Title of Rule and Other Identifying Information: WAC 458-12-360 Notice of change in value of real property.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: WAC 458-12-360 is being amended to incorporate:
Reasons Supporting Proposal: WAC 458-12-360 is the rule explaining the requirements of a change of value notice or revaluation notice. Incorporating the updated statutory requirements into this rule will assist county assessors and taxpayers regarding the information that must be included in these notices.
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: Leslie Mullin, 6400 Linderson Way S.W., Tumwater, WA, 360-534-1589; Implementation and Enforcement: Randy Simmons, 6400 Linderson Way S.W., Tumwater, WA, 360-534-1605.
This notice meets the following criteria to use the expedited adoption process for these rules:
Adopts or incorporates by reference without material change federal statutes or regulations, Washington state statutes, rules of other Washington state agencies, shoreline master programs other than those programs governing shorelines of statewide significance, or, as referenced by Washington state law, national consensus codes that generally establish industry standards, if the material adopted or incorporated regulates the same subject matter and conduct as the adopting or incorporating rule.
Explanation of the Reason the Agency Believes the Expedited Rule-Making Process is Appropriate: The expedited rule-making process is applicable to this rule update because the department is incorporating changes resulting from 2011, 2013, and 2017 legislation.
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 Leslie Mullin, Department of Revenue, P.O. Box 47453, Olympia, WA 98504-7453, phone 360-534-1589, fax 360-534-1606, email LeslieMu@dor.wa.gov, AND RECEIVED BY December 3, 2018.
Erin T. Lopez
This rule explains the requirement of county assessors to notify taxpayers of any change in the true and fair value of real property as provided by RCW 84.40.045
. The notice of a change in the true and fair value of real property is commonly referred to as a change of
value notice or revaluation notice.
(2) When must a revaluation notice be provided?
All revaluation notices must be mailed within thirty days of the completed appraisal, except that no revaluation notices can be mailed during the period from January 15th to February 15th of each year. If the true and fair value of the real property appraised has not changed, ((no
revaluation notice does not
be sent to the taxpayer following the completed appraisal. Also, ((no
notice does not
be sent ((with respect to
changes in valuation of publicly owned property exempt from taxation under RCW 84.36.010 or of
forest land ((made
)) under chapter 84.33
The following examples identify a number of facts and then state a conclusion. These examples should be used only as a general guide. The status of each situation must be determined after a review of all of the facts and circumstances.
(a) Example 1. On January 5th the assessor completes an appraisal of a home and the land ((upon))on which it sits. The total value of the land and home increased as a result of the appraisal. The assessor must mail a revaluation notice to the taxpayer by February 16th; however, the assessor is not allowed to mail the revaluation notice between January 15th and February 15th.
(b) Example 2.
The assessor appraises a home and the land ((upon
which it sits. The value of the home decreases, and the value of the land increases; however, the total value of the home and land remain unchanged. The assessor is not required to mail a revaluation notice to the taxpayer. Under RCW 84.40.045
, revaluation notices are only required when there is a change in the true and fair value of the real property that is the subject of the appraisal. In this example, although there is a change in the true and fair value of the home and land, there is no ((overall
)) change in the overall
true and fair value of the real property that was the subject of the appraisal.
(3) What if an assessor fails to provide a timely revaluation notice?
The failure to provide a timely revaluation notice as required by RCW 84.40.045
does not invalidate the assessment. RCW 84.40.045
does not affect RCW 84.40.020
which provides, in relevant part, that all real property in this state subject to taxation must be listed and assessed every year, at its value on January 1st of the assessment year.
A taxpayer who fails to timely appeal an assessor's determination of value to the county board of equalization (board) because of the assessor's failure to timely provide a revaluation notice may still petition the board for a review of the assessor's determination of value. A board may reconvene on its own authority in certain circumstances as provided in WAC 458-14-127 Reconvened boards—Authority, including upon request of a taxpayer who has not received a timely revaluation notice. ((Under))According to WAC 458-14-127, the taxpayer must submit to the board ((a sworn))an affidavit stating that a revaluation notice for the current assessment year was not received by the taxpayer at least fifteen calendar days prior to the deadline for filing the petition for review of the assessor's determination of value, and the taxpayer can show proof that the value was actually changed. The request to reconvene and the ((sworn)) affidavit must be filed with the board by April 30th of the tax year immediately following the board's regularly convened session. ((())For additional information about appealing an assessor's determination of value to the ((county)) board, refer to chapter 458-14 WAC.(()))
(4) Who is entitled to receive a revaluation notice?RCW 84.40.045 requires t
he assessor ((is required by law
)) to mail revaluation notices to the taxpayer. ((RCW 84.40.045.
)) For purposes of this rule, "taxpayer" means the person charged, or whose property is charged, with property tax and whose name appears on the most recent tax roll or has been otherwise provided to the assessor.
If any taxpayer, as shown by the tax rolls, holds only a security interest under a mortgage, contract of sale, or deed of trust in the real property that is the subject of the revaluation notice, the taxpayer is required to supply, within thirty days of receiving a written request from the assessor, the name and address of the person making payments under the mortgage, contract of sale, or deed of trust. The assessor must mail a copy of the revaluation notice to the person making payments under the mortgage, contract of sale, or deed of trust at the address provided by the taxpayer. A request from the assessor ((is required to make the request provided for in this subsection))for this information must be made during the month of January. ((A))If the taxpayer ((who)) willfully fails to comply with ((such a request from the assessor within the thirty-day time limitation))the assessor's request within thirty days, the taxpayer is subject to a maximum civil penalty of five thousand dollars. The civil penalty is recoverable in an action by the county prosecutor and, when recovered, must be deposited in the county current expense fund.
(5) What information must a revaluation notice contain? A revaluation notice must contain ((the following information)):
(a) The name and address of the taxpayer;
(b) A description of the real property that is the subject of the revaluation notice;
(c) The previous and new true and fair values, stating separately land and improvement values;
(d) A statement that the assessed value is one hundred percent of the true and fair value;
(e) If the property is classified under chapter 84.34 RCW
on the basis of its current use, the previous and new current use value of the property, stating separately land and improvement values;
(f) A statement informing taxpayers that if they would like to learn more about how their property was valued for tax purposes and how their property taxes will be determined, they may obtain an information pamphlet describing the property tax system from the assessor's office free of charge;
(g) A statement that land used for farm and agricultural purposes, to preserve open space, or for the commercial growth and harvesting of forest crops may be eligible for assessment based on the land's current use rather than its highest and best use. This statement must also provide information on the method of making application and the availability of ((further))additional information on the current use classifications;
(h) A statement informing taxpayers ((that))they may be eligible to receive a property tax exemption if:
(i) They own and live in a residence in the county, including a mobile home((,));
(ii) Are now or will be sixty-one years of age by December 31st of the current year, ((or)) are retired because of a physical disability, or is a veteran of the armed forces of the United States entitled to and receiving compensation from the United States Department of Veterans Affairs at a total disability rating for a service-connected disability; and ((if))
heir combined disposable income is under the limits provided in RCW 84.36.381
((, they may be eligible to receive a property tax exemption
Although not statutorily required, it is suggested that a revaluation notice contain a statement informing taxpayers that if they are a senior citizen or a disabled person, or if they meet certain income requirements, they may be able to defer payment of their property taxes. This statement should also include ((information about how further))how additional information about property tax deferrals for senior citizens ((and)), disabled persons, or persons with limited incomes may be obtained; and
(i) A brief statement of the procedure for appeal to the county board of equalization and the time, date, and ((place of the meetings))meeting place of the board. The following language is suggested: "You may appeal either the true and fair value and/or current use assessed value to the county board of equalization. An appeal petition may be obtained from the board of equalization. Petitions for a hearing must be filed with the board of equalization on or before July 1st of the assessment year, or within (number of days) of the date of the revaluation notice, whichever is later. Petitions received after those dates will be denied on the grounds of not having been timely filed, unless a waiver for good cause as described in WAC 458-14-056, is granted. The board of equalization will convene on July 15th, or within fourteen days of certification of the county assessment rolls, whichever is later, in the (name of office) at (name of city or town), Washington, and will continue in session for a period not to exceed four weeks. The board of equalization is to review and equalize the assessments of the current year for taxes payable the following year."