WSR 07-08-092

EXPEDITED RULES

DEPARTMENT OF REVENUE


[ Filed April 3, 2007, 11:18 a.m. ]

Title of Rule and Other Identifying Information: WAC 458-18-060 Deferral of special assessments and/or property taxes -- Limitations of deferral -- Interest, this rule explains how equity value is determined relative to the deferral of property taxes on residences of qualifying (senior or disabled) claimants. Equity value takes the interest on the deferred taxes into account.

NOTICE

THIS RULE IS BEING PROPOSED UNDER AN EXPEDITED RULE-MAKING PROCESS THAT WILL ELIMINATE THE NEED FOR THE AGENCY TO HOLD PUBLIC HEARINGS, PREPARE A SMALL BUSINESS ECONOMIC IMPACT STATEMENT, OR PROVIDE RESPONSES TO THE CRITERIA FOR A SIGNIFICANT LEGISLATIVE RULE. IF YOU OBJECT TO THIS USE OF THE EXPEDITED RULE-MAKING PROCESS, YOU MUST EXPRESS YOUR OBJECTIONS IN WRITING AND THEY MUST BE SENT TO James A. Winterstein, Department of Revenue, P.O. Box 47471, Olympia, WA 98504-7471, fax (360) 586-7602, e-mail JimWi@dor.wa.gov , AND RECEIVED BY June 4, 2007.


Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: In 2006, the legislature amended the statute (RCW 84.38.100) to change the interest rate on deferred taxes from 8% to 5%, from and after the effective date of the legislation. This amendment to the rule (WAC 458-18-060) implements the legislative change (chapter 275, Laws of 2006).

A copy of the draft rule is available for viewing and printing on our web site at http://dor.wa.gov/content/laws/RuleMaking/agenda.aspx.

Reasons Supporting Proposal: The change to this rule is needed to recognize a statutory amendment.

Statutory Authority for Adoption: RCW 84.38.180.

Statute Being Implemented: RCW 84.38.100.

Rule is not necessitated by federal law, federal or state court decision.

Name of Proponent: Department of revenue, governmental.

Name of Agency Personnel Responsible for Drafting: James A. Winterstein, 1025 Union Avenue S.E., Suite #200, Olympia, WA, (360) 570-5880; Implementation and Enforcement: Brad Flaherty, 1025 Union Avenue S.E., Suite #200, Olympia, WA, (360) 570-5860.

April 3, 2007

Alan R. Lynn

Rules Coordinator

OTS-9621.2


AMENDATORY SECTION(Amending Order PT 88-9, filed 6/9/88)

WAC 458-18-060   Deferral of special assessments and/or property taxes -- Limitations of deferral -- Interest.   No deferral shall be granted if the liens created by the deferrals of special assessments and/or real property taxes equal or exceed eighty percent of the claimant's equity value in said property. Equity value will be determined as of January 1 in the year the taxes are to be deferred.

The liens shall include:

(1) The total amount of special assessments and/or real property taxes deferred, plus

(2) Interest on the amount deferred. For deferrals granted before June 7, 2006, the interest accrues at the rate of eight percent per year, from the time it could have been paid before delinquency until ((said)) the lien is paid. For deferrals granted after June 7, 2006, involving special assessments or taxes due prior to January 1, 2007, the interest accrues at the rate of eight percent per year, from the time it could have been paid before delinquency until the lien is paid. For deferrals granted after June 7, 2006, involving special assessments or taxes to be collected in 2007 and thereafter, the interest accrues at the rate of five percent per year, from the time it could have been paid before delinquency until the lien is paid. When a declaration is filed ((after the taxes are delinquent, interest at the rate of eight percent per year on the amount deferred will begin accruing on)) as a result of the requirement under RCW 84.64.050 related to a treasurer's foreclosure action, the interest accrues from the date the declaration is filed and ((will)) continues until the obligation is paid, at the appropriate rate as set forth above.

[Statutory Authority: RCW 84.38.180. 88-13-042 (Order PT 88-9), 458-18-060, filed 6/9/88; 84-21-010 (Order PT 84-4), 458-18-060, filed 10/5/84; 81-21-008 (Order 81-12), 458-18-060, filed 10/8/81; Order PT 76-1, 458-18-060, filed 4/7/76.]

Washington State Code Reviser's Office