex.s. c 30 s 1, 1971 ex.s. c 137
s 1, & 1961 c 15 s 84.36.160;
(4) RCW
84.36.161 (Exemption of grains, flour, fruit, vegetables, fish,
and unprocessed timber--Construction of RCW 84.36.140, 84.36.150, 84.36.160 and
84.36.162--Effect on other acts) and 1998 c 311 s 21 & 1961 c 15 s
84.36.161;
(5) RCW
84.36.162 (Exemption of grains, flour, fruit, vegetables, fish,
and unprocessed timber--Purpose) and 1961 c 15 s 84.36.162;
(6) RCW
84.36.176 (Plywood, hardboard and particle board panels in
transit) and 1967 ex.s. c 149 s 34;
(7) RCW
84.36.181 (Ores, metals from out-of-state in process of reduction
or refinement) and 1961 c 168 s 2;
(8) RCW
84.36.190 (Metals in cathode or bar form for sale and held under
negotiable warehouse receipt) and 1961 c 15 s 84.36.190;
(9) RCW
84.36.191 (Metals in cathode or bar form for sale and held under
negotiable warehouse receipt--Purpose and construction) and 1961 c 15 s
84.36.191;
(10) RCW 84.36.270 (Real
property beneath air space dedicated to public body for stadium facilities) and
1973 1st ex.s. c 195 s 95 & 1967 ex.s. c 117 s 1;
(11) RCW
84.36.280 (Real property beneath air space dedicated to public
body for stadium facilities--Exemption effective only on completion of
construction of facility) and 1967 ex.s. c 117 s 2;
(12) RCW
84.36.290 (Real property beneath air space dedicated to public
body for stadium facilities--Taxes for school purposes not affected) and 1967
ex.s. c 117 s 3;
(13) RCW
84.36.473 ("Business inventories" and
"successor" defined) and 1998 c 311 s 23, 1983 1st ex.s. c 62 s 2,
1982 c 174 s 1, 1975 1st ex.s. c 291 s 8, & 1974 ex.s. c 169 s 4; and
(14) RCW
84.36.490 (Land, buildings, machinery, etc., used to manufacture
alcohol fuel--Exceptions--Limitations--Claims--Administrative rules) and 1985 c
371 s 7 & 1980 c 157 s 1.
NEW
SECTION. Sec. 31. The
repeals in section 30 of this act do not affect any existing right acquired or
liability or obligation incurred under the sections repealed or under any rule
or order adopted under those sections, nor do they affect any proceeding
instituted under those sections.
NEW
SECTION. Sec. 32.
Sections 29, 30, and 31 of this act take effect for taxes levied in 2001 for
collection in 2002 and thereafter if the proposed amendment to Article VII,
section 1 of the state Constitution providing for valuation increases to be
phased in over a period of four years is validly submitted to and is approved
and ratified by voters at the next general election. If the proposed amendment
is not approved and ratified, sections 29, 30, and 31 of this act are null and
void. If such proposed amendment is approved and ratified, sections 2 through
13, 16 through 19, and 21 through 28 of this act are null and void.
NEW
SECTION. Sec. 33. This
act applies for taxes levied in 2001 for collection in 2002 and thereafter.
