SENATE BILL REPORT
SHB 2309
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent. |
As of February 26, 2014
Title: An act relating to providing fairness and flexibility in the payment of property taxes.
Brief Description: Providing fairness and flexibility in the payment of property taxes.
Sponsors: House Committee on Finance (originally sponsored by Representatives Condotta, Shea, Overstreet and Taylor).
Brief History: Passed House: 2/17/14, 97-0.
Committee Activity: Governmental Operations: 2/27/14.
SENATE COMMITTEE ON GOVERNMENTAL OPERATIONS |
Staff: Sam Thompson (786-7413)
Background: County treasurers annually mail property tax notices to taxpayers in February. Taxpayers must pay property taxes by April 30. However, if taxes and assessments total $50 or more, taxpayers may pay one-half of the total by April 30 and the remainder by October 31. If a taxpayer misses the April 30 deadline, taxes are delinquent and interest is charged on the full amount of tax due, accruing 12 percent per annum, computed on a monthly basis. On June 1, a 3 percent penalty is imposed on the full amount of tax due. On December 1, an additional 8 percent penalty is imposed on the unpaid balance.
A 2013 act allowed taxpayers to pay delinquent property taxes, penalties, and interest on a monthly basis under a payment agreement with a county treasurer, signed by the taxpayer and treasurer. If a taxpayer successfully participates in a payment agreement, the treasurer will not assess additional penalties.
Under certain circumstances, a county treasurer will waive interest and penalties on delinquent property taxes, including error by the county in sending a property tax notice to a taxpayer.
Summary of Bill: The requirement that interest and a 3 percent penalty apply to the full-year amount of property tax, regardless of amounts paid, is modified so that these charges only apply to the unpaid balance.
A county treasurer may accept partial payment of current and delinquent property taxes, including interest and penalties, by electronic bill presentment and payment.
A county treasurer may waive interest and penalties on delinquent property taxes when a taxpayer paid an incorrect amount due to apparent taxpayer error and the taxpayer pays the delinquent tax within 30 days of receiving notice that taxes are due.
The bill applies to taxes levied for collection in 2015 and thereafter.
Appropriation: None.
Fiscal Note: Available.
Committee/Commission/Task Force Created: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.