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HomeMy WebLinkAbout5.57 Original Contract5 a er ()roc R a 4 1., ?Rzi p s---,Q. 1 f E D1 I -1 k3Eac3 W ke7eis Lott' C 12,D u..) 1 0 z L G 13 A c- F IQ, p o RA-7 O A.) rtook1 :fuLv /s, 1 1C, oS`7 Cato -reek/E1,--t, 14 4/6 ,r6Zy /8,16167 --P i rn 16,, d®®, o PER ye t /0 -113647 -77 3. )11'1 O51-(7 niksg °a Ls 07 )b 3 AND F4s l Tr P ro-v orL) IFR; 71069 T6 ///1 TeRxe5: PeR, yei:)re k l izO TV. cS P, Z. ''a OM: g) tp RMs aSO co Pee, I., Eig2 DANIEL J. EVANS, GOVERNOR MARY ELLEN McCAFFREE, DIRECTOR Gentlemen: STATE OF WASHINGTON DEPARTMENT OF REVENUE OLYMPIA 98504 April 15, 1976 The City of Port Angeles 140 W Front Street Port Angeles, Washington 98362 Enclosed please find your signed copy of the Agreement for Leasehold Tax participation. First distribution will possibly be made during the month of June, 1976. RLH /ld Enclosure Sincerely yours, OFFICE OPERATIONS SECTION Heady, Assistant Di S S 7 /a, /94eg J AGREEMENT BETWEEN THE STATE OF WASHINGTON, DEPARTMENT OF REVENUE AND THE CITY OF PORT ANGELES REGARDING ADMINISTRATION AND COLLECTION OF LOCAL LEASEHOLD EXCISE TAX THIS AGREEMENT, made this ,4 day of _//N' i 1976, by and between the State of Washington, Department of Revenue, hereinafter referred to as the Department, and the City of Port Angeles, a municipal corporation, hereinafter referred to as the City, WITNESSETH: WHEREAS, the Legislature of the State of Washington has by chapter 61, Laws of 1975 -76, 2nd ex. sess., authorized cities and counties to impose a local leasehold excise tax, and WHEREAS, it is provided in section 8 of said Act that any city or county imposing a local leasehold excise tax by ordinance shall, prior to the effective date thereof, contract with the Department for the administration and collection of said tax, and WHEREAS, the City has by ordinance, a copy of which is attached hereto, elected to impose a leasehold excise tax commencing on the first day of January, 1976, NOW, THEREFORE, to effectuate section 8 of the aforementioned Act, the parties hereto agree as follows: 1. The Department shall exclusively perform all functions incident to the administration and collection of the taxes imposed by the said ordinance, other than criminal prosecutions. 2. The Department shall retain from the taxes so collected the amount of two percent thereof as expenses of administration and collection. Said amount shall be subject to review during January of each year. 3. The remainder of said taxes so collected shall be de- posited by the Department in the Local Leasehold Excise Tax Re- volving Fund under the custody of the State Treasurer. 4. In carrying out its administration and collection duties hereunder, the Department shall, insofar as the same are applicable, apply the administrative provisions contained in chapters 82.02 and 82.32 RCW, and the Department's rules and regulations promul- gated pursuant to RCW 82.32.300, as the same exist or may hereafter be amended. The Department shall adopt additional rules and regulations, in accordance with the State Administrative Procedure Act, to facilitate the administration and collection of the local taxes as it may deem necessary or desirable. 5. The Department shall perform its duties hereunder so that as far as possible the local leasehold excise tax adopted by the City shall be administered and collected in a manner which is as consistent and uniform as possible with the state leasehold excise tax and facilitates the imposition of the local leasehold excise tax upon individual taxable events simultaneously with the imposition of the state leasehold excise tax. 6. The City shall have the right from time to time to examine the records of the Department as they concern taxpayers subject to the aforementioned ordinance. 7. The allocation of local leasehold excise tax collections among the various cities and counties will be sent by the Department to the State Treasurer within 60 days after the close of the first bimonthly period for which the tax is imposed and thereafter on a bimonthly basis. 8. All refunds and credits for local leasehold excise tax made by the Department shall be charged to the City. 9. The Department shall require redistribution to the affected counties or cities, of any tax, penalty and interest dis- tributed to a county or city other than the county or city entitled thereto but such redistribution shall not be made as to amounts 2 originally distributed earlier than three bimonthly periods prior to the bimonthly period in which the Department obtains knowledge of the improper distribution. 10. This Agreement shall take effect on the iF day of April, 1976, and shall thereafter be automatically renewed on December 31 of each year unless one of the parties gives written notice of termination on or before November 1 of each such year. IN WITNESS WHEREOF, the parties hereto have affixed their signature the day and year first above written. DEPARTMENT OF REVENUE STATE OF WASHINGTON CITY OF PORT ANGELES Mayor 47 i 7( Q follows: Section 1. There is hereby levied and shall be collected a leasehold excise tax on and after January 1, 1976 upon the act or privilege of occupying or using publicly owned real or personal property within the City of Port Angeles through a "leasehold interest" as defined by section 2, chapter 61, Laws of 1975 -76, Second Extraordinary Session (hereinafter referred to as "the state act The tax shall be paid, collected, and remitted to the department of revenue of the State of Washington at the time and in the manner prescribed by section 5 c the state act. Section 2. The rate of the tax imposed by section 1 shall .be four percent (4 of the taxable rent (as defined by section 2 of the state act): PROVIDED, That the following credits shall be .:1`• -��.o• -k��, r 'i: i ^`.�»x .,T «r., tie s�'� ORDINANCE NO. I76 AN ORDINANCE of the City of Port Angeles providing for and authorizing the levying and collecting of a leasehold excise tax on and after January 1, 1976 upon the act or privilege of occupying or using publicly owned real or personal property within the City. The City Council of the City of Port Angeles do ordain as allowed in determining the tax payable: (1) With respect to a• leasehold interest arising out of any lease or agreement, the terms of which were binding on the lessee prior to July 1, 1970, where such lease or agreement has not been renegotiated since that date, and excluding from such credit any lease or agreement including options to renew which extends beyond January 1, 1985, as follows: With respect to taxes due in calendar year 1976, a credit equal to eighty percent of the tax produced by the above rate. 0 With respect to taxes due in calendar year 1977, a credit equal to sixty percent the tax produced by the above rate. With respect to taxes due in calendar year 1978, a credit equal to forty percent of the tax produced by the above rate. With respect to taxes due in calendar year 1979, a credit equal to twenty percent of the tax produced by the above rate. (2) With respect to a produce lease (as defined by section 2 of the state act), a credit of thirty -three percent of the tax produced by the above rate. Section 3. The administration and collection of the tax imposed by this ordinance shall be in accordance with the pro- visions of the state act. Section 4. Leasehold interests exempted by section 13 of the state act as it now exists or may hereafter be amended shall be exempt from the tax imposed pursuant to Section 1 of this ordinance. Section 5. The City hereby consents to the inspection of such records as are necessary to qualify the City for inspection of records of the department of revenue pursuant to RCW 82.32.330. Section 6. The Mayor of the City of Port Angeles is authorized to execute a contract with the department of revenue of the State of Washington for the administration and collection of the tax imposed by section 1: PROVIDED, that the city attorney shall first approve the form and content of said contract. Section 7. If any provision of this ordinance, or its application to any person or circumstance is held invalid, the remainder of the ordinance or the application of the provision to other persons or circumstances is not affected. Section 8. Any person violating or failing to comply with any of the provisions of this ordinance, upon conviction thereof, shall be punished by a fine in any sum not to exceed three hundred dollars ($300.00) or by imprisonment in the Port Angeles City Jail for a term not exceeding ninety (90) days, or by both such fine and imprisonment. PASSED by the City Council of the City of Port Angeles and approved by its Mayor at a regular meeting of the Council held on a the Co day of A y L 1976. ATTEST: City Clerk Approved as o form: City Attorney PUBLISHED: /976 v 3 CO&4 Mayor State of Washington Department of Revenue Office Operations Division LEASEHOLD EXCISE TAX QUESTIONNAIRE Olympia, Washington 98504 IMPORTANT: Response to this questionnaire will be used to determine Leasehold Excise Tax reporting status. Name of Governmental Body Name of Authorized Representative City of Port Angeles Kenneth S. Whorton Street Address 140 W. Front Street City, County, State, Zip Code Port Angeles, Washington 98362 Title of Authorized Representative City Manager Phone Number 457 0411 Ext.'21O Does the above named body own real or personal property which is being used or occupied by any private person, firm, association, corporation or other entity 1. YES ONO If the answer to the above question is "NO please sign below and return this form to the Department of Revenue. Should the above named governmental body lease property to a non exempt private entity at some later date, the Department of Revenue must be notified. If the answer to the above question is "YES please complete the following: For each of the following categories of leases of publicly owned real or personal property state the number of leases and approximate total annual rental received. Number Approximate of Total Annual LEASES EXEMPT FROM LEASEHOLD EXCISE TAX Leases Rental a. Road or utility easements or rights of access, occupancy, or use granted solely to permit removal of materials or products purchased from a public owner or lessee of a public owner. b. Interests in operating properties of public utilities subject to property tax under Chapter 84.12 RCW. `c. School housing for students exempt from property tax under RCW 84.36.010 and 84.36.050. d. Subsidized housing for which an income qualification is specified for residents. e. Property used for fair purposes of a non -profit fair association receiving support from revenues allocated by the Department of Agriculture (does not include property used by sublessees of a fair association not meeting above criteria). f. Residential property used by an employee where such residence is a condition of employment. g. Interests in residential units for residential purposes on a month to month basis pending destruction or removal to construct a public highway or building. h. Interests of a contractor solely for public works construction purposes. i. Leaseholds other than stated in "a" through "h" above for which taxable rent is less than $250 per year or giving less than 30 continuous days use or possession. LEASES TAXABLE UNDER LEASEHOLD EXCISE TAX j. Leases other than those stated in items "a" through "i and, therefore, taxable under the Leasehold Tax Law. k. Leases of property included in "j" for use in the production of agricultural or marine products to the extent that such lease provides for the rent to be paid by the delivery of a stated percentage of the production of such products or the proceeds from the sale of such products. 1. Leases of property included in "j" the terms of which were binding on the lessee prior to July 1, 1970 where such lease has not been renegotiated since that date. Date March 29, 1976 FORM REV 44 0029 (3 76) 1 $200.00 3 $18,050.00 3 $18,050.00 i 0 Signature Sc Authorized Representative ..y.._ State of Washington Department of Revenue Office Operations Division LEASEHOLD EXCISE TAX QUESTIONNAIRE Olympia, Washington 98504 IMPORTANT: Response to this questionnaire will be used to determine Leasehold Excise Tax reporting status. Name of Governmental Body Street Address City, County, State, Zip Code Name of Authorized Representative Title of Authorized Representative Phone Number Does the above named body own real or personal property which is being used or occupied by any private person, firm, association, corporation or other entity? 11 YES ONO If the answer to the above question is "NO please sign below and return this form to the Department of Revenue. Should the above named governmental body lease property to a non exempt private entity at some later date, the Department of Revenue must be notified. If the answer to the above question is "YES please complete the following: For each of the following categories of leases of publicly owned real or personal property state the number of leases and approximate total annual rental received. Number Approximate of Total Annual LEASES EXEMPT FROM LEASEHOLD EXCISE TAX Leases Rental a. Road or utility easements or rights of access, occupancy, or use granted solely to permit removal of materials or products purchased from a public owner or lessee of a public owner. b. Interests in operating properties of public utilities subject to property tax under Chapter 84.12 RCW. c. School housing for students exempt from property tax under RCW 84.36.010 and 84.36.050. d. Subsidized housing for which an income qualification is specified for residents. e. Property used for fair purposes of a non profit fair association receiving support from revenues allocated by the Department of Agriculture (does not include property used by sublessees of a fair association not meeting above criteria). f. Residential property used by an employee where such residence is a condition of employment. g. Interests in residential units for residential purposes on a month to month basis pending destruction or removal to construct a public highway or building. h. Interests of a contractor solely for public works construction purposes. i. Leaseholds other than stated in "a" through "h" above for which taxable rent is less than $250 per year or giving less than 30 continuous days use or possession. LEASES TAXABLE UNDER LEASEHOLD EXCISE TAX j. Leases other than those stated in items "a" through "i and, therefore, taxable under the Leasehold Tax Law. k. Leases of property included in "j" for use in the production of agricultural or marine products to the extent that such lease provides for the rent to be paid by the delivery of a stated percentage of the production of such products or the proceeds from the sale of such products. 1. Leases of property included in "j" the terms of which were binding on the lessee prior to July 1, 1970 where such lease has not been renegotiated since that date. Date FORM REV 44 0029 (3 -76) Signature of Authorized Representative C'nrT to 2.1 2.2 Edit Hook Leases General File Edit Hook 2.3 Lease Lot 1 L ,kP G,DYT 004 LOT 6'4) rr ©ur C,OT (4 2.14 Lease Lot 17 o ea4v_5 dinrr u 7 e `r s e a7,) G ALL, 7 P4./aT, Crown Crown 6701/r D 1./T L O T dieter o ur,(,m r 3 (Par, 2 T 2.5 Lease Lot 3 4.0 oT' ®esrber3 Prayonfr: to: 2.6 Lease Lot 4, 670 d'r ov`r 3 6.0,9 Rayonier fr: G /77 e •2.7 Lease Lot 5 0 r ou*t1.42r. (P449 fr: tRA& 1 s F t (J�h `^'Ms b E u PLy }o i rr 2.9 Lease OaYf por 2010 Isase Lot 7 See above 2 Leases USA City of Port Angeles fr: August 17, 19114 to: 2013 (Hew Lease T -13 eg- 31279) Zellerbaoh Corp. fr: July 18, 1967 to: July 18, 2057 Zellerbaoh Corp. fr: Feb. 17, 196L. to: See Lot Inc. (Sub Lease) July 1, 1969 0 Age.) July 1, 1979 Inc. July 1; 1969 July 1, 1979 2.8 Lease Lot 6 OcrrLOT '/(P441) I TT R14 ,16 71 7 Penn Plywood Corp. fr: July 20, 1967 to: July 20, 1977 TT 2Ayo N, c 2. Lot #8 Cam° ROu��I 2EI,LC- /y Cce P 48 /oo,00 Salmon Club Inc. (Sub Lease) fr: July 18, 1967 to: July 18, 2057 2.11 Down Town Parking Association p ar kars aw.dED z ;3 c' r 4-0 TS .6 E. SeLi ll s; 1 ol= 7 (90 years) Gjo vrovr 1 or 10 r'� ITT` Rayonier Ina. Aug. 6, 1962 \'c '`Jr 00 to: Aug. 6, 1979 1 t 5 .01.0444.4. Loy /aJ• r 0 Soo /Q.M za,,. w odo 1 Lot /0 /9 G 7 /9 77 i /G,oa /977 A o A.; per y €RQ FOSS 7 tq�3 t oo,00 dJf ra t 3. C. SA.c Mrtea c.b'/-4 -/Q 3/ 77 3/4/7 EYr ego4 7 7N41N0E/1-0021) 3 /.'7 2097 AllxiSe Pe,GiaE 6),17-pi" /2,0A,• (a N.d.CoNt&it, (/.P `Y/29 2.12 Combat Range (J. E. Baron) fr: Nov. 16, 1967 to: Nov. 16, 1977 2.13 Basement Area E* Lot 14, Blk 15 (John Somers Alma (wife) fr: July 8, 1969 to: July 8, 1994 2.14 Port of Port Angeles 2 Leases Air Port Property fr: March 10, 1952 to; Maroh 10, 1977 2.15 Garbage Dump (Richard MoGoff) sold to (Walter Fuller) fr: Maroh 1, 1971 to: January 31, 1976 2.16 M R Timber Portion Blk 132 Townsite fr: May 1972 to: May 1973 Ave, o o Negotiate for Renewal From Fuller to David D. Koester 2.17 KIRO T. V. Spaoe at 10th E Streets Res. 2.18 Portion of Webster Park to Camp Fire Girls (1951 to 1976) 2.19 State of Washington, Dept. of Fisheries E1wha River 2.20 COT\AP?ESSOIZ Cify Johnnie E. Swea l r r 2.21 W Lot 9 All Lof 10 Blk.1, Tice l ands West f Pe er J. Capos 4 C ifs CHAPTER 187 (Substitute House Bill No. 52) LEASEHOLDS TAXATION -IN LIEU EXCISE TAX AN ACT Relating to revenue and taxation; exempting certain leasehold estates from property taxation; imposing a leasehold in lieu excise tax; amending section 84.40.030, chapter 15, Laws of 1961 as last amended by section 2, chapter 125, Laws of 1972 1st ex. sess. and RCW 84.40.030; adding new sections to Title 82 RCW; adding new sections to chapter 84.36 RCW; and creating a new section. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: Section 1. Section 84.40.030, chapter 15, Laws of 1961 as last amended by section 2, chapter 125, Laws of 1972 1st ex. sess. and RCW 84.40.030 are each amended to read as follows: All property shall be assessed fifty percent of its true and fair value in money. Taxable leasehold estates shall be valued at such price as they would bring at a fair, voluntary sale for cash without Any deductions for any indebtedness owed including rentals to be onid. Notwithstanding any other provisions of this section or of any other statute, when the value of any taxable leasehold estate created prior to January 1, 1971 is being determined for assessment years prior to the assessment year 1973, there shall be deducted from what would otherwise be the value thereof the present worth of the rentals and other consideration which may be required of the lessee by the lessor for the unexpired term thereof: PROVIDED, That the foregoing provisions of this sentence shall not apply to any extension or renewal, made after December 31, 1970 of the term of any such estate, or to any such estate after the date, if any, provided for in the agreement for rental renegotiation. The true and fair value of real property for taxation purposes (including property upon which there is a coal or other mine, or stone or other quarry) shall' be based upon the following criteria: (1)(a) Any sales of the property being appraised or similar property with respect to sales made within the past five years ((lese a pereettage equal to the average= ordinary and tetel direct caste of sale of that type of property; ineluding but not limited to eosts of title ineereneee legal services recording fees and taxes levied against such sales that are betee by the sellere and an amount equal to the etstemery fees paiabie to a lieetsed real estate broker for handling such a salee sneh pereeatage to he determined by studies conducted by the department of revenue)). The appraisal shall take into consideration political restrictions such as zoning as well as physical and environmental influences.' The appraisal shall also take into account, (i) in the use of sales by real estate contract as similar sales, the extent, if any, to which the stated selling price has been increased by reason of the down payment, interest rate, oe other financing terms; and (ii) the extent to which the sale of a similar property actually represents the general effective market demand for property of such type, in the geographical area in which such property is located. Sales involving deed releases or similar seller- developer financing arrangements shall not be used as sales o:' similar property. (b) In addition to sales as defined in subsection (1) (a) consideration may be given to cost, cost less depreciation, reconstruction cost less depreciation, or capitalization of income that would be derived from prudent use of the property. In the case of property of a complex nature, or being used under terms of e franchise from a public agency, or operating as a public utility, or property not having a record of sale within five years and not having a significant number of sales of similar property in the genera] area, the provisions of this subsection (1) (b) shall be the dominant factors in valuation. When provisions of this subsection (1) (b) are relied upon for establishing values the property owner shall be advised upon request of the factors used in arriving at such value. (c) In valuing any tract or parcel of real property, the value of the land, exclusive of structures thereon shall be determined; also the value of structures thereon, but the valuation shall not exceed the value of the total property as it exists. In valuing agricultural land, growing crops shall be excluded. PROVIDED, That the provisions of this subsection (1) shall be applicable to all values for use in computing property taxes for the assessment year 1972 for taxes payable in 1973 and subsequent years. yiEW SECTION Sec. 2. The legislature hereby recognizes that properties of the state of Washington, counties, school districts, and other municipal corporations are exempted by Article 7, section 1 of the state Constitution from property tax obligations, but that such public properties when under lease to private lessees receive substantial benefits from governmental services provided by the units of local government. The legislature further recognizes that leases of such property entered into prior to July 1, 1970, are often at a full and fair market rental predicated upon a tax obligation which was considerably less than established by the state supreme court in May of 1970 when the lessee is a nonexempt person or entity. The legislature therefore recognizes that equity,reguires that provision be made to alleviate the impact of added tax obligations upon the lessee of public properties and does hereby provide certain property tax exemptions for leasehold estates contracted prior to July 1, 1970, where the lessee is paying a contract rent equal to or at least ninety percent of economic rent as defined in section 3 of this 1973 amendatory act and the legislature does hereby provide for a leasehold in lieu tax to fairly_ compensate local governmental units for services rendered to such properties and does hereby provide authorization for payment thereof. The legislature finds that public properties subject to leasehold estate taxation or to in lieu taxation are entitled to those same governmental services provided comparable property in private ownership. NEW SECTION. Sec. 3. As used in this 1973 amendatory act, the following terms shall be defined as follows, unless the context otherwise requires: (1) "Economic rent" means the rental warranted to be paid in the open real estate market based on rentals being paid for comparable leases. In the determination of "economic rent" the private rate of return and normal costs to be private sector shall be considered. (2) "Contract rent" means the amount of consideration conveyed according to the leasehold instrument: PROVIDED, That any prepaid rent shall be considered to have been paid in the year due and not the year when paid. (3) "Renegotiation" or "renegotiated" means the process occasioned by any situation or circumstance which results in a change in the consideration to be paid by the lessee to the lessor for any extension or renewal of a lease. NEW SECTION_ Sec. 4. There is hereby levied and shall be collected an in lieu excise tax in 1974 and in each year t from each lessor of a leasehold estate which is exempted from ad valorem property taxation pursuant to section 11 (1) of this 1973 amendatory act. The tax shall be levied and collected in an amount equal to the value of the annual leasehold rent collected the previous year multiplied by the rate of fourteen percent: PROVIDED, That the tax hereby levied shall not apply to leases of lands owned in fee or held in trust by the government of the United States: PROVIDED FURTHER, That the tax hereby levied shall not apply to (1) the lessor of a leasehold estate where the lessee is a body which were it to own the property in fee, said property would be exempt, (2) lessors on those leasehold estates exempted from property taxation pursuant to subsection (2) through subsection (9) of section 11 of this act, and (3) all leasehold estates of lands owned or held by any Indian or Indian tribe where the fee ownership of such property is vested in the United States; and (5) all leasehold 1 estates held by enrolled Indians of lands owned or held by any Indian or Indian tribe where the fee ownership of such property is vested in or held in trust by the United States. NEW SECTION. Sec. 5. Each state department, agency, and political subdivision shall on or before the fifteenth dal of January of each year supply an accounting of outstanding leasehold estates upon its property to the county assessor of the county in which :uch property is located. Such accounting shall include information describing the location, legal description, and address, if any, of the property, the ,name of the lessee, the amount of the leasehold rent, the dat.ewhen the lease was entered, the expiration date of the lease,_restrictions„ if any which detract from the value of the leasehold interest, renegotiation dates, if any, options to renew, 1., and information about reversion of improvements. NEW SECTION_ ,Sec. 6. The county assessor shall determine and 1 identify those properties which are subject to the leasehold in lieu tax imposed by section 4 of this 1973 amendatory act and shall furnish and deliver to the county treasurer by the fifteenth day of February a listing of such properties with information describin7 the location, legal description, and address, if any, of the propetty, the name of the lessee, the amount of the leasehold rent, the ancunt of the true and fair economic rent, the expiration date of the lease, renegotiations dates, if any, and options to renew. In addition, the assessor shall provide information indicating that the situs of such property is within the unincorporated area of the county or within a particular city or town and /or within a particular school district. NtEE1 SECTION_ Sec. 7. On or before the last day of Feb :wary of each calendar year, each county treasurer shall cause to be mailed to the director of the department of,revenue and to the 1esso :s of leasehold estates subject to the in lieu tax in that county, notice of the amount o_f_ tax payable for that year which shall be du.e and payable to the director of the department of revenue on or before the thirtieth day of April._, NFL SECTION Sec. 8. (1) Leasehold in lieu tax revenues received by the director of the department of revc,iue pursuant to section 7 of'this 1973 amendatory act shall be transmitted to the state treasurer, together with such information required to make the proper disbursements to counties pursuant to subsection (2) of this section, and placed in the leasehold in lieu tax fund which is hereby created. (2) moneys in the leasehold in lieu tax fund shal:. be disbursed by the state treasurer to the counties on or before the __first of June of each year. Each county shall receive an anoint equal to the total moneys appropriated to the leasehold in lieu lax fund for that year multiplied by a fraction, the numerator of which is the total amount of in lieu excise tax collected within that county pursuant to section 4 of this 1973 amendatory act during that year, and the denominator of which is the total amount of leasehold in lieu tax collected throughout the state pursuant to section 4 of this 1973 amendatory act during that year. (3) From the amount received by each county pursuant to subsection (2) of this section there shall be paid sums as follows: (a) Sixty percent to the school districts within the county ratably, on the basis of the amount of in lieu excise tax collected pursuant to section 4 of this 1973 amendatory act from leased property situated in each school district: PROVIDED, That only one -half of such amount shall be considered as local revenues where local revenues are a factor in any formula for the determination of state aid to schools under chapter 28A.41 RCW. (b) Twenty -five percent to each city and town within the county ratably, on the basis of the amount of in lieu excise tax collected pursuant to section 4 of this 1973 amendatory act from leased property situated in each city or town. (c) Forty percent to the county current expense fund less any amount paid to a city or town pursuant to subsection (3) (b) of this section which shall be considered a credit against the amount due the county pursuant to this subsection: PROVIDED, That the county legislative authority may allocate and deposit funds received pursuant to this subsection to the credit of the taxing districts in the county in the manner it deems most equitable. NEW SECTION. Sec. 9. All leasehold estates in operating properties vested in any company assessed and taxed as a public utility pursuant to chapter 84.12 RCW shall he valued by the department of revenue according to the valuation procedures set forth by the provisions of chapter 84.12 RCW. NEW SECTtSN_ Sec. 10. The department of revenue shall adopt and amend reasonable rules and regulations necessary for the administration, collection, and enforcement of the leasehold in lieu tax imposed by section 4 of this 1973 amendatory act and such reasonable rules and regulations necessary to assure the uniform valuation of leasehold estates and the subsequent tax levy thereon according to the provisions of chapter 34.04 RCW (the administrative procedure act). To ensure such uniformity, the department of revenue shall prescribe the forms and methods for the determination of the assessed value of the leasehold assets process of such determination: PROVIDED, That lessors tax imposed pursuant to section 4 those remedies provided in Title 84. which shall be the sole subject to the of this act shall be entitled to NEW SECTION_ Sec. 11. There is added to chapter 84.36 RCW a new section to read as follows: The following property shall be exempt from taxation: (1) All leasehold estates in property owned in fee or held in trust by the government of the United States, or of the state of Washington or any political subdivision thereof, negotiated prior to July 1, 1970, which have not been renegotiated, extended, or renewed since July 1, 1970, and which have a contract rent equal to at Least ninety percent of economic rent: PROVIDED, That this exemption siall not apply to leasehold estates in operating properties vested in any company which is assessed and taxed,as a public utility pursuan: to chapter 84.12 RCW. (2) All leasehold estates which have a total economic rent of less than one hundred dollars per year. (3) All leasehold estates in facilities owned or used h" a school, college, or university which leaseholds provide housing for students and which are otherwise exempt from taxation under i.ie provisions of RCW 84.36.010 and 84.36.050. (4) All leasehold estates of subsidized housing where the fee ownership of such property is vested in the government of the United States or the state of Washington or any political subdivie;ion thereof and where am income qualification exists for such housing. (5) All nonprofit fair which receive 67.16.100 and nhoutnulyR LtivaA 17i.) leasehold estates used for fair purposes of a association that sponsors or conducts a fair or faits support from revenues collected pursuant to R :W allocated by the director of the department of agriculture where the fee ownership of such property is vested in the government of the United States or the state of Washington or any political subdivision thereof: PROVIDED, That this exemption shall not apply to the leasehold estate of any sublessee of such nonprofit fair association. (6) All leasehold estates of state forest lands as defined in chapter 76.12 RCW. (7) All leasehold estates in state property used as a residence by state employees who are required as a condition ,f employment to live at a state facility or station. (8) All leasehold estates on any real property of any Ind'.3n or Indian tribe, band, or community that is held in trust by 1.ne United States or is subject to a restriction against alienation imposed by the United States. (9) All leasehold estates held by enrolled Indians of lands owned or held by any Indian or Indian tribe where the fee ownership of such property is vested in or held in trust by the United St:t.?s and which are not subleased to other than to a lessee which would qualify pursuant to this 1973 amendatory act. NEW SECTION Sec. 12. Sections 2 through 10 and section '6 of this_1973_.amendatory act are herehv added to Tit10 n, ary w��ntcv�i�jv Lawa 17/J 1St xx s J ess. NEW §ECTION_ Sec. 13. If any provision of this 1973 amendatory act, or its application to any person or circumstance is held invalid, the remainder of this 1973 amendatory act, or the application of the provision to other persons or circumstances is not :affected: PROVIDED, That if the leasehold in lieu excise tax imposed by section 4 of this 1973 amendatory act is held invalid, the entirety of the act, except for section 3 and section 15, shall be null and void. NEW SECTION, Sec. 14. If the provisions of this 1973 amendatory act relative to leasehold in lieu excise taxes are held invalid, the following property shall be exempt from ad valorem taxation: (1) All leasehold estates in property of the state of Washington or any political subdivision thereof, negotiated prior to July 1, 1970, which have not been renegotiated, extended or renewed since July 1, 1970, and which have a contract rent equal to at least ninety percent of economic rent, and where the lessor has been authorized to make in lieu payments to political subdivisions other than that of the lessor. (2) All leasehold estates which have a total economic rent of less than one hundred dollars per year. (3) All facilities owned or used by a scnool, college, or university which facilities provide housing for students and which are otherwise exempt from taxation under the provisions of RCW 84.36.010 and 84.36.050. (4) All leasehold estates of subsidized housing where the fee ownership of such property is vested in the government of the United States or the state of Washington or any political subdivision thereof and where an income qualification exists for such housing. (5) All leasehold estates of a nonprofit fair association that sponsors or conducts a fair or fairs which receive support from revenues collected pursuant to RCW 67.16.100 and allocated by the director of the department of agriculture where the fee ownership of such property is vested in the government of the United States or the state of Washington or any political subdivision thereof: PROVIDED, That this exemption shall not apply to the leasehold estate of any sublessee of such nonprofit fair association. (6) All leasehold estates of state forest lands as defined in chapter 76.12 RCW. (7) All leasehold estates in state property used as a residence by state employees who are required as a condition of employment to live at a state facility or station. (8) All leasehold estates on any real property of any Indian or Indian tribe, band, or community that is held in trust by the ttnitad States nr is cithinr-! *n a rnc*rinri.... _w..ri....w ...it,...,.wa,.,...._.,__ WASHINGTON LAWS4_1973 1st_EA:_Se_sm_______ Ch imposed by the United States. (9) All leasehold estates held by enrolled Indians of lalds owned as held by any Indian or Indian tribe where the fee ownership of such property is vested in or held in trust by the United States and which are not subleased to other than to a lessee which would qualify pursuant to this 1973 amendatory act. NEW SECTION. Sec. 15. Notwithstanding any other provision of this 1973 amendatory act, improvements owned or being acquired by contract purchase or otherwise by any sublessee shall be taxable t) such sublessee. Passed the House April 13, 1973. Passed the Senate April 10, 1973. Approved by the Governor April 25, 1973. Filed in Office of Secretary of State April 26, 1973. CHAPTER 188 [House Bill No. 76] DISABILITY INSURANCE AN ACT'Relating to insurance; adding new sections to chapter 48.1E RCW; adding a new section to chapter 48.20 RCW, and adding e new section to chapter 48.21 RCW. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON: NEW SECTION_ Section 1. There is added to chapter 48.18 ROG a new section to read as follows: No insurer shall refuse to renew any policy of individual disability insurance issued after July 1, 1973 because of a change ins the physical or mental condition or health of any person covered thereunder: PROVIDED, That after approval of the insurance commissioner, an insurer may discharge its obligation to renew the contract by obtaining for the insured coverage with another insurer which is comparable in terms of premiums and benefits. NEW SECTION Sec. 2. There is added to chapter 48.18 RCW a new section to read as follows: No contract of insurance enumerated in section 1 of this 191.3 act shall be terminated by cancellation by the insurer during the period of contract except for nonpayment of premium. This section shall not he deemed to affect the right of the insurer to rescind the policy as limited and defined in RCW 48.18.090. NEW SECTION_ Sec. 3. There is added to chapter 48.20 RCW new section to read as follows: Notwithstanding any provision of any disability insurance C 2- 3 J. Hat Puddy City Manage. Potat Angeles, Ulazh.i.ngton Dean Mt. Puddy: Enc.2ops ed i's a copy o6 nuLe4 a evlt to me by the aepaAtmevlt ob Revenue. I am not 4une what the City might that wowed qua i4y, but we have 6onms in th.irs o66.i,ce 4.6 you need them. P.2ea6e Let me know 4.6 I can be o6 any he.2p. LJL: Fad LESTER J LANCASTER Clallam County Assessor PORT ANGELES, WASHINGTON 98362 Febtcualt y 8, 1974 S- Lnceneey yowls, 3OUTINCt LESTER J. LANCASTER 'WARDER A44 elmd of KOCHANEK —CAMERON MU LLINS McNEECE HONNOID T. ENDERSON __LOUNGE. MOFFETT CO ENTS �U ------PLEASE RETURN -6 Y DANIEL J. EVANS. GOVERNOR GEORGE KINNEAR, DIRECTOR LEASEHOLD TAXATION Rules adopted In lieu tax takes effect February 7, 1974 Clyde B. Rose Director of Property Taxes 753 -5503 STATE OF WASHINGTON DEPARTMENT OF REVENUE OLYMPIA 98501 Emergency regulations implementing the new 14 percent excise tax in lieu of property taxes on leaseholds of public property have been adopted by the Department. They provide: Every state department or agency and each political subdivision of the state must provide their county assessor an accounting of all lease- hold estates under their jurisdiction. County assessors must provide county treasurers a list of taxable leasehold estates. By February 28, 1974, county treasurers shall notify lessors of the amount of tax imposed by Chapter 187, Laws of 1973, 1st. Ex. Sess. In lieu taxes apply only to leases contracted prior to July 1, 1970, which have not been renewed since. Property subject to the tax are exempt from local property taxes. Other leaseholds, including those extended or renewed since July 1, 1970, are subject to property taxes due in 1974 and subsequent years. Another new requirement is that in lieu payments must be made to the Department of Revenue, rather than the county treasurers, by April 30, 1974. Until now the total number of leaseholds in the state has not been compiled. The largest lessor, the Department of Natural Resources, has some 6,000 leases but not all are subject to either ad valorem or the in lieu tax. Port districts compose the next largest "landlord" group. The King County Assessment Department maintains a three -man leasehold tax section to administer tax matters affecting about 1,000 leases.