HOUSE BILL REPORT
SSB 6441
As Passed House:
February 28, 2006
Title: An act relating to judicial orders concerning distraint of personal property.
Brief Description: Changing the law related to judicial orders concerning distraint of personal property.
Sponsors: By Senate Committee on Judiciary (originally sponsored by Senators Johnson and Kline).
Brief History:
Judiciary: 2/15/06 [DP].
Floor Activity:
Passed House: 2/28/06, 96-1.
Brief Summary of Substitute Bill |
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HOUSE COMMITTEE ON JUDICIARY
Majority Report: Do pass. Signed by 9 members: Representatives Lantz, Chair; Flannigan, Vice Chair; Williams, Vice Chair; Priest, Ranking Minority Member; Rodne, Assistant Ranking Minority Member; Kirby, Serben, Springer and Wood.
Staff: Edie Adams (786-7180).
Background:
Property taxes apply to both real property and personal property. Unless specifically exempt,
all tangible personal property is subject to property tax. Most personal property owned by
individuals is exempt from property tax (e.g., household goods and personal effects are not
subject to property tax). However, personal property owned by businesses is subject to the
property tax. Examples of taxable personal property are office furniture and fixtures,
computer software, manufacturing machinery and equipment, construction equipment, and
commercial fishing equipment.
The county assessor is responsible for the assessment of personal property and the calculation
of taxes. Personal property is taxed at the same levy rate as real property. The county
treasurer is responsible for the billing and collection of the taxes based on the "tax roll"
received from the county assessor.
The county treasurer is charged with the duty to collect delinquent personal property taxes.
One method a county treasurer may use to collect delinquent taxes is through a process of
"distraint," which is a process of seizing and detaining personal property. The treasurer
prepares "papers in destraint," which must describe the personal property, the amount of
taxes and accrued interest due, and the name of the owner of the personal property. The
treasurer must destrain sufficient goods and chattel of the property owner to satisfy the
obligation and must advertise the destraint by posting notice of the destraint and date and
place of sale of the property. The sale of the property may not occur until the tenth day after
the property is seized.
The Washington Supreme Court has held that there is no general common law authority for a
court to issue a search warrant. Rather, a judge is authorized to issue a search warrant only if
there is specific statutory or court rule authority to do so. The chapter governing collection of
delinquent personal property taxes through a destraint and sale process does not provide
specific authorization for a court to issue a warrant for the seizure of personal property to
satisfy a delinquent tax debt.
Summary of Bill:
A judge of the superior court or a district court is given authority to issue a warrant directed
to the county treasurer for the search and seizure of property within the county that is subject
to distraint for satisfaction of delinquent personal property taxes. The warrant must describe
the property to be seized and the place or places where the seizure will occur. The criminal
rules of superior court and district court govern the procedure for the issuance and execution
and return of the warrant and for the return of any property seized.
Appropriation: None.
Fiscal Note: Not requested.
Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.
Testimony For: The bill is needed because of case law that says that there is no general common law authority for a judge to issue a warrant, and that a warrant may be issued only if specifically authorized by statute. The bill provides the specific statutory authority for judges to issue warrants so that county treasurers are able to perform their obligations in collecting delinquent taxes.
Testimony Against: None.
Persons Testifying: Michael Shaw, Pierce County.