Date of Adoption: June 24, 2002.

     Purpose: WAC 458-53-030, 458-53-050, 458-53-090, and 458-53-140 implement RCW 84.48.075 and 84.48.080. They explain the processes to be used by the Department of Revenue in establishing the indicated real and personal property ratios for purposes of computing the state property tax levy and equalizing centrally assessed property. These rules have been revised (repealed in the case of WAC 458-53-090) to incorporate a recent change to RCW 84.48.080, to clarify and simplify the ratio process, and to eliminate outdated information. WAC 458-53-030, which explains the stratification process for real property, has been revised to provide separate land-use codes for residential condominiums and other types of condominiums (e.g., commercial condominiums). WAC 458-53-050, which groups land-use codes into abstract categories, has been revised to reflect the changes made to WAC 458-53-030. WAC 458-53-140, which provides information about the personal property ratio study, has been revised to reflect a change in the basis for a county's personal property ratio as a result of a recent amendment to RCW 84.48.080 (chapter 185, Laws of 2001). Lastly, WAC 458-53-090, which provides information concerning sales studies generated by the department, is no longer needed and has been repealed. The department no longer generates sales studies because all counties now generate their own studies.

     Citation of Existing Rules Affected by this Order: Repealing WAC 458-53-090 Department generated sales studies; and amending WAC 458-53-030 Stratification of assessment rolls--Real property, 458-53-050 Land use stratification, sales summary and abstract report, and 458-53-140 Personal property ratio study.

     Statutory Authority for Adoption: RCW 84.08.010, 84.08.070, and 84.48.075.

      Adopted under notice filed as WSR 02-10-032 on April 24, 2002.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 1, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 3, Repealed 1.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 3, Repealed 1.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 3, Repealed 1.
     Effective Date of Rule: Thirty-one days after filing.

June 24, 2002

Alan R. Lynn

Rules Coordinator

Legislation and Policy Division

OTS-5613.1

AMENDATORY SECTION(Amending WSR 96-05-002, filed 2/8/96, effective 3/10/96)

WAC 458-53-030   Stratification of assessment rolls -- Real property.   (1) ((Stratification -- Uses for ratio study.)) Introduction. This rule explains the stratification process for real property. The stratification process is the grouping of real property within each county into homogeneous classifications based upon certain criteria in order to obtain representative samples. Stratification is used in determining the number of appraisals to be included in the ratio study and also for ratio calculation. The county's most current certified assessment rolls are used for stratification. Counties ((shall)) must stratify rolls using a land use code stratification system as prescribed by the department. (See RCW 36.21.100.)

     (2) Stratification -- Parcel count and total value -- Exclusions. The stratification of the real property assessment rolls ((shall)) must include a parcel count and a total value of the taxable real property parcels in each stratum, excluding the following:

     (a) ((Classified and)) Designated forest lands ((and timberland classified under chapter 84.34 RCW (see RCW 84.34.060))). (See chapter 84.33 RCW);

     (b) ((State-owned game lands as defined in RCW 77.12.203(2);)) Timberland classified under chapter 84.34 RCW. (See RCW 84.34.060);

     (c) Current use properties in those counties where a separate study is conducted pursuant to WAC 458-53-095(3); ((and))

     (d) State assessed properties; and

     (e) State-owned game lands as defined in RCW 77.12.203(2).

     (3) Stratification -- By county. For the real property ratio study, the assessment roll ((shall)) must be stratified for individual counties according to land use categories and substratified by value classes as determined by the department. Stratification ((shall)) will be reviewed at least every other year by the department to determine if changes need to be made to improve sampling criteria. After the strata have been determined, the department ((shall)) will notify the counties of the strata limits, and each county ((shall)) must provide the department with the following, taken from the county's assessment rolls:

     (a) A representative number of samples, as determined by the department, in each stratum, together with:

     (i) The name and address of the taxpayer for each sample;

     (ii) The land use code for each sample;

     (iii) The assessed value for each sample; and

     (iv) The actual number of samples;

     (b) The total number of real property parcels in each stratum; and

     (c) The total assessed value in each stratum.

     (4) Counties to provide information timely. The stratification information described in subsection (3) of this ((section shall)) rule must be provided by the counties to the department in a timely manner to enable the department to certify the preliminary ratios in accordance with WAC 458-53-200(1). Failure to provide the information in a timely manner will result in the department using its best estimate of stratum values to calculate the real property ratio.

     (5) Standard two-digit land use code. The following two-digit land use code ((shall)) will be used as the standard to identify the actual use of the land. Counties may elect to use a more detailed land use code system using additional digits, however, no county land use code system may use fewer than the standard two digits.

RESIDENTIAL
11	Household, single family units
12	Household, 2-4 units
13	Household, multi-units (5 or more)
14	Residential ((hotels - ))condominiums
15	Mobile home parks or courts
16	Hotels/motels
17	Institutional lodging
18	All other residential not elsewhere coded
19	Vacation and cabin
MANUFACTURING
21	Food and kindred products
22	Textile mill products
23	Apparel and other finished products made from fabrics, leather, and similar materials
24	Lumber and wood products (except furniture)
25	Furniture and fixtures
26	Paper and allied products
27	Printing and publishing
28	Chemicals
29	Petroleum refining and related industries
30	Rubber and miscellaneous plastic products
31	Leather and leather products
32	Stone, clay and glass products
33	Primary metal industries
34	Fabricated metal products
35	Professional scientific, and controlling instruments; photographic and optical goods; watches and clocks-manufacturing
36	Not presently assigned
37	Not presently assigned
38	Not presently assigned
39	Miscellaneous manufacturing
TRANSPORTATION, COMMUNICATION, AND UTILITIES
41	Railroad/transit transportation
42	Motor vehicle transportation
43	Aircraft transportation
44	Marine craft transportation
45	Highway and street right of way
46	Automobile parking
47	Communication
48	Utilities
49	Other transportation, communication, and utilities not classified elsewhere
TRADE
50	Condominiums - other than residential condominiums
51	Wholesale trade
52	Retail trade - building materials, hardware, and farm equipment
53	Retail trade - general merchandise
54	Retail trade - food
55	Retail trade - automotive, marine craft, aircraft, and accessories
56	Retail trade - apparel and accessories
57	Retail trade - furniture, home furnishings and equipment
58	Retail trade - eating and drinking
59	Other retail trade
SERVICES
61	Finance, insurance, and real estate services
62	Personal services
63	Business services
64	Repair services
65	Professional services
66	Contract construction services
67	Governmental services
68	Educational services
69	Miscellaneous services
CULTURAL, ENTERTAINMENT AND RECREATIONAL
71	Cultural activities and nature exhibitions
72	Public assembly
73	Amusements
74	Recreational activities
75	Resorts and group camps
76	Parks
77	Not presently assigned
78	Not presently assigned
79	Other cultural, entertainment, and recreational
RESOURCE PRODUCTION AND EXTRACTION
81	Agriculture (not classified under current use law)
82	Agriculture related activities
83	Agriculture classified under current use chapter 84.34 RCW
84	Fishing activities and related services
85	Mining activities and related services
86	Not presently assigned
87	((Classified forest land chapter 84.33 RCW)) Not presently assigned
88	Designated forest land under chapter 84.33 RCW
89	Other resource production
UNDEVELOPED LAND AND WATER AREAS
91	Undeveloped land
92	Noncommercial forest
93	Water areas
94	Open space land classified under chapter 84.34 RCW
95	Timberland classified under chapter 84.34 RCW
96	Not presently assigned
97	Not presently assigned
98	Not presently assigned
99	Other undeveloped land

[Statutory Authority: RCW 84.08.010, 84.08.070 and 84.48.075. 96-05-002, § 458-53-030, filed 2/8/96, effective 3/10/96. Statutory Authority: RCW 84.08.010 and 84.08.070. 91-01-008, § 458-53-030, filed 12/6/90, effective 1/6/91. Statutory Authority: RCW 84.48.075 and 84.08.010(2). 89-09-021 (Order PT 89-5), § 458-53-030, filed 4/12/89. Statutory Authority: RCW 84.48.075. 86-21-004 (Order PT 86-6), § 458-53-030, filed 10/2/86; 84-14-039 (Order PT 84-2), § 458-53-030, filed 6/29/84; 79-11-029 (Order PT 79-3), § 458-53-030, filed 10/11/79. Formerly WAC 458-52-030.]

OTS-5614.1

AMENDATORY SECTION(Amending WSR 96-05-002, filed 2/8/96, effective 3/10/96)

WAC 458-53-050   Land use stratification, sales summary and abstract report.   Stratification of the assessment rolls, the annual sales summary, and the abstract report to the department for real property will be based on the following abstract categories:

	Abstract Category	Land Use Code
1.	Single family residence	11, 14, 18, 19
2.	Multiple family residence	12, 13((, 14))
3.	Manufacturing	21 through 39
4.	Commercial	15, 16, 17, 41-49, ((51)) 50-59, 61-69, 71-79
5.	Agricultural	81
6.	Agricultural (current use law)	83
7.	Forest lands (chapter 84.33 RCW)	((87,)) 88
8.	Open space (current use law)	94
9.	Timberland (current use law)	95
10.	Other	82, 84, 85, 89, 91,92, 93, 96-99

[Statutory Authority: RCW 84.08.010, 84.08.070 and 84.48.075. 96-05-002, § 458-53-050, filed 2/8/96, effective 3/10/96. Statutory Authority: RCW 84.48.075. 79-11-029 (Order PT 79-3), § 458-53-050, filed 10/11/79. Formerly WAC 458-52-040.]

OTS-5615.1

AMENDATORY SECTION(Amending WSR 96-05-002, filed 2/8/96, effective 3/10/96)

WAC 458-53-140   Personal property ratio study.   (1) ((Random selection of accounts. The basis for a county's personal property ratio shall be accounts selected at random from the preceding year's assessment rolls at the January 1 value for the preceding year.)) Introduction. This rule provides information about the personal property ratio study, including the basis for a county's personal property ratio, the determination of strata for each county, and the effect of the discovery of omitted property on the ratio study.

     (2) Basis for personal property ratio. The basis for a county's personal property ratio will be valuation data with respect to personal property from the three years preceding the current assessment year.

     (3) Stratification of rolls. Determination of strata for each county ((shall)) will be made by the department to ensure the selection of a representative audit sample and will be reviewed periodically. After the strata have been determined, the department ((shall)) will notify the counties of the strata limits and each county ((shall)) must provide the department with the following, taken from the county's assessment rolls:

     (a) A representative number of samples, as determined by the department, in each stratum, together with:

     (i) The name and address of the taxpayer for each sample;

     (ii) The assessed value for each sample; and

     (iii) The actual number of samples;

     (b) The total number of personal property accounts in each stratum; and

     (c) The total assessed value in each stratum.

     (((3))) (4) Omitted property. If the department discovers omitted property in a county, the results of the department's audit ((shall)) will be included in the ratio study.

[Statutory Authority: RCW 84.08.010, 84.08.070 and 84.48.075. 96-05-002, § 458-53-140, filed 2/8/96, effective 3/10/96. Statutory Authority: RCW 84.48.075. 84-14-039 (Order PT 84-2), § 458-53-140, filed 6/29/84; 79-11-029 (Order PT 79-3), § 458-53-140, filed 10/11/79. Formerly WAC 458-52-080.]

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