wa-law.org > bill > 2023-24 > SB 5714 > Original Bill
The county treasurer must be the receiver and collector of all taxes extended upon the tax rolls of the county, whether levied for state, county, school, bridge, road, municipal or other purposes, and also of all fines, forfeitures or penalties received by any person or officer for the use of his or her county. No treasurer may accept tax payments or issue receipts for the same until the treasurer has completed the tax roll for the current year's collection and provided notification of the completion of the roll. Notification may be accomplished electronically, by posting a notice in the office, or through other written communication as determined by the treasurer. All real and personal property taxes and assessments made payable by the provisions of this title are due and payable to the county treasurer on or before the 30th day of April and, except as provided in this section, are delinquent after that date.
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Tax statements for the current year's collection must be distributed to each taxpayer on or before March 15th provided that:
All city and other taxing district budgets have been submitted to county legislative authorities by November 30th per RCW 84.52.020;
The county legislative authority in turn has certified taxes levied to the county assessor in accordance with RCW 84.52.070; and
The county assessor has delivered the tax roll to the county treasurer by January 15th per RCW 84.52.080.
Each tax statement must include a notice that checks for payment of taxes may be made payable to "Treasurer of . . . . . . County" or other appropriate office, but tax statements may not include any suggestion that checks may be made payable to the name of the individual holding the office of treasurer nor any other individual.
Each tax statement distributed to an address must include a notice with information describing the:
Property tax exemption program pursuant to RCW 84.36.379 through 84.36.389; and
Property tax deferral program pursuant to chapter 84.38 RCW.
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When the total amount of tax or special assessments on personal property or on any lot, block or tract of real property payable by one person is $50 or more, and if one-half of such tax is paid on or before the 30th day of April, the remainder of such tax is due and payable on or before the following 31st day of October and is delinquent after that date.
Payments generated by an automated check processing service or payments with no discernable postmark date and received within three days of the 30th day of April or the 31st day of October, as required under (a) of this subsection, are not delinquent.
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When the total amount of tax or special assessments on any lot, block or tract of real property, personal property, or on any mobile home payable by one person is $50 or more, and if one-half of such tax is paid after the 30th day of April but before the 31st day of October, together with the applicable interest and penalty on the full amount of tax payable for that year, the remainder of such tax is due and payable on or before the following 31st day of October and is delinquent after that date.
Payments generated by an automated check processing service or payments with no discernable postmark date and received within three days of the 30th day of April or the 31st day of October, as required under (a) of this subsection, are not delinquent.
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Except as provided in (c) of this subsection, delinquent taxes under this section are subject to interest as provided in this subsection computed on a monthly basis on the amount of tax delinquent from the date of delinquency until paid. Interest must be calculated at the rate as described below.
Until December 31, 2022, the interest rate is 12 percent per annum for all nonresidential real property, residential real property, and personal property.
Beginning January 1, 2023, interest rates are as follows:
(A) Nine percent per annum for all residential real property with four or fewer units per taxable parcel, including manufactured/mobile homes as defined in RCW 59.20.030 for taxes levied in 2023 or after; or
(B) Twelve percent per annum for all other property.
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i. Penalties on delinquent taxes under this section may not be assessed beginning January 1, 2022, and through December 31, 2022.
ii. Beginning January 1, 2023, delinquent taxes under this section are subject to penalties for nonresidential real property, residential real property with greater than four units per taxable parcel, and for personal property as follows:
(A) A penalty of three percent of the amount of tax delinquent is assessed on the tax delinquent on June 1st of the year in which the tax is due.
(B) An additional penalty of eight percent is assessed on the delinquent tax amount on December 1st of the year in which the tax is due.
iii. Penalties may not be assessed on residential real property with four or fewer units per taxable parcel, including manufactured/mobile homes as defined in RCW 59.20.030.
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i. If a taxpayer is successfully participating in a payment agreement under subsection (15)(b) of this section or a partial payment program pursuant to subsection (15)(c) of this section, the county treasurer may not assess additional penalties on delinquent taxes that are included within the payment agreement. Interest and penalties that have been assessed prior to the payment agreement remain due and payable as provided in the payment agreement.
ii. The following remain due and payable as provided in any payment agreement:
(A) Interest that has been assessed prior to the payment agreement; and
(B) Penalties assessed prior to January 1, 2022, that have been assessed prior to the payment agreement.
A county treasurer must provide notification to each taxpayer whose taxes have become delinquent under subsections (4) and (5) of this section. The delinquency notice must specify where the taxpayer can obtain information regarding:
Any current tax or special assessments due as of the date of the notice;
Any delinquent tax or special assessments due, including any penalties and interest, as of the date of the notice; and
Where the taxpayer can pay his or her property taxes directly and contact information, including but not limited to the phone number, for the statewide foreclosure hotline recommended by the Washington state housing finance commission.
7. Within 90 days after the expiration of two years from the date of delinquency (when a taxpayer's taxes have become delinquent), the county treasurer must provide the name and property address of the delinquent taxpayer to a homeownership resource center or any other designated local or state entity recommended by the Washington state housing finance commission.
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When real property taxes become delinquent and prior to the filing of the certificate of delinquency, the treasurer is authorized to assess and collect tax foreclosure avoidance costs.
When tax foreclosure avoidance costs are collected, such costs must be credited to the county treasurer service fund account, except as otherwise directed.
For purposes of chapter 84.64 RCW, any taxes, interest, or penalties deemed delinquent under this section remain delinquent until such time as all taxes, interest, and penalties for the tax year in which the taxes were first due and payable have been paid in full.
Subsection (5) of this section notwithstanding, no interest or penalties may be assessed during any period of armed conflict regarding delinquent taxes imposed on the personal residences owned by active duty military personnel who are participating as part of one of the branches of the military involved in the conflict and assigned to a duty station outside the territorial boundaries of the United States.
During a state of emergency declared under RCW 43.06.010(12), the county treasurer, on his or her own motion or at the request of any taxpayer affected by the emergency, may grant extensions of the due date of any taxes payable under this section as the treasurer deems proper.
All collections of interest on delinquent taxes must be credited to the county current expense fund.
For purposes of this chapter, "interest" means both interest and penalties.
The direct cost of foreclosure and sale of real property, and the direct fees and costs of distraint and sale of personal property, for delinquent taxes, must, when collected, be credited to the operation and maintenance fund of the county treasurer prosecuting the foreclosure or distraint or sale; and must be used by the county treasurer as a revolving fund to defray the cost of further foreclosure, distraint, and sale because of delinquent taxes without regard to budget limitations and not subject to indirect costs of other charges.
For purposes of this chapter, and in accordance with this section and RCW 36.29.190, the treasurer may collect taxes, assessments, fees, rates, interest, and charges by electronic billing and payment. Electronic billing and payment may be used as an option by the taxpayer, but the treasurer may not require the use of electronic billing and payment. Electronic bill presentment and payment may be on a monthly or other periodic basis as the treasurer deems proper for:
Delinquent tax year payments; and
Prepayments of current tax.
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The treasurer may accept prepayments for current year taxes by any means authorized. All prepayments must be paid in full by the due date specified in subsection (16) of this section.
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ii.(A) The treasurer may provide, by electronic means or otherwise, a payment agreement for payment of past due delinquencies. The payment agreement must be signed by the taxpayer and treasurer or the treasurer's deputy prior to the sending of an electronic or alternative bill, which includes a payment plan for past due delinquent taxes and charges.
(B) Tax payments received by a treasurer for delinquent year taxes from a taxpayer participating on a payment agreement must be applied first to the oldest delinquent year unless such taxpayer requests otherwise.
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i. In addition to the payment agreement program in (b) of this subsection, the treasurer may accept partial payment of any current and delinquent taxes including interest and penalties by any means authorized including electronic bill presentment and payments.
ii. All tax payments received by a treasurer for delinquent year taxes from a taxpayer paying a partial payment must be applied first to the oldest delinquent year unless such taxpayer requests otherwise.
d. Payments on past due taxes must include collection of the oldest delinquent year, which includes interest, penalties, and taxes within an eighteen-month period, prior to filing a certificate of delinquency under chapter 84.64 RCW or distraint pursuant to RCW 84.56.070.
All taxes upon real and personal property made payable by the provisions of this title are due and payable to the treasurer on or before the 30th day of April and are delinquent after that date. The remainder of the tax is due and payable on or before the following 31st of October and is delinquent after that date. All other assessments, fees, rates, and charges are delinquent after the due date.
A county treasurer may authorize payment of:
Any current property taxes due under this chapter by electronic funds transfers on a monthly or other periodic basis; and
Any past due property taxes, penalties, and interest under this chapter by electronic funds transfers on a monthly or other periodic basis. Delinquent taxes are subject to interest and penalties, as provided in subsection (5) of this section. All tax payments received by a treasurer from a taxpayer paying delinquent year taxes must be applied first to the oldest delinquent year unless such taxpayer requests otherwise.
The treasurer must pay any collection costs, investment earnings, or both on past due payments or prepayments to the credit of a county treasurer service fund account to be created and used only for the payment of expenses incurred by the treasurer, without limitation, in administering the system for collecting prepayments.
No earlier than 60 days prior to the date that is three years after the date of delinquency, the treasurer must waive all outstanding interest and penalties on delinquent taxes due from a taxpayer if the property is subject to an action for foreclosure under chapter 84.64 RCW and the following requirements are met:
The taxpayer is income-qualified under RCW 84.36.381(5)(a), as verified by the county assessor;
The taxpayer occupies the property as their principal place of residence; and
The taxpayer has not previously received a waiver on the property as provided under this subsection.
The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
"Electronic billing and payment" means statements, invoices, or bills that are created, delivered, and paid using the internet. The term includes an automatic electronic payment from a person's checking account, debit account, or credit card.
"Internet" has the same meaning as provided in RCW 19.270.010.
"Tax foreclosure avoidance costs" means those direct costs associated with the administration of properties subject to and prior to foreclosure. Tax foreclosure avoidance costs include:
Compensation of employees for the time devoted to administering the avoidance of property foreclosure; and
The cost of materials, services, or equipment acquired, consumed, or expended in administering tax foreclosure avoidance prior to the filing of a certificate of delinquency.