HOUSE BILL REPORT

HB 96

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

Majority Report:     Do pass. (9)

     Signed by Representatives Appelwick, Chair; Basich, Grimm, Holland, Madsen, Rust, Schoon, Valle and Winsley.

House Staff:Rick Wickman (786-7150)

AS PASSED HOUSE MARCH 2, 1987

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 role.  Often, the appeals on high values may take years to resolve through the State Board of Tax Appeals and due to litigation.

SUMMARY:

The proposed bill requires that any dispute or claims over values in excess of one-fourth of one percent of the total assessed value of the property in the county, shall cause the assessor to only use that portion of the total value not in controversy for setting the levy rates and tax roll.  At such time that the State Board of Tax Appeals has made its final determination, the proper amount of tax shall be extended and collected.

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

Fiscal Note:    Attached.

House Committee ‑ Testified For:     Trevor Thompson, Department of Revenue; Fred Saeger, Washington Association of County Officials.

House Committee - Testified Against: None Presented.

House Committee - Testimony For:     Property value disputes for property tax purposes often result in delays in computing the tax levy and setting the property tax rolls.  Clarification is needed to ensure that the disputed values don't disrupt the administration of property tax assessment nor cause budget problems for the jurisdictions collecting monies from levies.

House Committee - Testimony Against: None Presented.