BILL REQ. #: S-0266.3
| State of Washington | 58th Legislature | 2003 Regular Session |
Read first time 01/13/2003. Referred to Committee on Ways & Means.
AN ACT Relating to fiscal reform; amending RCW 82.03.130, 82.03.140, 2.10.180, 2.12.090, 6.13.030, 41.24.240, 41.35.100, 41.40.052, 41.44.240, 43.43.310, 82.08.020, 84.52.065, 84.52.068, 84.52.043, 84.52.050, 36.58.150, 36.60.040, 36.69.145, 36.73.060, 36.83.030, 36.100.050, 67.38.130, 84.69.020, 39.89.020, 43.99H.060, 43.99I.040, and 76.12.120; reenacting and amending RCW 6.15.020, 41.32.052, 41.26.053, and 84.52.010; adding a new title to the Revised Code of Washington to be codified as Title 82A RCW; creating new sections; recodifying RCW 84.52.068; repealing RCW 6.15.025; prescribing penalties; and providing contingent effective dates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 101
NEW SECTION. Sec. 201
NEW SECTION. Sec. 202
NEW SECTION. Sec. 203
NEW SECTION. Sec. 204
(1) For individuals, adjusted gross income;
(2) For estates and trusts, taxable income as determined for
estates and trusts consistent with subtitle A, chapter I, subchapter J
of the internal revenue code.
NEW SECTION. Sec. 205
NEW SECTION. Sec. 206
NEW SECTION. Sec. 207
NEW SECTION. Sec. 208
(a) Has resided in this state for the entire tax year; or
(b) Is domiciled in this state unless the individual:
(i) Maintains no permanent place of abode in this state; and
(ii) Does not maintain a permanent place of abode elsewhere; and
(iii) Spends in the aggregate not more than thirty days in the tax
year in this state; or
(c) Is not domiciled in this state, but maintains a permanent place
of abode in this state and spends in the aggregate more than one
hundred eighty-three days of the tax year in this state unless the
individual establishes to the satisfaction of the director of revenue
that the individual is in the state only for temporary or transitory
purposes; or
(d) Claims the state of Washington as the individual's tax home for
federal income tax purposes.
(2) A resident estate means an estate of which a personal
representative was appointed by a Washington court or an estate
administration of which is carried on in this state.
(3) A resident trust means a trust whose situs as determined by RCW
11.96A.030 is within the state of Washington.
NEW SECTION. Sec. 209
NEW SECTION. Sec. 210
NEW SECTION. Sec. 211
NEW SECTION. Sec. 212
NEW SECTION. Sec. 213
NEW SECTION. Sec. 301
NEW SECTION. Sec. 302
(a) The credit is allowed only for taxes imposed by the other
jurisdiction on net income from sources within that jurisdiction; and
(b) The amount of the credit shall not exceed the smaller of:
(i) The amount of tax paid to the other jurisdiction on net income
from sources within the other jurisdiction; or
(ii) The amount of tax due under this title before application of
credits allowable by this title, multiplied by a fraction. The
numerator of the fraction is the amount of the taxpayer's adjusted
gross income subject to tax in the other jurisdiction. The denominator
of the fraction is the taxpayer's total adjusted gross income as
modified by this title. The fraction shall never be greater than one.
(2) If, in lieu of a credit similar to the credit allowed under
subsection (1) of this section, the laws of the other taxing
jurisdiction contain a provision exempting a resident of this state
from liability for the payment of income taxes on income earned for
personal services performed in such jurisdiction, then the director is
authorized to enter into a reciprocal agreement with such jurisdiction
providing a similar tax exemption on income earned for personal
services performed in this state.
NEW SECTION. Sec. 303
NEW SECTION. Sec. 304
(2) The credit shall not exceed the smaller of:
(a) The amount of business and occupation tax paid; or
(b) The amount of tax of the taxpayer imposed by this title before
the application of credits allowed by this title, multiplied by a
fraction:
(i) The numerator is the amount of the taxpayer's adjusted gross
income attributable to activities subject to business and occupation
tax; and
(ii) The denominator is the taxpayer's adjusted gross income as
modified by this title. The fraction shall never be greater than one.
NEW SECTION. Sec. 305
(2) The credit shall not exceed the smaller of:
(a) The amount of public utility tax paid; or
(b) The amount of tax of the taxpayer imposed by this title before
the application of credits allowed by this title, multiplied by a
fraction:
(i) The numerator is the amount of the taxpayer's adjusted gross
income attributable to activities subject to public utility tax; and
(ii) The denominator is the taxpayer's adjusted gross income as
modified by this title. The fraction shall never be greater than one.
NEW SECTION. Sec. 306
NEW SECTION. Sec. 401
NEW SECTION. Sec. 402
NEW SECTION. Sec. 403
(1) Taxes on or measured by net income which have been deducted
under the internal revenue code in computing federal base income;
(2) The amount of taxes paid or accrued which have been deducted
for federal purposes, but for which a business and occupation tax
credit or public utility tax credit, or both, is allowed.
NEW SECTION. Sec. 404
NEW SECTION. Sec. 405
NEW SECTION. Sec. 406
NEW SECTION. Sec. 407
(1) The standard deduction for an individual shall be:
(a) In the case of a joint return or a surviving spouse, seven
thousand dollars if only one spouse has earned income and seven
thousand dollars plus the earned income of the spouse with the lesser
income, not to exceed ten thousand dollars in total, if both spouses
have earned income;
(b) In the case of the head of a household, seven thousand dollars;
(c) In the case of an individual who is not married and who is not
a surviving spouse or head of a household and in the case of a married
individual filing a separate return, five thousand dollars.
(2) A personal exemption deduction in the amount of two thousand
nine hundred dollars shall be allowed for each individual for whom a
personal exemption deduction is allowed for federal income tax
purposes.
(3) An additional exemption deduction in the amount of one thousand
dollars shall be allowed:
(a) For the individual if the individual has attained age sixty-five before the close of the taxable year; and
(b) For the spouse of the individual if the spouse has attained age
sixty-five before the close of the taxable year if a joint return is
not made by the individual and the individual's spouse and the spouse,
for the calendar year in which the taxable year of the individual
begins, has no gross income and is not the dependent of another
individual.
(4) An additional exemption deduction in the amount of one thousand
dollars shall be allowed:
(a) For the individual if the individual is blind at the close of
the taxable year; and
(b) For the spouse of the individual if the spouse is blind at the
close of the taxable year if a joint return is not made by the
individual and the individual's spouse and the spouse, for the calendar
year in which the taxable year of the individual begins, has no gross
income and is not the dependent of another individual.
NEW SECTION. Sec. 408
NEW SECTION. Sec. 409
(a) The taxable income shall be multiplied by a fraction. The
numerator of the fraction is the number of days in the fractional
taxable year. The denominator of the fraction is the number of days in
the entire taxable year.
(b) The taxable income shall be adjusted, in accordance with rules
of the department, so as to include only such income and be reduced
only by such deductions as can be clearly determined from the permanent
records of the taxpayer to be attributable to the fractional taxable
year.
(2) If an individual taxpayer's taxable income is adjusted under
subsection (1) of this section, the deduction amounts allowed under
section 407 of this act for the taxpayer shall be reduced by
multiplying the amount of the exemption by a fraction. The numerator
of the fraction is the number of days in the taxpayer's fractional
taxable year. The denominator of the fraction is the number of days in
the entire taxable year.
NEW SECTION. Sec. 410
NEW SECTION. Sec. 501
(2) For nonresident individuals, estates, and trusts, income
derived from sources within this state shall be apportioned and
allocated to this state. For purposes of this title:
(a) The adjusted gross income of a nonresident derived from sources
within this state is the net amount of items of income, gain, loss, and
deduction of the nonresident's federal adjusted gross income that are
derived from or connected with sources in this state including any
distributive share of partnership income and deductions, and any share
of estate or trust income and deductions, including any unrelated
business income of an otherwise exempt trust or organization.
(b) Items of income, gain, loss, and deduction derived from or
connected with sources within this state are those items attributable
to the ownership or disposition of any interest in real or tangible
personal property in this state, and a business, trade, profession, or
occupation carried on within this state. The department shall issue
rules to provide consistency of this section with the excise tax
provisions.
(c) Deduction with respect to expenses, capital losses, and net
operating losses shall be based solely on income, gains, losses, and
deductions derived from or connected with sources in this state but
shall otherwise be determined in the same manner as the corresponding
federal deduction except as provided in this title.
(d) Income from intangible personal property, including annuities,
dividends, interest, and gains from the disposition of intangible
personal property, constitutes income derived from sources within the
state of Washington only to the extent that such income is from
property employed in a business, trade, profession, or occupation
carried on within this state: PROVIDED, That distributed and
undistributed income of an electing S corporation for federal tax
purposes derived from or connected with sources within this state is
income derived from sources within this state for a nonresident
shareholder. A net operating loss of such corporation does constitute
a loss or deduction connected with sources within this state for a
nonresident shareholder.
(e) Compensation paid by the United States for service in the armed
forces of the United States performed in this state by a nonresident
does not constitute income derived from sources within this state.
(f) If a business, trade, profession, or occupation is carried on
partly within and partly without this state, the determination of net
income derived or connected with sources within this state as provided
in this section shall be made by apportionment and allocation of
chapter 82.56 RCW.
NEW SECTION. Sec. 502
(2) S corporations are not subject to tax under this title.
Shareholders of S corporations are subject to tax in their separate or
individual capacities.
(3) The taxable incomes of partners shall be computed by including
a pro rata share of the modifications under sections 401 through 503 of
this act and the credits allowed under sections 302, 304, and 305 of
this act, if the modification or credit relates to the income of the
partnership. Each partner's pro rata share of a modification or credit
is the amount of modification or credit multiplied by a fraction. The
numerator of the fraction is the partner's distributive share of
partnership income. The denominator of the fraction is the total
partnership income. The fraction shall never be greater than one.
(4) The taxable incomes of shareholders of S corporations shall be
computed by including a share of the modifications under sections 401
through 503 of this act and the credits allowed under sections 302,
304, and 305 of this act, if the modification or credit relates to the
income of the S corporation. Each shareholder's share of a
modification or credit is the amount of modification or credit
multiplied by a fraction. The numerator of the fraction is the
shareholder's pro rata share of S corporation income. The denominator
of the fraction is the total S corporation income. The fraction shall
never be greater than one.
(5) As used in this section:
(a) "S corporation income" includes both distributed and
undistributed federal taxable income of the S corporation.
(b) "Pro rata share" means pro rata share as determined under
section 1366(a) of the internal revenue code.
NEW SECTION. Sec. 503
Each taxpayer's share of a modification or credit is the amount of
modification or credit multiplied by a fraction. The numerator of the
fraction is the taxpayer's share of the distributable net income of the
estate or trust. The denominator of the fraction is the total
distributable net income of the estate or trust. The fraction shall
never be greater than one.
(2) As used in this section, "distributable net income" means
distributable net income as defined in the internal revenue code. If
an estate or trust has no federal distributable net income, the term
means the income of the estate or trust which is distributed or is
required to be distributed during the taxable year under local law or
the terms of the estate or trust instrument.
(3) Any portion of a modification which is not included in
calculating the taxable incomes of the beneficiaries shall be included
in calculating the taxable income of the trust or estate.
NEW SECTION. Sec. 601
(2) If the employee is a resident of this state and earns income
from personal services entirely performed in another state which
imposes an income tax on the income, and the employer withholds income
taxes under the laws of the state in which the income is earned, the
employer is not required to withhold any tax imposed by this title on
the income if the laws of the state in which the income is earned allow
a similar exemption for its residents who earn income in this state.
NEW SECTION. Sec. 602
NEW SECTION. Sec. 603
NEW SECTION. Sec. 604
NEW SECTION. Sec. 605
(2) In case any employer, or a responsible person within the
meaning of internal revenue code section 6672, fails to collect the tax
herein imposed or having collected the tax, fails to pay it to the
department, the employer or responsible person shall, nevertheless, be
personally liable to the state for the amount of the tax. The interest
and penalty provisions of chapter 82.32 RCW shall apply to this
section.
NEW SECTION. Sec. 606
(2) The provisions of the internal revenue code relating to the
determination of reporting periods and due dates of payments of
estimated tax applies to the estimated tax payments due under this
section.
(3) The amount of the estimated tax shall be the annualized tax
divided by the number of months in the reporting period. No estimated
tax shall be due if the annualized tax is less than five hundred
dollars. The provisions of RCW 82.32.050 and 82.32.090 shall apply to
underpayments of estimated tax but shall not apply to underpayments, as
defined by the internal revenue code, if the tax remitted to the
department is either ninety percent of the tax shown on the return or
one hundred percent of the tax shown on the previous year's tax return.
(4) For purposes of this section, the annualized tax is the
taxpayer's projected tax liability for the tax year as computed
pursuant to internal revenue code section 6654 and the regulations
thereunder.
NEW SECTION. Sec. 701
(2) Any person required to collect tax imposed under this title who
knowingly fails to collect, truthfully account for, or pay over the tax
is guilty of a class C felony as provided in chapter 9A.20 RCW.
(3) Any person who knowingly fails to pay tax, pay estimated tax,
make returns, keep records, or supply information, as required under
this title, is guilty of a gross misdemeanor as provided in chapter
9A.20 RCW.
NEW SECTION. Sec. 801
(2) If a person's method of accounting is changed for federal
income tax purposes, it shall be similarly changed for purposes of this
title.
NEW SECTION. Sec. 802
(2) The department may by rule require that certain taxpayers file,
on forms prescribed by the department, informational returns for any
period. Each person required by rule to file an informational return
shall, without assessment, notice, or demand, pay any tax due thereon
to the department on or before the date fixed for the filing of the
informational return.
(3) If an adjustment to a taxpayer's federal return is made by the
taxpayer or the internal revenue service, the taxpayer shall, within
ninety days of the final determination of the adjustment by the
internal revenue service or within thirty days of the filing of a
federal return adjusted by the taxpayer, file with the department on
forms prescribed by the department a corrected return reflecting the
adjustments as finally determined. The taxpayer shall pay any
additional tax due resulting from the finally determined internal
revenue service adjustment or a taxpayer adjustment without notice and
assessment. Notwithstanding any provision of this title or any other
title to the contrary, the period of limitation for the collection of
the additional tax, interest, and penalty due as a result of an
adjustment by the taxpayer or a finally determined internal revenue
service adjustment shall begin at the later of thirty days following
the final determination of the adjustment or the date of the filing of
the corrected return.
NEW SECTION. Sec. 803
NEW SECTION. Sec. 804
(2) If neither spouse is required to file a federal income tax
return for the taxable year, a joint return may be filed under this
title under the same conditions under which a joint return may be filed
for purposes of the federal income tax.
(3) If the federal income tax liability of either spouse is
determined on a separate federal return for the taxable year, they
shall file separate returns under this title.
(4) If one spouse is a resident and the other is a nonresident,
they shall file separate returns under this title, unless they elect to
determine their tax liabilities under this title on a joint return as
if they were both residents, and:
(a) Their federal tax liability for the taxable year was determined
on a joint federal return; or
(b) Neither spouse has filed a federal income tax return for the
taxable year and they would be permitted to file a joint federal return
for the taxable year.
(5) In any case in which a joint return is filed under this
section, the liability of the husband and wife is joint and several,
unless the spouse is relieved of liability under section 6013 of the
internal revenue code.
NEW SECTION. Sec. 805
(2) All books and records and other papers and documents required
to be kept under this title are subject to inspection by the department
at all times during business hours of the day.
NEW SECTION. Sec. 806
NEW SECTION. Sec. 807
(a) Time of payment of tax deducted and withheld under sections 301
through 306 of this act;
(b) Liability of transferees;
(c) Time and manner of making returns, extensions of time for
filing returns, verification of returns, and the time when a return is
deemed filed.
(2) The department by rule may provide modifications and exceptions
to the provisions listed in subsection (1) of this section, if
reasonably necessary to facilitate the prompt, efficient, and equitable
collection of tax under this title.
NEW SECTION. Sec. 808
(2) The following sections shall apply to the administration of
taxes imposed under this title: 82.32.020, 82.32.050, 82.32.060,
82.32.070, 82.32.090, 82.32.100, 82.32.105, 82.32.110, 82.32.120,
82.32.130, 82.32.140, 82.32.150, 82.32.160, 82.32.170, 82.32.180,
82.32.190, 82.32.200, 82.32.210, 82.32.220, 82.32.230, 82.32.235,
82.32.237, 82.32.240, 82.32.245, 82.32.265, 82.32.300, 82.32.310,
82.32.320, 82.32.330, 82.32.340, 82.32.350, 82.32.360, and 82.32.380.
NEW SECTION. Sec. 809
Sec. 901 RCW 82.03.130 and
1998 c 54 s 1 are each amended to read
as follows:
(a) Appeals taken pursuant to RCW 82.03.190.
(b) Appeals from a county board of equalization pursuant to RCW
84.08.130.
(c) Appeals by an assessor or landowner from an order of the
director of revenue made pursuant to RCW 84.08.010 and 84.08.060, if
filed with the board of tax appeals within thirty days after the
mailing of the order, the right to such an appeal being hereby
established.
(d) Appeals by an assessor or owner of an intercounty public
utility or private car company from determinations by the director of
revenue of equalized assessed valuation of property and the
apportionment thereof to a county made pursuant to chapter 84.12 and
84.16 RCW, if filed with the board of tax appeals within thirty days
after mailing of the determination, the right to such appeal being
hereby established.
(e) Appeals by an assessor, landowner, or owner of an intercounty
public utility or private car company from a determination of any
county indicated ratio for such county compiled by the department of
revenue pursuant to RCW 84.48.075: PROVIDED, That
(i) Said appeal be filed after review of the ratio under RCW
84.48.075(3) and not later than fifteen days after the mailing of the
certification; and
(ii) The hearing before the board shall be expeditiously held in
accordance with rules prescribed by the board and shall take precedence
over all matters of the same character.
(f) Appeals from the decisions of sale price of second class
shorelands on navigable lakes by the department of natural resources
pursuant to RCW 79.94.210.
(g) Appeals from urban redevelopment property tax apportionment
district proposals established by governmental ordinances pursuant to
RCW 39.88.060.
(h) Appeals from interest rates as determined by the department of
revenue for use in valuing farmland under current use assessment
pursuant to RCW 84.34.065.
(i) Appeals from revisions to stumpage value tables used to
determine value by the department of revenue pursuant to RCW 84.33.091.
(j) Appeals from denial of tax exemption application by the
department of revenue pursuant to RCW 84.36.850.
(k) Appeals pursuant to RCW 84.40.038(3).
(l) Appeals relating to income tax deficiencies and refunds,
including penalties and interest, under Title 82A RCW (sections 101
through 809 of this act).
(2) Except as otherwise specifically provided by law hereafter, the
provisions of RCW 1.12.070 shall apply to all notices of appeal filed
with the board of tax appeals.
Sec. 902 RCW 82.03.140 and 2000 c 103 s 1 are each amended to
read as follows:intention that the hearing be held
pursuant to chapter 34.05 RCW)) election of a formal hearing. In the
event that appeals are taken from the same decision, order, or
determination, as the case may be, by different parties and only one of
such parties elects a formal hearing, a formal hearing shall be
granted.
Sec. 1001 RCW 2.10.180 and 1991 c 365 s 18 are each amended to
read as follows:and)) (4), and (5) of this section, the right of a person
to a retirement allowance, disability allowance, or death benefit, the
retirement, disability or death allowance itself, any optional benefit,
any other right accrued or accruing to any person under the provisions
of this chapter, and the moneys in the fund created under this chapter,
are hereby exempt from any state, county, municipal, or other local tax
and shall not be subject to execution, garnishment, or any other
process of law whatsoever.
(2) Subsection (1) of this section shall not be deemed to prohibit
a beneficiary of a retirement allowance from authorizing deductions
therefrom for payment of premiums due on any group insurance policy or
plan issued for the benefit of a group comprised of public employees of
the state of Washington.
(3) Deductions made in the past from retirement benefits are hereby
expressly recognized, ratified, and affirmed. Future deductions may
only be made in accordance with this section.
(4) Subsection (1) of this section shall not prohibit the
department of retirement systems from complying with (a) a wage
assignment order for child support issued pursuant to chapter 26.18
RCW, (b) a notice of payroll deduction issued under chapter 26.23 RCW,
(c) an order to withhold and deliver issued pursuant to chapter 74.20A
RCW, (d) a mandatory benefits assignment order issued pursuant to
chapter 41.50 RCW, (e) a court order directing the department of
retirement systems to pay benefits directly to an obligee under a
dissolution order as defined in RCW 41.50.500(3) which fully complies
with RCW 41.50.670 and 41.50.700, or (f) any administrative or court
order expressly authorized by federal law.
(5) Subsection (1) of this section does not exempt any pension or
other benefit received under this chapter from tax under Title 82A RCW
(sections 101 through 809 of this act), nor does it prohibit the
department of retirement systems from complying with the tax
withholding requirements of that title.
Sec. 1002 RCW 2.12.090 and 1991 c 365 s 19 are each amended to
read as follows:and)) (4), and (5) of this section, the right of any person to
a retirement allowance or optional retirement allowance under the
provisions of this chapter and all moneys and investments and income
thereof are exempt from any state, county, municipal, or other local
tax and shall not be subject to execution, garnishment, attachment, the
operation of bankruptcy or the insolvency laws, or other processes of
law whatsoever and shall be unassignable except as herein specifically
provided.
(2) Subsection (1) of this section shall not prohibit the
department of retirement systems from complying with (a) a wage
assignment order for child support issued pursuant to chapter 26.18
RCW, (b) a notice of payroll deduction issued under chapter 26.23 RCW,
(c) an order to withhold and deliver issued pursuant to chapter 74.20A
RCW, (d) a mandatory benefits assignment order issued pursuant to
chapter 41.50 RCW, (e) a court order directing the department of
retirement systems to pay benefits directly to an obligee under a
dissolution order as defined in RCW 41.50.500(3) which fully complies
with RCW 41.50.670 and 41.50.700, or (f) any administrative or court
order expressly authorized by federal law.
(3) Subsection (1) of this section shall not be deemed to prohibit
a beneficiary of a retirement allowance from authorizing deductions
therefrom for payment of premiums due on any group insurance policy or
plan issued for the benefit of a group comprised of public employees of
the state of Washington.
(4) Deductions made in the past from retirement benefits are hereby
expressly recognized, ratified, and affirmed. Future deductions may
only be made in accordance with this section.
(5) Subsection (1) of this section does not exempt any pension or
other benefit received under this chapter from tax under Title 82A RCW
(sections 101 through 809 of this act), nor does it prohibit the
department of retirement systems from complying with the tax
withholding requirements of that title.
Sec. 1003 RCW 6.13.030 and 1999 c 403 s 4 are each amended to
read as follows:, except where the homestead is subject to execution,
attachment, or seizure by or under any legal process whatever to
satisfy a judgment in favor of any state for failure to pay that
state's income tax on benefits received while a resident of the state
of Washington from a pension or other retirement plan, in which event
there shall be no dollar limit on the value of the exemption)).
Sec. 1004 RCW 6.15.020 and 1999 c 81 s 1 and 1999 c 42 s 603 are
each reenacted and amended to read as follows:
(2) Unless otherwise provided by federal law, any money received by
any citizen of the state of Washington as a pension from the government
of the United States, whether the same be in the actual possession of
such person or be deposited or loaned, shall be exempt from execution,
attachment, garnishment, or seizure by or under any legal process
whatever, and when a debtor dies, or absconds, and leaves his or her
family any money exempted by this subsection, the same shall be exempt
to the family as provided in this subsection. This subsection shall
not apply to child support collection actions issued under chapter
26.18, 26.23, or 74.20A RCW, if otherwise permitted by federal law, or
to collection actions for taxes imposed under Title 82A RCW (sections
101 through 809 of this act).
(3) The right of a person to a pension, annuity, or retirement
allowance or disability allowance, or death benefits, or any optional
benefit, or any other right accrued or accruing to any citizen of the
state of Washington under any employee benefit plan, and any fund
created by such a plan or arrangement, shall be exempt from execution,
attachment, garnishment, or seizure by or under any legal process
whatever. This subsection shall not apply to child support collection
actions issued under chapter 26.18, 26.23, or 74.20A RCW if otherwise
permitted by federal law, or to collection actions for taxes imposed
under Title 82A RCW (sections 101 through 809 of this act). This
subsection shall permit benefits under any such plan or arrangement to
be payable to a spouse, former spouse, child, or other dependent of a
participant in such plan to the extent expressly provided for in a
qualified domestic relations order that meets the requirements for such
orders under the plan, or, in the case of benefits payable under a plan
described in sections 403(b) or 408 of the internal revenue code of
1986, as amended, or section 409 of such code as in effect before
January 1, 1984, to the extent provided in any order issued by a court
of competent jurisdiction that provides for maintenance or support.
This subsection shall not prohibit actions against an employee benefit
plan, or fund for valid obligations incurred by the plan or fund for
the benefit of the plan or fund.
(4) For the purposes of this section, the term "employee benefit
plan" means any plan or arrangement that is described in RCW 49.64.020,
including any Keogh plan, whether funded by a trust or by an annuity
contract, and in sections 401(a) or 403(a) of the internal revenue code
of 1986, as amended; or that is a tax-sheltered annuity described in
section 403(b) of such code or an individual retirement account
described in section 408 of such code; or a Roth individual retirement
account described in section 408A of such code; or a medical savings
account described in section 220 of such code; or an education
individual retirement account described in section 530 of such code; or
a retirement bond described in section 409 of such code as in effect
before January 1, 1984. The term "employee benefit plan" also means
any rights accruing on account of money paid currently or in advance
for purchase of tuition units under the advanced college tuition
payment program in chapter 28B.95 RCW. The term "employee benefit
plan" shall not include any employee benefit plan that is established
or maintained for its employees by the government of the United States,
by the state of Washington under chapter 2.10, 2.12, 41.26, 41.32,
41.34, 41.35, 41.40 or 43.43 RCW or RCW 41.50.770, or by any agency or
instrumentality of the government of the United States.
(5) An employee benefit plan shall be deemed to be a spendthrift
trust, regardless of the source of funds, the relationship between the
trustee or custodian of the plan and the beneficiary, or the ability of
the debtor to withdraw or borrow or otherwise become entitled to
benefits from the plan before retirement. This subsection shall not
apply to child support collection actions issued under chapter 26.18,
26.23, or 74.20A RCW, if otherwise permitted by federal law, or to
collection actions for taxes imposed under Title 82A RCW (sections 101
through 809 of this act). This subsection shall permit benefits under
any such plan or arrangement to be payable to a spouse, former spouse,
child, or other dependent of a participant in such plan to the extent
expressly provided for in a qualified domestic relations order that
meets the requirements for such orders under the plan, or, in the case
of benefits payable under a plan described in sections 403(b) or 408 of
the internal revenue code of 1986, as amended, or section 409 of such
code as in effect before January 1, 1984, to the extent provided in any
order issued by a court of competent jurisdiction that provides for
maintenance or support.
(6) Unless contrary to applicable federal law, nothing contained in
subsection (3), (4), or (5) of this section shall be construed as a
termination or limitation of a spouse's community property interest in
an individual retirement account held in the name of or on account of
the other spouse, the account holder spouse. At the death of the
nonaccount holder spouse, the nonaccount holder spouse may transfer or
distribute the community property interest of the nonaccount holder
spouse in the account holder spouse's individual retirement account to
the nonaccount holder spouse's estate, testamentary trust, inter vivos
trust, or other successor or successors pursuant to the last will of
the nonaccount holder spouse or the law of intestate succession, and
that distributee may, but shall not be required to, obtain an order of
a court of competent jurisdiction, including a nonjudicial dispute
resolution agreement entered into pursuant to RCW 11.96.170 or other
order entered under chapter 11.96A RCW, to confirm the distribution.
For purposes of subsection (3) of this section, the distributee of the
nonaccount holder spouse's community property interest in an individual
retirement account shall be considered a person entitled to the full
protection of subsection (3) of this section. The nonaccount holder
spouse's consent to a beneficiary designation by the account holder
spouse with respect to an individual retirement account shall not,
absent clear and convincing evidence to the contrary, be deemed a
release, gift, relinquishment, termination, limitation, or transfer of
the nonaccount holder spouse's community property interest in an
individual retirement account. For purposes of this subsection, the
term "nonaccount holder spouse" means the spouse of the person in whose
name the individual retirement account is maintained. The term
"individual retirement account" includes an individual retirement
account and an individual retirement annuity both as described in
section 408 of the internal revenue code of 1986, as amended, a Roth
individual retirement account as described in section 408A of the
internal revenue code of 1986, as amended, and an individual retirement
bond as described in section 409 of the internal revenue code as in
effect before January 1, 1984. As used in this subsection, an order of
a court of competent jurisdiction includes an agreement, as that term
is used under RCW 11.96A.220.
Sec. 1005 RCW 41.24.240 and 1995 c 11 s 13 are each amended to
read as follows:
(2) Nothing in this chapter shall be construed to deprive any
participant, eligible to receive a pension hereunder, from receiving a
pension under any other act to which that participant may become
eligible by reason of services other than or in addition to his or her
services under this chapter.
(3) Subsection (1) of this section does not exempt any pension or
other benefit received under this chapter from tax under Title 82A RCW
(sections 101 through 809 of this act), nor does it prohibit the
department of retirement systems from complying with the tax
withholding requirements of that title.
Sec. 1006 RCW 41.32.052 and 1991 c 365 s 21 and 1991 c 35 s 63
are each reenacted and amended to read as follows:and)), (3), and (4) of this section, the right of a person to a
pension, an annuity, a retirement allowance, or disability allowance,
to the return of contributions, any optional benefit or death benefit,
any other right accrued or accruing to any person under the provisions
of this chapter and the moneys in the various funds created by this
chapter shall be unassignable, and are hereby exempt from any state,
county, municipal or other local tax, and shall not be subject to
execution, garnishment, attachment, the operation of bankruptcy or
insolvency laws, or other process of law whatsoever.
(2) This section shall not be deemed to prohibit a beneficiary of
a retirement allowance who is eligible:
(a) Under RCW 41.05.080 from authorizing monthly deductions
therefrom for payment of premiums due on any group insurance policy or
plan issued for the benefit of a group comprised of public employees of
the state of Washington or its political subdivisions;
(b) Under a group health care benefit plan approved pursuant to RCW
28A.400.350 or 41.05.065 from authorizing monthly deductions therefrom,
of the amount or amounts of subscription payments, premiums, or
contributions to any person, firm, or corporation furnishing or
providing medical, surgical, and hospital care or other health care
insurance; or
(c) Under this system from authorizing monthly deductions therefrom
for payment of dues and other membership fees to any retirement
association composed of retired teachers and/or public employees
pursuant to a written agreement between the director and the retirement
association.
Deductions under (a) and (b) of this subsection shall be made in
accordance with rules that may be adopted by the director.
(3) Subsection (1) of this section shall not prohibit the
department from complying with (a) a wage assignment order for child
support issued pursuant to chapter 26.18 RCW, (b) an order to withhold
and deliver issued pursuant to chapter 74.20A RCW, (c) a notice of
payroll deduction issued pursuant to RCW 26.23.060, (d) a mandatory
benefits assignment order issued by the department, (e) a court order
directing the department of retirement systems to pay benefits directly
to an obligee under a dissolution order as defined in RCW 41.50.500(3)
which fully complies with RCW 41.50.670 and 41.50.700, or (f) any
administrative or court order expressly authorized by federal law.
(4) Subsection (1) of this section does not exempt any pension or
other benefit received under this chapter from tax under Title 82A RCW
(sections 101 through 809 of this act), nor does it prohibit the
department of retirement systems from complying with the tax
withholding requirements of that title.
Sec. 1007 RCW 41.35.100 and 1998 c 341 s 11 are each amended to
read as follows:and)), (3), and (4) of this section, the right of a person to a
pension, an annuity, or retirement allowance, any optional benefit, any
other right accrued or accruing to any person under the provisions of
this chapter, the various funds created by this chapter, and all moneys
and investments and income thereof, are hereby exempt from any state,
county, municipal, or other local tax, and shall not be subject to
execution, garnishment, attachment, the operation of bankruptcy or
insolvency laws, or other process of law whatsoever, and shall be
unassignable.
(2) This section does not prohibit a beneficiary of a retirement
allowance from authorizing deductions therefrom for payment of premiums
due on any group insurance policy or plan issued for the benefit of a
group comprised of public employees of the state of Washington or its
political subdivisions and which has been approved for deduction in
accordance with rules that may be adopted by the state health care
authority and/or the department. This section also does not prohibit
a beneficiary of a retirement allowance from authorizing deductions
therefrom for payment of dues and other membership fees to any
retirement association or organization the membership of which is
composed of retired public employees, if a total of three hundred or
more of such retired employees have authorized such deduction for
payment to the same retirement association or organization.
(3) Subsection (1) of this section does not prohibit the department
from complying with (a) a wage assignment order for child support
issued pursuant to chapter 26.18 RCW, (b) an order to withhold and
deliver issued pursuant to chapter 74.20A RCW, (c) a notice of payroll
deduction issued pursuant to RCW 26.23.060, (d) a mandatory benefits
assignment order issued by the department, (e) a court order directing
the department of retirement systems to pay benefits directly to an
obligee under a dissolution order as defined in RCW 41.50.500(3) which
fully complies with RCW 41.50.670 and 41.50.700, or (f) any
administrative or court order expressly authorized by federal law.
(4) Subsection (1) of this section does not exempt any pension or
other benefit received under this chapter from tax under Title 82A RCW
(sections 101 through 809 of this act), nor does it prohibit the
department of retirement systems from complying with the tax
withholding requirements of that title.
Sec. 1008 RCW 41.40.052 and 1999 c 83 s 1 are each amended to
read as follows:and)), (3), and (4) of this section, the right of a person to a
pension, an annuity, or retirement allowance, any optional benefit, any
other right accrued or accruing to any person under the provisions of
this chapter, the various funds created by this chapter, and all moneys
and investments and income thereof, are hereby exempt from any state,
county, municipal, or other local tax, and shall not be subject to
execution, garnishment, attachment, the operation of bankruptcy or
insolvency laws, or other process of law whatsoever, and shall be
unassignable.
(2)(a) This section shall not be deemed to prohibit a beneficiary
of a retirement allowance from authorizing deductions therefrom for
payment of premiums due on any group insurance policy or plan issued
for the benefit of a group comprised of public employees of the state
of Washington or its political subdivisions and which has been approved
for deduction in accordance with rules that may be adopted by the state
health care authority and/or the department, and this section shall not
be deemed to prohibit a beneficiary of a retirement allowance from
authorizing deductions therefrom for payment of dues and other
membership fees to any retirement association or organization the
membership of which is composed of retired public employees, if a total
of three hundred or more of such retired employees have authorized such
deduction for payment to the same retirement association or
organization.
(b) This section does not prohibit a beneficiary of a retirement
allowance from authorizing deductions from that allowance for
charitable purposes on the same terms as employees and public officers
under RCW 41.04.035 and 41.04.036.
(3) Subsection (1) of this section shall not prohibit the
department from complying with (a) a wage assignment order for child
support issued pursuant to chapter 26.18 RCW, (b) an order to withhold
and deliver issued pursuant to chapter 74.20A RCW, (c) a notice of
payroll deduction issued pursuant to RCW 26.23.060, (d) a mandatory
benefits assignment order issued by the department, (e) a court order
directing the department of retirement systems to pay benefits directly
to an obligee under a dissolution order as defined in RCW 41.50.500(3)
which fully complies with RCW 41.50.670 and 41.50.700, or (f) any
administrative or court order expressly authorized by federal law.
(4) Subsection (1) of this section does not exempt any pension or
other benefit received under this chapter from tax under Title 82A RCW
(sections 101 through 809 of this act), nor does it prohibit the
department of retirement systems from complying with the tax
withholding requirements of that title.
Sec. 1009 RCW 41.44.240 and 1989 c 360 s 28 are each amended to
read as follows:
(2) This section shall not apply to child support collection
actions taken under chapter 26.18, 26.23, or 74.20A RCW against
benefits payable under any such plan or arrangement. Benefits under
this chapter shall be payable to a spouse or ex-spouse to the extent
expressly provided for in any court decree of dissolution or legal
separation or in any court order or court-approved property settlement
agreement incident to any court decree of dissolution or legal
separation.
(3) Subsection (1) of this section does not exempt any pension or
other benefit received under this chapter from tax under Title 82A RCW
(sections 101 through 809 of this act), nor does it prohibit the
department of retirement systems from complying with the tax
withholding requirements of that title.
Sec. 1010 RCW 41.26.053 and 1991 c 365 s 20 and 1991 c 35 s 25
are each reenacted and amended to read as follows:and)), (3), and (4) of this section,
the right of a person to a retirement allowance, disability allowance,
or death benefit, to the return of accumulated contributions, the
retirement, disability or death allowance itself, any optional benefit,
any other right accrued or accruing to any person under the provisions
of this chapter, and the moneys in the fund created under this chapter,
are hereby exempt from any state, county, municipal, or other local tax
and shall not be subject to execution, garnishment, attachment, the
operation of bankruptcy or insolvency laws, or any other process of law
whatsoever, and shall be unassignable.
(2) On the written request of any person eligible to receive
benefits under this section, the department may deduct from such
payments the premiums for life, health, or other insurance. The
request on behalf of any child or children shall be made by the legal
guardian of such child or children. The department may provide for
such persons one or more plans of group insurance, through contracts
with regularly constituted insurance carriers or health care service
contractors.
(3) Subsection (1) of this section shall not prohibit the
department from complying with (a) a wage assignment order for child
support issued pursuant to chapter 26.18 RCW, (b) an order to withhold
and deliver issued pursuant to chapter 74.20A RCW, (c) a notice of
payroll deduction issued pursuant to RCW 26.23.060, (d) a mandatory
benefits assignment order issued by the department, (e) a court order
directing the department of retirement systems to pay benefits directly
to an obligee under a dissolution order as defined in RCW 41.50.500(3)
which fully complies with RCW 41.50.670 and 41.50.700, or (f) any
administrative or court order expressly authorized by federal law.
(4) Subsection (1) of this section does not exempt any pension or
other benefit received under this chapter from tax under Title 82A RCW
(sections 101 through 809 of this act), nor does it prohibit the
department of retirement systems from complying with the tax
withholding requirements of that title.
Sec. 1011 RCW 43.43.310 and 1991 c 365 s 23 are each amended to
read as follows:and)), (3), and (4) of this section, the right of any
person to a retirement allowance or optional retirement allowance under
the provisions hereof and all moneys and investments and income thereof
are exempt from any state, county, municipal, or other local tax and
shall not be subject to execution, garnishment, attachment, the
operation of bankruptcy or the insolvency laws, or other processes of
law whatsoever and shall be unassignable except as herein specifically
provided.
(2) Subsection (1) of this section shall not prohibit the
department of retirement systems from complying with (a) a wage
assignment order for child support issued pursuant to chapter 26.18
RCW, (b) an order to withhold and deliver issued pursuant to chapter
74.20A RCW, (c) a notice of payroll deduction issued pursuant to RCW
26.23.060, (d) a mandatory benefits assignment order issued pursuant to
chapter 41.50 RCW, (e) a court order directing the department of
retirement systems to pay benefits directly to an obligee under a
dissolution order as defined in RCW 41.50.500(3) which fully complies
with RCW 41.50.670 and 41.50.700, or (f) any administrative or court
order expressly authorized by federal law.
(3) Subsection (1) of this section shall not be deemed to prohibit
a beneficiary of a retirement allowance from authorizing deductions
therefrom for payment of premiums due on any group insurance policy or
plan issued for the benefit of a group comprised of members of the
Washington state patrol or other public employees of the state of
Washington, or for contributions to the Washington state patrol
memorial foundation.
(4) Subsection (1) of this section does not exempt any pension or
other benefit received under this chapter from tax under Title 82A RCW
(sections 101 through 809 of this act), nor does it prohibit the
department of retirement systems from complying with the tax
withholding requirements of that title.
NEW SECTION. Sec. 1012 RCW 6.15.025 (Exemption of pension or
retirement plan benefits from execution for judgment for out-of-state
income tax) and 1991 c 123 s 3 are each repealed.
Sec. 1101 RCW 82.08.020 and 2000 2nd sp.s. c 4 s 1 are each
amended to read as follows:
(1) There is levied and there shall be collected a tax on each
retail sale in this state equal to ((six)) three and five-tenths
percent of the selling price.
(2) There is levied and there shall be collected an additional tax
on each retail car rental, regardless of whether the vehicle is
licensed in this state, equal to five and nine-tenths percent of the
selling price. The revenue collected under this subsection shall be
deposited in the multimodal transportation account created in RCW
47.66.070.
(3) The taxes imposed under this chapter shall apply to successive
retail sales of the same property.
(4) The rates provided in this section apply to taxes imposed under
chapter 82.12 RCW as provided in RCW 82.12.020.
Sec. 1201 RCW 84.52.065 and 1991 sp.s. c 31 s 16 are each amended
to read as follows:
Subject to the limitations in RCW 84.55.010, in each year through
calendar year 2003 the state shall levy for collection in the following
year for the support of common schools of the state a tax of three
dollars and sixty cents per thousand dollars of assessed value upon the
assessed valuation of all taxable property within the state adjusted to
the state equalized value in accordance with the indicated ratio fixed
by the state department of revenue. The state shall not levy a tax for
collection in calendar year 2005 and thereafter.
As used in this section, "the support of common schools" includes
the payment of the principal and interest on bonds issued for capital
construction projects for the common schools.
Sec. 1202 RCW 84.52.068 and 2001 c 3 s 5 are each amended to read
as follows:
(1) A portion of the proceeds of the state property tax levy
through calendar year 2004 and the state income tax beginning in
calendar year 2005 shall be distributed to school districts in the
amounts and in the manner provided in this section.
(2) The amount of the distribution to each school district shall be
based upon the average number of full-time equivalent students in the
school district during the previous school year, and shall be
calculated as follows:
(a) Out of taxes collected in calendar years 2001 through and
including 2003, an annual amount equal to one hundred forty dollars per
each full-time equivalent student in all school districts shall be
deposited in the student achievement fund to be distributed to each
school district based on one hundred forty dollars per full-time
equivalent student in the school district for each year beginning with
the school year 2001-2002.
(b) Out of taxes collected in calendar year 2004, an annual amount
equal to four hundred fifty dollars per full-time equivalent student in
all school districts shall be deposited in the student achievement fund
to be distributed to each school district based on four hundred fifty
dollars per full-time equivalent student for each year beginning with
the school year 2004-2005. Each subsequent year, the amount deposited
shall be adjusted for inflation as defined in RCW 43.135.025(((7)))
(8).
(3) The office of the superintendent of public instruction shall
verify the average number of full-time equivalent students in each
school district from the previous school year to the state treasurer by
August 1st of each year.
Sec. 1203 RCW 84.52.043 and 1995 c
99 s 3 are each amended to
read as follows:
Within and subject to the limitations imposed by RCW 84.52.050 as
amended, the regular ad valorem tax levies upon real and personal
property by the taxing districts hereafter named shall be as follows:
(1) Levies of the senior taxing districts shall be as follows: (a)
((The levy by the state shall not exceed three dollars and sixty cents
per thousand dollars of assessed value adjusted to the state equalized
value in accordance with the indicated ratio fixed by the state
department of revenue to be used exclusively for the support of the
common schools; (b))) The levy by any county shall not exceed one
dollar and eighty cents per thousand dollars of assessed value; (((c)))
(b) the levy by any road district shall not exceed two dollars and
twenty-five cents per thousand dollars of assessed value; and (((d)))
(c) the levy by any city or town shall not exceed three dollars and
thirty-seven and one-half cents per thousand dollars of assessed value.
However any county is hereby authorized to increase its levy from one
dollar and eighty cents to a rate not to exceed two dollars and forty-seven and one-half cents per thousand dollars of assessed value for
general county purposes if the total levies for both the county and any
road district within the county do not exceed four dollars and five
cents per thousand dollars of assessed value, and no other taxing
district has its levy reduced as a result of the increased county levy.
(2) The aggregate levies of junior taxing districts and senior
taxing districts((, other than the state,)) shall not exceed five
dollars and ninety cents per thousand dollars of assessed valuation.
The term "junior taxing districts" includes all taxing districts other
than the state, counties, road districts, cities, towns, port
districts, and public utility districts. The limitations provided in
this subsection shall not apply to: (a) Levies at the rates provided
by existing law by or for any port or public utility district; (b)
excess property tax levies authorized in Article VII, section 2 of the
state Constitution; (c) levies for acquiring conservation futures as
authorized under RCW 84.34.230; (d) levies for emergency medical care
or emergency medical services imposed under RCW 84.52.069; (e) levies
to finance affordable housing for very low-income housing imposed under
RCW 84.52.105; and (f) the portions of levies by metropolitan park
districts that are protected under RCW 84.52.120.
Sec. 1204 RCW 84.52.050 and 1973 1st ex.s. c 194 s 1 are each
amended to read as follows:
(1) Except as hereinafter provided, the aggregate of all tax levies
upon real and personal property by the state and all taxing districts,
now existing or hereafter created, shall not in any year exceed ((one
percentum)) sixty-four one-hundredths of one percent of the true and
fair value of such property in money((: PROVIDED, HOWEVER, That)).
(2) Nothing herein shall prevent levies at the rates now provided
by law by or for any port or public utility district. The term "taxing
district" for the purposes of this section shall mean any political
subdivision, municipal corporation, district, or other governmental
agency authorized by law to levy, or have levied for it, ad valorem
taxes on property, other than a port or public utility district. Such
aggregate limitation or any specific limitation imposed by law in
conformity therewith may be exceeded only as authorized by law and in
conformity with the provisions of Article VII, section 2(a), (b), or
(c) of the Constitution of the state of Washington.
(3) Nothing herein contained shall prohibit the legislature from
allocating or reallocating the authority to levy taxes between the
taxing districts of the state and its political subdivisions in a
manner which complies with the aggregate tax limitation set forth in
this section.
Sec. 1205 RCW 36.58.150 and 1984 c 186 s 25 are each amended to
read as follows:
(1) A solid waste disposal district shall not have the power to
levy an annual levy without voter approval, but it shall have the power
to levy a tax, in excess of the ((one percent)) limitation in RCW
84.52.050, upon the property within the district for a one year period
to be used for operating or capital purposes whenever authorized by the
electors of the district pursuant to RCW 84.52.052 and Article VII,
section 2(a) of the state Constitution.
A solid waste disposal district may issue general obligation bonds
for capital purposes only, subject to the limitations prescribed in RCW
39.36.020(1), and may provide for the retirement of the bonds by voter-approved bond retirement tax levies pursuant to Article VII, section
2(b) of the state Constitution and RCW 84.52.056. Such general
obligation bonds shall be issued and sold in accordance with chapter
39.46 RCW.
A solid waste disposal district may issue revenue bonds to fund its
activities. Such revenue bonds may be in any form, including bearer
bonds or registered bonds as provided in RCW 39.46.030.
(2) Notwithstanding subsection (1) of this section, such revenue
bonds may be issued and sold in accordance with chapter 39.46 RCW.
Sec. 1206 RCW 36.60.040 and 1983 c 303 s 11 are each amended to
read as follows:
A county rail district is not authorized to impose a regular ad
valorem property tax levy but may:
(1) Levy an ad valorem property tax, in excess of the ((one
percent)) limitation in RCW 84.52.050, upon the property within the
district for a one-year period to be used for operating or capital
purposes whenever authorized by the voters of the district pursuant to
RCW 84.52.052 and Article VII, section 2(a) of the state Constitution.
(2) Provide for the retirement of voter approved general obligation
bonds, issued for capital purposes only, by levying bond retirement ad
valorem property tax levies, in excess of the one percent limitation,
whenever authorized by the voters of the district pursuant to Article
VII, section 2(b) of the state Constitution and RCW 84.52.056.
Sec. 1207 RCW 36.69.145 and 1994 c 156 s 3 are each amended to
read as follows:
(1) A park and recreation district may impose regular property tax
levies in an amount equal to sixty cents or less per thousand dollars
of assessed value of property in the district in each year for six
consecutive years when specifically authorized so to do by a majority
of at least three-fifths of the voters thereof approving a proposition
authorizing the levies submitted at a special election or at the
regular election of the district, at which election the number of
voters voting "yes" on the proposition shall constitute three-fifths of
a number equal to forty per centum of the number of voters voting in
such district at the last preceding general election when the number of
voters voting on the proposition does not exceed forty per centum of
the number of voters voting in such taxing district in the last
preceding general election; or by a majority of at least three-fifths
of the voters thereof voting on the proposition if the number of voters
voting on the proposition exceeds forty per centum of the number of
voters voting in such taxing district in the last preceding general
election. A proposition authorizing the tax levies shall not be
submitted by a park and recreation district more than twice in any
twelve-month period. Ballot propositions shall conform with RCW
29.30.111. In the event a park and recreation district is levying
property taxes, which in combination with property taxes levied by
other taxing districts subject to the ((one percent)) limitation
provided for in ((Article 7, section 2, of our state Constitution))
RCW 84.52.050 result in taxes in excess of the limitation provided for
in RCW 84.52.043, the park and recreation district property tax levy
shall be reduced or eliminated before the property tax levies of other
taxing districts are reduced.
(2) The limitation in RCW 84.55.010 shall not apply to the first
levy imposed under this section following the approval of the levies by
the voters under subsection (1) of this section.
Sec. 1208 RCW 36.73.060 and 1987 c 327 s 6 are each amended to
read as follows:
(1) A transportation benefit district may levy an ad valorem
property tax in excess of the ((one percent)) limitation in RCW
84.52.050 upon the property within the district for a one-year period
whenever authorized by the voters of the district pursuant to RCW
84.52.052 and Article VII, section 2(a) of the state Constitution.
(2) A district may provide for the retirement of voter-approved
general obligation bonds, issued for capital purposes only, by levying
bond retirement ad valorem property tax levies in excess of the one
percent limitation whenever authorized by the voters of the district
pursuant to Article VII, section 2(b) of the state Constitution and RCW
84.52.056.
Sec. 1209 RCW 36.83.030 and 1983 c 130 s 3 are each amended to
read as follows:
(1) A service district may levy an ad valorem property tax, in
excess of the ((one percent)) limitation in RCW 84.52.050, upon the
property within the district for a one-year period whenever authorized
by the voters of the district pursuant to RCW 84.52.052 and Article
VII, section 2(a) of the state Constitution.
(2) A service district may provide for the retirement of voter
approved general obligation bonds, issued for capital purposes only, by
levying bond retirement ad valorem property tax levies, in excess of
the one percent limitation, whenever authorized by the voters of the
district pursuant to Article VII, section 2(b) of the state
Constitution and RCW 84.52.056.
Sec. 1210 RCW 36.100.050 and 1988 ex.s. c 1 s 15 are each amended
to read as follows:
(1) A public facilities district may levy an ad valorem property
tax, in excess of the ((one percent)) limitation in RCW 84.52.050, upon
the property within the district for a one-year period to be used for
operating or capital purposes whenever authorized by the voters of the
district pursuant to RCW 84.52.052 and Article VII, section 2(a) of the
state Constitution.
(2) A public facilities district may provide for the retirement of
voter-approved general obligation bonds, issued for capital purposes
only, by levying bond retirement ad valorem property tax levies, in
excess of the one percent limitation, whenever authorized by the voters
of the district pursuant to Article VII, section 2(b) of the state
Constitution and RCW 84.52.056.
Sec. 1211 RCW 67.38.130 and 1984 c 131 s 4 are each amended to
read as follows:
The governing body of a cultural arts, stadium and convention
district may levy or cause to levy the following ad valorem taxes:
(1) Regular ad valorem property tax levies in an amount equal to
twenty-five cents or less per thousand dollars of the assessed value of
property in the district in each year for six consecutive years when
specifically authorized so to do by a majority of at least three-fifths
of the electors thereof approving a proposition authorizing the levies
submitted at a general or special election, at which election the
number of persons voting "yes" on the proposition shall constitute
three-fifths of a number equal to forty percentum of the total votes
cast in such taxing district at the last preceding general election; or
by a majority of at least three-fifths of the electors thereof voting
on the proposition when the number of electors voting yes on the
proposition exceeds forty percentum of the total votes cast in such
taxing district in the last preceding general election. Ballot
propositions shall conform with RCW 29.30.111.
In the event a cultural arts, stadium and convention district is
levying property taxes, which in combination with property taxes levied
by other taxing districts subject to the ((one percent)) limitation
provided for in ((Article VII, section 2, of our state Constitution))
RCW 84.52.050 result in taxes in excess of the limitation provided for
in RCW 84.52.043, the cultural arts, stadium and convention district
property tax levy shall be reduced or eliminated before the property
tax levies of other taxing districts are reduced: PROVIDED, That no
cultural arts, stadium, and convention district may pledge anticipated
revenues derived from the property tax herein authorized as security
for payments of bonds issued pursuant to subsection (1) of this
section: PROVIDED, FURTHER, That such limitation shall not apply to
property taxes approved pursuant to subsections (2) and (3) of this
section.
The limitation in RCW 84.55.010 shall apply to levies after the
first levy authorized under this section following the approval of such
levy by voters pursuant to this section.
(2) An annual excess ad valorem property tax for general district
purposes when authorized by the district voters in the manner
prescribed by ((section 2,)) Article VII, section 2 of the state
Constitution and by RCW 84.52.052.
(3) Multi-year excess ad valorem property tax levies used to retire
general obligation bond issues when authorized by the district voters
in the manner prescribed by ((section 2,)) Article VII, section 2 of
the state Constitution and by RCW 84.52.056.
The district shall include in its regular property tax levy for
each year a sum sufficient to pay the interest and principal on all
outstanding general obligation bonds issued without voter approval
pursuant to RCW 67.38.110 and may include a sum sufficient to create a
sinking fund for the redemption of all outstanding bonds.
Sec. 1212 RCW 84.52.010 and 2002 c 248 s 15 and 2002 c 88 s 7 are
each reenacted and amended to read as follows:
Except as is permitted under RCW 84.55.050, all taxes shall be
levied or voted in specific amounts.
The rate percent of all taxes for state and county purposes, and
purposes of taxing districts coextensive with the county, shall be
determined, calculated and fixed by the county assessors of the
respective counties, within the limitations provided by law, upon the
assessed valuation of the property of the county, as shown by the
completed tax rolls of the county, and the rate percent of all taxes
levied for purposes of taxing districts within any county shall be
determined, calculated and fixed by the county assessors of the
respective counties, within the limitations provided by law, upon the
assessed valuation of the property of the taxing districts
respectively.
When a county assessor finds that the aggregate rate of tax levy on
any property, that is subject to the limitations set forth in RCW
84.52.043 or 84.52.050, exceeds the limitations provided in either of
these sections, the assessor shall recompute and establish a
consolidated levy in the following manner:
(1) The full certified rates of tax levy for state, county, county
road district, and city or town purposes shall be extended on the tax
rolls in amounts not exceeding the limitations established by law;
however any state levy shall take precedence over all other levies and
shall not be reduced for any purpose other than that required by RCW
84.55.010. If, as a result of the levies imposed under RCW 84.52.069,
84.34.230, the portion of the levy by a metropolitan park district that
was protected under RCW 84.52.120, and 84.52.105, the combined rate of
regular property tax levies that are subject to the ((one percent))
limitation under RCW 84.52.050 exceeds ((one percent of the true and
fair value of any property)) the limitation under RCW 84.52.050, then
these levies shall be reduced as follows: (a) The portion of the levy
by a metropolitan park district that is protected under RCW 84.52.120
shall be reduced until the combined rate no longer exceeds ((one
percent of the true and fair value of any property)) the limitation
under RCW 84.52.050 or shall be eliminated; (b) if the combined rate of
regular property tax levies that are subject to the ((one percent))
limitation under RCW 84.52.050 still exceeds ((one percent of the true
and fair value of any property)) the limitation under RCW 84.52.050,
then the levies imposed under RCW 84.34.230, 84.52.105, and any portion
of the levy imposed under RCW 84.52.069 that is in excess of thirty
cents per thousand dollars of assessed value, shall be reduced on a pro
rata basis until the combined rate no longer exceeds one percent of the
true and fair value of any property or shall be eliminated; and (c) if
the combined rate of regular property tax levies that are subject to
the one percent limitation still exceeds one percent of the true and
fair value of any property, then the thirty cents per thousand dollars
of assessed value of tax levy imposed under RCW 84.52.069 shall be
reduced until the combined rate no longer exceeds one percent of the
true and fair value of any property or eliminated.
(2) The certified rates of tax levy subject to these limitations by
all junior taxing districts imposing taxes on such property shall be
reduced or eliminated as follows to bring the consolidated levy of
taxes on such property within the provisions of these limitations:
(a) First, the certified property tax levy rates of those junior
taxing districts authorized under RCW 36.68.525, 36.69.145, 35.95A.100,
and 67.38.130 shall be reduced on a pro rata basis or eliminated;
(b) Second, if the consolidated tax levy rate still exceeds these
limitations, the certified property tax levy rates of flood control
zone districts shall be reduced on a pro rata basis or eliminated;
(c) Third, if the consolidated tax levy rate still exceeds these
limitations, the certified property tax levy rates of all other junior
taxing districts, other than fire protection districts, library
districts, the first fifty cent per thousand dollars of assessed
valuation levies for metropolitan park districts, and the first fifty
cent per thousand dollars of assessed valuation levies for public
hospital districts, shall be reduced on a pro rata basis or eliminated;
(d) Fourth, if the consolidated tax levy rate still exceeds these
limitations, the first fifty cent per thousand dollars of assessed
valuation levies for metropolitan park districts created on or after
January 1, 2002, shall be reduced on a pro rata basis or eliminated;
(e) Fifth, if the consolidated tax levy rate still exceeds these
limitations, the certified property tax levy rates authorized to fire
protection districts under RCW 52.16.140 and 52.16.160 shall be reduced
on a pro rata basis or eliminated; and
(f) Sixth, if the consolidated tax levy rate still exceeds these
limitations, the certified property tax levy rates authorized for fire
protection districts under RCW 52.16.130, library districts,
metropolitan park districts created before January 1, 2002, under their
first fifty cent per thousand dollars of assessed valuation levy, and
public hospital districts under their first fifty cent per thousand
dollars of assessed valuation levy, shall be reduced on a pro rata
basis or eliminated.
In determining whether the aggregate rate of tax levy on any
property, that is subject to the limitations set forth in RCW
84.52.050, exceeds the limitations provided in that section, the
assessor shall use the hypothetical state levy, as apportioned to the
county under RCW 84.48.080, that was computed under RCW 84.48.080
without regard to the reduction under RCW 84.55.012.
Sec. 1213 RCW 84.69.020 and 2002 c 168 s 11 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;
(2) Paid as a result of manifest error in description;
(3) Paid as a result of a clerical error in extending the tax
rolls;
(4) Paid as a result of other clerical errors in listing property;
(5) Paid with respect to improvements which did not exist on
assessment date;
(6) Paid under levies or statutes adjudicated to be illegal or
unconstitutional;
(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;
(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;
(9) Paid on the basis of an assessed valuation which was appealed
to the county board of equalization and ordered reduced by the board;
(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;
(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))
the percentage under RCW 84.52.050 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;
(13) Paid on property acquired under RCW 84.60.050, and canceled
under RCW 84.60.050(2);
(14) Paid on the basis of an assessed valuation that was reduced
under RCW 84.48.065;
(15) Paid on the basis of an assessed valuation that was reduced
under RCW 84.40.039; or
(16) Abated under RCW 84.70.010.
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. However, refunds
as a result of an incorrect payment authorized under subsection (8) of
this section made by a third party payee shall not include refund
interest. 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
February 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.
Sec. 1214 RCW 39.89.020 and 2001 c 212 s 2 are each amended to
read as follows:
The definitions in this section apply throughout this chapter
unless the context clearly requires otherwise.
(1) "Assessed value of real property" means the valuation of real
property as placed on the last completed assessment roll.
(2) "Local government" means any city, town, county, port district,
or any combination thereof.
(3) "Ordinance" means any appropriate method of taking legislative
action by a local government.
(4) "Public improvements" means:
(a) Infrastructure improvements within the increment area that
include:
(i) Street and road construction and maintenance;
(ii) Water and sewer system construction and improvements;
(iii) Sidewalks and streetlights;
(iv) Parking, terminal, and dock facilities;
(v) Park and ride facilities of a transit authority;
(vi) Park facilities and recreational areas; and
(vii) Storm water and drainage management systems; and
(b) Expenditures for any of the following purposes:
(i) Providing environmental analysis, professional management,
planning, and promotion within the increment area, including the
management and promotion of retail trade activities in the increment
area;
(ii) Providing maintenance and security for common or public areas
in the increment area; or
(iii) Historic preservation activities authorized under RCW
35.21.395.
(5) "Public improvement costs" means the costs of: (a) Design,
planning, acquisition, site preparation, construction, reconstruction,
rehabilitation, improvement, and installation of public improvements;
(b) relocating, maintaining, and operating property pending
construction of public improvements; (c) relocating utilities as a
result of public improvements; (d) financing public improvements,
including interest during construction, legal and other professional
services, taxes, insurance, principal and interest costs on general
indebtedness issued to finance public improvements, and any necessary
reserves for general indebtedness; (e) assessments incurred in
revaluing real property for the purpose of determining the tax
allocation base value that are in excess of costs incurred by the
assessor in accordance with the revaluation plan under chapter 84.41
RCW, and the costs of apportioning the taxes and complying with this
chapter and other applicable law; and (f) administrative expenses and
feasibility studies reasonably necessary and related to these costs,
including related costs that may have been incurred before adoption of
the ordinance authorizing the public improvements and the use of
community revitalization financing to fund the costs of the public
improvements.
(6) "Regular property taxes" means regular property taxes as
defined in RCW 84.04.140, except((: (a))) regular property taxes
levied by port districts or public utility districts specifically for
the purpose of making required payments of principal and interest on
general indebtedness((; and (b) regular property taxes levied by the
state for the support of the common schools under RCW 84.52.065)).
Regular property taxes do not include excess property tax levies that
are exempt from the aggregate limits for junior and senior taxing
districts as provided in RCW 84.52.043.
(7) "Tax allocation base value" means the true and fair value of
real property located within an increment area for taxes imposed in the
year in which the increment area is created, plus twenty-five percent
of any increase in the true and fair value of real property located
within an increment area that is placed on the assessment rolls after
the increment area is created.
(8) "Tax allocation revenues" means those tax revenues derived from
the imposition of regular property taxes on the increment value and
distributed to finance public improvements.
(9) "Increment area" means the geographic area from which taxes are
to be appropriated to finance public improvements authorized under this
chapter.
(10) "Increment value" means seventy-five percent of any increase
in the true and fair value of real property in an increment area that
is placed on the tax rolls after the increment area is created.
(11) "Taxing districts" means a governmental entity that levies or
has levied for it regular property taxes upon real property located
within a proposed or approved increment area.
(12) "Value of taxable property" means the value of the taxable
property as defined in RCW 39.36.015.
Sec. 1215 RCW 43.99H.060 and 1991 sp.s. c 31 s 15 are each
amended to read as follows:
(1) For bonds issued for the purposes of RCW 43.99H.020(16), on
each date on which any interest or principal and interest payment is
due, the board of regents or the board of trustees of Washington State
University shall cause the amount computed in RCW 43.99H.040(1) to be
paid out of the appropriate building account or capital projects
account to the state treasurer for deposit into the general fund of the
state treasury.
(2) For bonds issued for the purposes of RCW 43.99H.020(15), on
each date on which any interest or principal and interest payment is
due, the state treasurer shall transfer the amount computed in RCW
43.99H.040(2) from the capitol campus reserve account, hereby created
in the state treasury, to the general fund of the state treasury. At
the time of sale of the bonds issued for the purposes of RCW
43.99H.020(15), and on or before June 30th of each succeeding year
while such bonds remain outstanding, the state finance committee shall
determine, based on current balances and estimated receipts and
expenditures from the capitol campus reserve account, that portion of
principal and interest on such RCW 43.99H.020(15) bonds which will, by
virtue of payments from the capitol campus reserve account, be
reimbursed from sources other than "general state revenues" as that
term is defined in Article VIII, section 1 of the state Constitution.
The amount so determined by the state finance committee, as from time
to time adjusted in accordance with this subsection, shall not
constitute indebtedness for purposes of the limitations set forth in
RCW 39.42.060.
(3) For bonds issued for the purposes of RCW 43.99H.020(17), on
each date on which any interest or principal and interest payment is
due, the director of the department of labor and industries shall cause
fifty percent of the amount computed in RCW 43.99H.040(3) to be
transferred from the accident fund created in RCW 51.44.010 and fifty
percent of the amount computed in RCW 43.99H.040(3) to be transferred
from the medical aid fund created in RCW 51.44.020, to the general fund
of the state treasury.
(4) For bonds issued for the purposes of RCW 43.99H.020(18), on
each date on which any interest or principal and interest payment is
due, the board of regents of the University of Washington shall cause
the amount computed in RCW 43.99H.040(4) to be paid out of University
of Washington nonappropriated local funds to the state treasurer for
deposit into the general fund of the state treasury.
(5) For bonds issued for the purposes of RCW 43.99H.020(20), on
each date on which any interest or principal and interest payment is
due, the state treasurer shall transfer the amount computed in RCW
43.99H.040(5) from the public safety and education account created in
RCW 43.08.250 to the general fund of the state treasury.
(((6) For bonds issued for the purposes of RCW 43.99H.020(4), on
each date on which any interest or principal and interest payment is
due, the state treasurer shall transfer from property taxes in the
state general fund levied for the support of the common schools under
RCW 84.52.065 to the general fund of the state treasury for
unrestricted use the amount computed in RCW 43.99H.040(6).))
Sec. 1216 RCW 43.99I.040 and 1997 c 456 s 39 are each amended to
read as follows:
(1) ((On each date on which any interest or principal and interest
payment is due on bonds issued for the purposes of RCW 43.99I.020(4),
the state treasurer shall transfer from property taxes in the state
general fund levied for this support of the common schools under RCW
84.52.065 to the general fund of the state treasury for unrestricted
use the amount computed in RCW 43.99I.030 for the bonds issued for the
purposes of RCW 43.99I.020(4).)) On each date on which any interest or principal and interest
payment is due on bonds issued for the purposes of RCW 43.99I.020(5),
the state treasurer shall transfer from higher education operating fees
deposited in the general fund to the general fund of the state treasury
for unrestricted use, or if chapter 231, Laws of 1992 (Senate Bill No.
6285) becomes law and changes the disposition of higher education
operating fees from the general fund to another account, the state
treasurer shall transfer the proportional share from the University of
Washington operating fees account, the Washington State University
operating fees account, and the Central Washington University operating
fees account the amount computed in RCW 43.99I.030 for the bonds issued
for the purposes of RCW 43.99I.020(6).
(2)
(((3))) (2) On each date on which any interest or principal and
interest payment is due on bonds issued for the purposes of RCW
43.99I.020(6), the state treasurer shall transfer from the data
processing revolving fund created in RCW 43.105.080 to the general fund
of the state treasury the amount computed in RCW 43.99I.030 for the
bonds issued for the purposes of RCW 43.99I.020(6).
(((4))) (3) On each date on which any interest or principal and
interest payment is due on bonds issued for the purpose of RCW
43.99I.020(7), the Washington state dairy products commission shall
cause the amount computed in RCW 43.99I.030 for the bonds issued for
the purposes of RCW 43.99I.020(7) to be paid out of the commission's
general operating fund to the state treasurer for deposit into the
general fund of the state treasury.
(((5))) (4) The higher education operating fee accounts for the
University of Washington, Washington State University, and Central
Washington University established by chapter 231, Laws of 1992 and
repealed by chapter 18, Laws of 1993 1st sp. sess. are reestablished in
the state treasury for purposes of fulfilling debt service
reimbursement transfers to the general fund required by bond
resolutions and covenants for bonds issued for purposes of RCW
43.99I.020(5).
(((6))) (5) For bonds issued for purposes of RCW 43.99I.020(5), on
each date on which any interest or principal and interest payment is
due, the board of regents or board of trustees of the University of
Washington, Washington State University, or Central Washington
University shall cause the amount as determined by the state treasurer
to be paid out of the local operating fee account for deposit by the
universities into the state treasury higher education operating fee
accounts. The state treasurer shall transfer the proportional share
from
the University of Washington operating fees account, the
Washington State University operating fees account, and the Central
Washington University operating fees account the amount computed in RCW
43.99I.030 for the bonds issued for the purposes of RCW 43.99I.020(6)
to reimburse the general fund.
Sec. 1217 RCW 76.12.120 and 2000 c 148 s 2 are each amended to
read as follows:
Except as provided in RCW 76.12.125, all land, acquired or
designated by the department as state forest land, shall be forever
reserved from sale, but the timber and other products thereon may be
sold or the land may be leased in the same manner and for the same
purposes as is authorized for state granted land if the department
finds such sale or lease to be in the best interests of the state and
approves the terms and conditions thereof.
Except as provided in RCW 79.12.035, all money derived from the
sale of timber or other products, or from lease, or from any other
source from the land, except where the Constitution of this state or
RCW 76.12.030 requires other disposition, shall be disposed of as
follows:
(1) Fifty percent shall be placed in the forest development
account.
(2) Fifty percent shall be prorated and distributed to the state
general fund, to be dedicated for the benefit of the public schools,
and the county in which the land is located according to the relative
proportions of tax levies of all taxing districts in the county. The
portion to be distributed to the state general fund shall be based on
the ((regular school levy rate under RCW 84.52.065 as now or hereafter
amended and the levy rate for any maintenance and operation special
school levies)) amounts appropriated for common schools by the
legislature. With regard to the portion to be distributed to the
counties, the department shall certify to the state treasurer the
amounts to be distributed within seven working days of receipt of the
money. The state treasurer shall distribute funds to the counties four
times per month, with no more than ten days between each payment date.
The money distributed to the county shall be paid, distributed, and
prorated to the various other funds in the same manner as general taxes
are paid and distributed during the year of payment.
NEW SECTION. Sec. 1301
NEW SECTION. Sec. 1302 CAPTIONS AND PART HEADINGS. Captions and
part headings as used in this act constitute no part of the law.
NEW SECTION. Sec. 1303
NEW SECTION. Sec. 1304
NEW SECTION. Sec. 1305 Sections 1201 through 1217 of this act
apply to taxes levied for collection in 2005.
NEW SECTION. Sec. 1306 RCW 84.52.068 is recodified as a section
in Title 82A RCW, created in section 1303 of this act.