SENATE BILL REPORT
ESHB 1410
As of March 15, 2021
Title: An act relating to protecting taxpayers from home foreclosure.
Brief Description: Protecting taxpayers from home foreclosure.
Sponsors: House Committee on Finance (originally sponsored by Representatives Volz, Valdez, Ybarra, Stokesbary, Chase, Dufault, Leavitt, Vick, Dolan, Sutherland, Walen, Chambers, Walsh, Robertson, Caldier, Griffey, Riccelli, Jacobsen, Fitzgibbon, Ormsby and Harris-Talley).
Brief History: Passed House: 3/5/21, 97-0.
Committee Activity: Ways & Means: 3/15/21.
Brief Summary of Bill
  • Eliminates penalties on delinquent property taxes for residential parcels with four or fewer units.
  • Reduces interest on delinquent property taxes to 9 percent for residential parcels with four or fewer units.
SENATE COMMITTEE ON WAYS & MEANS
Staff: Alia Kennedy (786-7405)
Background:

County Treasurers.  A county treasurer is the custodian of county money and the administrator of the county's financial transactions.  Treasurers have many duties enumerated in statute, which include receiving and disbursing money, issuing receipts for money received, and maintaining financial records reflecting receipts and disbursements.

 

Tax Statements and Payment Due Dates.  All real and personal property in Washington is subject to property tax, unless the law provides a specific exemption.  All taxes due on real and personal property are due and payable to the treasurer.  To avoid interest and penalties, at least half of the amount owed is due by April 30th, and the balance is due by October 31st.  If the tax is less than $50, the entire payment must be paid in full by April 30th. 

 

Tax Delinquencies and Payment Options.  Delinquent tax payments are subject to interest and penalties.  Interest is charged at 1 percent per month on the full amount due from the month of delinquency until the delinquency is paid in full.  A 3 percent penalty is also imposed on the unpaid amount of current taxes on June 1st, with an additional 8 percent penalty imposed on the unpaid amount of current taxes as of December 1st.  Taxpayers are authorized to participate in a payment agreement with the treasurer for past due tax delinquencies.  If a taxpayer is participating in a payment agreement, the treasurer may not assess additional penalties on any taxes included within the payment agreement.
Summary of Bill:

The 3 percent penalty on delinquent property taxes on June 1st and the 8 percent penalty on December 1st are both eliminated for residential parcels with four or fewer units.  Delinquent property taxes on non-residential real property and residential real property with more than four units per parcel remain subject to these penalties.

 

Interest charged on delinquent property taxes is reduced from 12 percent to 9 percent for residential parcels with four or fewer units.  Delinquent property taxes on non-residential real property and residential real property with more than four units per parcel remain subject to the 12 percent interest rate.

 

Interest assessed prior to any payment agreement remains due.  Penalties assessed prior to the effective date of the bill and assessed prior to any payment agreement remain due.  
Appropriation: None.
Fiscal Note: Available.
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.