HomeMy WebLinkAbout010 16JEFFERSON COUNTY
STATE OF WASHINGTON
�5°(
In the Matter o the Discretion of the }
County Legislative Authority to } RESOLUTION NO. 10-16
Authorize Refunds or Cancellations }
Or Corrections of the Tax Rolls Outside }
Of the Ordinary Time Limits }
WHEREAS, ordinarily in order to be timely under Washington law a claim for a property tax
refund under 84.69 RCW must be filed with the county treasurer within three years of the due
date of the payment sought to be refunded; and,
WHEREAS, ordinarily in order to be timely under Washington law a proceeding for a
cancellation, reduction, correction, or a refund of property taxes under RCW 84.68.110 through
RCW 84.68.150 must be filed with the county assessor within three years of year in which the
tax became payable or purported to become payable; and,
WHEREAS, ordinarily a manifest error cancellation or correction by the county assessor or
county treasurer under RCW 84.48.065 may not be made for any period more than three years
preceding the year in which the error is discovered; and
WHEREAS, the Washington State Legislature has recently amended RCW 84.69.030 to permit
refunds on claims filed more than three years after the due date of the payment sought to be
refunded if the claim arises from taxes paid as the result of a manifest error in a description of
property, but only if such an extension of time is authorized by the county legislative authority;
and,
WHEREAS, the Washington State Legislature has recently amended RCW 84.68.150 to permit
petitions for cancellation or reduction of assessment or correction of tax rolls and the refund of
taxes under RCW 84.68.110 through RCW 84.68.150 to be considered even if filed more than
three years after the year in which the tax became payable, or purported to become payable, if
the reduction or correction is the result of a manifest error and if the county legislative authority
also authorizes the extension of time to file the petition; and,
WHEREAS, the Washington State Legislature has recently amended RCW84.48.065 to permit
the county assessor or county treasurer to issue a manifest error cancellation or correction for a
period more than three years preceding the year in which the error is discovered, but only if
authorized by the county legislative authority, and
WHEREAS, if the Jefferson County Board of Commissioners where to make use of the
additional authority granted by the legislature to extend the time periods for cancellations,
reductions, corrections, and refunds as now provided for in RCW 84.69.030, RCW 84.68.150,
and RCW 84.48.065, it could have the effect of undermining the certainty, predictability, and
finality of the process by which property taxes are collected and corrections and refund requests
are resolved.
NOW, THEREFORE, BE IT RESOLVED, that the Jefferson County Board of County
Commissioners recognizes that refunds for manifest error cancellations or corrections within
three years of the year in which the tax became payable are under the statutory authority of the
Jefferson County Assessor and Treasurer and are not affected by this Resolution.
BE IT FURTHER RESOLVED, that as is in all cases the policy of Jefferson County to not
extend, or authorize to extend, the time limits otherwise provided in the RCW 84.69.030, RCW
84.68.150, or RCW 84.48.065, for the cancellation, reduction, correction, or refund of property
taxes, for corrections of assessments or of the tax rolls, or for petitions or claims seeking such
cancellations, reductions, corrections or refunds.
Approved and signed this )/"day of March 2016.
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If
ATTEST:
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Carolyn AiWery
Deputy Clerk of the Board
JEFFERSON COUNTY
BOARD OF COMMISSIONERS
sK
Kathleen Kler, Madam Chair
Phil Johnson, Me ber
David Sullivan, Member
July 9, 2015
Legislative Update — Refunds of property taxes paid as a result of manifest
errors in description of property
The legislature passed a bill allowing county legislative authorities to authorize a manifest error cancellation or correction
to be made more than three years preceding the year in which the error is discovered. The cancellation or correction must
result in a refund or reduction of taxes for the property owner (Substitute Senate Bill 5276). The law takes effect July 24,
2015.
What is a manifest error? What types of errors are included, and what are not included?
A manifest error means an error in listing or assessment, which does not involve a property revaluation (WAC 458-14-
005). A manifest error can be seen, clearly shown and easily corrected without applying appraisal judgment in forming a
decision and revaluing the property.
An example of a manifest error in the description of property is incorrect square footage listed in an assessment property
record. The assessor may correct the error by updating the property record with the correct square footage. The assessed
value may change due to correct square footage, but the correction must reference the records and valuation methods
applied to similar properties.
Some property characteristics are determined through use of appraisal judgment. Property characteristics that may
require subjective decisions using appraisal judgment include quality of construction, condition, effective age, view, and
others. Changes in these types of characteristics are not manifest errors in description of property.
SSB 5276 applies to an error in the description of the property and does not apply to other circumstances. Some
examples, among others, include taxes that were paid by mistake by someone who did not have a legal interest in the
property, by someone exempted as a senior citizen or disabled person (RCW 84.36.379-389), or taxes abated for a
destroyed property claim (RCW 84.70.010-040).
How do property owners request a refund for manifest errors for more than three years?
Property owners should complete a "Petition for Property Tax Refund" (REV 64 0001) and file it with the county treasurer.
The treasurer already issued a refund for taxes paid in the current year (2015) and three previous years (2014,
2013, and 2012) for a manifest error that was made in determining the 2009 assessed value. Can a refund still be
requested for years prior to 2012?
Yes, if the county legislative authority has authorized cancellations or corrections of manifest errors for taxes paid in 2010
and 2011. In this case, the manifest error first occurred in the 2009 assessed value that was used to determine the 2010
taxes. A refund may be requested for taxes paid in 2010 and 2011 based on the change in value resulting from the error.
County legislative authorities are not required to authorize cancellations or corrections of manifest errors for more than
three years. There is no administrative appeal process if county legislative authorities do not authorize cancellations or
corrections.
If a property owner discovers a manifest error after the previous owner paid the taxes, can they request a refund?
No, the person who paid the tax must request the refund (RCW 84.69.030).
Are county legislative authorities required to use a specific process for refunds beyond the typical three-year
limit? Do they need to adopt a resolution?
P.O. BOX 47471 OLYMPIA, WA 98504-7471 1.800.647.7706 HTTP://E:)OR.WA.GOV
To inquire about the availability of this document in an alternate format for the visually
impaired, please call (360) 534-1400. Teletype (TTY) users, please call 1.800.451 .7985.
Property Tax Notice
Substitute Senate Bill 5276 — Refunds of property taxes paid as a result of manifest errors in description of property
No. Counties should use the same refund process in place for manifest error cancellations or corrections made within
three years of the year of discovery.
Can county legislative authorities limit the circumstances for authorizing manifest error cancellations or
corrections by policy?
Yes, with some limitations. County legislative authorities may adopt ordinances or resolutions limiting the time frame
under which they will authorize refunds related to a manifest error correction. However, the law does not allow different
treatment of refund claims filed within three years, and those filed during any extended period authorized by the county
legislative authority. An ordinance or resolution cannot establish requirements in addition to current requirements for
manifest error cancellations or corrections made within three years of the year of discovery.
County legislative authorities can adopt ordinances or resolutions allowing refunds to be processed administratively by the
assessor and/or treasurer for more than three years.
If a property owner claims that a property's characteristics are not correct, and an assessor is not allowed to
physically inspect the property, is the assessor required to correct these characteristics?
The assessor should correct property characteristics when they are aware of an error, and can verify the characteristic is
incorrect. However, some corrections may not be possible if an assessor is not allowed to physically inspect property and
verify a manifest error was made.
Who can decide whether or not there is a manifest error?
County assessors and treasurers may cancel or correct assessments on the assessment or tax rolls which are erroneous
due to manifest errors in description, double assessment, clerical errors in extending the rolls, and such manifest errors in
the listing of the property that do not involve a revaluation of property (RCW 84.48.065). There are no specific statutory
provisions allowing the county legislative authority to determine whether or not there is a manifest error.
How are refunds paid when a district's levy has expired, or when a taxing district has merged or dissolved?
If a refund involves a levy that does not exist at the time the refund request is made, such as a bond or an EMS levy that
has expired, the taxing district that made that levy must pay the refund from existing funds.
If a dissolved taxing district has any remaining funds held by the county treasurer, the refund can be made from those
funds. A county can't refund amounts for a taxing district from county funds (RCW 84.69.080). If the county treasurer does
not have any remaining funds for a district that has dissolved, there is no method available to refund property taxes to the
taxpayer for that particular levy.
If two or more taxing districts have merged, the remaining district is responsible for the refund.
A taxing district may levy for refunds paid or to be paid to taxpayers, including interest.
How should refunds for state property taxes paid more than four years ago be reported on the Fiscal Year
Collection Activity for State Levy form submitted to the Department of Revenue on September 1 of each year?
There are five years (current year plus the last four) available for reporting activity on the Fiscal Year Collection Activity for
State Levy form. State levy refund amounts for years beyond the fifth year should be added into the fifth year on the form.
This change will be included on the form used for collection fiscal year July 1, 2015, through June 30, 2016.
Can a county legislative authority authorize a cancellation or correction of a manifest error for more than three
years and require that interest be excluded for some or all of the tax years included in the refund?
No, interest must be calculated for all years included in a refund (RCW 84.69.100).
Questions?
Contact the Department of Revenue's Property Tax Division at (360) 534-1400.
July 9, 2015 Page 2
CERTIFICATION OF ENROLLMENT
SUBSTITUTE SENATE BILL 5276
Chapter 174, Laws of 2015
64th Legislature
2015 Regular Session
PROPERTY TAXES--REFUNDS--ERRORS IN DESCRIPTIONS OF PROPERTY
EFFECTIVE DATE: 7/24/2015
Passed by the Senate April 16, 2015
Yeas 47 Nays 0
BRAD OWEN
President of the Senate
Passed by the House April 15, 2015
Yeas 96 Nays 2
FRANK CHOPP
Speaker of the House of Representatives
Approved May 6, 2015 2:44 PM
JAY INSLEE
Governor of the State of Washington
CERTIFICATE
I, Hunter G. Goodman, Secretary of
the Senate of the State of
Washington, do hereby certify that
the attached is SUBSTITUTE SENATE
BILL 5276 as passed by Senate and
the House of Representatives on -the
dates hereon set forth.
HUNTER G. GOODMAN
Secretary
FILED
May 6, 2015
Secretary of State
State of Washington
SUBSTITUTE SENATE BILL 5276
AS AMENDED BY THE HOUSE
Passed Legislature - 2015 Regular Session
State of Washington 64th Legislature 2015 Regular Session
By Senate Ways & Means (originally sponsored by Senators Kohl -Welles,
Roach, and Keiser)
READ FIRST TIME 02/25/15.
1 AN ACT Relating to refunds of property taxes paid as a result of
2 manifest errors in descriptions, of property; and amending RCW
3 84.69.030, 84.48.065, and 84.68.150.
4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
5 Sec. 1. RCW 84.69.030 and 2014 c 16 s 1 are each amended to read
6 as follows:
7 (1) Except as provided in this section, no orders for a refund
8 under this chapter may be made except on a claim:
9 (a) Verified by the person who paid the tax, the person's
10 guardian, executor, or administrator; and
11 (b) Filed with the county treasurer within three years after the
12 due date of the payment sought to be refunded; and
13 (c) Stating the statutory ground upon which the refund is
14 claimed.
15 (2) No claim for an order of refund is required for a refund that
16 is based upon:
17 (a) An order of the board of equalization, state board of tax
18 appeals, or court of competent jurisdiction justifying a refund under
19 RCW 84.69.020 (9) through (12);
P. 1 SSB 5276.SL
1 (b) A decision by the treasurer or assessor that is rendered
2 within three years after the due date of the payment to be refunded,
3 justifying a refund under RCW 84.69.020; or
4 (c) A decision by the assessor or department approving an
5 exemption application that is filed under chapter 84.36 RCW within
6 three years after the due date of the payment to be refunded.
7 (3) A county legislative authority may authorize a refund on a
8 claim filed more than three years after the due date of the payment
9 sought to be refunded if the claim arises from taxes paid as a result
10 of a manifest error in a description of property.
11 Sec. 2. RCW 84.48.065 and 2001 c 187 s 23 are each amended to
12 read as follows:
13 (1)(a) The county assessor or treasurer may cancel or correct
14 assessments on the assessment or tax rolls which are erroneous due to
15 manifest errors in description, double assessments, clerical errors
16 in extending the rolls, and such manifest errors in the listing of
17 the property ((whieh)) that do not involve a revaluation of property,
18 except in the case that a taxpayer produces proof that an authorized
19 land use authority has made a definitive change in the property's
20 land use designation. In such a case, correction of the assessment or
21 tax rolls may be made notwithstanding the fact that the action
22 involves a revaluation of property. Manifest errors that do not
23 involve a revaluation of property include the assessment of property
24 exempted by law from taxation or the failure to deduct the exemption
25 allowed by law to the head of a family. When the county assessor
26 cancels or corrects an assessment, the assessor ((l)) must send a
27 notice to the taxpayer in accordance with RCW 84.40.045, advising the
28 taxpayer that the action has been taken and notifying the taxpayer of
29 the right to appeal the cancellation or correction to the county
30 board of equalization, in accordance with RCW 84.40.038. When the
31 county assessor or treasurer cancels or corrects an assessment, a
32 record of ((scieh)) the action ((-l)) must be prepared, setting
33 forth therein the facts relating to the error. The record ((-shall))
34 must also set forth by legal description all property belonging
35 exclusively to the state, any county, or any municipal corporation
36 whose property is exempt from taxation, upon which there remains,
37 according to the tax roll, any unpaid taxes.
38 (b) Except as otherwise provided in this subsection (1)(b), no
39 manifest error cancellation or correction, including a cancellation
p. 2 SSB 5276.SL
1 or correction made due to a definitive change of land use
2 designation, ((shall)) maV be made for any period more than three
3 years preceding the year in which the error is discovered. However, a
4 . manifest error cancellation or correction may be made for a period
5 more than three years preceding the year in which the error is
6 discovered if authorized by the county legislative authority and the
7 manifest error cancellation or correction would result in a refund or
8 reduction of taxes for a property owner.
9 (2)(a) In the case of a definitive change of land use
10 designation, an assessor ((sal)) must make corrections that involve
11 a revaluation of property to the assessment roll when:
12 (i) The assessor and taxpayer have signed an agreement as to the
13 true and fair value of the taxpayer's property setting forth in the
14 agreement the valuation information upon which the agreement is
15 based; and
16 (ii) The assessment roll has previously been certified in
17 accordance with RCW 84.40.320.
18 (b) In all other cases, an assessor (()) 'must make
19 corrections that involve a revaluation of property to the assessment
20 roll when:
21 (i) The assessor and taxpayer have signed an agreement as to the
22 true and fair value of the taxpayer's property setting forth in the
23 agreement the valuation information upon which the agreement is
24 based; and
25 (ii) The following conditions are met:
26 (A) The assessment roll has previously been certified in
27 accordance with RCW 84.40.320;
28 (B) The taxpayer has timely filed a petition with the county
29 board of equalization pursuant to RCW 84.40.038 for the current
30 assessment year;
31 (C) The county board of equalization has not yet held a hearing
32 on the merits of the taxpayer's petition.
33 (3) The assessor ((shams)) must issue a supplementary roll or
34 rolls including such cancellations and corrections, and the
35 assessment and levy ((shall)) have the same force and effect as if
36 made in the first instance, and the county treasurer ((shall)) must
37 proceed to collect the taxes due on the rolls as modified.
38 Sec. 3. RCW 84.68.150 and 2013 c 23 s 380 are each amended to
39 read as follows:
p. 3 SSB 5276.SL
1 No petition for cancellation or reduction of assessment or
2 correction of tax rolls and the refund of taxes based thereon under
3 RCW 84.68.110 through 84.68.150 ((eha3l:)) may be considered unless
4 filed within three years after the year in which the tax became
5 payable or purported to become payable, unless the reduction or
6 correction is the result of a manifest error and the county
7 legislative authority authorizes a longer period for a refund of the
8 claim. The maximum refund under the authority .of RCW 84.68.110
9 through 84.68.150 for each year involved in the taxpayer's petition
10 ((shall be)) is two hundred dollars. Should the amount of excess tax
11 for any such year be in excess of two hundred dollars, a refund of
12 two hundred dollars ((shall)) must be allowed under RCW 84.68.110
13 through 84.68.150, without prejudice to the right of the taxpayer to
14 proceed as may be otherwise provided by law to recover the balance of
15 the excess tax paid by him or her.
Passed by the Senate April 16, 2015.
Passed by the House April 15, 2015.
Approved by the Governor May 6, 2015.
Filed in Office of Secretary of State May 6, 2015.
p. 4 SSB 5276.SL
RCW 84.68.150: Small claims recoveries—Limitation as to time and amount of refund. Page 1 of 1
RCW 84.68.150
Small claims recoveries—Limitation as to time and amount of refund.
No petition for cancellation or reduction of assessment or correction of tax rolls and the
refund of taxes based thereon under RCW 84.68.110 through 84.68.150 maybe considered
unless filed within three years after the year in which the tax became payable or purported to
become payable, unless the reduction or correction is the result of a manifest error and the
county legislative authority authorizes a longer period for a refund of the claim. The maximum
refund under the authority of RCW 84.68.110 through 84.68.150 for each year involved in the
taxpayer's petition is two hundred dollars. Should the amount of excess tax for any such year
be in excess of two hundred dollars, a refund of two hundred dollars must be allowed under
RCW 84.68.110 through 84.68.150, without prejudice to the right of the taxpayer to proceed
as may be otherwise provided by law to recover the balance of the excess tax paid by him or
her.
[2015 c 174 § 3; 2013 c 23 § 380; 1961 c 15 § 84.68.150. Prior: 1949 c 158 § 1; 1941 c 154 §
1; 1,939 c 16 § 5; Rem. Supp. 1949 § 11241-5.]
http://app.leg.wa.gov/RCW/default.aspx?cite=84.68.150 2/8/2016
RCW 84.69.030: Refunds—Procedure—When claim for an order required. Page 1 of 1
RCW 84.69.030
Refunds—Procedure—When claim for an order required.
(1) Except as provided in this section, no orders for a refund under this chapter may be
made except on a claim:
(a) Verified by the person who paid the tax, the person's guardian, executor, or
administrator; and
(b) Filed with the county treasurer within three years after the due date of the payment
sought to be refunded; and
(c) Stating the statutory ground upon which the refund is claimed.
(2) No claim for an order of refund is required for a refund that is based upon:
(a) An order of the board of equalization, state board of tax appeals, or court of competent
jurisdiction justifying a refund under RCW 84.69.020 (9) through (12);
(b) A decision by the treasurer or assessor that is rendered within three years after the due
date of the payment to be refunded, justifying a refund under RCW 84.69.020; or
(c) A decision by the assessor or department approving an exemption application that is
filed under chapter 84.36 RCW within three years after the due date of the payment to be
refunded.
(3) A county legislative authority may authorize a refund on a claim filed more than three
years after the due date of the payment sought to be refunded if the claim arises from taxes
paid as a result of a manifest error in a description of property.
[2015 c 174 § 1; 2014 c 16 § 1; 2009 c 350 § 9; 1991 c 245 § 32; 1989 c 378 § 32; 1961 c 15
§ 84.69.030. Prior: 1957 c 120 § 3.]
htti)://app.Iep-.wa.Rov/RCW/default.asr)x?cite=84.69.030
2/8/2016
RCW 84.48.065: Cancellation and correction of erroneous assessments and assessments o... Page 1 of 2
RCW 84.48.065
Cancellation and correction of erroneous assessments and assessments on
property on which land use designation is changed.
(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 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.
http://app.leg.wa.gov/RCW/default.aspx?cite=84.48.065
2/8/2016
RCW 84.48.065: Cancellation and correction of erroneous assessments and assessments o... Page 2 of 2
(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.
[2015 c 174 § 2; 2001 c 187 § 23; 1997 c 3 § 110 (Referendum Bill No. 47, approved
November 4, 1997); 1996 c 296 § 1; 1992 c 206 § 12; 1989 c 378 § 14; 1988 c 222 § 25.]
NOTES:
Contingent effective date -2001 c 187: See note following RCW 84.70.010.
Application -2001 c 187: See note following RCW 84.40.020.
Application—Severability—Part headings not law—Referral to electorate -1997 c
3: See notes following RCW 84.40.030.
Effective date -1992 c 206: See note following RCW 82.04.170.
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STATEMENT OF ISSUE: Washington State Legislature has recently amended RCW 84.69.030, RCW 84.68.150 and
RCW 84.48.065 to permit refunds on claims filed more than three years if the claim arises from taxes paid as the
result of a manifest error in a description of property, but only if such an extension of time is authorized by the
county legislative authority. Assessor Jeff Chapman and Treasurer Stacie Prada have researched the options and
issues to consider in extending allowable refunds beyond three years.
ANALYSIS: Issues of consideration include:
• The certainty, predictability, and finality of the process by which property taxes are collected and
corrections and refund requests are resolved
• Impacts to county and district budgets
• Manifest error issues beyond three years including records, consistency, ownership changes, and
implementation
• Available records to confirm manifest errors beyond the records retention schedule
• Taxpayers have the ability to appeal valuations each year
• Current process in place to provide refunds up to three years. Beyond that taxpayer can benefit and
obtain refund for manifest errors that decrease property valuations, but county cannot collect back taxes
for manifest errors increasing property valuations.
• Historic impacts on property valuations from manifest errors could be subjective and speculative.
• Consistency with IRS refund statute of limitations
FISCAL IMPACT: No fiscal impact if resolution is approved as proposed. The fiscal impact to the county and its
districts could be considerable if refunds are allowed beyond three years.
RECOMMENDATION: Assessor Jeff Chapman and Treasurer Stacie Prada respectfully recommend the Board of
County Commissioners approve the attached Resolution In the Matter of the Discretion of the County Legislative
Authority to Authorize Refunds or Cancellations Or Corrections of the Tax Rolls Outside Of the Ordinary Time
Limits as proposed.
REVI Y.
XntyAdmiist r L Date
Regular Agenda
JEFFERSON COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
TO:
Board of Commissioners
FROM:
Stacie Prada, Treasurer
Jeff Chapman, Assessor .Jc
DATE:
March 21, 2016
SUBJECT:
DISCUSSION & POSSIBLE ACTION re: Resolution In the Matter of the Discretion of the
County Legislative Authority to Authorize Refunds or Cancellations Or Corrections of
the Tax Rolls Outside Of the Ordinary Time Limits
ATTACH:
Proposed Resolution, DOR Property Tax Special Notice, SSB 5276 as passed by law,
RCW 84.69.030, RCW 84.68.150 and RCW 84.48.065
STATEMENT OF ISSUE: Washington State Legislature has recently amended RCW 84.69.030, RCW 84.68.150 and
RCW 84.48.065 to permit refunds on claims filed more than three years if the claim arises from taxes paid as the
result of a manifest error in a description of property, but only if such an extension of time is authorized by the
county legislative authority. Assessor Jeff Chapman and Treasurer Stacie Prada have researched the options and
issues to consider in extending allowable refunds beyond three years.
ANALYSIS: Issues of consideration include:
• The certainty, predictability, and finality of the process by which property taxes are collected and
corrections and refund requests are resolved
• Impacts to county and district budgets
• Manifest error issues beyond three years including records, consistency, ownership changes, and
implementation
• Available records to confirm manifest errors beyond the records retention schedule
• Taxpayers have the ability to appeal valuations each year
• Current process in place to provide refunds up to three years. Beyond that taxpayer can benefit and
obtain refund for manifest errors that decrease property valuations, but county cannot collect back taxes
for manifest errors increasing property valuations.
• Historic impacts on property valuations from manifest errors could be subjective and speculative.
• Consistency with IRS refund statute of limitations
FISCAL IMPACT: No fiscal impact if resolution is approved as proposed. The fiscal impact to the county and its
districts could be considerable if refunds are allowed beyond three years.
RECOMMENDATION: Assessor Jeff Chapman and Treasurer Stacie Prada respectfully recommend the Board of
County Commissioners approve the attached Resolution In the Matter of the Discretion of the County Legislative
Authority to Authorize Refunds or Cancellations Or Corrections of the Tax Rolls Outside Of the Ordinary Time
Limits as proposed.
REVI Y.
XntyAdmiist r L Date