Current through Register Vol. 24-06, March 15, 2024
(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;
(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; and
(o) The portion of any levy resulting from
the correction of a levy error under
RCW
84.52.085(3).
(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.
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.