HB 1761 — Increasing the personal property tax exemption.

H-1370.1H-0981.2 SUBSTITUTE HOUSE BILL 1761 State of Washington 68th Legislature 2023 Regular Session By House Finance (originally sponsored by Representatives Christian, Leavitt, Couture, Low, Rule, Hutchins, Orwall, Dent, Springer, Schmidt, Duerr, Barnard, Shavers, Walen, Timmons, Ryu, Bronoske, Robertson, Senn, Chapman, Santos, Volz, and Cheney)Cheney READRead FIRSTfirst TIMEtime 02/23/23.02/06/23.

Referred to Committee on Finance.

amending RCW 84.36.110,84.36.110; 84.36.120, and 84.48.065;

creating a new section;

(2)(a)(2) The personal property, other than specified in subsection (1) of this section, of ((each head of a family)) a person liable to assessment and taxation of which the ((individual)) person is the actual and bona fide owner to an amount of ((fifteen thousand dollars)) $40,000 of true and fair value.

((IfIf the county assessor is satisfied that all of the personal property of any person is exempt from taxation under the provisions of this statute or any other statute providing exemptions for personal property, no listing p.

1 SHBHB 1761 other statute providing exemptions for personal property, no listing of such property shall be required.

However,))However, (b)(i) Each business must attest that the total replacement cost new of its taxable personal property is less than $40,000, or (ii) if the personal property described in this subsection exceeds in value the amount allowed as exempt, then a complete list of said personal property shall be made as provided by law, and the county assessor shall deduct the amount of the exemption authorized by this subsection from the total amount of the assessment and impose taxes on the remainder.

(c) A person claiming an exemption under (b)(i) of this subsection must attest, under the penalty of perjury subject to the penalties in RCW 84.40.130(2), that they are claiming only one such exemption statewide for the calendar year.

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2.

RCW 84.36.120 and 2008 c 6 s 708 are each amended to read as follows:

For the purposes of RCW 84.36.110 (("head of a family" shall be construed to include a surviving spouse or surviving domestic partner who has neither remarried nor entered into a subsequent domestic partnership, any person receiving an old age pension under the laws of this state and any citizen of the United States, over the age of sixty-five years, who has resided in the state of Washington continuously for ten years.)), the following definitions apply:

(1) "Personal effects" shall be construed to mean and include such tangible property as usually and ordinarily attends the person such as wearing apparel, jewelry, toilet articles and the like.

(2) "Private motor vehicle" shall be construed to mean and include all motor vehicles used for the convenience or pleasure of the owner and carrying a licensing classification other than motor vehicle for hire, auto stage, auto stage trailer, motor truck, motor truck trailer or dealers' licenses.

(3) "Mobile home" shall be construed to mean and include all trailers of the type designed as facilities for human habitation and which are capable of being moved upon the public streets and highways and which are more than thirty-five feet in length or more than eight feet in width.

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3.

RCW 84.48.065 and 2015 c 174 s 2 are each amended to read as follows:

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2 SHB 1761 (1)(a) The county assessor or treasurer may cancel or correct assessments on the assessment or tax rolls which are erroneous due to manifest errors in description, double assessments, clerical errors in extending the rolls, and such manifest errors in the listing of the property that do not involve a revaluation of property, except in the case that a taxpayer produces proof that an authorized land use authority has made a definitive change in the property's land use designation.

In such a case, correction of the assessment or tax rolls may be made notwithstanding the fact that the action involves a revaluation of property.

Manifest errors that do not involve a revaluation of property include the assessment of property exempted by law from taxation ((or the failure to deduct the exemption allowed by law to the head of a family)).

When the county assessor cancels or corrects an assessment, the assessor must send a notice to the taxpayer in accordance with RCW 84.40.045, advising the taxpayer that the action has been taken and notifying the taxpayer of the right to appeal the cancellation or correction to the county board of equalization, in accordance with RCW 84.40.038.

When the county assessor or treasurer cancels or corrects an assessment, a record of the action must be prepared, setting forth therein the facts relating to the error.

The record must also set forth by legal description all property belonging exclusively to the state, any county, or any municipal corporation whose property is exempt from taxation, upon which there remains, according to the tax roll, any unpaid taxes.

(b) Except as otherwise provided in this subsection (1)(b), no manifest error cancellation or correction, including a cancellation or correction made due to a definitive change of land use designation, may be made for any period more than three years preceding the year in which the error is discovered.

However, a manifest error cancellation or correction may be made for a period more than three years preceding the year in which the error is discovered if authorized by the county legislative authority and the manifest error cancellation or correction would result in a refund or reduction of taxes for a property owner.

(2)(a) In the case of a definitive change of land use designation, an assessor must make corrections that involve a revaluation of property to the assessment roll when:

(i) The assessor and taxpayer have signed an agreement as to the true and fair value of the taxpayer's property setting forth in the p.

3 SHB 1761 agreement the valuation information upon which the agreement is based;

and (ii) The assessment roll has previously been certified in accordance with RCW 84.40.320.

(b) In all other cases, an assessor must make corrections that involve a revaluation of property to the assessment roll when:

(i) The assessor and taxpayer have signed an agreement as to the true and fair value of the taxpayer's property setting forth in the agreement the valuation information upon which the agreement is based;

and (ii) The following conditions are met:

(A) The assessment roll has previously been certified in accordance with RCW 84.40.320;

(B) The taxpayer has timely filed a petition with the county board of equalization pursuant to RCW 84.40.038 for the current assessment year;

(C) The county board of equalization has not yet held a hearing on the merits of the taxpayer's petition.

(3) The assessor must issue a supplementary roll or rolls including such cancellations and corrections, and the assessment and levy have the same force and effect as if made in the first instance, and the county treasurer must proceed to collect the taxes due on the rolls as modified.

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