HOUSE BILL REPORT

HB 1754

BYRepresentatives Appelwick, Winsley, Grimm, Holland, Braddock, Belcher and Prince

Revising administrative provisions on taxes.

House Committe on Ways & Means/Revenue

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (9)

      Signed by Representatives Appelwick, Chair; Basich, Dellwo, Holland, Rust, Schoon, Taylor, Valle and Winsley.

House Staff:Rick Wickman (786-7136)

AS REPORTED BY COMMITTEE ON WAYS & MEANS/REVENUE

FEBRUARY 6, 1988

BACKGROUND:

County Tax Assessors are charged with the responsibility of keeping a list of the number of television sets in a television improvement district for purposes of billing assessment charges on behalf of the district.

The statutes provide for various tax procedures that govern the state tax appeals board and local county assessors.  The state tax appeals board hears formal and informal tax appeals from taxpayers, county boards of equalization, and local assessors.  The board has powers of subpoena and in taking of depositions and the statutes provide for judicial review of decisions promulgated by the board.

The statutes direct the department of revenue to order any county board of equalization to raise or lower the valuation of any taxable property or to add property to the tax rolls.

The statutes grant authority to exempt senior citizens for regular and excess levies under certain conditions. Seniors, age 61 years or older on January 1st must meet certain income tests in order to qualify for property tax exemptions. Seniors may also defer property tax obligations up to eighty percent of their equity in the property.  Claimants must have and keep in force, fire and casualty insurance sufficient to protect the equity.  Deferrals of property taxes last until the sale of property, cessation of residency in the property, death, or condemnation of the property.

The statutes provide that all property be valued at its true and fair value and assessed on the same basis except as otherwise provided.  Assessors are required to begin work on assessing property not later than December 1st of each year.

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

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

SUMMARY:

SUBSTITUTE BILL:  Statutory administrative procedures are altered as follows:

1)  County treasurers, instead of county assessors would receive lists of television sets for assessment purposes by a television improvement district.

2)  Allows the state tax appeals board to hire tax referees and exempt them from state civil services under RCW 41.06.  Allows the state tax appeals board to provide copies of hearing decisions instead of providing journals for public inspection.

3)  Allows county assessors to appeal to the state tax appeals board within 20 days of receipt of a notice of appeal. Alters notification requirements for decisions made by county boards of equalization on appeal to the state board.

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

5)  Allows senior citizen property tax exemption requests to be made at any time during the year. Clarifies claimant requirements for property tax deferrals as a part of the requirement for fire and casualty insurance. Clarifies statutory reference for liens against property concerning tax deferrals to local improvement or taxing district assessments.  Requires an eight percent interest rate for property tax deferrals until unpaid portion of the deferral is paid. 

6)  Clarifies assessment practices of buildings and structures on publicly owned lands.  Clarifies assessment practices, listing of property, and other procedures and alters penalties for failure to divulge personal property.

7) Alters requirements for meeting dates for county boards of equalization. Allows county legislative authority to set per diem for members of county equalization boards and bars any member of a county equalization board who fails, within one year to attend school for training.  Allows county district meetings to be used for training purposes.

8)  Alters dates for certification of levies from the second Monday in October to the 13th day of November and changes from state auditor to department of revenue as the receiver of monies paid by the county for property tax refunds owed to the state.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  Corrected internal references and clarified certification of state levy and process for certification of other levies.  In addition, changes were made in effective dates.

Revenue:    The bill has a revenue impact.

Fiscal Note:      Available.

House Committee ‑ Testified For:    Bernie Ryan, Chief Deputy Assessor, King County; Fred Saeger, Wash. Assoc. of County Officials.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    Changes in various property tax statutes need modernizing.  Ambiguous language and references in property tax laws need clarification.

House Committee - Testimony Against:      None Presented.