title: RCW 84.12.270

text:
The department of revenue must annually make an assessment of the operating property of all companies. Between the fifteenth day of March and the first day of July of each year the department must prepare an initial assessment roll upon which the department must enter and assess the true and fair value of all the operating property of each of such companies as of the first day of January of the year in which the assessment is made. The department must finalize the assessment roll by the twentieth day of August of each year. For the purpose of determining the true and fair value of such property the department of revenue may inspect the property belonging to the companies and may take into consideration any information or knowledge obtained by the department from an examination and inspection of such property, or of the books, records, and accounts of such companies, the statements filed as required by this chapter, the reports, statements, or returns of such companies filed in the office of any board, office, or commission of this state or any county thereof, the earnings and earning power of such companies, the franchises owned or used by such companies, the true and fair valuation of any and all property of such companies, whether operating or nonoperating property, and whether situated within or outside the state, and any other facts, evidence, or information that may be obtainable bearing upon the value of the operating property. However, in no event may any statement or report required from any company by this chapter be conclusive upon the department of revenue in determining the amount, character, and true and fair value of the operating property of such company.
[ 2017 c 323 s 529; 2001 c 187 s 3; 1997 c 3 s 113 (Referendum Bill No. 47, approved November 4, 1997); 1994 c 301 s 20; 1975 1st ex.s. c 278 s 165; 1961 c 15 s 84.12.270. Prior: 1939 c 206 s 19; 1935 c 123 s 7; 1925 ex.s. c 130 s 43; 1907 c 131 s 8; 1907 c 78 s 7; 1891 c 140 ss 28-31; 1890 p 541 ss 26-33; RRS s 11156-7. Formerly RCW 84.12.040.]
Notes:
Tax preference performance statement exemption—Automatic expiration date exemption—2017 c 323: See note following RCW 82.04.040.
Contingent effective date—2001 c 187: See note following RCW 84.70.010.
Application—2001 c 187: See note following RCW 84.40.020.
Application—Severability—Part headings not law—Referral to electorate—1997 c 3: See notes following RCW 84.40.030.
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Annual assessment—Sources of information.


doc_type: statute

jurisdiction: wa

title: RCW 84.12.280

text:
In making the assessment of the operating property of any railroad or logging railroad company and in the apportionment of the values and the taxation thereof, all land occupied and claimed exclusively as the right-of-way for railroads, with all the tracks and substructures and superstructures which support the same, together with all side tracks, second tracks, turn-outs, station houses, depots, round houses, machine shops, or other buildings belonging to the company, used in the operation thereof, without separating the same into land and improvements, shall be assessed as real property. And the rolling stock and other movable property belonging to any railroad or logging railroad company shall be considered as personal property and taxed as such: PROVIDED, That all of the operating property of street railway companies shall be assessed and taxed as personal property.
All of the operating property of airplane companies, telegraph companies, pipe line companies, and all of the operating property other than lands and buildings of electric light and power companies, telephone companies, and gas companies shall be assessed and taxed as personal property.
[ 2001 c 187 s 4; 1998 c 335 s 2; 1997 c 3 s 114 (Referendum Bill No. 47, approved November 4, 1997); 1987 c 153 s 2; 1961 c 15 s 84.12.280. Prior: 1935 c 123 s 8; 1925 ex.s. c 130 s 44; 1907 c 78 s 8; 1891 c 140 ss 28-31; 1890 p 541 ss 26-33; RRS s 11156-8. Formerly RCW 84.12.050.]
Notes:
Contingent effective date—2001 c 187: See note following RCW 84.70.010.
Application—2001 c 187: See note following RCW 84.40.020.
Effective date—1998 c 335: See note following RCW 84.12.200.
Application—Severability—Part headings not law—Referral to electorate—1997 c 3: See notes following RCW 84.40.030.

license: public-domain-government-work

rule_set: Revised Code of Washington

catchline: Classification of real and personal property.

code: rcw

unit: section

court: Washington State Legislature


title: RCW 84.12.300

text:
In determining the value of the operating property within this state of any company, the properties of which lie partly within and partly without this state, the department of revenue may, among other things, take into consideration the value of the whole system as a unit, and for such purpose may determine, insofar as the same is reasonably ascertainable, the salvage value, the actual cost new, the cost of reproduction new less depreciation and plus appreciation, the par value, actual value and market value of the company's outstanding stocks and bonds during one or more preceding years, the past, present and prospective gross and net earnings of the whole system as a unit.
In apportioning such system value to the state, the department of revenue shall consider relative costs, relative reproduction cost, relative future prospects and relative track mileage and the distribution of terminal properties within and without the state and such other matters and things as the department may deem pertinent.
The department may also take into consideration the actual cost, cost of reproduction new, and cost of reproduction new less depreciation, earning capacity and future prospects of the property, located within the state and all other matters and things deemed pertinent by the department of revenue.
[ 1975 1st ex.s. c 278 s 166; 1961 c 15 s 84.12.300. Prior: 1935 c 123 s 9; 1925 ex.s. c 130 s 44; 1907 c 78 s 8; RRS s 11156-9. Formerly RCW 84.12.060.]
Notes:
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Valuation of interstate utility—Apportionment of system value to state.


title: RCW 84.12.310

text:
For the purpose of determining the system value of the operating property of any such company, the department of revenue shall deduct from the true and fair value of the total assets of such company, the actual cash value of all nonoperating property owned by such company. For such purpose the department of revenue may require of the assessors of the various counties within this state a detailed list of such company's properties assessed by them, together with the assessable or assessed value thereof: PROVIDED, That such assessed or assessable value shall be advisory only and not conclusive on the department of revenue as to the value thereof.
[ 2001 c 187 s 5; 1997 c 3 s 115 (Referendum Bill No. 47, approved November 4, 1997); 1994 c 301 s 21; 1975 1st ex.s. c 278 s 167; 1961 c 15 s 84.12.310. Prior: 1935 c 123 s 10; RRS s 11156-10. Formerly RCW 84.12.070.]
Notes:
Contingent effective date—2001 c 187: See note following RCW 84.70.010.
Application—2001 c 187: See note following RCW 84.40.020.
Application—Severability—Part headings not law—Referral to electorate—1997 c 3: See notes following RCW 84.40.030.
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Deduction of nonoperating property.


title: RCW 84.12.320

text:
Every person, company or companies operating any property in this state as defined in this chapter shall be the representative of every title and interest in the property as owner, lessee or otherwise, and notice to such person shall be notice to all interests in the property for the purpose of assessment and taxation. The assessment and taxation of the property of the company in the name of the owner, lessee or operating company shall be deemed and held an assessment and taxation of all the title and interest in such property of every kind and nature.
[ 1961 c 15 s 84.12.320. Prior: 1935 c 123 s 11; RRS s 11156-11. Formerly RCW 84.12.120.]

catchline: Persons bound by notice.


title: RCW 84.12.330

text:
Upon the assessment roll must be placed after the name of each company a general description of the operating property of the company, which is considered sufficient if described in the language of RCW 84.12.200(8), as applied to the company, following which must be entered the true and fair value of the operating property as determined by the department of revenue. No assessment may be invalidated by reason of a mistake in the name of the company assessed, or the omission of the name of the owner or by the entry as owner of a name other than that of the true owner. When the department of revenue has prepared the assessment roll and entered thereon the true and fair value of the operating property of the company, as herein required, the department must notify the company by mail of the valuation determined by it and entered upon the roll.
[ 2017 c 323 s 530; 2001 c 187 s 6; 1998 c 335 s 3; 1997 c 3 s 116 (Referendum Bill No. 47, approved November 4, 1997); 1994 c 301 s 22; 1975 1st ex.s. c 278 s 168; 1961 c 15 s 84.12.330. Prior: 1935 c 123 s 12; 1925 ex.s. c 130 s 44; 1907 c 78 s 8; 1891 c 140 s 35; 1890 p 543 s 35; RRS s 11156-12. Formerly RCW 84.12.110.]
Notes:
Tax preference performance statement exemption—Automatic expiration date exemption—2017 c 323: See note following RCW 82.04.040.
Contingent effective date—2001 c 187: See note following RCW 84.70.010.
Application—2001 c 187: See note following RCW 84.40.020.
Effective date—1998 c 335: See note following RCW 84.12.200.
Application—Severability—Part headings not law—Referral to electorate—1997 c 3: See notes following RCW 84.40.030.
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Assessment roll—Notice of valuation.


title: RCW 84.12.340

text:
Following the making of an assessment, every company may present a motion for a hearing on the assessment with the department of revenue within the first ten working days of July. The hearing on this motion shall be held within ten working days following the hearing request period. During this hearing, the company may present evidence relating to the value of its operating property and to the value of other taxable property in the counties in which its operating property is situate. Upon request in writing for such hearing, the department shall appoint a time and place therefor, within the period aforesaid, the hearing to be conducted in such manner as the department shall direct. Hearings provided for in this section may be held at such times and in such places throughout the state as the department may deem proper or necessary, may be adjourned from time to time and from place to place and may be conducted by the department of revenue or by such member or members thereof as may be duly delegated to act for it. Testimony taken at this hearing shall be recorded.
[ 1994 c 124 s 14; 1975 1st ex.s. c 278 s 169; 1961 c 15 s 84.12.340. Prior: 1953 c 162 s 1; 1939 c 206 s 20; 1935 c 123 s 13; RRS s 11156-13. Formerly RCW 84.12.130.]
Notes:
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Hearings on assessment, time and place of.


title: RCW 84.12.350

text:
Upon determination by the department of revenue of the true and fair value of the property appearing on such rolls it shall apportion such value to the respective counties entitled thereto, as hereinafter provided, and shall determine the equalized assessed valuation of such property in each such county and in the several taxing districts therein, by applying to such actual apportioned value the same ratio as the ratio of assessed to actual value of the general property in such county: PROVIDED, That, whenever the amount of the true and fair value of the operating property of any company otherwise apportionable to any county or other taxing district shall be less than two hundred fifty dollars, such amount need not be apportioned to such county or taxing district but may be added to the amount apportioned to an adjacent county or taxing district.
[ 2001 c 187 s 7; 1997 c 3 s 117 (Referendum Bill No. 47, approved November 4, 1997); 1994 c 301 s 23; 1967 ex.s. c 26 s 17; 1961 c 15 s 84.12.350. Prior: 1939 c 206 s 21; 1935 c 123 s 14; RRS s 11156-14. Formerly RCW 84.12.140.]
Notes:
Contingent effective date—2001 c 187: See note following RCW 84.70.010.
Application—2001 c 187: See note following RCW 84.40.020.
Application—Severability—Part headings not law—Referral to electorate—1997 c 3: See notes following RCW 84.40.030.
Effective date—1967 ex.s. c 26: See note following RCW 82.01.050.

catchline: Apportionment of value by department of revenue.


title: RCW 84.12.360

text:
The true and fair value of the operating property assessed to a company, as fixed and determined by the department of revenue, shall be apportioned by the department of revenue to the respective counties and to the taxing districts thereof wherein such property is located in the following manner:
(1) Property of all railroad companies other than street railroad companies, telegraph companies and pipe line companies—upon the basis of that proportion of the value of the total operating property within the state which the mileage of track, as classified by the department of revenue (in case of railroads), mileage of wire (in the case of telegraph companies), and mileage of pipe line (in the case of pipe line companies) within each county or taxing district bears to the total mileage thereof within the state, at the end of the calendar year last past. For the purpose of such apportionment the department may classify railroad track.
(2) Property of street railroad companies, telephone companies, electric light and power companies, and gas companies—upon the basis of relative value of the operating property within each county and taxing district to the value of the total operating property within the state to be determined by such factors as the department of revenue shall deem proper.
(3) Planes or other aircraft of airplane companies—upon the basis of such factor or factors of allocation, to be determined by the department of revenue, as will secure a substantially fair and equitable division between counties and other taxing districts.
All other property of airplane companies—upon the basis set forth in subsection (2) of this section.
The basis of apportionment with reference to all public utility companies above prescribed shall not be deemed exclusive and the department of revenue in apportioning values of such companies may also take into consideration such other information, facts, circumstances, or allocation factors as will enable it to make a substantially just and correct valuation of the operating property of such companies within the state and within each county thereof.
[ 2001 c 187 s 8; 1998 c 335 s 4; 1997 c 3 s 118 (Referendum Bill No. 47, approved November 4, 1997); 1994 c 301 s 24; 1987 c 153 s 3; 1975 1st ex.s. c 278 s 170; 1961 c 15 s 84.12.360. Prior: 1955 c 120 s 1; 1935 c 123 s 15; 1925 ex.s. c 130 s 47; 1917 c 25 s 1; 1907 c 78 s 11; 1891 c 140 s 33; 1890 p 541 s 30; RRS s 11156-15. Formerly RCW 84.12.150.]
Notes:
Contingent effective date—2001 c 187: See note following RCW 84.70.010.
Application—2001 c 187: See note following RCW 84.40.020.
Effective date—1998 c 335: See note following RCW 84.12.200.
Application—Severability—Part headings not law—Referral to electorate—1997 c 3: See notes following RCW 84.40.030.
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Basis of apportionment.


title: RCW 84.12.370

text:
When the department of revenue shall have determined the equalized assessed value of the operating property of each company in each of the respective counties and in the taxing districts thereof, as hereinabove provided, the department of revenue shall certify such equalized assessed value to the county assessor of the proper county. The county assessor shall enter the company's real operating property upon the real property tax rolls and the company's personal operating property upon the personal property tax rolls of the county, together with the values so apportioned, and the same shall be and constitute the assessed valuation of the operating property of the company in such county and the taxing districts therein for that year, upon which taxes shall be levied and collected in the same manner as on the general property of such county.
[ 1994 c 301 s 25; 1975 1st ex.s. c 278 s 171; 1961 c 15 s 84.12.370. Prior: 1935 c 123 s 16; RRS s 11156-16. Formerly RCW 84.12.160.]
Notes:
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Certification to county assessor—Entry upon tax rolls.


title: RCW 84.12.380

text:
All property of any company not assessed as operating property under the provisions of this chapter shall be assessed by the assessor of the county wherein the same may be located or situate the same as the general property of the county.
[ 1961 c 15 s 84.12.380. Prior: 1935 c 123 s 17; 1891 c 140 s 34; 1890 p 542 s 33; RRS s 11156-17. Formerly RCW 84.12.180.]

catchline: Assessment of nonoperating property.


title: RCW 84.12.390

text:
The department of revenue shall have the power to make such rules and regulations, not inconsistent herewith, as may be convenient and necessary to enforce and carry out the provisions of this chapter.
[ 1975 1st ex.s. c 278 s 172; 1961 c 15 s 84.12.390. Prior: 1935 c 123 s 18; RRS s 11156-18. Formerly RCW 84.08.070, part.]
Notes:
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Rules and regulations.


title: RCW 84.14.005

text:
(1) The legislature finds:
(a) That in many of Washington's urban centers there is insufficient availability of desirable and convenient residential units, including affordable housing units, to meet the needs of a growing number of the public who would live in these urban centers if these desirable, convenient, attractive, affordable, and livable places to live were available;
(b) That the development of additional and desirable residential units, including affordable housing units, in these urban centers that will attract and maintain a significant increase in the number of permanent residents in these areas will help to alleviate the detrimental conditions and social liability that tend to exist in the absence of a viable mixed income residential population and will help to achieve the planning goals mandated by the growth management act under RCW 36.70A.020; and
(c) That planning solutions to solve the problems of urban sprawl often lack incentive and implementation techniques needed to encourage residential redevelopment in those urban centers lacking a sufficient variety of residential opportunities, and it is in the public interest and will benefit, provide, and promote the public health, safety, and welfare to stimulate new or enhanced residential opportunities, including affordable housing opportunities, within urban centers through a tax incentive as provided by this chapter.
(2) Therefore, the legislature intends to achieve multiple goals by incentivizing the development of multiple-unit housing including creating additional affordable housing, encouraging urban development and density, increasing market rate workforce housing, developing permanently affordable housing opportunities, promoting economic investment and recovery, and creating family-wage jobs.
[ 2021 c 187 s 1; 2007 c 430 s 1; 1995 c 375 s 1.]

catchline: Findings—Intent.


title: RCW 84.14.007

text:
It is the purpose of this chapter to encourage increased residential opportunities, including affordable housing opportunities, in cities that are required to plan or choose to plan under the growth management act within urban centers where the governing authority of the affected city has found there is insufficient housing opportunities, including affordable housing opportunities. It is further the purpose of this chapter to stimulate the construction of new multifamily housing and the rehabilitation of existing vacant and underutilized buildings for multifamily housing in urban centers having insufficient housing opportunities that will increase and improve residential opportunities, including affordable housing opportunities, within these urban centers. To achieve these purposes, this chapter provides for special valuations in residentially deficient urban centers for eligible improvements associated with multiunit housing, which includes affordable housing. It is an additional purpose of this chapter to allow unincorporated areas of rural counties that are within urban growth areas to stimulate housing opportunities and for certain counties to stimulate housing opportunities near college campuses to promote dense, transit-oriented, walkable college communities.
[ 2014 c 96 s 2; 2012 c 194 s 1; 2007 c 430 s 2; 1995 c 375 s 2.]

catchline: Purpose.


title: RCW 84.14.010

text:
The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.
(1) "Affordable housing" means residential housing with monthly costs, including utilities other than telephone, that do not exceed 30 percent of the monthly income of a low-income or moderate-income household.
(2) "Campus facilities master plan" means the area that is defined by the University of Washington as necessary for the future growth and development of its campus facilities for campuses authorized under RCW 28B.45.020.
(3) "City" means either (a) a city or town with a population of at least 15,000, (b) the largest city or town, if there is no city or town with a population of at least 15,000, located in a county planning under the growth management act, (c) a city or town with a population of at least 5,000 located in a county subject to the provisions of RCW 36.70A.215, (d) any city that otherwise does not meet the qualifications under (a) through (c) of this subsection, until December 31, 2031, that complies with RCW 84.14.020(1)(a)(iii) or 84.14.021(1)(b), or (e) for the exemption authorized in RCW 84.14.020(1)(a)(ii)(D), a city or town with a station area.
(4) "Conversion" means the conversion of a nonresidential building, in whole or in part, to multiple-unit housing under this chapter.
(5) "County" means a county with an unincorporated population of at least 170,000.
(6) "Governing authority" means the local legislative authority of a city or a county having jurisdiction over the property for which an exemption may be applied for under this chapter.
(7) "Growth management act" means chapter 36.70A RCW.
(8) "Household" means a single person, family, or unrelated persons living together.
(9) "Low-income household" means a single person, family, or unrelated persons living together whose adjusted income is at or below 80 percent of the median family income adjusted for family size, for the county, city, or metropolitan statistical area, where the project is located, as reported by the United States department of housing and urban development.
(10) "Moderate-income household" means a single person, family, or unrelated persons living together whose adjusted income is more than 80 percent but is at or below 115 percent of the median family income adjusted for family size, for the county, city, or metropolitan statistical area, where the project is located, as reported by the United States department of housing and urban development.
(11) "Multiple-unit housing" means a building or a group of buildings having four or more dwelling units not designed or used as transient accommodations and not including hotels and motels. Multifamily units may result from new construction or rehabilitated or conversion of vacant, underutilized, or substandard buildings to multifamily housing.
(12) "Owner" means the property owner of record.
(13) "Permanent residential occupancy" means multiunit housing that provides either rental or owner occupancy on a nontransient basis. This includes owner-occupied or rental accommodation that is leased for a period of at least one month. This excludes hotels and motels that predominately offer rental accommodation on a daily or weekly basis.
(14) "Rehabilitation improvements" means modifications to existing structures, that are vacant for 12 months or longer, that are made to achieve a condition of substantial compliance with existing building codes or modification to existing occupied structures which increase the number of multifamily housing units.
(15) "Residential targeted area" means an area within an urban center or urban growth area that has been designated by the governing authority as a residential targeted area in accordance with this chapter. With respect to designations after July 1, 2007, "residential targeted area" may not include a campus facilities master plan.
(16) "Station area" has the same meaning as defined in RCW 36.70A.030.
(17) "Substantial compliance" means compliance with local building or housing code requirements that are typically required for rehabilitation as opposed to new construction.
(18) "Urban center" means a compact identifiable district where urban residents may obtain a variety of products and services. An urban center must contain:
(a) Several existing or previous, or both, business establishments that may include but are not limited to shops, offices, banks, restaurants, governmental agencies;
(b) Adequate public facilities including streets, sidewalks, lighting, transit, domestic water, and sanitary sewer systems; and
(c) A mixture of uses and activities that may include housing, recreation, and cultural activities in association with either commercial or office, or both, use.
[ 2025 c 267 s 12; 2025 c 164 s 1; 2024 c 332 s 17; 2021 c 187 s 2; 2017 c 52 s 16; 2014 c 96 s 3. Prior: 2012 c 194 s 2; prior: 2007 c 430 s 3; 2007 c 185 s 1; 2002 c 146 s 1; 2000 c 242 s 1; 1997 c 429 s 40; 1995 c 375 s 3.]
Notes:
Reviser's note: This section was amended by 2025 c 164 s 1 and by 2025 c 267 s 12, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Application—2025 c 267 ss 12-19: "Sections 12 through 19 of this act apply to property taxes levied for collection in 2026 and thereafter." [ 2025 c 267 s 22.]
Findings—2025 c 267: See note following RCW 36.70A.840.
Effective date—2007 c 185: "This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2007." [ 2007 c 185 s 3.]
Severability—1997 c 429: See note following RCW 36.70A.3201.

catchline: Definitions.


title: RCW 84.14.015

text:
The governing authority of a city with a station area must adopt and implement standards and guidelines to be used in considering applications and making the determinations required under RCW 84.14.060. The standards and guidelines must establish basic requirements for both new construction and rehabilitation, which must include:
(1) Application process and procedures;
(2) Income and rent standards for affordable units that meet the requirements of RCW 36.70A.840(7)(a);
(3) Requirements that address demolition of existing structures and site utilization; and
(4) Building requirements that comply with chapter 267, Laws of 2025.
[ 2025 c 267 s 19.]
Notes:
Application—2025 c 267 ss 12-19: See note following RCW 84.14.010.
Findings—2025 c 267: See note following RCW 36.70A.840.


title: RCW 84.14.020

text:
(1)(a) The value of new housing construction, conversion, and rehabilitation improvements qualifying under this chapter is exempt from ad valorem property taxation, as follows:
(i) For properties for which applications for certificates of tax exemption eligibility are submitted under this chapter before July 22, 2007, the value is exempt for 10 successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate;
(ii) For properties for which applications for certificates of tax exemption eligibility are submitted under this chapter on or after July 22, 2007, the value is exempt:
(A) For eight successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate;
(B) For 12 successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate, if the property otherwise qualifies for the exemption under this chapter and meets the conditions in this subsection (1)(a)(ii)(B). For the property to qualify for the 12-year exemption under this subsection, the applicant must commit to renting or selling at least 20 percent of the multifamily housing units as affordable housing units to either low-income or moderate-income households, or both, and the property must satisfy that commitment and any additional affordability and income eligibility conditions adopted by the local government under this chapter. In the case of projects intended exclusively for owner occupancy, the local government must require the applicant to record a covenant or deed restriction that ensures the affordability requirements and other conditions of the exemption are met, and the minimum requirement of this subsection (1)(a)(ii)(B) may be satisfied solely through housing affordable to moderate-income households;
(C) For 20 successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate, if the property otherwise qualifies for the exemption under this chapter and meets the conditions in this subsection (1)(a)(ii)(C). For the property to qualify for the 20-year exemption under this subsection, the project must be located within one mile of high capacity transit of at least 15 minute scheduled frequency, in a city that has implemented a mandatory inclusionary zoning requirement for affordable housing that ensures affordability of housing units for a period of at least 99 years and that has a population of at least 15,000. To qualify for the exemption provided in this subsection (1)(a)(ii)(C), the applicant must commit to renting at least 20 percent of the dwelling units as affordable to low-income households for a term of at least 99 years, and the property must satisfy that commitment and all required affordability and income eligibility conditions adopted by the local government under this chapter. A city must require the applicant to record a covenant or deed restriction that ensures the continuing rental of units subject to these affordability requirements consistent with the conditions in this subsection (1)(a)(ii)(C) for a period of no less than 99 years. The covenant or deed restriction must also address criteria and policies to maintain public benefit if the property is converted to a use other than which continues to provide for permanently affordable low-income housing consistent with this subsection (1)(a)(ii)(C). This exemption does not apply in tax increment financing areas in effect prior to June 2, 2026; or
(D) For 20 successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate, if the property is located fully or partially with [within] a station area of a city and meets the affordability requirements in RCW 36.70A.840(7)(a). A county may approve an exemption under this subsection for multifamily residential housing within a station area if the property otherwise qualifies for the exemption under this chapter and meets the density requirements in RCW 36.70A.840(2)(a) and affordability requirements in RCW 36.70A.840(7)(a). A city or county must require the applicant to record a covenant or deed restriction that ensures the continuing rental or ownership of units subject to the affordability requirements in RCW 36.70A.840(7)(a) for a period of no less than 50 years. The covenant or deed restriction must also address criteria and policies to maintain public benefit if the property is converted to a use other than one which continues to provide for permanently affordable low-income housing consistent with RCW 36.70A.840(7)(a). This exemption does not apply in tax increment financing areas in effect prior to June 2, 2026; and
(iii) Until December 31, 2026, for a city as defined in RCW 84.14.010(3)(d), for 12 successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate, if the property otherwise qualifies for the exemption under this chapter and meets the conditions in this subsection (1)(a)(iii). For the property to qualify for the 12-year exemption under this subsection, the applicant must commit to renting or selling at least 20 percent of the multifamily housing units as affordable housing units to either low-income or moderate-income households, or both, the property must satisfy that commitment and any additional affordability and income eligibility conditions adopted by the local government under this chapter, and the area must be zoned to have an average minimum density equivalent to 15 dwelling units or more per gross acre. In the case of projects intended exclusively for owner occupancy, the minimum requirement of this subsection (1)(a)(iii) may be satisfied solely through housing affordable to either low-income or moderate-income households, or both.
(b) The exemptions provided in (a)(i) through (iii) of this subsection do not include the value of land or nonhousing-related improvements not qualifying under this chapter.
(c) For properties receiving an exemption as provided in (a)(ii)(B) of this subsection that are in compliance with existing contracts and where the certificate of tax exemption is set to expire after June 11, 2020, but before December 31, 2021, the exemption is extended until December 31, 2021, provided that the property must satisfy any eligibility criteria or limitations provided in this chapter as a condition to the existing exemption for a given property continue to be met. For all properties eligible to receive an extension pursuant to this subsection (1)(c), the city or county that issued the initial certificate of tax exemption, as required in RCW 84.14.090, must notify the county assessor and the applicant of the extension of the certificate of tax exemption.
(d) A county subject to the criteria for a residential targeted area in RCW 84.14.040(1)(d)(ii) may not approve a certificate of tax exemption eligibility for the eight-year exemption authorized under (a)(ii)(A) of this subsection (1).
(2) When a local government adopts guidelines pursuant to RCW 84.14.030(2) and includes conditions that must be satisfied with respect to individual dwelling units, rather than with respect to the multiple-unit housing as a whole or some minimum portion thereof, the exemption may, at the local government's discretion, be limited to the value of the qualifying improvements allocable to those dwelling units that meet the local guidelines.
(3) In the case of rehabilitation of existing buildings, the exemption does not include the value of improvements constructed prior to the submission of the application required under this chapter. The incentive provided by this chapter is in addition to any other incentives, tax credits, grants, or other incentives provided by law.
(4) This chapter does not apply to increases in assessed valuation made by the assessor on nonqualifying portions of building and value of land nor to increases made by lawful order of a county board of equalization, the department of revenue, or a county, to a class of property throughout the county or specific area of the county to achieve the uniformity of assessment or appraisal required by law.
(5) At the conclusion of the exemption period, the value of the new housing construction, conversion, or rehabilitation improvements must be considered as new construction for the purposes of chapters 84.55 and 36.21 RCW as though the property was not exempt under this chapter.
(6) For properties that qualified for, satisfied the conditions of, and utilized the exemption under subsection (1)(a)(ii)(A) or (B) of this section, following the initial exemption period or the extension period authorized in subsection (1)(c) of this section, the exemption period may be extended for an additional 12 years for projects that are within 18 months of expiration contingent on city or county approval. For the property to qualify for an extension under this subsection (6), the applicant must meet at a minimum the locally adopted requirements for the property to qualify for an exemption under subsection (1)(a)(ii)(B) of this section as applicable at the time of the extension application, and the applicant commits to renting or selling at least 20 percent of the multifamily housing units as affordable housing units for low-income households.
(7) At the end of both the 10th and 11th years of an extension, for 12-year extensions of the exemption, applicants must provide tenants of rent-restricted units with notification of intent to provide the tenant with rental relocation assistance as provided in subsection (8) of this section.
(8)(a) Except as provided in (b) of this subsection, for any 12-year exemption authorized under subsection (1)(a)(ii)(B) or (iii) of this section after July 25, 2021, or for any 12-year exemption extension authorized under subsection (6) of this section, at the expiration of the exemption the applicant must provide tenant relocation assistance in an amount equal to one month's rent to a qualified tenant within the final month of the qualified tenant's lease. To be eligible for tenant relocation assistance under this subsection, the tenant must occupy an income-restricted unit at the time the exemption expires and must qualify as a low-income household under this chapter at the time relocation assistance is sought.
(b) If affordability requirements consistent, at a minimum, with those required under subsection (1)(a)(ii)(B) or (iii) of this section remain in place for the unit after the expiration of the exemption, relocation assistance in an amount equal to one month's rent must be provided to a qualified tenant within the final month of a qualified tenant's lease who occupies an income-restricted unit at the time those additional affordability requirements cease to apply to the unit.
(9) For compliance with the affordability requirements of subsection (1)(a)(ii)(B) or (C) or (a)(iii) of this section, a low-income or moderate-income household that initially qualifies for an income-restricted rental unit may continue to qualify as low-income or moderate-income until their adjusted household income exceeds 150 percent of the established income limit.
(10) No new exemptions may be provided under this section beginning on or after January 1, 2032. No extensions may be granted under subsection (6) of this section on or after January 1, 2046.
[ 2026 c 141 s 6. Prior: 2025 c 267 s 13; 2025 c 164 s 2; 2021 c 187 s 3; 2020 c 237 s 2; 2007 c 430 s 4; 2002 c 146 s 2; 1999 c 132 s 1; 1995 c 375 s 5.]
Notes:
Modification—Impact—Effective date—2026 c 141: See notes following RCW 39.114.010.
Application—2025 c 267 ss 12-19: See note following RCW 84.14.010.
Findings—2025 c 267: See note following RCW 36.70A.840.
Tax preference performance statement—2021 c 187 s 3: "(1) This section is the tax preference performance statement for the tax preferences contained in section 3, chapter 187, Laws of 2021. This performance statement is only intended to be used for subsequent evaluation of the tax preferences. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes these tax preferences as ones intended to induce certain designated behavior by taxpayers, as indicated in RCW 82.32.808(2)(a).
(3) It is the legislature's specific public policy objective to:
(a) Incentivize developers to construct or rehabilitate multifamily housing;
(b) Incentivize local governments and multifamily housing owners to maintain or expand existing income-restricted unit stock that have been incentivized through the tax exemption provided under chapter 84.14 RCW via new authority to renew the property tax abatement in exchange for continued or additional affordability; and
(c) Further encourage multifamily construction in cities and certain unincorporated urban growth areas by expanding access to the multifamily tax exemption program to a broader set of jurisdictions.
(4) It is the legislature's intent to provide the value of new housing construction, conversion, and rehabilitation improvements qualifying under chapter 84.14 RCW an exemption from ad valorem property taxation for eight to 12 years or more, as provided for in RCW 84.14.020, in order to provide incentives to developers to construct or rehabilitate multifamily housing thereby increasing the number of affordable housing units, or preserving the state's stock of income-restricted units, for low-income to moderate-income residents in certain urban growth areas.
(5) The legislature intends to extend the expiration date of the tax preferences in section 3, chapter 187, Laws of 2021, if a review finds that:
(a) Projects receiving an initial eight-year or 12-year exemption regularly enter into subsequent 12-year extensions in exchange for continued or increased income restrictions on affordable units; and
(b) At least 20 percent of the new housing is developed and occupied by households earning:
(i) At or below 80 percent of the area median income, at the time of occupancy, adjusted for family size for the county in which the project is located; or
(ii) Where the housing is intended exclusively for owner occupancy, up to 115 percent of the area median income, at the time of sale, adjusted for family size for the county in which the project is located.
(6) In order to obtain the data necessary to perform the review in subsection (4) [(5)] of this section, the joint legislative audit and review committee must refer to the annual reports compiled by the department of commerce under RCW 84.14.100 and may refer to data provided by counties or cities in which persons are utilizing the preferences, the office of financial management, the department of commerce, the United States department of housing and urban development, and any other data sources, as needed by the joint legislative audit and review committee." [ 2021 c 187 s 6.]
Tax preference performance statement—2020 c 237 s 2: "(1) This section is the tax preference performance statement for the tax preferences contained in section 2, chapter 237, Laws of 2020. This performance statement is only intended to be used for subsequent evaluation of the tax preferences. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes these tax preferences as ones intended to induce certain designated behavior by taxpayers, as indicated in RCW 82.32.808(2)(a).
(3) It is the legislature's specific public policy objective to incentivize local governments and multifamily housing owners to maintain or expand existing income-restricted unit stock that have been incentivized through the tax exemption provided under chapter 84.14 RCW.
(4) It is the legislature's intent to provide the value of new housing construction, conversion, and rehabilitation improvements qualifying under chapter 84.14 RCW an exemption from ad valorem property taxation for eight to twelve years or more, as provided for in RCW 84.14.020, in order to provide incentives to developers to construct or rehabilitate multifamily housing thereby increasing the number of affordable housing units, or preserving the state's stock of income-restricted units, for low-income to moderate-income residents in certain urban growth areas.
(5) The legislature intends to extend the tax preferences in section 2, chapter 237, Laws of 2020, if a review finds that the stock of income-restricted units in the state is preserved as a result of the extensions provided in RCW 84.14.020(1)(c).
(6) In order to obtain the data necessary to perform the review in subsection (5) of this section, the joint legislative audit and review committee must refer to the annual reports compiled by the department of commerce under RCW 84.14.100 and may refer to data provided by counties or cities in which persons are utilizing the preferences, the office of financial management, the department of commerce, the United States department of housing and urban development, and any other data sources, as needed by the joint legislative audit and review committee." [ 2020 c 237 s 1.]


title: RCW 84.14.021

text:
(1)(a) The value of new housing construction, conversion, and rehabilitation improvements qualifying under this chapter is exempt from ad valorem property taxation, as follows: For 20 successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate, if the property otherwise qualifies for the exemption under this chapter and meets the conditions in this section. For the property to qualify for the 20-year exemption under this section, at least 25 percent of the units must be built by or sold to a qualified nonprofit or local government that will assure permanent affordable homeownership. The remaining 75 percent of units may be rented or sold at market rates.
(b) Until December 31, 2031, for a city as defined in RCW 84.14.010(3)(d), in any city the value of new housing construction, conversion, and rehabilitation improvements qualifying under this chapter is exempt from ad valorem property taxation, as follows: For 20 successive years beginning January 1st of the year immediately following the calendar year of issuance of the certificate, if the property otherwise qualifies for the exemption under this chapter and meets the conditions in this section. For the property to qualify for the 20-year exemption under this section, at least 25 percent of the units must be sold to a qualified nonprofit or local government partner that will assure permanent affordable homeownership. The remaining 75 percent of units may be rented or sold at market rates. The area must be zoned to have an average minimum density equivalent to 15 dwelling units or more per gross acre.
(2) Permanently affordable homeownership units or permanently affordable rental units must be sold or rented to low-income households.
(3) A local jurisdiction may assign and collect an administration fee at each point of sale to cover the administrative costs for oversight of the program to maintain permanently affordable housing units consistent with this section.
(4) The exemptions in this section do not include the value of land or nonhousing-related improvements not qualifying under this chapter.
(5) At the conclusion of the exemption period, the value of the new housing construction, conversion, or rehabilitation improvements must be considered as new construction for the purposes of chapters 84.55 and 36.21 RCW as though the property was not exempt under this chapter.
(6) For purposes of this section, "permanently affordable homeownership" means homeownership that, in addition to meeting the definition of "affordable housing" in RCW 43.185A.010, is:
(a) Sponsored by a nonprofit organization or governmental entity;
(b) Subject to a ground lease or deed restriction that includes:
(i) A resale restriction designed to provide affordability for future low and moderate-income homebuyers;
(ii) A right of first refusal for the sponsor organization to purchase the home at resale; and
(iii) A requirement that the sponsor must approve any refinancing, including home equity lines of credit; and
(c) Sponsored by a nonprofit organization or governmental entity and the sponsor organization:
(i) Executes a new ground lease or deed restriction with a duration of at least 99 years at the initial sale and with each successive sale; and
(ii) Supports homeowners and enforces the ground lease or deed restriction.
(7) The department of commerce must develop a template for permanent affordability for home or condo ownership through deed restrictions that can be used by a city or local government to ensure compliance with this section.
(8) No new exemptions may be provided under this section beginning on or after January 1, 2032.
[ 2025 c 164 s 3; 2021 c 187 s 7.]
Notes:
Tax preference performance statement—2021 c 187 s 7: "(1) This section is the tax preference performance statement for the tax preference contained in section 7, chapter 187, Laws of 2021. This performance statement is only intended to be used for subsequent evaluation of the tax preferences. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(2) The legislature categorizes these tax preferences as ones intended to induce certain designated behavior by taxpayers, as indicated in RCW 82.32.808(2)(a).
(3) It is the legislature's specific public policy objective to incentivize developers to construct or rehabilitate permanently affordable homeownership units.
(4) It is the legislature's intent to provide the value of new housing construction, conversion, and rehabilitation improvements qualifying under chapter 84.14 RCW an exemption from ad valorem property taxation for 20 years, as provided for in section 7 of this act, in order to provide incentives to developers to construct or rehabilitate multifamily housing thereby increasing the number of permanently affordable homeownership units.
(5) The legislature intends to extend the expiration date of the tax preferences in section 7, chapter 187, Laws of 2021, if a review finds that:
(a) The number of local governments utilizing the permanently affordable homeownership tax exemption program authorized in section 7 of this act increases over time;
(b) The number of permanently affordable homeownership units increases; and
(c) The income level of those households benefiting from the permanently affordable homeownership units is consistent with the requirements of section 7 of this act.
(6) In order to obtain the data necessary to perform the review in subsection (5) of this section, the joint legislative audit and review committee must refer to the annual reports compiled by the department of commerce under RCW 84.14.100 and may refer to data provided by counties or cities in which persons are utilizing the preferences, the office of financial management, the department of commerce, the United States department of housing and urban development, and any other data sources, as needed by the joint legislative audit and review committee." [ 2021 c 187 s 8.]


title: RCW 84.14.030

text:
An owner of property making application under this chapter must meet the following requirements:
(1) The new or rehabilitated multiple-unit housing must be:
(a) Located in a residential targeted area as designated by the city or county; or
(b) Be located fully or partially within a station area if applying under RCW 84.14.020(1)(a)(ii)(D);
(2) The multiple-unit housing must meet guidelines as adopted by the governing authority that may include height, density, public benefit features, number and size of proposed development, parking, income limits for occupancy, limits on rents or sale prices, and other adopted requirements indicated necessary by the city or county. The required amenities should be relative to the size of the project and tax benefit to be obtained;
(3) The new, converted, or rehabilitated multiple-unit housing must provide for a minimum of fifty percent of the space for permanent residential occupancy. In the case of existing occupied multifamily development, the multifamily housing must also provide for a minimum of four additional multifamily units. Existing multifamily vacant housing that has been vacant for twelve months or more does not have to provide additional multifamily units;
(4) New construction multifamily housing and rehabilitation improvements must be completed within three years from the date of approval of the application, plus any extension authorized under RCW 84.14.090(5);
(5) Property proposed to be rehabilitated must fail to comply with one or more standards of the applicable state or local building or housing codes on or after July 23, 1995. If the property proposed to be rehabilitated is not vacant, an applicant must provide each existing tenant housing of comparable size, quality, and price and a reasonable opportunity to relocate; and
(6) The applicant must enter into a contract with the city or county approved by the governing authority, or an administrative official or commission authorized by the governing authority, under which the applicant has agreed to the implementation of the development on terms and conditions satisfactory to the governing authority.
[ 2025 c 267 s 14; 2021 c 187 s 9; 2012 c 194 s 3; 2007 c 430 s 5; 2005 c 80 s 1; 1997 c 429 s 42; 1995 c 375 s 6.]
Notes:
Application—2025 c 267 ss 12-19: See note following RCW 84.14.010.
Findings—2025 c 267: See note following RCW 36.70A.840.
Severability—1997 c 429: See note following RCW 36.70A.3201.

catchline: Application—Requirements.


title: RCW 84.14.040

text:
(1) The following criteria must be met before an area may be designated as a residential targeted area:
(a) The area must be within an urban center, as determined by the governing authority;
(b) The area must lack, as determined by the governing authority, sufficient available, desirable, and convenient residential housing, including affordable housing, to meet the needs of the public who would be likely to live in the urban center, if the affordable, desirable, attractive, and livable places to live were available;
(c) The providing of additional housing opportunity, including affordable housing, in the area, as determined by the governing authority, will assist in achieving one or more of the stated purposes of this chapter;
(d) If the residential targeted area is designated by a county, the area must be located in an unincorporated area of the county that is within an urban growth area under RCW 36.70A.110 and the area must be: (i) In a county that includes a campus of an institution of higher education, as defined in RCW 28B.92.030, where at least 1,200 students live on campus during the academic year; or (ii) in a county seeking to promote transit supportive densities and efficient land use in an area that is located within a designated urban growth area and within 0.5 miles of a corridor where bus service is scheduled at least 10 times per day in each direction and is in service or is planned for service to begin within five years of designation in a transit development plan as required under RCW 35.58.2795;
(e) For a residential targeted area designated by a county after July 25, 2021, the county governing authority must conduct an evaluation of the risk of potential displacement of residents currently living in the area if the tax incentives authorized in this chapter were to be used in the area. The county may use an existing analysis if one exists. An area may not be designated as a residential targeted area unless: (i) The evaluation finds that the risk of displacement is minimal; or (ii) the governing authority mitigates the risk of displacement with locally adopted mitigation measures such as, but not limited to, ensuring that those directly or indirectly displaced have a first right of refusal to occupy the newly created dwelling units receiving an exemption under this chapter, including the affordable units if they otherwise meet the qualifications; and
(f) For a residential targeted area designated by a city after July 27, 2025, the city must determine that designation of the area is in compliance with the antidisplacement requirements in RCW 36.70A.070(2).
(2) For the purpose of designating a residential targeted area or areas, the governing authority may adopt a resolution of intention to so designate an area as generally described in the resolution. The resolution must state the time and place of a hearing to be held by the governing authority to consider the designation of the area and may include such other information pertaining to the designation of the area as the governing authority determines to be appropriate to apprise the public of the action intended.
(3) The governing authority must give notice of a hearing held under this chapter by publication of the notice once each week for two consecutive weeks, not less than seven days, nor more than 30 days before the date of the hearing in a paper having a general circulation in the city or county where the proposed residential targeted area is located. The notice must state the time, date, place, and purpose of the hearing and generally identify the area proposed to be designated as a residential targeted area. The governing authority must send a copy of the notice to all taxing districts in the proposed residential targeted area.
(4) Following the hearing, or a continuance of the hearing, the governing authority may designate all or a portion of the area described in the resolution of intent as a residential targeted area if it finds, in its sole discretion, that the criteria in subsections (1) through (3) of this section have been met.
(5) After designation of a residential targeted area, the governing authority must adopt and implement standards and guidelines to be utilized in considering applications and making the determinations required under RCW 84.14.060. The standards and guidelines must establish basic requirements for both new construction and rehabilitation, which must include:
(a) Application process and procedures;
(b) Income and rent standards for affordable units;
(c) Requirements that address demolition of existing structures and site utilization; and
(d) Building requirements that may include elements addressing parking, height, density, environmental impact, and compatibility with the existing surrounding property and such other amenities as will attract and keep permanent residents and that will properly enhance the livability of the residential targeted area in which they are to be located.
(6)(a) The governing authority may adopt and implement, either as conditions to eight-year exemptions or as conditions to an extended exemption period under RCW 84.14.020(1)(a)(ii) (B) or (C), or as conditions to any combination of exemptions authorized under this chapter, more stringent income eligibility, rent, or sale price limits, including limits that apply to a higher percentage of units, than the minimum conditions for an extended exemption period under RCW 84.14.020(1)(a)(ii) (B) or (C).
(b) Additionally, a governing authority may adopt and implement as a contractual prerequisite to any exemption granted pursuant to RCW 84.14.020:
(i) A requirement that applicants pay at least the prevailing rate of hourly wage established under chapter 39.12 RCW for journey level and apprentice workers on residential and commercial construction;
(ii) Payroll record requirements consistent with RCW 39.12.120(1);
(iii) Apprenticeship utilization requirements consistent with RCW 39.04.310; and
(iv) A contracting inclusion plan developed in consultation with the office of minority and women's business enterprises.
(7) For any multiunit housing located in an unincorporated area of a county, a property owner seeking tax incentives under this chapter must commit to renting or selling at least 20 percent of the multifamily housing units as affordable housing units to either low-income or moderate-income households, or both. In the case of multiunit housing intended exclusively for owner occupancy, the minimum requirement of this subsection (7) may be satisfied solely through housing affordable to moderate-income households.
(8) Nothing in this section prevents a governing authority from adopting and implementing additional requirements to any exemption granted under RCW 84.14.020.
(9) Before changing any adopted standards, guidelines, requirements, or conditions under subsections (5) and (6) of this section, the governing authority must notify all taxing districts in the residential targeted area of the proposed changes.
[ 2025 c 164 s 4; 2021 c 187 s 4; 2014 c 96 s 4; 2012 c 194 s 4; 2007 c 430 s 6; 1995 c 375 s 7.]
Notes:
Tax preference performance statement—2014 c 96: "This section is the tax preference performance statement for the tax preference contained in RCW 84.14.040 and 84.14.060. This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.
(1) The legislature categorizes this tax preference as one intended to induce certain designated behavior by taxpayers, as indicated in RCW 82.32.808(2)(a).
(2) It is the legislature's specific public policy objective to stimulate the construction of new multifamily housing in urban growth areas located in unincorporated areas of rural counties where housing options, including affordable housing options, are severely limited. It is the legislature's intent to provide the value of new housing construction, conversion, and rehabilitation improvements qualifying under chapter 84.14 RCW an exemption from ad valorem property taxation for eight to twelve years, as provided for in RCW 84.14.020, in order to provide incentives to developers to construct new multifamily housing thereby increasing the number of affordable housing units for low to moderate-income residents in certain rural counties.
(3) If a review finds that at least twenty percent of the new housing is developed and occupied by households making at or below eighty percent of the area median income, at the time of occupancy, adjusted for family size for the county where the project is located or where the housing is intended exclusively for owner occupancy, the household may earn up to one hundred fifteen percent of the area median income, at the time of sale, adjusted for family size for the county where the project is located, then the legislature intends to extend the expiration date of the tax preference.
(4) In order to obtain the data necessary to perform the review in subsection (3) of this section, the joint legislative audit and review committee may refer to data provided by counties in which beneficiaries are utilizing the preference, the office of financial management, the department of commerce, the United States department of housing and urban development, and other data sources as needed by the joint legislative audit and review committee." [ 2014 c 96 s 1.]

catchline: Designation of residential targeted area—Criteria—Local designation—Hearing—Standards, guidelines.


title: RCW 84.14.050

text:
An owner of property seeking tax incentives under this chapter must complete the following procedures:
(1) In the case of rehabilitation or where demolition or new construction is required, the owner must secure from the governing authority or duly authorized representative, before commencement of rehabilitation improvements or new construction, verification of property noncompliance with applicable building and housing codes;
(2) In the case of new and rehabilitated multifamily housing, the owner must apply to the city or county on forms adopted by the governing authority. The application must contain the following:
(a) Information setting forth the grounds supporting the requested exemption including information indicated on the application form or in the guidelines;
(b) A description of the project and site plan, including the floor plan of units and other information requested;
(c) A statement that the applicant is aware of the potential tax liability involved when the property ceases to be eligible for the incentive provided under this chapter;
(3) The applicant must verify the application by oath or affirmation; and
(4) The application must be accompanied by the application fee, if any, required under RCW 84.14.080. The governing authority may permit the applicant to revise an application before final action by the governing authority.
[ 2012 c 194 s 5; 2007 c 430 s 7; 1999 c 132 s 2; 1997 c 429 s 43; 1995 c 375 s 8.]
Notes:
Severability—1997 c 429: See note following RCW 36.70A.3201.

catchline: Application—Procedures.


title: RCW 84.14.060

text:
(1) The duly authorized administrative official or committee of the city or county may approve the application if it finds that:
(a) A minimum of four new units are being constructed or in the case of occupied rehabilitation or conversion a minimum of four additional multifamily units are being developed;
(b) If applicable, the proposed multiunit housing project meets the affordable housing requirements as described in this chapter;
(c) The proposed project is or will be, at the time of completion, in conformance with all local plans and regulations that apply at the time the application is approved;
(d) The owner has complied with all standards and guidelines adopted by the city or county under this chapter and, if applicable, RCW 36.70A.840; and
(e) The site is located in a residential targeted area of an urban center or urban growth area that has been designated by the governing authority in accordance with procedures and guidelines indicated in RCW 84.14.040, or is located fully or partially within a station area if applying under RCW 84.14.020(1)(a)(ii)(D).
(2) An application may not be approved after July 1, 2007, if any part of the proposed project site is within a campus facilities master plan, except as provided in RCW 84.14.040(1)(d).
[ 2025 c 267 s 15; 2025 c 164 s 5; 2014 c 96 s 5; 2012 c 194 s 6. Prior: 2007 c 430 s 8; 2007 c 185 s 2; 1995 c 375 s 9.]
Notes:
Reviser's note: This section was amended by 2025 c 164 s 5 and by 2025 c 267 s 15, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Application—2025 c 267 ss 12-19: See note following RCW 84.14.010.
Findings—2025 c 267: See note following RCW 36.70A.840.
Tax preference performance statement—2014 c 96: See note following RCW 84.14.040.
Effective date—2007 c 185: See note following RCW 84.14.010.

catchline: Approval—Required findings.


title: RCW 84.14.070

text:
(1) The governing authority or an administrative official or commission authorized by the governing authority must approve or deny an application filed under this chapter within 90 days after receipt of the application.
(2) If the application is approved, the city or county must issue the owner of the property a conditional certificate of acceptance of tax exemption and submit a copy of the certificate to the county assessor. The certificate must contain a statement by a duly authorized administrative official of the governing authority that the property has complied with the required findings indicated in RCW 84.14.060.
(3) If the application is denied by the authorized administrative official or commission authorized by the governing authority, the deciding administrative official or commission must state in writing the reasons for denial and send the notice to the applicant at the applicant's last known address within 10 days of the denial.
(4) Upon denial by a duly authorized administrative official or commission, an applicant may appeal the denial to the governing authority within 30 days after receipt of the denial. The appeal before the governing authority must be based upon the record made before the administrative official with the burden of proof on the applicant to show that there was no substantial evidence to support the administrative official's decision. The decision of the governing body in denying or approving the application is final.
[ 2025 c 164 s 6; 2012 c 194 s 7; 1995 c 375 s 10.]

catchline: Processing—Approval—Denial—Appeal.


title: RCW 84.14.080

text:
The governing authority may establish an application fee. This fee may not exceed an amount determined to be required to cover the cost to be incurred by the governing authority and the assessor in administering this chapter. The application fee must be paid at the time the application for limited exemption is filed. If the application is approved, the governing authority shall pay the application fee to the county assessor for deposit in the county current expense fund, after first deducting that portion of the fee attributable to its own administrative costs in processing the application. If the application is denied, the governing authority may retain that portion of the application fee attributable to its own administrative costs and refund the balance to the applicant.
[ 1995 c 375 s 11.]

catchline: Fees.


title: RCW 84.14.090

text:
(1) Upon completion of rehabilitation or new construction for which an application for a limited tax exemption under this chapter has been approved and after issuance of the certificate of occupancy, the owner must file with the city or county the following:
(a) A statement of the amount of rehabilitation or construction expenditures made with respect to each housing unit and the composite expenditures made in the rehabilitation or construction of the entire property;
(b) A description of the work that has been completed and a statement that the rehabilitation improvements or new construction on the owner's property qualify the property for limited exemption under this chapter;
(c) If applicable, a statement that the project meets the affordable housing requirements as described in this chapter; and
(d) A statement that the work has been completed within three years of the issuance of the conditional certificate of tax exemption.
(2) Within 30 days after receipt of the statements required under subsection (1) of this section, the authorized representative of the city or county must determine whether the work completed, and the affordability of the units, is consistent with the application and the contract approved by the city or county and is qualified for a limited tax exemption under this chapter. The city or county must also determine which specific improvements completed meet the requirements and required findings.
(3) If the rehabilitation, conversion, or construction is completed within three years of the date the application for a limited tax exemption is filed under this chapter, or within an authorized extension of this time limit, and the authorized representative of the city or county determines that improvements were constructed consistent with the application and other applicable requirements, including if applicable, affordable housing requirements, and the owner's property is qualified for a limited tax exemption under this chapter, the city or county must file the certificate of tax exemption with the county assessor within 10 days of the expiration of the 30-day period provided under subsection (2) of this section.
(4) The authorized representative of the city or county must notify the applicant that a certificate of tax exemption is not going to be filed if the authorized representative determines that:
(a) The rehabilitation or new construction was not completed within three years of the application date, or within any authorized extension of the time limit;
(b) The improvements were not constructed consistent with the application or other applicable requirements;
(c) If applicable, the affordable housing requirements as described in this chapter were not met; or
(d) The owner's property is otherwise not qualified for limited exemption under this chapter.
(5) If the authorized representative of the city or county finds that construction or rehabilitation of multiple-unit housing was not completed within the required time period due to circumstances beyond the control of the owner and that the owner has been acting and could reasonably be expected to act in good faith and with due diligence, the governing authority or the city or county official authorized by the governing authority may extend the deadline for completion of construction or rehabilitation for a period not to exceed 24 consecutive months. For preliminary or final applications submitted on or before February 15, 2020, with any outstanding application requirements, such as obtaining a temporary certificate of occupancy, the city or county may choose to extend the deadline for completion for an additional five years. The five-year extension begins immediately following the completion of any outstanding applications or previously authorized extensions, whichever is later.
(6) The governing authority may provide by ordinance for an appeal of a decision by the deciding officer or authority that an owner is not entitled to a certificate of tax exemption to the governing authority, a hearing examiner, or other city or county officer authorized by the governing authority to hear the appeal in accordance with such reasonable procedures and time periods as provided by ordinance of the governing authority. The owner may appeal a decision by the deciding officer or authority that is not subject to local appeal or a decision by the local appeal authority that the owner is not entitled to a certificate of tax exemption in superior court under RCW 34.05.510 through 34.05.598, if the appeal is filed within 30 days of notification by the city or county to the owner of the decision being challenged.
[ 2025 c 267 s 16; 2021 c 187 s 10; 2012 c 194 s 8; 2007 c 430 s 9; 1995 c 375 s 12.]
Notes:
Application—2025 c 267 ss 12-19: See note following RCW 84.14.010.
Findings—2025 c 267: See note following RCW 36.70A.840.

catchline: Filing requirements for owner upon completion—Determination by city or county—Notice of intention by city or county not to file—Extension of deadline—Appeal.


title: RCW 84.14.100

text:
(1) Thirty days after the anniversary of the date of the certificate of tax exemption and each year for the tax exemption period, the owner of the rehabilitated or newly constructed property, or the qualified nonprofit or local government that will assure permanent affordable homeownership for at least 25 percent of the units for properties receiving an exemption under RCW 84.14.021, must file with a designated authorized representative of the city or county an annual report indicating the following:
(a) A statement of occupancy and vacancy of the rehabilitated or newly constructed property during the 12 months ending with the anniversary date;
(b) A certification by the owner that the property has not changed use and, if applicable, that the property has been in compliance with the affordable housing requirements as described in this chapter since the date of the certificate approved by the city or county;
(c) A description of changes or improvements constructed after issuance of the certificate of tax exemption; and
(d) Any additional information requested by the city or county in regards to the units receiving a tax exemption.
(2) All cities or counties, which issue certificates of tax exemption for multiunit housing that conform to the requirements of this chapter, must report annually by April 1st of each year, beginning in 2007, to the department of commerce. A city or county must be in compliance with the reporting requirements of this section to offer certificates of tax exemption for multiunit housing authorized in this chapter. The report must include the following information:
(a) The number of tax exemption certificates granted;
(b) The total number and type of units produced or to be produced;
(c) The number, size, and type of units produced or to be produced meeting affordable housing requirements;
(d) The actual development cost of each unit produced;
(e) The total monthly rent or total sale amount of each unit produced;
(f) The annual household income and household size for each of the affordable units receiving a tax exemption and a summary of these figures for the city or county;
(g) An analysis of the affordable units produced or to be produced, including unit size, number of bedrooms, and income requirements, and how the units will support the existing and projected housing needs identified under RCW 36.70A.070(2)(a); and
(h) The value of the tax exemption for each project receiving a tax exemption and the total value of tax exemptions granted.
(3)(a) The department of commerce must adopt and implement a program to effectively audit or review that the owner or operator of each property for which a certificate of tax exemption has been issued, except for those properties receiving an exemption that are owned or operated by a nonprofit or for those properties receiving an exemption from a city or county that operates an independent audit or review program, is offering the number of units at rents as committed to in the approved application for an exemption and that the tenants are being properly screened to be qualified for an income-restricted unit. The audit or review program must be adopted in consultation with local governments and other stakeholders and may be based on auditing a percentage of income-restricted units or properties annually. A private owner or operator of a property for which a certificate of tax exemption has been issued under this chapter, must be audited at least once every five years.
(b) If the review or audit required under (a) of this subsection for a given property finds that the owner or operator is not offering the number of units at rents as committed to in the approved application or is not properly screening tenants for income-restricted units, the department of commerce must notify the city or county and the city or county must impose and collect a sliding scale penalty not to exceed an amount calculated by subtracting the amount of rents that would have been collected had the owner or operator complied with their commitment from the amount of rents collected by the owner or operator for the income-restricted units, with consideration of the severity of the noncompliance. If a subsequent review or audit required under (a) of this subsection for a given property finds continued substantial noncompliance with the program requirements, the exemption certificate must be canceled pursuant to RCW 84.14.110(1)(a).
(c) The department of commerce may impose and collect a fee, not to exceed the costs of the audit or review, from the owner or operator of any property subject to an audit or review required under (a) of this subsection.
(4) The department of commerce must provide guidance to cities and counties, which issue certificates of tax exemption for multiunit housing that conform to the requirements of this chapter, on best practices in managing and reporting for the exemption programs authorized under this chapter, including guidance for cities and counties to collect and report demographic information for tenants of units receiving a tax exemption under this chapter.
(5) This section expires January 1, 2058.
[ 2025 c 267 s 17; 2025 c 164 s 7; 2021 c 187 s 5; 2012 c 194 s 9; 2007 c 430 s 10; 1995 c 375 s 13.]
Notes:
Reviser's note: This section was amended by 2025 c 164 s 7 and by 2025 c 267 s 17, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Application—2025 c 267 ss 12-19: See note following RCW 84.14.010.
Findings—2025 c 267: See note following RCW 36.70A.840.

catchline: Report—Filing—Department of commerce audit or review—Guidance to cities and counties. (Expires January 1, 2058.)


title: RCW 84.14.110

text:
(1) If improvements have been exempted under this chapter, the improvements continue to be exempted for the applicable period under RCW 84.14.020, so long as they are not converted to another use and continue to satisfy all applicable conditions. If the owner intends to convert the multifamily development to another use, or if applicable, if the owner intends to discontinue compliance with the affordable housing requirements as described in this chapter or any other condition to exemption, the owner must notify the assessor within 60 days of the change in use or intended discontinuance. If, after a certificate of tax exemption has been filed with the county assessor, the authorized representative of the governing authority discovers that a portion of the property is changed or will be changed to a use that is other than residential or that housing or amenities no longer meet the requirements, including, if applicable, affordable housing requirements, as previously approved or agreed upon by contract between the city or county and the owner and that the multifamily housing, or a portion of the housing, no longer qualifies for the exemption, the following must occur:
(a)(i) Additional real property tax must be imposed upon the value of the nonqualifying improvements in the amount that would normally be imposed, plus a penalty must be imposed amounting to 20 percent. This additional tax is calculated based upon the difference between the property tax paid and the property tax that would have been paid if it had included the value of the nonqualifying improvements dated back to the date that the improvements were converted to a nonmultifamily use;
(ii) The tax must include interest upon the amounts of the additional tax at the same statutory rate charged on delinquent property taxes from the dates on which the additional tax could have been paid without penalty if the improvements had been assessed at a value without regard to this chapter; and
(iii) The additional tax owed together with interest and penalty must become a lien on the land and attach at the time the property or portion of the property is removed from multifamily use or the amenities no longer meet applicable requirements, and has priority to and must be fully paid and satisfied before a recognizance, mortgage, judgment, debt, obligation, or responsibility to or with which the land may become charged or liable. The lien may be foreclosed upon expiration of the same period after delinquency and in the same manner provided by law for foreclosure of liens for delinquent real property taxes. An additional tax unpaid on its due date is delinquent. From the date of delinquency until paid, interest must be charged at the same rate applied by law to delinquent ad valorem property taxes;
(b) If the owner or operator is not offering the number of units at rents as committed to in the approved application or is not properly screening tenants for income-restricted units, the city or county may impose and collect a sliding scale penalty not to exceed an amount calculated by subtracting the amount of rents that would have been collected had the owner or operator complied with their commitment from the amount of rents collected by the owner or operator for the income-restricted units, with consideration of the severity of the noncompliance. If the owner or operator is subsequently found to be in substantial noncompliance with the program requirements, the exemption certificate must be canceled pursuant to subsection (a) of this section; or
(c) If the owner of an income-restricted unit intended solely for owner occupancy causes a project to be out of compliance with any conditions of the exemption, a city or county may implement a sliding fee penalty and assign the highest penalty to the owner who caused the project to be out of compliance and assign a lesser or no penalty to the other owners. A city or county may also cancel the exemption for the noncompliant unit only.
(2) Upon a determination that a tax exemption is to be canceled for a reason stated in this section, the governing authority or authorized representative must notify the record owner of the property as shown by the tax rolls by mail, return receipt requested, of the determination to cancel the exemption. The owner may appeal the determination to the governing authority or authorized representative, within 30 days by filing a notice of appeal with the clerk of the governing authority, which notice must specify the factual and legal basis on which the determination of cancellation is alleged to be erroneous. The governing authority or a hearing examiner or other official authorized by the governing authority may hear the appeal. At the hearing, all affected parties may be heard and all competent evidence received. After the hearing, the deciding body or officer must either affirm, modify, or repeal the decision of cancellation of exemption based on the evidence received. An aggrieved party may appeal the decision of the deciding body or officer to the superior court under RCW 34.05.510 through 34.05.598.
(3) Upon determination by the governing authority or authorized representative to terminate an exemption, the county officials having possession of the assessment and tax rolls must correct the rolls in the manner provided for omitted property under RCW 84.40.080. The county assessor must make such a valuation of the property and improvements as is necessary to permit the correction of the rolls. The value of the new housing construction, conversion, and rehabilitation improvements added to the rolls is considered as new construction for the purposes of chapter 84.55 RCW. The owner may appeal the valuation to the county board of equalization under chapter 84.48 RCW and according to the provisions of RCW 84.40.038. If there has been a failure to comply with this chapter, the property must be listed as an omitted assessment for assessment years beginning January 1 of the calendar year in which the noncompliance first occurred, but the listing as an omitted assessment may not be for a period more than three calendar years preceding the year in which the failure to comply was discovered.
[ 2025 c 267 s 18; 2025 c 164 s 8; 2012 c 194 s 10; 2007 c 430 s 11; 2002 c 146 s 3; 2001 c 185 s 1; 1995 c 375 s 14.]
Notes:
Reviser's note: This section was amended by 2025 c 164 s 8 and by 2025 c 267 s 18, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025(2). For rule of construction, see RCW 1.12.025(1).
Application—2025 c 267 ss 12-19: See note following RCW 84.14.010.
Findings—2025 c 267: See note following RCW 36.70A.840.
Application—2001 c 185 ss 1-12: "Sections 1 through 12 of this act apply for [to] taxes levied in 2001 for collection in 2002 and thereafter." [ 2001 c 185 s 18.]

catchline: Change in use—Notice by owner—Additional tax—Penalties—Interest—Lien—Cancellation of exemption—Notice of cancellation—Appeal—Correction of tax rolls.


title: RCW 84.16.010

text:
For the purposes of this chapter and unless otherwise required by the context:
(1) The term "department" without other designation means the department of revenue of the state of Washington.
(2) The term "private car company" or "company" shall mean and include any person, copartnership, association, company or corporation owning, controlling, operating or managing stock cars, furniture cars, refrigerator cars, fruit cars, poultry cars, tank cars or any other kind of cars, used for transportation of property, by or upon railroad lines running in, into or through the state of Washington when such railroad lines are not owned or leased by such person, copartnership, association, company or corporation; or owning, controlling, operating or managing sleeping cars, parlor cars, buffet cars, tourist cars or any other kind of cars, used for transportation of persons by or upon railroads on lines running in, into or through the state of Washington, when such railroad lines are not owned or leased by such person, copartnership, association, company or corporation and upon which an extra charge in addition to the railroad transportation fare is made.
(3) The term "operating property" shall mean and include all rolling stock and car equipment owned by any private car company, or held by it as occupant, lessee or otherwise, including its franchises used and reasonably necessary in carrying on the business of such company; and in the case of rolling stock and car equipment used partly within and partly without the state, shall mean and include a proportion of such rolling stock and car equipment to be determined as in this chapter provided; and all such property shall, for the purposes of this chapter be deemed personal property.
[ 1975 1st ex.s. c 278 s 173; 1961 c 15 s 84.16.010. Prior: 1933 c 146 s 1; RRS s 11172-1; prior: 1907 c 36 s 1.]
Notes:
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.


title: RCW 84.16.020

text:
Every private car company shall annually on or before the first day of May, make and file with the department of revenue in such form and upon such blanks as the department of revenue may provide and furnish, a statement, for the year ending December thirty-first next preceding, under the oath of the president, secretary, treasurer, superintendent or chief officer of such company, containing the following facts:
(1) The name of the company, the nature of the business conducted by the company, and under the laws of what state or country organized; the location of its principal office; the name and post office address of its president, secretary, auditor, treasurer, superintendent and general manager; the name and post office address of the chief officer or managing agent or attorney-in-fact in Washington.
(2) The total number of cars of every class used in transacting business on all lines of railroad, within the state and outside the state; together with the original cost and the fair average value per car of all cars of each of such classes.
(3) The total number of miles of railroad main track over which such cars were used within this state and within each county in this state.
(4) The total number of car miles made by all cars on each of the several lines of railroad in this state, and the total number of car miles made by all cars on all railroads within and without the state during the year.
(5) A statement in detail of the entire gross receipts and net earnings of the company during the year within the state and of the entire system, from all sources.
(6) Such other facts or information as the department of revenue may require in the form of return prescribed by it.
The department of revenue shall have power to prescribe directions, rules and regulations to be followed in making the report required herein.
[ 1975 1st ex.s. c 278 s 174; 1961 c 15 s 84.16.020. Prior: 1933 c 146 s 2; RRS s 11172-2; prior: 1907 c 36 s 2.]
Notes:
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Annual statement of private car companies.


title: RCW 84.16.030

text:
The president or other officer of every railroad company whose lines run in, into or through this state, shall, on or before the first day of April in each year, furnish to the department of revenue a statement, verified by the affidavit of the officer making the same, showing as to every private car company respectively, the name of the company, the class of car and the total number of miles made by each class of cars, and the total number of miles made by all cars on its lines, branches, sidings, spurs or warehouse tracks, within this state during the year ending on the thirty-first day of December next preceding.
[ 1975 1st ex.s. c 278 s 175; 1961 c 15 s 84.16.030. Prior: 1933 c 146 s 3; RRS s 11172-3.]
Notes:
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Annual statement of railroad companies.


title: RCW 84.16.032

text:
The department of revenue shall have access to all books, papers, documents, statements, and accounts on file or of record in any of the departments of the state; and shall have the power, by summons signed by director and served in a like manner as a subpoena issued from courts of record, to compel witnesses to appear and give evidence and to produce books and papers. The director or any employee officially designated by the director is authorized to administer oaths to witnesses. The attendance of any witness may be compelled by attachment issued out of any superior court upon application to said court by the department, upon a proper showing that such witness has been duly served with a summons and has refused to appear before the said department. In case of the refusal of a witness to produce books, papers, documents, or accounts or to give evidence on matters material to the hearing, the department may institute proceedings in the proper superior court to compel such witness to testify, or to produce such books or papers and to punish him or her for the refusal. All summons and process issued by the department shall be served by the sheriff of the proper county and such service certified by him or her to the department of revenue without any compensation therefor. Persons appearing before the department in obedience to a summons, shall, in the discretion of the department, receive the same compensation as witnesses in the superior court. The records, books, accounts, and papers of each company shall be subject to visitation, investigation, or examination by the department, or any employee thereof officially designated by the director. All real and/or personal property of any company shall be subject to visitation, investigation, examination, and/or listing at any and all times by the department, or any person employed by the department.
[ 2013 c 23 s 347; 1975 1st ex.s. c 278 s 176; 1973 c 95 s 10; 1961 c 15 s 84.16.032. Prior: 1933 c 146 s 4; RRS s 11172-4; prior: 1907 c 36 s 6. Formerly RCW 84.16.060.]
Notes:
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Access to books and records.


title: RCW 84.16.034

text:
The department of revenue in any matter material to the valuation, assessment or taxation of the property of any company, may cause the deposition of witnesses residing without the state or absent therefrom, to be taken upon notice to the company interested in like manner as the deposition of witnesses are taken in civil actions in the superior court.
[ 1975 1st ex.s. c 278 s 177; 1961 c 15 s 84.16.034. Prior: 1933 c 146 s 5; RRS s 11172-5. Formerly RCW 84.16.070.]
Notes:
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Depositions may be taken, when.


title: RCW 84.16.036

text:
(1) If any company shall fail to comply with the provisions of RCW 84.16.020, the department shall add to the value of such company, as a penalty for such failure, five percent for every thirty days or fraction thereof, not to exceed ten percent, that the company fails to comply.
(2) If any company, or its officer or agent, shall refuse or neglect to make any report required by this chapter, or by the department of revenue, or shall refuse or neglect to permit an inspection and examination of its records, books, accounts, papers or property requested by the department of revenue, or shall refuse or neglect to appear before the department in obedience to a summons, the department shall inform itself the best it may of the matters to be known, in order to discharge its duties with respect to valuation and assessment of the property of such company; and the department shall add to the value so ascertained twenty-five percent as a penalty for the failure or refusal of such company to make its report and such company shall be estopped to question or impeach the assessment of the department of revenue in any hearing or proceeding thereafter. Such penalty shall be in lieu of the penalty provided for in subsection (1) of this section.
(3) The department shall waive or cancel the penalty imposed under subsection (1) of this section for good cause shown.
(4) The department shall waive or cancel the penalty imposed under subsection (1) of this section when the circumstances under which the failure to materially comply with the provisions of RCW 84.16.020 do not qualify for waiver or cancellation under subsection (3) of this section if:
(a) The company fully complies with the reporting provisions of RCW 84.16.020 within thirty days of the due date; and
(b) The company has timely complied with the provisions of RCW 84.16.020 for the previous two calendar years. The requirement that a company has timely complied with the provisions of RCW 84.16.020 for the previous two calendar years is waived for any calendar year in which the company was not required to comply with the provisions of RCW 84.16.020.
[ 2007 c 111 s 202; 1984 c 132 s 3; 1975 1st ex.s. c 278 s 178; 1961 c 15 s 84.16.036. Prior: 1933 c 146 s 6; RRS s 11172-6; prior: 1907 c 36 ss 5, 6. Formerly RCW 84.16.080.]
Notes:
Application—2007 c 111 ss 201 and 202: See note following RCW 84.12.260.
Part headings not law—2007 c 111: See note following RCW 82.16.120.
Construction—Severability—1975 1st ex.s. c 278: See notes following RCW 11.08.160.

catchline: Default valuation by department of revenue—Penalty—Estoppel.