SPOKANE — County Treasurer Michael Baumgartner applauded the passage of Engrossed Substitute House Bill 1410 (ESHB 1410) which significantly reduces the amount of penalty and interest paid on delinquent property taxes. The legislation sponsored by 6th District Rep. Mike Volz, who also serves as Chief Deputy Treasurer, passed the House of Representatives unanimously April 22 and with Gov. Jay Inslee’s signature will take effect Jan. 1, 2022.
Under current state law, a delinquent property tax bill is charged an annual 23% penalty and interest fee with 1% interest assessed monthly and a 3% and 8% penalty charged in June and December respectively. ESHB 1410 as it passed the legislature over a phased adoption will reduce the amount of penalty and interest charged to most homeowners from 23% to 9% by 2023.
“Chief Deputy Treasurer Mike Volz deserves a tremendous amount of credit for his advocacy to protect homeowners from tax foreclosure,” Baumgartner said in a news release. “For too long, county government has balanced budgets based on taxpayers doing the wrong thing and falling behind on their taxes. This legislation is a step towards reducing the tax burden on the most vulnerable taxpayers.”
State usury law allows an exception for delinquent property tax payments. Collected penalty and interest fees are retained by the county general fund. In recent years, the amount of delinquent property tax penalty collected in Spokane County has been between $1.2 million to $1.6 million.
“I have continued to bring this bill forward in the Legislature due to the extreme impact it has on the most vulnerable,” Volz said. “I am pleased to have received bi-partisan support this session and now have the bill pass the legislature and be headed to the Governor for signature.”
Citizens and advocacy groups shared stories with the legislature about taxpayers falling behind due to medical issues, job loss, family deaths, amongst other tragedies. The penalty and interest added on past due taxes was cited as putting taxpayers at risk of tax foreclosure and homelessness.
“This law will have an immediate impact on struggling homeowners next year and will go a long way in helping keep citizens out of tax foreclosure,” Volz added.
The bill passed the House unanimously the first time on March 5 and 49-0 in the Senate April 5. Both the Speaker of the House and the Senate President have signed off on the legislation, which is now on the governor’s desk.
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