FINAL BILL REPORT

HB 96

                                  C 156 L 87

BYRepresentatives Madsen, L. Smith, Winsley, Unsoeld, Belcher, Appelwick and P. King 

Revising provisions on the extension and collection of property taxes when the valuation of highly valued property is subject to an appeal.

House Committe on Ways & Means/Revenue

Senate Committee on Ways & Means

SYNOPSIS AS ENACTED

BACKGROUND:

Administration of high property tax values that are in dispute based upon assessment often result in delays in computing tax levy rates and completion of the tax roll.  The appeals on high values may take years to resolve either through the State Board of Tax Appeals or through litigation.

SUMMARY:

Any disputes or claims over values in excess of one-fourth of 1 percent of the total assessed value of the property in the county will cause the assessor to only use that portion of the total value not in controversy for setting the levy rates and tax roll.  At the time the State Board of Tax Appeals has made its final determination, the proper amount of tax must be extended and collected.

The final determination of tax extended and collected will include an interest rate of 9 percent per year on the amount of final determination minus the amount not in controversy.  The interest rate accrues from the date the tax was first due and payable.

VOTES ON FINAL PASSAGE:

      House 96   0

      Senate    47     0

EFFECTIVE:July 26, 1987