WSR 13-02-053

PERMANENT RULES

DEPARTMENT OF REVENUE


[ Filed December 26, 2012, 12:21 p.m. , effective January 1, 2013 ]


Effective Date of Rule: January 1, 2013.

Other Findings Required by Other Provisions of Law as Precondition to Adoption or Effectiveness of Rule: The department is adopting these rules with an effective date of January 1 because these rules provide rates used for refunds and property valuations for calendar year 2013.

Purpose: WAC 458-18-220 Refunds -- Rate of interest, provides the rate of interest that applies to tax refunds made pursuant to RCW 84.69.010 through 84.69.090 in accordance with RCW 84.69.100, and also to judgments entered in favor of the plaintiff pursuant to RCW 84.68.030. This rule has been amended to provide the rate of interest to be used when refunding property taxes paid in 2013.

WAC 458-30-262 Agricultural land valuation -- Interest rate -- Property tax component, provides the interest rate and the property tax component used to value farm and agricultural lands classified under chapter 84.34 RCW (open space program). This rule has been amended to provide the interest rate and property tax component to be used when valuing classified farm and agricultural land during the 2013 assessment year.

WAC 458-30-590 Rate of inflation -- Publication -- Interest rate -- Calculation, provides the rate of inflation used to calculate interest on deferred special benefit assessments when farm and agricultural or timber land is removed or withdrawn from classification under chapter 84.34 RCW (open space program). This rule has been amended to provide the rate of inflation used in calculating interest for deferred special benefit assessments of land removed or withdrawn during 2013.

Citation of Existing Rules Affected by this Order: Amending WAC 458-18-220 Refunds -- Rate of interest, 458-30-262 Agricultural land valuation -- Interest rate -- Property tax component, and 458-30-590 Rate of inflation -- Publication -- Interest rate -- Calculation.

Statutory Authority for Adoption: RCW 84.34.360, 84.34.065, 84.34.141, and 84.69.100.

Adopted under notice filed as WSR 12-21-075 on October 19, 2012.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 3, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

Date Adopted: December 26, 2012.

Alan R. Lynn

Rules Coordinator

OTS-5068.1


AMENDATORY SECTION(Amending WSR 12-01-040, filed 12/13/11, effective 1/1/12)

WAC 458-18-220   Refunds -- Rate of interest.   The following rates of interest shall apply on refunds of taxes made pursuant to RCW 84.69.010 through 84.69.090 in accordance with RCW 84.69.100. The following rates shall also apply to judgments entered in favor of the plaintiff pursuant to RCW 84.68.030. The interest rate is derived from the equivalent coupon issue yield of the average bill rate for twenty-six week treasury bills as determined at the first bill market auction conducted after June 30th of the calendar year preceding the date the taxes were paid. The rate thus determined shall be applied to the amount of the judgment or the amount of the refund, until paid:


Year tax

paid

Auction

Year

Rate
1984 1983 9.29%
1985 1984 11.27%
1986 1985 7.36%
1987 1986 6.11%
1988 1987 5.95%
1989 1988 7.04%
1990 1989 8.05%
1991 1990 8.01%
1992 1991 5.98%
1993 1992 3.42%
1994 1993 3.19%
1995 1994 4.92%
1996 1995 5.71%
1997 1996 5.22%
1998 1997 5.14%
1999 1998 5.06%
2000 1999 4.96%
2001 2000 5.98%
2002 2001 3.50%
2003 2002 1.73%
2004 2003 0.95%
2005 2004 1.73%
2006 2005 3.33%
2007 2006 5.09%
2008 2007 4.81%
2009 2008 2.14%
2010 2009 0.29%
2011 2010 0.21%
2012 2011 0.08%
2013 2012 0.15%

[Statutory Authority: RCW 84.34.360, 84.34.065, 84.34.141, and 84.69.100. 12-01-040, 458-18-220, filed 12/13/11, effective 1/1/12. Statutory Authority: RCW 84.69.100. 11-02-017, 458-18-220, filed 12/29/10, effective 1/1/11; 10-07-038, 458-18-220, filed 3/10/10, effective 4/10/10; 08-24-094, 458-18-220, filed 12/2/08, effective 1/2/09; 07-24-037, 458-18-220, filed 11/30/07, effective 12/31/07; 06-21-059, 458-18-220, filed 10/16/06, effective 11/16/06; 05-22-096, 458-18-220, filed 11/1/05, effective 12/2/05; 04-24-101, 458-18-220, filed 12/1/04, effective 1/1/05; 03-24-014, 458-18-220, filed 11/20/03, effective 12/21/03; 02-23-081, 458-18-220, filed 11/19/02, effective 12/20/02; 02-03-039, 458-18-220, filed 1/8/02, effective 2/8/02; 00-24-106, 458-18-220, filed 12/6/00, effective 12/31/00; 99-24-033, 458-18-220, filed 11/23/99, effective 12/24/99. Statutory Authority: RCW 84.08.010, 84.08.070 and 84.69.100. 99-01-066, 458-18-220, filed 12/14/98, effective 1/1/99; 98-01-177, 458-18-220, filed 12/23/97, effective 1/1/98; 97-02-068, 458-18-220, filed 12/31/96, effective 1/1/97; 96-01-093, 458-18-220, filed 12/19/95, effective 1/1/96; 95-06-044, 458-18-220, filed 2/24/95, effective 3/27/95; 94-05-063, 458-18-220, filed 2/11/94, effective 3/14/94. Statutory Authority: RCW 84.08.010 and 84.69.100. 93-06-096, 458-18-220, filed 3/3/93, effective 4/3/93; 92-17-027, 458-18-220, filed 8/11/92, effective 9/11/92; 91-15-024, 458-18-220, filed 7/11/91, effective 8/11/91. Statutory Authority: RCW 84.69.100 and 84.08.010(2). 89-10-067 (Order PT 89-6), 458-18-220, filed 5/3/89; 88-07-003 (Order PT 88-3), 458-18-220, filed 3/3/88. Statutory Authority: RCW 84.69.100 as amended by 1987 c 319 and 84.08.010(2). 87-19-141 (Order PT 87-7), 458-18-220, filed 9/23/87.]

OTS-5067.1


AMENDATORY SECTION(Amending WSR 12-01-040, filed 12/13/11, effective 1/1/12)

WAC 458-30-262   Agricultural land valuation -- Interest rate -- Property tax component.   For assessment year ((2012)) 2013, the interest rate and the property tax component that are to be used to value classified farm and agricultural lands are as follows:

(1) The interest rate is ((6.16)) 5.24 percent; and

(2) The property tax component for each county is:


COUNTY PERCENT COUNTY PERCENT
Adams ((1.25))

1.30

Lewis ((0.99))

1.04

Asotin ((1.24))

1.27

Lincoln ((1.20))

1.26

Benton ((1.17))

1.15

Mason ((0.88))

0.95

Chelan ((0.95))

1.01

Okanogan ((0.96))

1.02

Clallam ((0.95))

1.03

Pacific ((1.11))

1.24

Clark ((1.32))

1.37

Pend Oreille ((0.82))

0.88

Columbia ((1.21))

1.13

Pierce ((1.29))

1.39

Cowlitz ((1.13))

1.18

((San Juan)) ((0.53))

0.56

Douglas ((1.07))

1.12

Skagit ((1.05))

1.13

Ferry 0.92 Skamania ((0.88))

0.90

Franklin ((1.28))

1.29

Snohomish ((1.12))

1.24

Garfield ((1.16))

1.03

Spokane ((1.29))

1.33

Grant ((1.21))

1.27

Stevens 0.98
Grays Harbor ((1.07))

1.16

Thurston ((1.16))

1.27

Island ((0.79))

0.84

Wahkiakum ((0.84))

0.90

Jefferson ((0.86))

0.92

Walla Walla ((1.26))

1.27

King ((1.08))

1.14

Whatcom ((1.03))

1.06

Kitsap ((1.07))

1.17

Whitman ((1.30))

1.33

Kittitas ((0.78))

0.80

Yakima ((1.16))

1.23

Klickitat 0.90

[Statutory Authority: RCW 84.34.360, 84.34.065, 84.34.141, and 84.69.100. 12-01-040, 458-30-262, filed 12/13/11, effective 1/1/12. Statutory Authority: RCW 84.34.065 and 84.34.141. 11-02-015, 458-30-262, filed 12/29/10, effective 1/1/11. Statutory Authority: RCW 84.34.055 and 84.34.141. 10-09-049, 458-30-262, filed 4/15/10, effective 5/16/10. Statutory Authority: RCW 84.34.065 and 84.34.141. 10-02-025, 458-30-262, filed 12/29/09, effective 1/1/10; 08-24-093, 458-30-262, filed 12/2/08, effective 1/2/09; 08-04-051, 458-30-262, filed 1/31/08, effective 3/2/08; 07-01-011, 458-30-262, filed 12/7/06, effective 1/1/07; 05-24-028, 458-30-262, filed 11/30/05, effective 1/1/06; 05-01-051, 458-30-262, filed 12/7/04, effective 1/1/05; 03-24-013, 458-30-262, filed 11/20/03, effective 12/21/03; 02-23-080, 458-30-262, filed 11/19/02, effective 12/20/02; 02-03-040, 458-30-262, filed 1/8/02, effective 2/8/02. Statutory Authority: RCW 84.34.065, 84.34.360. 00-24-105, 458-30-262, filed 12/6/00, effective 1/1/01; 99-24-034, 458-30-262, filed 11/23/99, effective 1/1/00. Statutory Authority: RCW 84.34.065, 84.34.360 and 84.08.010. 99-01-067, 458-30-262, filed 12/14/98, effective 1/1/99. Statutory Authority: RCW 84.34.065, 84.34.141 and 84.08.010. 98-01-178, 458-30-262, filed 12/23/97, effective 1/1/98. Statutory Authority: RCW 84.34.065, 84.34.141, 84.08.010 and 84.34.070. 97-02-066, 458-30-262, filed 12/31/96, effective 1/1/97. Statutory Authority: RCW 84.34.065, 84.34.141, 84.08.010 and 84.34.070. 96-01-095, 458-30-262, filed 12/19/95, effective 1/1/96. Statutory Authority: RCW 84.34.065, 84.34.141, 84.08.010 and 84.08.070. 95-09-041, 458-30-262, filed 4/14/95, effective 5/15/95. Statutory Authority: RCW 84.08.010, 84.08.070 and 84.34.065. 94-05-062, 458-30-262, filed 2/11/94, effective 3/14/94. Statutory Authority: RCW 84.08.010 and 84.08.070. 93-07-067, 458-30-262, filed 3/17/93, effective 4/17/93; 92-03-068, 458-30-262, filed 1/14/92, effective 2/14/92; 91-04-001, 458-30-262, filed 1/24/91, effective 2/24/91; 90-24-087, 458-30-262, filed 12/5/90, effective 1/5/91. Statutory Authority: RCW 84.08.010(2) and 84.34.141. 90-02-080 (Order PT 90-1), 458-30-262, filed 1/2/90, effective 2/2/90.]


AMENDATORY SECTION(Amending WSR 12-01-040, filed 12/13/11, effective 1/1/12)

WAC 458-30-590   Rate of inflation -- Publication -- Interest rate -- Calculation.   (1) Introduction. This section sets forth the rates of inflation discussed in WAC 458-30-550. It also explains the department of revenue's obligation to annually publish a rate of inflation and the manner in which this rate is determined.

(2) General duty of department -- Basis for inflation rate. Each year the department determines and publishes a rule establishing an annual rate of inflation. This rate of inflation is used in computing the interest that is assessed when farm and agricultural or timber land, which are exempt from special benefit assessments, is withdrawn or removed from current use classification.

(a) The rate of inflation is based upon the implicit price deflator for personal consumption expenditures calculated by the United States Department of Commerce. This rate is used to calculate the rate of interest collected on exempt special benefit assessments.

(b) The rate is published by December 31st of each year and applies to all withdrawals or removals from farm and agricultural or timber land classification that occur the following year.

(3) Assessment of rate of interest. An owner of classified farm and agricultural or timber land is liable for interest on the exempt special benefit assessment. Interest accrues from the date the local improvement district is created until the land is withdrawn or removed from classification. Interest accrues and is assessed in accordance with WAC 458-30-550.

(a) Interest is assessed only for the time (years and months) the land remains classified under RCW 84.34.020 (2) or (3).

(b) If the classified land is exempt from the special benefit assessment for more than one year, the annual inflation rates are used to calculate an average rate of interest. This average is determined by adding the inflation rate for each year the classified land was exempt from the special benefit assessment after the local improvement district was created. The sum of the inflation rates is then divided by the number of years involved to determine the applicable rate of interest.

(c) Example. A local improvement district for a domestic water supply system was created in January 1990 and the owner used the statutory exemption provided in RCW 84.34.320. On July 1, 1997, the land was removed from the farm and agricultural classification. An average interest rate was calculated using the inflation rates for 1990 through 1997. The owner was then notified of the amount of previously exempt special benefit assessment, plus the average interest rate.

(4) Rates of inflation. The rates of inflation used to calculate the interest as required by WAC 458-30-550 are as follows:


YEAR PERCENT YEAR PERCENT
1976 5.6

1977 6.5
1978 7.6 1979 11.3
1980 13.5 1981 10.3
1982 6.2 1983 3.2
1984 4.3 1985 3.5
1986 1.9 1987 3.7
1988 4.1 1989 4.8
1990 5.4 1991 4.2
1992 3.3 1993 2.7
1994 2.2 1995 2.3
1996 2.2 1997 2.1
1998 0.85 1999 1.42
2000 2.61 2001 1.89
2002 1.16 2003 1.84
2004 2.39 2005 2.54
2006 3.42 2007 2.08
2008 4.527 2009 -0.85 (negative)
2010 1.539 2011 2.755
2012 1.295

[Statutory Authority: RCW 84.34.360, 84.34.065, 84.34.141, and 84.69.100. 12-01-040, 458-30-590, filed 12/13/11, effective 1/1/12. Statutory Authority: RCW 84.34.360. 11-02-016, 458-30-590, filed 12/29/10, effective 1/1/11; 10-02-027, 458-30-590, filed 12/29/09, effective 1/1/10; 08-24-115, 458-30-590, filed 12/3/08, effective 1/3/09; 08-04-050, 458-30-590, filed 1/31/08, effective 3/2/08. Statutory Authority: RCW 84.34.360 and 84.34.310. 07-01-012, 458-30-590, filed 12/7/06, effective 1/1/07; 05-24-119, 458-30-590, filed 12/7/05, effective 1/1/06; 05-01-052, 458-30-590, filed 12/7/04, effective 1/1/05; 03-24-076, 458-30-590, filed 12/2/03, effective 1/2/04; 02-24-058, 458-30-590, filed 12/3/02, effective 1/3/03; 02-03-041, 458-30-590, filed 1/8/02, effective 2/8/02; 00-24-107, 458-30-590, filed 12/6/00, effective 1/1/01; 99-24-035, 458-30-590, filed 11/23/99, effective 12/24/99; 99-01-068, 458-30-590, filed 12/14/98, effective 1/1/99; 98-01-179, 458-30-590, filed 12/23/97, effective 1/1/98; 97-02-067, 458-30-590, filed 12/31/96, effective 1/1/97; 96-01-094, 458-30-590, filed 12/19/95, effective 1/1/96; 95-06-043, 458-30-590, filed 2/24/95, effective 3/27/95. Statutory Authority: RCW 84.34.360. 94-11-098, 458-30-590, filed 5/17/94, effective 6/17/94; 92-22-061, 458-30-590, filed 10/29/92, effective 11/29/92. Statutory Authority: RCW 84.08.010 and 84.08.070. 90-24-087, 458-30-590, filed 12/5/90, effective 1/5/91. Statutory Authority: Chapter 84.34 RCW and RCW 84.34.360. 89-05-010 (Order PT 89-3), 458-30-590, filed 2/8/89. Statutory Authority: RCW 84.34.360. 88-07-004 (Order PT 88-4), 458-30-590, filed 3/3/88; 87-07-009 (Order PT 87-3), 458-30-590, filed 3/10/87.]