Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-12 - Property tax division-Rules for assessors › Section 458-12-110 - Listing of personal property by the assessor - Penalties for failing to list personal property and for making a false or fraudulent listing

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule explains the process of listing and
			 assessing taxable personal property by the assessor when the taxpayer fails to
			 make a listing as required by
			 chapter
			 84.40 RCW. This rule also
			 provides information about the penalties imposed by
			 RCW
			 84.40.130 for persons who fail or refuse to
			 make a timely listing of their taxable personal property or who willfully
			 provide the assessor a false or fraudulent listing of their taxable personal
			 property. For additional information about the listing of personal property,
			 refer to the rules found in WAC
			 458-12-060 through
			 458-12-080.
(2)
Failure to
			 provide a listing of taxable personal property to the assessor.
If a
			 person who is required under
			 chapter
			 84.40 RCW to make a
			 listing of taxable personal property with the county assessor fails to do so by
			 April 30, it is the duty of the assessor under
			 RCW
			 84.40.200 to ascertain the amount and value
			 of the taxable personal property that should have been listed. When such a
			 listing is made by the assessor, he or she must deliver or mail a copy of the
			 listing, showing the valuation of the property so listed, to the person for
			 whom the listing is made. The provisions of
			 RCW
			 84.40.200 do not apply to the listing of
			 ships and vessels required under
			 RCW
			 84.40.065.
(3)
Penalty for failing or refusing to
			 make a listing of taxable personal property.
A person who fails or
			 refuses to provide the assessor with a listing of their taxable personal
			 property by April 30 is subject to a mandatory penalty. The amount of the
			 penalty is described below in (a) of this subsection.
(a)
Amount of penalty.
The
			 amount of the penalty is five percent of the amount of tax assessed against the
			 taxpayer on the property not listed, not to exceed fifty dollars per calendar
			 day if the delinquency is for less than one month. If the delinquency is for
			 more than one month, the taxpayer must pay an additional five percent of the
			 amount of tax for each additional month or fraction of a month that the listing
			 is delinquent, up to a maximum penalty each year of twenty-five percent of the
			 amount of tax. The penalty provided in this subsection (3) will be collected in
			 the same manner as the tax to which it is added.
(b)
How does the penalty apply when a
			 listing is made by the assessor?
When the assessor makes a listing of
			 taxable personal property under the provisions of
			 RCW
			 84.40.200 and subsection (2) of this rule,
			 the penalty provided in this subsection (3) continues to accrue until the
			 taxpayer provides a listing to the assessor as required by
			 chapter
			 84.40 RCW.
(c)
Can the penalty be waived?
If a person can establish to the satisfaction of the assessor that the failure
			 to provide a listing of taxable personal property was due to reasonable cause
			 and not due to willful neglect, no penalty will be imposed.
Whether reasonable cause exists depends upon the facts of each
				case. Reasonable cause may be shown by one or more of the following events or
				circumstances. These examples do not encompass all of the possible events or
				circumstances that could constitute reasonable cause for failing to make a
				listing of taxable personal property with the assessor by the due date.
(i) The taxpayer was unable to make a listing
			 by the due date because of a death or serious illness of the taxpayer or of a
			 member of the taxpayer's immediate family occurring at or shortly before the
			 due date. For purposes of this subsection, the term "immediate family"
			 includes, but is not limited to, a grandparent, parent, brother, sister,
			 spouse, domestic partner, child, grandchild, or domestic partner's child or
			 grandchild.
(ii) The taxpayer was
			 unable to make a listing by the due date because the taxpayer reasonably relied
			 upon incorrect, ambiguous, or misleading written advice as to the proper
			 listing requirements by either the assessor or assessor's staff, or the
			 property tax advisor designated under
			 RCW
			 84.48.140, or his or her staff.
(iii) The taxpayer was unable to make a
			 listing by the due date because of a natural disaster such as a flood or
			 earthquake occurring at or shortly before the due date.
(iv) The taxpayer was unable to make a
			 listing by the due date because of a delay or loss related to the delivery of
			 the listing form by the postal service. The taxpayer must be able to provide
			 documentation from the postal service of such a delay or loss.
(v) The failure of the assessor to provide a
			 notice and listing form as required by
			 RCW
			 84.40.040 to a taxpayer does not excuse a
			 taxpayer from making a timely listing of taxable personal property with the
			 assessor. The assessor's failure to provide a notice and listing form may,
			 however, be considered in determining whether the taxpayer's failure to provide
			 a timely listing was due to reasonable cause.
(d)
How are the penalties
			 distributed?
When collected, the penalties provided for in this
			 subsection (3) are credited to the county current expense fund.
			 RCW
			 84.40.130 and
			 84.56.020(8).
(e)
Examples.
The following
			 examples identify a number of facts and then state a conclusion. These examples
			 should be used only as a general guide. The status of each actual situation
			 must be determined after a review of all of the facts and circumstances.
(i) Due to an oversight, Company A makes its
			 listing of taxable personal property on October 6th of the assessment year,
			 over five months after the deadline provided in
			 RCW
			 84.40.040. The amount of tax imposed against
			 Company A on its personal property in the following year is $600.00. Company A
			 is subject to a penalty of $150.00, 25% of the amount of its tax
			 liability.
(ii) Due to an
			 oversight, Company B makes its listing of taxable personal property on May 2nd
			 of the assessment year, two days after the deadline provided in
			 RCW
			 84.40.040. The amount of tax imposed against
			 Company B on its personal property in the following year is $2,250.00. The
			 amount of the penalty assessed against Company B is $100.00. 5% of $2,250.00 is
			 $112.50. However, the penalty is limited to $50.00 per calendar day when the
			 delinquency does not exceed one month.
(iii) Due to an oversight, Company C fails to
			 make a listing of its taxable personal property by April 30th, the deadline
			 provided in
			 RCW
			 84.40.040. On August 24th of the assessment
			 year, the assessor lists and values the taxable personal property of Company C
			 and mails a copy of the listing to Company C. At this time, Company C would be
			 subject to a penalty of 20% of the tax imposed against it on its personal
			 property in the following year. After receiving the assessor's listing, Company
			 C makes its own listing with the assessor on September 7th of the assessment
			 year. The amount of penalty imposed is 25% of the tax imposed against Company C
			 on its personal property in the following year. The listing by the assessor has
			 no effect on the amount of the penalty Company C is subject to.
(iv) Due to an oversight, Company D fails to
			 make a listing of its taxable personal property for assessment years 2001,
			 2002, and 2003. In May of 2003, the assessor learns of Company D's failure to
			 list its taxable personal property for the 2001, 2002, and 2003 assessment
			 years. After being notified by the assessor of its failure to make a listing,
			 Company D makes a listing for assessment years 2001, 2002, and 2003 with the
			 assessor on May 20, 2003. The assessor adds the taxable personal property for
			 2003 to the assessment roll. The assessor also adds the taxable personal
			 property for 2001 and 2002 to the assessment roll as omitted property under the
			 provisions of
			 RCW
			 84.40.080. The penalties assessed against
			 Company D include a penalty of 25%, for each year, of the amount of tax imposed
			 on Company D resulting from the omitted property assessment for assessment
			 years 2001 and 2002. In addition, Company D is subject to a penalty for the
			 delinquent 2003 listing in the amount of 5% of the amount of tax imposed on
			 Company D resulting from the listing for the 2003 assessment year or $1,000,
			 whichever is less. The amount of $1,000 represents $50 per calendar day of
			 delinquency. For additional information about omitted property, refer to WAC
			 458-12-050.