BILL REQ. #:  S-5019.2 

     AN ACT Relating to simplifying the administration of the low-income homeowner deferral program; amending RCW 84.37.020, 84.37.030, 84.37.040, 84.37.050, 84.37.070, 84.37.090, and 82.03.130; and adding a new section to chapter 84.37 RCW.

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

Sec. 1   RCW 84.37.020 and 2007 sp.s. c 2 s 3 are each amended to read as follows:
     (1) Except for the definition of "residence" in RCW 84.38.020, the definitions in RCW 84.38.020 apply to this chapter. For purposes of this chapter, references to "this chapter" in any of the definitions in RCW 84.38.020 shall be interpreted to refer to chapter 84.37 RCW, unless the context clearly requires otherwise.
     (2) The term "residence" means a single-family dwelling unit, whether such unit is separate or part of a multiunit dwelling, including the parcel of land on which it stands. The term also includes: (a) A share ownership in a cooperative housing association, corporation, or partnership, if the person claiming the deferral can establish that his or her share represents a specific unit or portion of the structure in which he or she resides; and (b) a single-family dwelling situated upon lands the fee of which is vested in the United States or any of its instrumentalities, including an Indian tribe, or in the state of Washington, and notwithstanding the provisions of RCW 84.04.080 and 84.04.090, such a residence shall be deemed real property.

Sec. 2   RCW 84.37.030 and 2007 sp.s. c 2 s 2 are each amended to read as follows:
     A claimant may defer payment of fifty percent of special assessments or real property taxes, or both, listed on the annual tax statement in any year in which all of the following conditions are met:
     (1) The special assessments or property taxes must be imposed upon a residence that was occupied by the claimant as a principal place of residence as of January 1st of the year in which the assessments and taxes are due, subject to the exceptions allowed under RCW 84.36.381(1);
     (2) The claimant must have combined disposable income, as defined in RCW 84.36.383, of fifty-seven thousand dollars or less in the calendar year preceding the filing of the declaration;
     (3) The claimant must have paid one-half of the total amount of special assessments and property taxes listed on the annual tax statement for the year in which the deferral claim is made;
     (4) A deferral is not allowed for special assessments ((or)), property taxes, or both, levied for collection in the first five calendar years in which the person owns the residence;
     (5) The claimant who defers payment of special assessments or real property taxes, or both, listed on the annual tax statement under this section must also meet the conditions of RCW 84.38.030 (4) and (5);
     (6) The total amount deferred by a claimant under this chapter must not exceed forty percent of the amount of the claimant's equity value in the claimant's residence; and
     (7) The claimant may not defer taxes under both this chapter and chapter 84.38 RCW((; and
     (8) In the case of deferred special assessments, the claimant must have opted for payment of the assessments on the installment method if this method was available)) in the same tax year.

Sec. 3   RCW 84.37.040 and 2007 sp.s. c 2 s 4 are each amended to read as follows:
     (1)(a) Each claimant electing to defer payment of special assessments or real property tax obligations, or both, under this chapter shall file ((with the county assessor,)) an initial declaration with the department in a format required by the department and on forms prescribed and furnished by the department ((and supplied by the assessor, a written declaration thereof)). The declaration to defer special assessments and/or real property taxes for any year shall be filed no later than the first day of September of the year for which the deferral is sought((: PROVIDED, That)). However, for good cause shown, the department may waive this requirement.
     (b) If the claimant is unable to submit his or her own declaration, the declaration may be submitted by an authorized agent, guardian, or designee.
     (2)(a) The declaration shall designate the property to which the deferral applies, and shall include a statement setting forth (((a))) (i) a list of all members of the claimant's household, (((b))) (ii) the claimant's equity value in his or her residence, (((c))) (iii) facts establishing the eligibility for the deferral under the provisions of this chapter, and (((d))) (iv) any other relevant information required by the rules of the department.
     (b) Each copy shall be signed by the claimant either in writing or by electronic signature subject to the penalties as provided in chapter 9A.72 RCW for false swearing.
     (3) The ((county assessor)) department shall determine if each claimant shall be granted a deferral for each year but the claimant shall have the right to appeal this determination to the ((county board of equalization, in accordance with the provisions of RCW 84.40.038, whose decision shall be final as to the deferral of that year)) state board of tax appeals as provided in RCW 82.03.130.
     (4) The department may verify the information provided in any deferral declaration and any supporting documentation at the time of filing the declaration or through a subsequent audit.

Sec. 4   RCW 84.37.050 and 2007 sp.s. c 2 s 5 are each amended to read as follows:
     (1) ((The provisions of RCW 84.38.050(1)(b) apply to declarations to defer special assessments or property taxes, or both, for all years following the first year)) (a) Elections to defer property taxes for all years following the first year may be made by filing with the department a renewal declaration in a form and format, and containing such information, as required by the department, affirming the continued eligibility of the claimant. The provisions of RCW 84.37.040 (1)(a) and (b), (2)(b), (3), and (4) apply to renewal declarations.
     (b) Each year, the department must provide every person receiving a deferral under this chapter in the previous year notice of the opportunity to renew the deferral.
     (2) The provisions of RCW 84.38.070 apply to claimants ceasing to reside permanently on the property for which the declaration to defer is made between the date of filing the declaration and December 15th of that year.

Sec. 5   RCW 84.37.070 and 2007 sp.s. c 2 s 7 are each amended to read as follows:
     Whenever a person's special assessment or real property tax obligation, or both, is deferred under the provisions of this chapter, the amount deferred and required to be paid pursuant to ((RCW 84.38.120)) section 7 of this act shall become a lien in favor of the state upon his or her property and shall have priority as provided in chapters 35.50 and 84.60 RCW((: PROVIDED, That)). However, the interest of a mortgage or purchase contract holder who requires an accumulation of reserves out of which real estate taxes are paid shall have priority to said deferred lien. This lien may accumulate up to forty percent of the amount of the claimant's equity value in ((said)) the property and ((the rate of interest shall be an average of the federal short-term rate as defined in 26 U.S.C. Sec. 1274(d) plus two percentage points. The rate set for each new year shall be computed by taking an arithmetical average to the nearest percentage point of the federal short-term rate, compounded annually. That average shall be calculated using the rates from four months: January, April, and July of the calendar year immediately preceding the new year, and October of the previous preceding year. The interest shall be calculated)) shall bear interest at the rate of five percent per year from the time it could have been paid before delinquency until said obligation is paid. In the case of a mobile home, the department of licensing shall show the state's lien on the certificate of ownership for the mobile home. In the case of all other property, the department of revenue shall file a notice of the deferral with the county recorder or auditor.

Sec. 6   RCW 84.37.090 and 2007 sp.s. c 2 s 9 are each amended to read as follows:
     The provisions of RCW ((84.38.110, 84.38.120,)) 84.38.140, 84.38.150, 84.38.160, 84.38.170, and 84.38.180 apply to this chapter to the extent that they do not conflict with the provisions of this chapter. For purposes of this chapter, references to "this chapter" in any of the statutes listed in this section shall be interpreted to refer to chapter 84.37 RCW unless the context clearly requires otherwise.

NEW SECTION.  Sec. 7   A new section is added to chapter 84.37 RCW to read as follows:
     After the department has approved an initial or renewal declaration for deferred special assessments or real property taxes, or both, the department must pay to the appropriate county treasurer, from amounts appropriated for this purpose, the amount of either the deferred special assessments or real property taxes, or both, to be distributed to the local improvement or taxing districts that levied the taxes and assessments deferred under this chapter.

Sec. 8   RCW 82.03.130 and 2005 c 253 s 7 are each amended to read as follows:
     (1) The board shall have jurisdiction to decide the following types of appeals:
     (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)) 79.125.450.
     (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 pursuant to RCW 84.39.020.
     (m) Appeals of a denial of an initial or renewal declaration for deferral under chapter 84.37 RCW, if filed with the board of tax appeals within thirty days after the department of revenue provides notification of its determination to the applicant.
     (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.