BILL REQ. #: H-3233.2
State of Washington | 63rd Legislature | 2014 Regular Session |
Read first time 01/20/14. Referred to Committee on Finance.
AN ACT Relating to modifying collection dates for property taxes paid through escrow; and amending RCW 84.56.020.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 84.56.020 and 2013 c 239 s 3 are each amended to read
as follows:
(1) The county treasurer must be the receiver and collector of all
taxes extended upon the tax rolls of the county, whether levied for
state, county, school, bridge, road, municipal or other purposes, and
also of all fines, forfeitures or penalties received by any person or
officer for the use of his or her county. No treasurer may accept tax
payments or issue receipts for the same until the treasurer has
completed the tax roll for the current year's collection and provided
notification of the completion of the roll. Notification may be
accomplished electronically, by posting a notice in the office, or
through other written communication as determined by the treasurer.
All taxes upon real and personal property made payable by the
provisions of this title are due and payable to the treasurer on or
before the thirtieth day of April and, except as provided in this
section, shall be delinquent after that date.
(2) Each tax statement must include a notice that checks for
payment of taxes may be made payable to "Treasurer of . . . . . .
County" or other appropriate office, but tax statements may not include
any suggestion that checks may be made payable to the name of the
individual holding the office of treasurer nor any other individual.
(3)(a) When the total amount of tax or special assessments on
personal property or on any lot, block or tract of real property
payable by one person is fifty dollars or more, and if one-half of such
tax be paid on or before the thirtieth day of April, the remainder of
such tax is, except as provided in (b) of this subsection, due and
payable on or before the thirty-first day of October following and
((shall be)) is delinquent after that date.
(b) If property taxes are held in an escrow account by a financial
institution, and subject to county legislative authorization under (c)
of this subsection, one-half of the payment that would otherwise be due
and payable by the thirty-first day of October under (a) of this
subsection is instead due and payable by the thirty-first day of July,
and shall be delinquent after that date. The remainder is due by the
thirty-first day of October.
(c) A county legislative authority may authorize the alternate
payment date provided in (b) of this subsection for taxes levied for
collection in 2015 and thereafter.
(4) When the total amount of tax or special assessments on any lot,
block or tract of real property or on any mobile home payable by one
person is fifty dollars or more, and if one-half of such tax be paid
after the thirtieth day of April but before the thirty-first day of
October, together with the applicable interest and penalty on the full
amount of tax payable for that year, the remainder of such tax is due
and payable on or before the thirty-first day of October following and
is delinquent after that date.
(5) Except as provided in (c) of this subsection, delinquent taxes
under this section are subject to interest at the rate of twelve
percent per annum computed on a monthly basis on the full year amount
of tax unpaid from the date of delinquency until paid. Interest must
be calculated at the rate in effect at the time of payment of the tax,
regardless of when the taxes were first delinquent. In addition,
delinquent taxes under this section are subject to penalties as
follows:
(a) A penalty of three percent of the full year amount of tax
unpaid is assessed on the tax delinquent on June 1st of the year in
which the tax is due.
(b) An additional penalty of eight percent is assessed on the
amount of tax delinquent on December 1st of the year in which the tax
is due.
(c) If a taxpayer is successfully participating in a payment
agreement under subsection (11)(b) of this section, the county
treasurer may not assess additional penalties on delinquent taxes that
are included within the payment agreement. Interest and penalties that
have been assessed prior to the payment agreement remain due and
payable as provided in the payment agreement.
(6)(a) When real property taxes become delinquent and prior to the
filing of the certificate of delinquency, the treasurer is authorized
to assess and collect tax foreclosure avoidance costs.
(b) For the purposes of this section, "tax foreclosure avoidance
costs" means those costs that can be identified specifically with the
administration of properties subject to and prior to foreclosure. Tax
foreclosure avoidance costs include:
(i) Compensation of employees for the time devoted and identified
specifically to administering the avoidance of property foreclosure;
and
(ii) The cost of materials, services, or equipment acquired,
consumed, or expended specifically for the purpose of administering tax
foreclosure avoidance prior to the filing of a certificate of
delinquency.
(c) When tax foreclosure avoidance costs are collected, the tax
foreclosure avoidance costs must be credited to the county treasurer
service fund account, except as otherwise directed.
(d) For purposes of chapter 84.64 RCW, any taxes, interest, or
penalties deemed delinquent under this section remain delinquent until
such time as all taxes, interest, and penalties for the tax year in
which the taxes were first due and payable have been paid in full.
(7) Subsection (5) of this section notwithstanding, no interest or
penalties may be assessed during any period of armed conflict on
delinquent taxes imposed on the personal residences owned by active
duty military personnel who are participating as part of one of the
branches of the military involved in the conflict and assigned to a
duty station outside the territorial boundaries of the United States.
(8) During a state of emergency declared under RCW 43.06.010(12),
the county treasurer, on his or her own motion or at the request of any
taxpayer affected by the emergency, may grant extensions of the due
date of any taxes payable under this section as the treasurer deems
proper.
(9) For purposes of this chapter, "interest" means both interest
and penalties.
(10) All collections of interest on delinquent taxes must be
credited to the county current expense fund; but the cost of
foreclosure and sale of real property, and the fees and costs of
distraint and sale of personal property, for delinquent taxes, must,
when collected, be credited to the operation and maintenance fund of
the county treasurer prosecuting the foreclosure or distraint or sale;
and must be used by the county treasurer as a revolving fund to defray
the cost of further foreclosure, distraint and sale for delinquent
taxes without regard to budget limitations.
(11)(a) For purposes of this chapter, and in accordance with this
section and RCW 36.29.190, the treasurer may collect taxes,
assessments, fees, rates, interest, and charges by electronic bill
presentment and payment. Electronic bill presentment and payment may
be utilized as an option by the taxpayer, but the treasurer may not
require the use of electronic bill presentment and payment. Electronic
bill presentment and payment may be on a monthly or other periodic
basis as the treasurer deems proper for delinquent tax year payments
only or for prepayments of current tax. All prepayments must be paid
in full by the due date specified in (c) of this subsection. Payments
on past due taxes must include collection of the oldest delinquent
year, which includes interest and taxes within a twelve-month period,
prior to filing a certificate of delinquency under chapter 84.64 RCW or
distraint pursuant to RCW 84.56.070.
(b) The treasurer must provide, by electronic means or otherwise,
a payment agreement that provides for payment of current year taxes,
inclusive of prepayment collection charges. The treasurer may provide,
by electronic means or otherwise, a payment agreement for payment of
past due delinquencies, which must also require current year taxes to
be paid timely. The payment agreement must be signed by the taxpayer
and treasurer prior to the sending of an electronic or alternative
bill, which includes a payment plan for current year taxes.
(c) All taxes upon real and personal property made payable by the
provisions of this title are due and payable to the treasurer on or
before the thirtieth day of April and are delinquent after that date,
except as provided in this section. Except as provided in subsection
(3)(b) of this section, the remainder of the tax is due and payable on
or before the thirty-first day of October following and is delinquent
after that date. All other assessments, fees, rates, and charges are
delinquent after the due date.
(d) A county treasurer may authorize payment of past due property
taxes, penalties, and interest under this chapter by electronic funds
transfer payments on a monthly basis. Delinquent taxes are subject to
interest and penalties, as provided in subsection (5) of this section.
(e) The treasurer must pay any collection costs, investment
earnings, or both on past due payments or prepayments to the credit of
a county treasurer service fund account to be created and used only for
the payment of expenses incurred by the treasurer, without limitation,
in administering the system for collecting prepayments.
(12) For purposes of this section unless the context clearly
requires otherwise, the following definitions apply:
(a) "Electronic bill presentment and payment" means statements,
invoices, or bills that are created, delivered, and paid using the
internet. The term includes an automatic electronic payment from a
person's checking account, debit account, or credit card.
(b) "Internet" has the same meaning as provided in RCW 19.270.010.