Current through Register Vol. 22-07, April 1, 2022
(1)
Introduction. This rule describes the process used to reduce or
eliminate a levy rate when the assessor finds the statutory aggregate dollar
rate limit exceeds $5.90. The aggregate of all regular levy rates of junior
taxing districts and senior taxing districts, other than the state and other
specifically identified districts, cannot exceed $5.90 per $1,000 of assessed
value in accordance with RCW 84.52.043. When the county assessor finds that
this limit has been exceeded, the assessor recalculates the levy rates and
establishes a new consolidated levy rate as described in RCW 84.52.010. The
$5.90 statutory aggregate dollar rate limit is reviewed before the
constitutional one percent limit.
(2)
Levies not subject to statutory
aggregate dollar rate limit. The following levies are not subject to the
statutory aggregate dollar rate limit of $5.90 per $1,000 of assessed value:
(a) Levies by the state;
(b) Levies by or for port or public utility
districts;
(c) Excess property tax
levies authorized in Article VII, section 2 of the state
Constitution;
(d) Levies by or for
county ferry districts under RCW 36.54.130;
(e) Levies for acquiring conservation futures
under RCW 84.34.230;
(f) Levies for
emergency medical care or emergency medical services under RCW
84.52.069;
(g) Levies for financing
affordable housing under RCW 84.52.105;
(h) The portion of metropolitan park district
levies protected under RCW 84.52.120;
(i) The portions of levies by fire protection
districts and regional fire protection service authorities protected under RCW
84.52.125;
(j) Levies for criminal
justice purposes under RCW 84.52.135;
(k) Levies for transit-related purposes by a
county under RCW 84.52.140;
(l) The
protected portion of the levies imposed under RCW 84.52.816 by flood control
zone districts;
(m) Levies imposed
by a regional transit authority under RCW 81.104.175; and
(n) Levies imposed under RCW 36.69.145, by a
park and recreation district located on an island and within a county with a
population exceeding 2,000,000, for collection in calendar years 2022 through
2026.
(3)
Consolidated levy rate limitation.
RCW 84.52.010 explains the
order in which the regular levies of taxing districts will be reduced or
eliminated by the assessor to comply with the statutory aggregate dollar rate
limit of $5.90 per $1,000 of assessed value. The order in the statute lists
which taxing districts are the first to either reduce or eliminate their levy
rate. Taxing districts that are at the same level are grouped together in
tiers. Reductions or eliminations in levy rates are made on a pro rata basis
within each tier of taxing district levies until the consolidated levy rate no
longer exceeds the statutory aggregate dollar rate limit of $5.90.
As opposed to the order in RCW 84.52.010, which lists the
taxing districts that are the first to have their levy rates reduced or
eliminated, this rule is written in reverse order; that is, it lists the taxing
districts that must be first either fully or partially funded. If the statutory
aggregate dollar rate is exceeded, then the levy rates for taxing districts
within a particular tier must be reduced or eliminated on a pro rata basis. The
proration factor, which is multiplied by each levy rate within the tier, is
obtained by dividing the dollar rate remaining available to the taxing
districts in that tier as a group by the sum of the levy rates originally
certified by or for all of the taxing districts within the tier.
(a) Step one: Total the aggregate regular
levy rates requested by all affected taxing districts in the tax code area. If
this total is less than $5.90 per $1,000 of assessed value, no levy rate
reduction or elimination is necessary. If this total levy rate is more than
$5.90, the assessor must proceed through the following steps until the
aggregate dollar rate is brought within that limit.
(b) Step two: Subtract from $5.90 the levy
rates of the county, including the rate of any separate property tax levy as
described in RCW 84.55.135, and the county road district if the tax code area
includes an unincorporated portion of the county, or the levy rates of the
county and the city or town if the tax code area includes an incorporated area,
as applicable.
(c) Step three:
Subtract from the remaining levy capacity the levy rates, if any, for fire
protection districts under RCW 52.16.130, regional fire protection service
authorities under RCW 52.26.140(1)(a), library districts under RCW 27.12.050 and 27.12.150, the first 50 cents per $1,000 of assessed value for metropolitan
park districts created before January 1, 2002, under RCW 35.61.210, and the
first 50 cents per $1,000 of assessed value for public hospital districts under
RCW 70.44.060(6).
(i) If the balance is zero,
there is no remaining levy capacity for any other junior taxing district at a
lower tier and their levies, if any, must be eliminated.
(ii) If the balance is less than zero, then
the levies within this tier must be reduced on a pro rata basis until the
balance is zero. After prorationing, there is no remaining levy capacity for
any other junior taxing districts at a lower tier and their levies, if any,
must be eliminated.
(iii) If the
remaining balance is greater than zero, this amount is available to the
remaining junior taxing districts at a lower tier and the assessor should
proceed on to step four.
(d) Step four: Subtract from the remaining
levy capacity the levy rates, if any, for fire protection districts under RCW
52.16.140 and 52.16.160, and regional fire protection service authorities under
RCW 52.26.140(1)(b) and (c). However, under RCW 84.52.125, a fire protection
district or regional fire protection service authority may protect up to 25
cents per $1,000 of assessed value of the total levies made under RCW 52.16.140 and 52.16.160, or 52.26.140(1)(b) and (c) from reduction or elimination.
(i) If the balance is zero, there is no
remaining levy capacity for any other junior taxing districts at a lower tier
and their levies, if any, must be eliminated.
(ii) If the balance is less than zero, then
the levies within this tier must be reduced on a pro rata basis until the
balance is zero. It is at this point that the provisions of RCW 84.52.125 come
into play; that is, a fire protection district or regional fire protection
service authority may protect up to 25 cents per $1,000 of assessed value of
the total levies made under RCW 52.16.140 and 52.16.160, or 52.26.140(1)(b)
and (c) from reduction or elimination under RCW 84.52.043(2), if the total
levies would otherwise be reduced or eliminated under RCW 84.52.010(3)(a)(iii)
with respect to the $5.90 per $1,000 of assessed value limit. After
prorationing, there is no remaining levy capacity for any other junior taxing
district at a lower tier and their levies, if any, must be
eliminated.
(iii) If the remaining
balance is greater than zero, this amount is available to the remaining junior
taxing districts at a lower tier and the assessor should proceed on to step
five.
(e) Step five:
Subtract from the remaining levy capacity the levy rate, if any, for the first
50 cents per $1,000 of assessed value of metropolitan park districts created on
or after January 1, 2002, under RCW 35.61.210.
(i) If the balance is zero, there is no
remaining levy capacity for any other junior taxing districts at a lower tier
and their levies, if any, must be eliminated.
(ii) If the balance is less than zero, then
the levies within this tier must be reduced on a pro rata basis until the
balance is zero. After prorationing, there is no remaining levy capacity for
any other junior taxing district at a lower tier and their levies, if any, must
be eliminated.
(iii) If the
remaining balance is greater than zero, this amount is available to the
remaining junior taxing districts at a lower tier and the assessor should
proceed on to step six.
(f) Step six: Subtract from the remaining
levy capacity the 25 cent per $1,000 of assessed value levy rate for
metropolitan park districts if it is not protected under RCW 84.52.120, the 25
cent per $1,000 of assessed value levy rate for public hospital districts under
RCW 70.44.060(6), and the levy rates, if any, for cemetery districts under RCW
68.52.310 and all other junior taxing districts if those levies are not listed
in steps three through five or seven or eight of this subsection.
(i) If the balance is zero, there is no
remaining levy capacity for any other junior taxing districts at a lower tier
and their levies, if any, must be eliminated.
(ii) If the balance is less than zero, then
the levies within this tier must be reduced on a pro rata basis until the
balance is zero. After prorationing, there is no remaining levy capacity for
any other junior taxing district at a lower tier and their levies, if any, must
be eliminated.
(iii) If the
remaining balance is greater than zero, this amount is available to the
remaining junior taxing districts at a lower tier and the assessor should
proceed on to step seven.
(g) Step seven: Subtract from the remaining
levy capacity the levy rate, if any, for flood control zone districts other
than the portion of a levy protected under RCW 84.52.816.
(i) If the balance is zero, there is no
remaining levy capacity for any other junior taxing districts at a lower tier
and their levies, if any, must be eliminated.
(ii) If the balance is less than zero, then
the levies within this tier must be reduced on a pro rata basis until the
balance is zero. After prorationing, there is no remaining levy capacity for
any other junior taxing district at a lower tier and their levies, if any, must
be eliminated.
(iii) If the
remaining balance is greater than zero, this amount is available to the
remaining junior taxing districts at a lower tier and the assessor should
proceed on to step eight.
(h) Step eight: Subtract from the remaining
levy capacity the levy rates, if any, for city transportation authorities under
RCW 35.95A.100, park and recreation service areas under RCW 36.68.525, park and
recreation districts under RCW 36.69.145, except a park and recreation district
described in subsection (2)(n) of this rule, and cultural arts, stadium, and
convention districts under RCW 67.38.130.
(i)
If the balance is zero, there is no remaining levy capacity for other junior
taxing districts at a lower tier and their levies, if any, must be
eliminated.
(ii) If the balance is
less than zero, then the levies within this tier must be reduced on a pro rata
basis until the balance is zero. After prorationing, there is no remaining levy
capacity for any other junior taxing district at a lower tier and their levies,
if any, must be eliminated.
(iii)
If the remaining balance is greater than zero, this amount is available to the
remaining junior taxing districts at a lower tier and the assessor should
proceed on to step nine.
(i) Step nine: Subtract from the remaining
levy capacity the levy imposed, if any, for cultural access programs under RCW
36.160.080 until the remaining levy capacity equals zero.
(4)
Example.
|
DISTRICT
|
ORIGINAL LEVY RATE
|
PRORATION FACTOR
|
FINAL LEVY RATE
|
REMAINING LEVY CAPACITY
|
|
County
County Road
|
1.8000
2.2500
|
NONE
NONE
|
1.8000
2.2500
|
1.850
|
|
Library
Fire
Hospital
|
.5000
.5000
.5000
|
NONE
NONE
NONE
|
.5000
.5000
.5000
|
.350
|
|
Fire
|
.2000
|
NONE
|
.2000
|
.150
|
|
Cemetery
Hospital
|
.1125
.2500
|
.4138
.4138
|
.0466
.1034
|
|
|
Totals
|
6.1125
|
|
5.90
|
|
(a) Beginning
with the limit of $5.90, subtract the original certified levy rates for the
county and county road taxing districts leaving $1.85 available for the
remaining districts.
(b) Subtract
the total of the levy rates for each district within the next tier: The
library's $.50, the fire district's $.50 and the hospital's $.50 = $1.50, which
leaves $.35 available for the remaining districts.
(c) Subtract the fire district's additional
$.20 levy rate, which leaves $.15 available for the remaining
districts.
(d) The remaining $.15
must be shared by the cemetery and the hospital districts within the next tier
of levies. The cemetery district originally sought to levy $.1125 and the
hospital district sought to levy $.25. The proration factor is arrived at by
dividing the amount available ($.15) by the original levy rates ($.3625)
requested within that tier resulting in a proration factor of .4138. Finally,
the original levy rates in this tier of $.1125 and $.25 for the cemetery and
hospital, respectively, are multiplied by the proration factor.
Wash. Admin. Code § 458-19-070
Statutory Authority:
RCW
84.08.070,
84.34.141,
84.36.865,
84.52.0502. 09-19-010, §
458-19-070, filed 9/3/09, effective 10/4/09. Statutory Authority:
RCW
84.52.010,
84.52.043, and
84.52.0502. 06-02-008, §
458-19-070, filed 12/22/05, effective 1/22/06. Statutory Authority:
RCW
84.08.010,
84.08.070,
84.48.080,
84.55.060,
84.52.0502,
chapters
84.52 and 84.55 RCW, and
RCW
34.05.230(1). 02-24-015,
§ 458-19-070, filed 11/25/02, effective 12/26/02. Statutory Authority:
RCW
84.55.060 and
84.08.070. 94-07-066, §
458-19-070, filed 3/14/94, effective
4/14/94.
This section was updated on 3/4/2022 by an editor because it was made effective.
