PROPOSED RULES
Original Notice.
Preproposal statement of inquiry was filed as WSR 02-06-108.
Title of Rule: Amend sections WAC 458-53-030 Stratification of assessment rolls -- Real property, 458-53-050 Land use stratification, sales summary and abstract report, and 458-53-140 Personal property ratio study.
Repeal section WAC 458-53-090 Department generated sales studies.
Purpose: To provide information about the ratio study and ratio calculation to county assessors, their staff, and the public.
Statutory Authority for Adoption: RCW 84.08.010, 84.08.070, and 84.48.075.
Statute Being Implemented: RCW 84.48.075 and 84.48.080.
Summary: These rules set forth the processes to be used by the Department of Revenue and the counties in establishing the indicated real and personal property ratios for purposes of the state property tax levy and equalizing state assessed property.
Reasons Supporting Proposal: These rules are being revised to incorporate a recent legislative change (chapter 185, Laws of 2001) and to clarify and simplify the ratio process.
Name of Agency Personnel Responsible for Drafting: Mark Mullin, 1025 Union Avenue S.E., Suite #400, Olympia, WA, (360) 570-6112; Implementation and Enforcement: Sandy Guilfoil, 1025 Union Avenue S.E., Suite #200, Olympia, WA, (360) 570-5860.
Name of Proponent: Department of Revenue, governmental.
Agency Comments or Recommendations, if any, as to Statutory Language, Implementation, Enforcement, and Fiscal Matters: No comments or recommendations are submitted.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: These rules provide important information for county assessors, their staff, and the general public regarding the processes to be used by the Department of Revenue and the counties in establishing the indicated real and personal property ratios for purposes of the state property tax levy and equalizing state assessed property.
WAC 458-53-030 explains the stratification process for real property for use in the ratio study and for ratio calculation. The rule provides a listing of land-use codes used in the stratification process. This rule needs to be updated to provide separate land-use codes for residential condominiums and other types of condominiums (e.g., commercial condominiums).
WAC 458-53-050 groups land-use codes into abstract categories. The rule needs to be updated to reflect the revisions that will be made to WAC 458-53-030.
WAC 458-53-090 provides information concerning sales studies generated by the Department of Revenue for those counties that are unable to provide the department with a computer generated sales study in accordance with WAC 458-53-100. This rule is being repealed, as the department no longer generates sales studies.
WAC 458-53-140 provides information about the personal property ratio study, including, among other things, the basis for a county's personal property ratio. This rule needs to be updated to reflect a change in the basis for a county's personal property ratio as a result of chapter 185, Laws of 2001.
Proposal Changes the Following Existing Rules: This is a change to WAC 458-53-030, 458-53-050, 458-53-090 and 458-53-140, as explained above.
No small business economic impact statement has been prepared under chapter 19.85 RCW. The rule does not impose a responsibility or require a small business to perform something that is not already required by law.
RCW 34.05.328 does not apply to this rule adoption. These rules are interpretive rules as defined in RCW 34.05.328.
Hearing Location: Capital Plaza Building, 4th Floor, Large Conference Room, 1025 Union Avenue S.E., Olympia, WA, on June 6, 2002, at 9:30 a.m.
Assistance for Persons with Disabilities: Contact Sandy Davis no later than ten days before the hearing date, TTY 1-800-451-7985 or (360) 570-6175.
Submit Written Comments to: Mark Mullin, Department of Revenue, P.O. Box 47467, Olympia, Washington 98504-7467, fax (360) 664-0693, e-mail MarkM@dor.wa.gov, by June 6, 2002.
Date of Intended Adoption: June 13, 2002.
April 24, 2002
Alan R. Lynn, Rules Coordinator
Legislation and Policy Division
OTS-5613.1
AMENDATORY SECTION(Amending WSR 96-05-002, filed 2/8/96,
effective 3/10/96)
WAC 458-53-030
Stratification of assessment rolls -- Real
property.
(1) ((Stratification -- Uses for ratio study.))
Introduction. This rule explains the stratification process for
real property. The stratification process is the grouping of
real property within each county into homogeneous classifications
based upon certain criteria in order to obtain representative
samples. Stratification is used in determining the number of
appraisals to be included in the ratio study and also for ratio
calculation. The county's most current certified assessment
rolls are used for stratification. Counties ((shall)) must
stratify rolls using a land use code stratification system as
prescribed by the department. (See RCW 36.21.100.)
(2) Stratification -- Parcel count and total
value -- Exclusions. The stratification of the real property
assessment rolls ((shall)) must include a parcel count and a
total value of the taxable real property parcels in each stratum,
excluding the following:
(a) ((Classified and)) Designated forest lands ((and
timberland classified under chapter 84.34 RCW (see RCW 84.34.060))). (See chapter 84.33 RCW);
(b) ((State-owned game lands as defined in RCW 77.12.203(2);)) Timberland classified under chapter 84.34 RCW.
(See RCW 84.34.060);
(c) Current use properties in those counties where a
separate study is conducted pursuant to WAC 458-53-095(3);
((and))
(d) State assessed properties; and
(e) State-owned game lands as defined in RCW 77.12.203(2).
(3) Stratification -- By county. For the real property ratio
study, the assessment roll ((shall)) must be stratified for
individual counties according to land use categories and
substratified by value classes as determined by the department. Stratification ((shall)) will be reviewed at least every other
year by the department to determine if changes need to be made to
improve sampling criteria. After the strata have been
determined, the department ((shall)) will notify the counties of
the strata limits, and each county ((shall)) must provide the
department with the following, taken from the county's assessment
rolls:
(a) A representative number of samples, as determined by the department, in each stratum, together with:
(i) The name and address of the taxpayer for each sample;
(ii) The land use code for each sample;
(iii) The assessed value for each sample; and
(iv) The actual number of samples;
(b) The total number of real property parcels in each stratum; and
(c) The total assessed value in each stratum.
(4) Counties to provide information timely. The
stratification information described in subsection (3) of this
((section shall)) rule must be provided by the counties to the
department in a timely manner to enable the department to certify
the preliminary ratios in accordance with WAC 458-53-200(1). Failure to provide the information in a timely manner will result
in the department using its best estimate of stratum values to
calculate the real property ratio.
(5) Standard two-digit land use code. The following
two-digit land use code ((shall)) will be used as the standard to
identify the actual use of the land. Counties may elect to use a
more detailed land use code system using additional digits,
however, no county land use code system may use fewer than the
standard two digits.
| RESIDENTIAL |
|
| 11 | Household, single family units |
| 12 | Household, 2-4 units |
| 13 | Household, multi-units (5 or more) |
| 14 | Residential (( |
| 15 | Mobile home parks or courts |
| 16 | Hotels/motels |
| 17 | Institutional lodging |
| 18 | All other residential not elsewhere coded |
| 19 | Vacation and cabin |
MANUFACTURING |
|
| 21 | Food and kindred products |
| 22 | Textile mill products |
| 23 | Apparel and other finished products made from fabrics, leather, and similar materials |
| 24 | Lumber and wood products (except furniture) |
| 25 | Furniture and fixtures |
| 26 | Paper and allied products |
| 27 | Printing and publishing |
| 28 | Chemicals |
| 29 | Petroleum refining and related industries |
| 30 | Rubber and miscellaneous plastic products |
| 31 | Leather and leather products |
| 32 | Stone, clay and glass products |
| 33 | Primary metal industries |
| 34 | Fabricated metal products |
| 35 | Professional scientific, and controlling instruments; photographic and optical goods; watches and clocks-manufacturing |
| 36 | Not presently assigned |
| 37 | Not presently assigned |
| 38 | Not presently assigned |
| 39 | Miscellaneous manufacturing |
TRANSPORTATION, COMMUNICATION, AND UTILITIES |
|
| 41 | Railroad/transit transportation |
| 42 | Motor vehicle transportation |
| 43 | Aircraft transportation |
| 44 | Marine craft transportation |
| 45 | Highway and street right of way |
| 46 | Automobile parking |
| 47 | Communication |
| 48 | Utilities |
| 49 | Other transportation, communication, and utilities not classified elsewhere |
TRADE |
|
| 50 | Condominiums - other than residential condominiums |
| 51 | Wholesale trade |
| 52 | Retail trade - building materials, hardware, and farm equipment |
| 53 | Retail trade - general merchandise |
| 54 | Retail trade - food |
| 55 | Retail trade - automotive, marine craft, aircraft, and accessories |
| 56 | Retail trade - apparel and accessories |
| 57 | Retail trade - furniture, home furnishings and equipment |
| 58 | Retail trade - eating and drinking |
| 59 | Other retail trade |
SERVICES |
|
| 61 | Finance, insurance, and real estate services |
| 62 | Personal services |
| 63 | Business services |
| 64 | Repair services |
| 65 | Professional services |
| 66 | Contract construction services |
| 67 | Governmental services |
| 68 | Educational services |
| 69 | Miscellaneous services |
CULTURAL, ENTERTAINMENT AND RECREATIONAL |
|
| 71 | Cultural activities and nature exhibitions |
| 72 | Public assembly |
| 73 | Amusements |
| 74 | Recreational activities |
| 75 | Resorts and group camps |
| 76 | Parks |
| 77 | Not presently assigned |
| 78 | Not presently assigned |
| 79 | Other cultural, entertainment, and recreational |
RESOURCE PRODUCTION AND EXTRACTION |
|
| 81 | Agriculture (not classified under current use law) |
| 82 | Agriculture related activities |
| 83 | Agriculture classified under current use chapter 84.34 RCW |
| 84 | Fishing activities and related services |
| 85 | Mining activities and related services |
| 86 | Not presently assigned |
| 87 | (( |
| 88 | Designated forest land under chapter 84.33 RCW |
| 89 | Other resource production |
UNDEVELOPED LAND AND WATER AREAS |
|
| 91 | Undeveloped land |
| 92 | Noncommercial forest |
| 93 | Water areas |
| 94 | Open space land classified under chapter 84.34 RCW |
| 95 | Timberland classified under chapter 84.34 RCW |
| 96 | Not presently assigned |
| 97 | Not presently assigned |
| 98 | Not presently assigned |
| 99 | Other undeveloped land |
[Statutory Authority: RCW 84.08.010, 84.08.070 and 84.48.075. 96-05-002, § 458-53-030, filed 2/8/96, effective 3/10/96. Statutory Authority: RCW 84.08.010 and 84.08.070. 91-01-008, § 458-53-030, filed 12/6/90, effective 1/6/91. Statutory Authority: RCW 84.48.075 and 84.08.010(2). 89-09-021 (Order PT 89-5), § 458-53-030, filed 4/12/89. Statutory Authority: RCW 84.48.075. 86-21-004 (Order PT 86-6), § 458-53-030, filed 10/2/86; 84-14-039 (Order PT 84-2), § 458-53-030, filed 6/29/84; 79-11-029 (Order PT 79-3), § 458-53-030, filed 10/11/79. Formerly WAC 458-52-030.]
OTS-5614.1
AMENDATORY SECTION(Amending WSR 96-05-002, filed 2/8/96,
effective 3/10/96)
WAC 458-53-050
Land use stratification, sales summary and
abstract report.
Stratification of the assessment rolls, the
annual sales summary, and the abstract report to the department
for real property will be based on the following abstract
categories:
| Abstract Category | Land Use Code | |
| 1. | Single family residence | 11, 14, 18, 19 |
| 2. | Multiple family residence | 12, 13(( |
| 3. | Manufacturing | 21 through 39 |
| 4. | Commercial | 15, 16, 17, 41-49, (( |
| 5. | Agricultural | 81 |
| 6. | Agricultural (current use law) | 83 |
| 7. | Forest lands (chapter 84.33 RCW) | (( |
| 8. | Open space (current use law) | 94 |
| 9. | Timberland (current use law) | 95 |
| 10. | Other | 82, 84, 85, 89, 91,92, 93, 96-99 |
[Statutory Authority: RCW 84.08.010, 84.08.070 and 84.48.075. 96-05-002, § 458-53-050, filed 2/8/96, effective 3/10/96. Statutory Authority: RCW 84.48.075. 79-11-029 (Order PT 79-3), § 458-53-050, filed 10/11/79. Formerly WAC 458-52-040.]
OTS-5615.1
AMENDATORY SECTION(Amending WSR 96-05-002, filed 2/8/96,
effective 3/10/96)
WAC 458-53-140
Personal property ratio study.
(1) ((Random
selection of accounts. The basis for a county's personal
property ratio shall be accounts selected at random from the
preceding year's assessment rolls at the January 1 value for the
preceding year.)) Introduction. This rule provides information
about the personal property ratio study, including the basis for
a county's personal property ratio, the determination of strata
for each county, and the effect of the discovery of omitted
property on the ratio study.
(2) Basis for personal property ratio. The basis for a county's personal property ratio will be valuation data with respect to personal property from the three years preceding the current assessment year.
(3) Stratification of rolls. Determination of strata for
each county ((shall)) will be made by the department to ensure
the selection of a representative audit sample and will be
reviewed periodically. After the strata have been determined,
the department ((shall)) will notify the counties of the strata
limits and each county ((shall)) must provide the department with
the following, taken from the county's assessment rolls:
(a) A representative number of samples, as determined by the department, in each stratum, together with:
(i) The name and address of the taxpayer for each sample;
(ii) The assessed value for each sample; and
(iii) The actual number of samples;
(b) The total number of personal property accounts in each stratum; and
(c) The total assessed value in each stratum.
(((3))) (4) Omitted property. If the department discovers
omitted property in a county, the results of the department's
audit ((shall)) will be included in the ratio study.
[Statutory Authority: RCW 84.08.010, 84.08.070 and 84.48.075. 96-05-002, § 458-53-140, filed 2/8/96, effective 3/10/96. Statutory Authority: RCW 84.48.075. 84-14-039 (Order PT 84-2), § 458-53-140, filed 6/29/84; 79-11-029 (Order PT 79-3), § 458-53-140, filed 10/11/79. Formerly WAC 458-52-080.]