Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-19 - Property tax levies, rates, and limits › Section 458-19-005 - Definitions

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
This rule contains definitions of the terms used
			 throughout chapters 84.52 and 84.55 RCW and chapter 458-19 WAC in the
			 administration of the system used to levy property taxes on taxable property
			 within the state of Washington.
(2)
			 Unless the context clearly requires otherwise, the following definitions apply:
(a)
"Annexation"
means one
			 taxing district is adding territory or another dissimilar taxing district from
			 outside the annexing taxing district's boundary and includes a merger of a
			 portion of a fire protection district under chapter 52.06 RCW with another fire
			 protection district.
(b)
"Assessed value"
means the value of taxable property placed on the
			 assessment rolls. The term is often abbreviated with the initials
			 "A.V."
(c)
"Certified
			 property tax levy rate"
means the tax rate calculated by the county
			 assessor in accordance with law to produce the lawful amount of the certified
			 property tax levy.
(d)
"Consolidated levy rate"
means:
(i) For purposes of the statutory aggregate
			 dollar rate levy limit, the sum of all regular levy rates set for collection,
			 not including the rates for the state levy, ports, public utility districts,
			 financing affordable housing under
			 RCW
			 84.52.105, acquiring conservation futures
			 under
			 RCW
			 84.34.230, criminal justice purposes under
			 RCW
			 84.52.135, emergency medical care or
			 emergency medical services under
			 RCW
			 84.52.069, county ferry districts under
			 RCW
			 36.54.130, the portions of the fire
			 protection and regional fire protection service authority levies protected
			 under
			 RCW
			 84.52.125, the portion of metropolitan park
			 district levies protected under
			 RCW
			 84.52.120, transit-related purposes under
			 RCW
			 84.52.140, the protected portion of the
			 levies imposed under
			 RCW
			 84.52.816 by flood control zone districts,
			 and levies imposed by a regional transit authority under
			 RCW
			 81.104.175; and
(ii) For purposes of the constitutional one
			 percent limit, the sum of all regular levy rates set for collection, including
			 the rates for the state levy, but not including the rates for port and public
			 utility districts.
(e)
"Consolidation"
means the act of combining two or more similar
			 taxing districts into one taxing district; for example, the combination of two
			 fire protection districts into one fire protection district.
(f)
"Constitutional one percent
			 limit"
means the levy limit established by Article VII, section 2 of the
			 state Constitution, which prohibits the aggregate of all tax levies on real and
			 personal property from exceeding one percent ($10 per $1,000) of the true and
			 fair value of property. This limit does not apply to excess levies, levies by
			 port districts, and levies by public utility districts. This limit is also set
			 forth in
			 RCW
			 84.52.050.
(g)
"Department"
means the
			 department of revenue of the state of Washington.
(h)
"Excess property tax levy"
or
"excess levy"
means a voter-approved property tax levy by or
			 for a taxing district, other than a port or public utility district, that is
			 subject to neither the statutory aggregate dollar rate limit set forth in
			 RCW
			 84.52.043 nor the constitutional one percent
			 limit set forth in Article VII, section 2 of the state Constitution and in
			 RCW
			 84.52.050. It does not include regular levies
			 allowed to exceed the levy limit with voter approval.
(i)
"Improvement"
means any
			 valuable change in or addition to real property, including the subdivision or
			 segregation of parcels of real property or the merger of parcels of real
			 property.
(j)
"Inflation"
means the percentage change in the implicit price
			 deflator for personal consumption expenditures for the United States as
			 published for the most recent 12-month period by the Bureau of Economic
			 Analysis of the Federal Department of Commerce by September 25th of the year
			 before the taxes are payable; see
			 RCW
			 84.55.005.
(k)
"Joint taxing district"
means a taxing district that exists in two or more counties; the term does not
			 include the state nor does it include an intercounty rural library
			 district.
(l)
"Junior taxing
			 district"
means a taxing district other than the state, a county, a
			 county road district, a city, a town, a port district, or a public utility
			 district.
(m)
"Levy
			 limit"
means:
(i) The statutorily
			 established limit that prohibits a taxing district, other than the state, from
			 levying regular property taxes for a particular year that exceed the limit
			 factor multiplied by the highest amount of regular property taxes that could
			 have been lawfully levied in the taxing district in any year since 1985,
			 excluding any increase due to (m)(i)(E) of this subsection, unless the highest
			 levy was the statutory maximum rate amount, plus an additional dollar amount
			 calculated by multiplying the regular property tax levy rate of that district
			 for the preceding year, or the last year the taxing district levied taxes, by
			 the increase in assessed value in the taxing district resulting from:
(A) New construction;
(B) Improvements to property;
(C) Increases in the assessed value of state
			 assessed property;
(D) 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
(E) Increases in
			 assessed value of real property within an increment area designated by a local
			 government pursuant to chapter 39.114 RCW, provided the increase is not
			 included elsewhere in the levy limit calculation. This subsection does not
			 apply to:
(I) Levies by the state;
(II) Levies by a port district for purposes
			 of making required payments of principal and interest on general indebtedness;
			 and
(III) Levies by a public
			 utility district for purposes of making required payments of principal and
			 interest on general indebtedness.
(ii) For purposes of the levy limit, the
			 phrase "highest amount of regular property taxes that could have been lawfully
			 levied" means the maximum amount that could have been levied by a taxing
			 district under the limitation set forth in chapter 84.55 RCW unless the highest
			 amount that could have been levied was actually restricted by the taxing
			 district's statutory dollar rate limit. If the taxing district's levy was
			 restricted by the statutory dollar rate limit, the highest amount that could
			 have been lawfully levied is the amount produced by multiplying the assessed
			 value of the taxing district by the statutory dollar rate.
(iii) For purposes of the levy limit, the
			 regular property tax levy rate of the district for the preceding year, or the
			 last year the taxing district levied taxes, may reflect a reduced rate due to
			 the $5.90 statutory aggregate limitation and/or the constitutional one percent
			 limitation, if prorating occurred in the district.
The regular property tax levy rate of the district for the
				preceding year may also reflect a levy error or a levy error correction.
If this occurs, the rate used will be the rate had the levy
				error or levy error correction not occurred.
				RCW
				84.52.085.
(iv) The levy limit for the state is the
			 amount calculated under WAC
			 458-19-550.
(n)
"Levy rate"
means
			 the dollar amount per thousand dollars of assessed value applied to taxable
			 property within a taxing district and is calculated by dividing the total
			 amount of a statutorily authorized levy of a taxing district by the total
			 assessed value of that district and is expressed in dollars and cents per
			 thousand dollars of assessed value.
(o)
"Limit factor"
means:
(i) For taxing districts with a population of
			 less than 10,000 in the calendar year immediately prior to the assessment year,
			 101 percent;
(ii) For taxing
			 districts, other than the state, having made a finding of substantial need in
			 accordance with
			 RCW
			 84.55.0101, the lesser of the substantial
			 need factor or 101 percent;
(iii)
			 For all other taxing districts, excluding the state, the lesser of 101 percent
			 or 100 percent plus inflation; or
(iv) For the state, the limits described in
			 WAC
			 458-19-550.
(p)
"New
			 construction"
means the construction or alteration of any property for
			 which a building permit was issued, or should have been issued, under chapter
			 19.27, 19.27A, or 19.28 RCW or other laws providing for building permits, which
			 results in an increase in the value of the property.
(q)
"Regular property tax levy"
or
"regular levy"
means a property tax levy by or for a taxing
			 district that is subject to the statutory aggregate dollar rate limit set forth
			 in
			 RCW
			 84.52.043, the constitutional one percent
			 limit set forth in
			 RCW
			 84.52.050, or is a levy imposed by or for a
			 port district or a public utility district.
(r)
"Regular property taxes"
means those taxes resulting from regular property tax levies.
(s)
"Senior taxing district"
means the state (for support of common schools), a county, a county road
			 district, a city, or a town.
(t)
"Statutory aggregate dollar rate limit"
or
"statutory
			 aggregate limit"
means the maximum aggregate regular property tax levy
			 rate within a county established by law for senior and junior taxing districts,
			 other than the state. The current limit is $5.90 per $1,000 of assessed
			 valuation. See
			 RCW
			 84.52.043 and WAC
			 458-19-070.
(u)
"Statutory dollar rate
			 limit"
means the maximum regular property tax levy rate established by
			 law for a particular type of taxing district.
(v)
"Substantial need limit
			 factor"
means a limit factor approved by a taxing district's legislative
			 authority that exceeds 100 percent plus inflation. This limit cannot exceed 101
			 percent.
(w)
"Super
			 majority"
means a majority of at least three-fifths of the registered
			 voters of a taxing district approving a proposition authorizing a levy, at
			 which election the number of persons voting "yes" on the proposition
			 constitutes three-fifths of a number equal to 40 percent of the total votes
			 cast in the taxing district in the last preceding general election; or by a
			 majority of at least three-fifths of the registered voters of the taxing
			 district voting on the proposition when the number of registered voters voting
			 on the proposition exceeds 40 percent of the total votes cast in the taxing
			 district in the last preceding general election.
(x)
"Tax code area"
means a
			 geographical area made up of one or more taxing districts, which is established
			 for the purpose of properly calculating, collecting, and distributing taxes.
			 Only one tax code area will have the same combination of taxing districts, with
			 limited exceptions.
(y)
"Taxing district"
means the state and any county, city, town, port
			 district, school district, road district, metropolitan park district, regional
			 transit authority, water-sewer district, or other municipal corporation, having
			 the power or legal authority to impose burdens upon property within the
			 district on an ad valorem basis, for the purpose of obtaining revenue for
			 public purposes, as distinguished from municipal corporations authorized to
			 impose burdens, or for which burdens may be imposed for public purposes, on
			 property in proportion to the increase in benefits received.