AN ACT Relating to the collection of property taxes; amending RCW 84.40.380 and 84.56.020; adding a new section to chapter 84.56 RCW; and creating a new section.

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

Sec. 1. Section 5, chapter 44, Laws of 1971 ex. sess. as amended by section 16, chapter 220, Laws of 1984 and RCW 84.40.380 are each amended to read as follows:

All taxes made payable pursuant to the provisions of RCW 84.40.350 through 84.40.390 shall be due and payable to the county treasurer ((~~on or before the thirtieth day of April in the event the date of execution of the instrument of transfer occurs prior to that date unless the time of payment is extended under the provisions of~~)) as required by RCW 84.56.020: PROVIDED, That if the date of execution of the instrument of transfer or the date the property loses its exempt status is after one or more of the quarterly installment due dates set forth in RCW 84.56.020, the tax due may be paid in equal amounts at the quarterly due dates remaining for that year. ((Such taxes shall be due and payable on or before the thirty-first day of October in the event the date the property lost its exempt status is subsequent to the thirtieth day of April but prior to the thirty-first day of October. In all other cases such taxes shall be due and payable within thirty days after the date the property lost its exempt status. In no case, however, shall the taxes be due and payable less than thirty days from the date the property lost its exempt status.)) All taxes due and payable after the dates herein shall become delinquent, and interest at the rate specified in RCW 84.56.020 for delinquent property taxes shall be charged upon such unpaid taxes from the date of delinquency until paid.

Sec. 2. Section 84.56.020, chapter 15, Laws of 1961 as last amended by section 1, chapter 131, Laws of 1984 and RCW 84.56.020 are each amended to read as follows:

The county treasurer shall 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. All taxes upon real and personal property made payable by the provisions of this title shall be due and payable to the treasurer as aforesaid ((~~on or before the thirtieth day of April and~~)) in four equal installments, one installment to be paid by the last day of February, one by the thirty-first day of May, one by the thirty-first day of August, and one by the thirtieth day of November. After each respective due date, that installment shall be delinquent ((~~after that date~~)): PROVIDED, That when the total amount of tax on personal property or on any lot, block or tract of real property payable by one person is less than ten dollars ((~~or more, and if one-half of such tax be paid on or before the said thirtieth day of April~~)), the ((~~remainder~~)) entire amount of such tax shall be due and payable on or before the ((~~thirty-first day of October~~)) last day of February following and shall be delinquent after that date((: PROVIDED FURTHER, That when the total amount of tax on any lot, block or tract of real property payable by one person is ten 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 such tax, the remainder of such tax shall be due and payable on or before the thirty-first day of October following and shall be delinquent after that date)).

Delinquent taxes under this section are subject to interest at the rate of twelve percent per annum computed on a monthly basis from the date of delinquency until paid. Interest shall 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:~~

~~(1) A penalty of three percent shall be assessed on the amount of tax delinquent on May 31st of the year in which the tax is due.~~

~~(2) An additional penalty of eight percent shall be assessed on the total amount of tax delinquent on November 30th of the year in which the tax is due.~~

~~(3)~~)) if an installment is not received within thirty days of its due date, a penalty of three percent shall be assessed on the total amount of tax delinquent. Penalties under this section shall not be assessed on taxes that were first delinquent prior to 1982.

For purposes of this chapter, "interest" means both interest and penalties.

All collections of interest on delinquent taxes shall 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, shall, when collected, be credited to the operation and maintenance fund of the county treasurer prosecuting the foreclosure or distraint or sale; and shall 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.

NEW SECTION. Sec. 3. A new section is added to chapter 84.56 RCW to read as follows:

In the payment of taxes, interest, and penalties, the county treasurer shall accept in lieu of cash a credit card issued by a bank or other financial institution if the bank or financial institution guarantees full payment of the amount due, without discount or other cost or charge, to the county.

NEW SECTION. Sec. 4. Sections 1 and 2 of this act apply to taxes payable in 1986 and thereafter.