FINAL BILL REPORT

SHB 1754

                                  C 222 L 88

BYHouse Committee on Ways & Means/Revenue (originally sponsored by Representatives Appelwick, Winsley, Grimm, Holland, Braddock, Belcher and Prince)

Revising administrative provisions on taxes.

House Committe on Ways & Means/Revenue

Senate Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

Various tax procedures govern the state Tax Appeals Board and local county assessors.  The Tax Appeals Board hears formal and informal tax appeals from taxpayers, county boards of equalization and local assessors.  The board has the power to subpoena and depose witnesses.  Judicial review of board decisions is authorized.

All property must be valued at its true and fair value and assessed on that basis unless otherwise specified by law.  County tax assessors are required to begin work on assessing property not later than December 1st of each year.

County tax assessors are also responsible for keeping a list of the number of television sets in a television improvement district for billing assessment charges on behalf of the district.

County boards of equalization are established in law to review and modify assessments, take claims for property tax exemptions and hear taxpayer appeals.  Members of the board are required to attend training at a school established by the Department of Revenue.

The Department of Revenue may order any county board of equalization to raise or lower the valuation of any taxable property or to add property to the tax rolls.

Under certain conditions senior citizens are exempt from regular and excess levies.  Seniors, age 61 years or older on January 1st, must meet certain income tests to qualify for property tax exemptions.  Seniors may also defer property tax obligations up to 80 percent of their equity in the property.  Fire and casualty insurance sufficient to protect the equity must be kept in force.  Property tax deferrals expire upon the sale of the property, cessation of residency in the property, death or condemnation of the property.

The taxation statutes prescribe dates upon which the indicated ratio for property taxes is established in each county.  In addition, procedures are provided for correcting errors of assessment or tax rolls.

SUMMARY:

Taxation administrative procedures are amended as follows:

1)  Television improvement districts must send lists of television sets for assessment purposes to county treasurers instead of county assessors.

2)  The state Tax Appeals Board is authorized to hire tax referees who may be exempted from state civil service law.  The board may provide copies of hearing decisions instead of providing journals for public inspection.

3)  County assessors may appeal to the Tax Appeals Board within 20 days of receipt of a notice of appeal. The notification requirements for decisions made by county boards of equalization on appeal to the state board are changed.

4)  Petitioners in a tax appeal must provide a copy of the notice of tax appeal to all parties. Appeals not conforming to this requirement are considered continued or dismissed.

5)  Senior citizen property tax exemption requests may be made at any time during the year.  Fire and casualty insurance requirements for property tax deferrals are clarified.  Statutory references to liens against property for tax deferrals of local improvement or taxing district assessments are also clarified.  An 8 percent interest rate is established for property tax deferrals until the unpaid portion of the deferral is paid. 

6)  The assessment of buildings and structures on publicly owned lands, the listing of property and other assessment procedures are clarified.  Penalties for failure to divulge personal property are changed.

7)  Meeting date requirements for county boards of equalization are changed. The county legislative authority may set per diem for members of county equalization boards.  Any member of a county equalization board who fails, within one year, to attend the training school is barred from the board.  County district meetings may be used for training purposes.

8)  The dates for certification of levies are changed from the second Monday in October to November 13th.  The receiver of monies paid by the county for property tax refunds owed to the state is changed from the State Auditor to the Department of Revenue.

VOTES ON FINAL PASSAGE:

      House 97   0

      Senate    47     2 (Senate amended)

      House             (House refused to concur)

      Senate    47     2 (Senate receded)

EFFECTIVE:June 9, 1988

            January 1, 1989 (Sections 15, 17, 19-21, 28, 30)