HB 1648 — Concerning county treasurer administrative efficiencies.

H-1057.1HOUSEENGROSSED HOUSE BILL 1648State of Washington65th Legislature2017 Regular SessionBy Representatives Stonier, Frame, Peterson, Harris, Vick, Wylie, and PikeRead first time 01/25/17.

In addition, delinquent taxes under this section are subject to penalties 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 ((amount of tax)) delinquent tax amount on December 1st of the year in which the tax is due.(c) If a taxpayer is successfully participating in a partial payment agreement((agreement under subsection (11)(b) of this section)) program pursuant to subsection (13) 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.(6)(a) 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.(b) For the purposes of this section, "tax foreclosure avoidance costs" means those costs((costs that can be identified specificallyspecifically)) direct costs associated with the administration of properties subject to and prior to foreclosure.

Tax foreclosure avoidance costs include:(i) Compensation of employees for the time devoted and((and identified specificallyspecifically)) to administering the avoidance of property foreclosure;

and(ii) The cost of materials, services, or equipment acquired, consumed, or expended specifically((specifically for the purpose ofof)) in administering tax foreclosure avoidance prior to the filing of a certificate of delinquency.(c) When tax foreclosure avoidance costs are collected, ((the tax foreclosure avoidance costs)) such costs must be credited to the county treasurer service fund account, except as otherwise directed.(d) 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.(7) Subsection (5) of this section notwithstanding, no interest or penalties may be assessed during any period of armed conflict ((on)) 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.(8) 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.(9) All collections of interest on delinquent taxes must be credited to the county current expense fund.(10) For purposes of this chapter, "interest" means both interest and penalties.(10)penalties.(((10) All collections of interest on delinquent taxes must be credited to the county current expense fund;

butbut))(11) theThe 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 ((for)) because of delinquent taxes without regard to budget limitations.(11)(a)limitations and not subject to indirect costs of other charges.(((11))) (12)(a) 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 ((bill presentment)) billing and payment.

All prepayments must be paid in full by the due date specified in (c)(((c))) (b) of this subsection.

Payments on past due taxes must include collection of the oldest delinquent year, which includes interest and taxes within a twelve-month period, prior to filing a certificate of delinquency under chapter 84.64 RCW or distraint pursuant to RCW 84.56.070.(b) The((The treasurer ((must))must may provide, by electronic means or otherwise, a payment agreement that provides for payment of current year taxes, ((inclusiveinclusive of prepayment))prepayment including partial payment collection charges.

The treasurer may provide, by electronic means or otherwise, a payment agreement for payment of past due delinquencies((,delinquencies, which must also require current year taxes to be paid timely.

The payment agreement must be signed by the taxpayer and))and thattreasurer alsoprior requiresto on-timethe paymentsending of an electronic or alternative bill, which includes a payment plan for current year taxes.

The treasurer may accept partial payment agreementof mustcurrent beand approveddelinquent bytaxes theincluding taxpayerinterest and authorizedpenalties byusing theelectronic treasurerbill priorpresentment toand payments.(c))) All taxes upon real and personal property made payable by the sendingprovisions of anthis electronictitle are due and payable to the treasurer on or alternativebefore bill,the whichthirtieth includesday aof paymentApril planand forare currentdelinquent yearafter taxes.that date.

((The treasurer may accept partial payment of current and delinquent taxes including interest and penalties using electronic bill presentment and payments.))(c) 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 thirtieth day of April and are delinquent after that date.

All other assessments, fees, rates, and charges are delinquent after the due date.date.(((d))) (c) A county treasurer may authorize payment of past due property taxes, penalties, and interest under this chapter by electronic funds transfers ((payments)) on a monthly basis.

Delinquent taxes are subject to interest and penalties, as provided in subsection (5) of this section.(((e))) (d) The treasurer maymust acceptpay any collection costs, investment earnings, or both on past due payments or prepayments to the credit of a one-time,county electronictreasurer partialservice fund account to be created and used only for the payment of expenses incurred by the treasurer, without alimitation, paymentin agreement.(d)administering Athe countysystem for collecting prepayments.(((12))) (13) The treasurer may authorizeaccept partial payment of pastcurrent dueand propertydelinquent taxes,taxes penalties,including interest and interestpenalties underby any means authorized.(14) For purposes of this chaptersection byunless electronicthe fundscontext transfersclearly ((payments))requires onotherwise, athe monthlyfollowing basis.definitions apply:(a) "Electronic ((bill presentment)) billing and payment" means statements, invoices, or bills that are created, delivered, and paid using the internet.

Delinquent taxes are subject to interest and penalties, as provided in subsection (5) of this section.(e) 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.(12) For purposes of this section unless the context clearly requires otherwise, the following definitions apply:(a) "Electronic ((bill presentment)) billing and payment" means statements, invoices, or bills that are created, delivered, and paid using the internet.