Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-20 - Excise tax rules › Section 458-20-217 - Lien for taxes

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule provides an overview of the administrative
			 collection remedies and procedures available to the department of revenue
			 (department) to collect unpaid and overdue tax liabilities. It discusses tax
			 liens and the liens that apply to probate, insolvency, assignments for the
			 benefit of creditors, bankruptcy and public improvement contracts. The rule
			 also explains the personal liability of persons in control of collected but
			 unpaid sales tax, spirits taxes, and heavy equipment rental tax. Although the
			 department may use judicial remedies to collect unpaid tax, most of the
			 department's collection actions are enforced through the administrative
			 collection remedies discussed in this rule.
(2)
Tax liens.
The department is
			 not required to obtain a judgment in court to have a tax lien. A tax lien is
			 created when a warrant issued under
			 RCW
			 82.32.210 is filed with a superior court
			 clerk who enters it into the judgment docket. A copy of the warrant may be
			 filed in any county in this state in which the department believes the taxpayer
			 has real and/or personal property. The department is not required to give a
			 taxpayer notice prior to filing a tax warrant.
Peters v
			 Sjoholm
, 95 Wn.2d 871, 877, 631 P.2d 937 (1981)
appeal
			 dismissed, cert. denied
455 U.S. 914 (1982). The tax lien is an
			 encumbrance on property. The department may enforce a tax lien by
			 administrative levy, seizure or through judicial collection remedies.
(a)
Attachment of lien.
The
			 filed warrant becomes a specific lien upon all personal property used in the
			 conduct of the business and a general lien against all other real and personal
			 property owned by the taxpayer against whom the warrant was issued.
(i) The specific lien attaches to all goods,
			 wares, merchandise, fixtures, equipment or other personal property used in the
			 conduct of the business of the taxpayer. Other personal property includes both
			 tangible and intangible property. For example, the specific lien attaches to
			 business assets such as accounts receivable, chattel paper, royalties, licenses
			 and franchises. The specific lien also attaches to property used in the
			 business which is owned by persons other than the taxpayer who have a
			 beneficial interest, direct or indirect, in the operation of the business. (See
			 subsection (3) of this rule for what constitutes a beneficial interest.) The
			 lien is perfected on the date it is filed with the superior court clerk. The
			 lien does not attach to property used in the business that was transferred
			 prior to the filing of the warrant. It does attach to all property existing at
			 the time the warrant is filed as well as property acquired after the filing of
			 the warrant. No sale or transfer of such personal property affects the
			 lien.
(ii) The general lien
			 attaches to all real and personal nonbusiness property such as the taxpayer's
			 home and nonexempt personal vehicles.