Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-19 - Property tax levies, rates, and limits › Section 458-19-035 - Levy limit-Annexation

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
One taxing district may annex territory or another
			 dissimilar taxing district from outside the annexing taxing district's
			 boundary. This rule sets forth the method used to calculate the first regular
			 property tax levy made after a taxing district has annexed territory or a
			 dissimilar taxing district in accordance with
			 RCW
			 84.55.030 and
			 84.55.110. This rule also explains
			 what occurs when the department of natural resources (DNR) discontinues forest
			 fire patrol assessments on parcels of forest land.
(2)
Increase in territory due to
			 annexation.
The first regular property tax levy of a taxing district
			 after it annexes territory or a dissimilar taxing district cannot exceed the
			 amount calculated as follows:
(a) Multiply
			 the highest amount of regular property taxes that could have been lawfully
			 levied since 1985 for 1986 collection, of the annexing district as though no
			 annexation had occurred, by the limit factor as defined in
			 RCW
			 84.55.005 and WAC
			 458-19-005;
(b) Multiply the regular property tax levy
			 rate of the annexing district for the preceding year by the increase in
			 assessed value in the annexing district resulting from:
(i) New construction;
(ii) Improvements to property;
(iii) Increases in the assessed value of
			 state assessed property;
(iv)
			 Increases in assessed value due to the construction of wind turbine, solar,
			 biomass, and geothermal facilities, if such facilities generate electricity and
			 the property is not included elsewhere under chapter 84.55 RCW for purposes of
			 providing an additional dollar amount. The property may be classified as real
			 or personal property; and
(v)
			 Increases in assessed value of real property, as defined in
			 RCW
			 39.114.010, within an increment area as
			 designated by any local government in
			 RCW
			 39.114.020 if the increase is not included
			 elsewhere under
			 RCW
			 84.55.030. This subsection (2)(b)(v) does not
			 apply to:
(A) Levies by the state;
(B) Levies by a port district for purposes of
			 making required payments of principal and interest on general indebtedness;
			 and
(C) Levies by a public utility
			 district for purposes of making required payments of principal and interest on
			 general indebtedness.
(c) Multiply the current year assessed value
			 of the annexed territory or district by the levy rate that would have been used
			 for the current year by the annexing district had there been no annexation. To
			 calculate the levy rate that would have been used for the current year by the
			 annexing district, divide the regular levy limit of the annexing district by
			 the current assessed value of the annexing district, excluding the annexed
			 area.
(d) Add together the amounts
			 from each calculation in subsection (2)(a), (b), and (c) of this rule to
			 determine the maximum amount of the first regular levy of a taxing district
			 after annexation.