FINAL BILL REPORT

SHB 1069

C 12 L 03

Synopsis as Enacted

Brief Description: Authorizing a waiver of interest and penalties for property tax bills not sent to the taxpayer due to error by the county.

Sponsors: By House Committee on Finance (originally sponsored by Representatives Pflug, Gombosky, Anderson, Cairnes and Sullivan).

House Committee on Finance

Senate Committee on Ways & Means

Background:

All real and personal property in this state is subject to the property tax each year based on its value, unless a specific exemption is provided by law. The tax bill is determined by multiplying the assessed value by the tax rate for each taxing district in which the property is located. The county treasurer mails a notice of tax due to taxpayers and collects the tax.

Property taxes are due on April 30 each year. If one-half of the tax is paid by April 30, then the other half is due on October 31. If the first-half property tax payment is not made on time, the entire tax is delinquent and interest is charged at the rate of 12 percent per year (1 percent per month). If the tax bill is below $50, then all the tax must be paid by April 30. A penalty of 3 percent is assessed on taxes that are delinquent on June 1. An additional 8 percent penalty is assessed on taxes that are delinquent on December 1.

Under limited circumstances interest and penalties owed on delinquent property taxes are waived. Penalties and interest are waived if a county fails to mail the tax due notice to a new property owner if that person's name was recorded with the county by the previous November. Penalties and interest are waived if a taxpayer misses one property tax payment on his or her personal residence due to the death of a spouse. Similarly, if a taxpayer misses one property tax payment on a parent's or step-parent's personal residence due to the death of the parent or step-parent, interest and penalties are waived on the delinquent taxes.

Penalties and interest on delinquent property taxes are deposited into the county general expense fund.

Summary:

Interest and penalties on late property tax payments are waived if the tax bill is not sent to the taxpayer due to error by the county.

Votes on Final Passage:

House 95  0

Senate 48  0

Effective: July 27, 2003