OLYMPIA…Today the state Senate unanimously passed Substitute Senate Bill 5424, a measure aimed at protecting property owners from penalties and interest when they change the use of their property. Sen. Linda Evans Parlette, R-Wenatchee, is prime-sponsor of the bill.  

By law, property removed from its current use is subject to seven years’ back taxes, interest at 12 percent a year on those taxes and a 20 percent penalty if two years’ notice is not provided prior to removal. SSB 5424 would lower the interest rate and remove the penalty if the property is removed after 10 years in the program. 

Last week the Senate also passed Substitute Senate Bill 5368, another Parlette-sponsored measure that would require annual revaluations of property for tax purposes. The purpose of the bill is to even out property tax bills and prevent homeowners from paying higher taxes for up to four years on property values that were higher in a better market but have since dropped. The bill also continues a $5 fee on real estate transactions (set to expire in 2010) until 2013. Money from the fee is used for a grant program to help counties convert to an annual reassessment schedule. 

“Property tax bills that create sticker shock every few years continue to be one of the primary concerns for people across the 12th District, especially the Chelan area,” said Parlette. “This is an issue I’ve been trying to get the Legislature to focus on for years. These bills take us in the right direction, and I am pleased they’ve pass the Senate. Now I’ll work to get them through the House.”  

Both bills are now with the House of Representatives for consideration.

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