Washington Administrative Code › Title 458 - Revenue, Department of › Chapter 458-19 - Property tax levies, rates, and limits › Section 458-19-090 - Fire protection district formation-Cities and towns-Highest lawful levy

Current through Register Vol. 24-14, July 15, 2024
(1)
Introduction.
RCW
			 52.02.160 allows a city or town to establish
			 a fire protection district, subject to voter approval, within the same
			 corporate boundaries of the city or town, for the provision of fire prevention
			 services, fire suppression services, emergency medical services, and for the
			 protection of life and property within the city or town. This rule explains how
			 to calculate the highest amount of regular property taxes that can be lawfully
			 levied (highest lawful levy) by a city or town that creates this type of fire
			 protection district.
(2)
Definitions.
The definitions found in WAC
			 458-19-005 apply to
			 this rule.
(3)
Example.
This rule includes an example that identifies a number of
			 facts and then states a conclusion. This example should only be used as a
			 general guide. The tax results of other situations must be determined after a
			 review of all the facts and circumstances.
(4)
Highest lawful levy limit
			 calculation.
(a)
First
			 year.
A city or town that establishes a fire protection district under
			 RCW
			 52.02.160 must reduce its highest lawful levy
			 by the total amount initially levied in the first year by the newly established
			 fire protection district. This reduced amount will become the new highest
			 lawful levy for the city or town, and will be used for subsequent levy limit
			 calculations under chapter 84.55 RCW. This reduction in the highest lawful levy
			 for the city or town must occur in the first year the newly established fire
			 protection district imposes its property tax levy.
(b)
Second and subsequent years.
The city or town must further reduce its highest lawful levy in subsequent
			 years if the fire protection district initially imposes any additional regular
			 property tax levies as allowed under
			 RCW
			 52.16.140 and
			 52.16.160 in
			 those subsequent years.
(c)
Maximum rate.
The maximum statutory dollar rate for fire
			 protection districts is one dollar and fifty cents per one thousand dollars of
			 assessed value. This rate consists of three regular property tax levies as
			 follows:
			 RCW
			 52.16.130 (up to $0.50), 52.16.140 (up to
			 $0.50), and 52.16.160 (up to $0.50).
Example.
City A establishes a fire protection
				district under
				RCW
				52.02.160. Prior to the formation, City A
				annually levied an amount of $200,390, which is equal to its highest lawful
				levy. In this example, the maximum statutory dollar rate of the city is $3.375
				per $1,000 of assessed value.
First year levy. In its first year, the newly established fire
				protection district determines it will need to levy $57,000 and its total
				assessed value is $59,375,000 (the same total assessed value as City A). This
				levy amount is the equivalent to a levy rate for the fire protection district
				of $0.96 per $1,000 of assessed value ($57,000/$59,375,000(1,000)), thus the
				district is initially imposing regular property tax levies under
				RCW
				52.16.130 ($0.50) and 52.16.140 ($0.46) in
				the first year. Therefore, City A must reduce its highest lawful levy by
				$57,000. City A's reduced highest lawful levy amount is the amount it will use
				when calculating the following year's levy calculations.
Second year levy. One year later, the fire protection district
				requests an increased levy amount of $74,000 and its total assessed value,
				along with the total assessed value of City A, has increased to $60,655,738.
				The increased levy amount is the equivalent to a levy rate for the fire
				protection district of $1.22 per $1,000 of assessed value ($74,000/
				$60,655,738(1,000)), thus the district is imposing regular levies under
				RCW
				52.16.130,
				52.16.140,
				and is initially imposing the third regular levy under
				RCW
				52.16.160 ($0.22). Therefore, City A must
				further reduce its highest lawful levy by the amount resulting from the fire
				district initially imposing the third regular levy under
				RCW
				52.16.160. The additional amount resulting
				from the initial imposition of the fire protection district's third regular
				levy under
				RCW
				52.16.160 is $13,344 ($0.22 per $1,000 of
				assessed value multiplied by the total assessed value of $60,655,738). City A
				must make a reduction of $13,344 to its highest lawful levy. City A's newly
				reduced highest lawful levy is the amount it will use when calculating the
				following year's levy calculations.
Subsequent year levies. In subsequent years, if the fire
				protection district's levy rate increases beyond $1.22 per $1,000 of assessed
				value, City A is not required to further reduce its highest lawful levy because
				the fire protection district had already initially imposed all three regular
				levies under
				RCW
				52.16.130,
				52.16.140,
				and
				52.16.160.