The document being reviewed is WAC 458-12-010

Rules and Ancillary Document Review Checklist
(This form must be filled out electronically)

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Document Reviewed WAC 458-12-010

Title: Definition—Property--Real

Reviewer James A. Winterstein

Date Review Started: August 17, 1998

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Is this document being reviewed at this time because of a taxpayer or business association request? (If "YES", explain). YES › NO x.

If the answer is yes, provide the name of the taxpayer or business association. Also provide a brief explanation of the issues raised in the request.

Type an "x" (lowercase) in the column that most correctly answers the question, and provide clear, concise, and completed explanations where needed.

Explain the goal(s) and purpose(s) of the document: This rule provides an explanation of the definition of real property for purposes of property taxation. The rule includes explanations of real property such as fixtures, leaseholds, easements, life estates, and other interests in real property for the guidance of assessors and taxpayers.
Need:

YES	NO
	X	If reviewing a rule are there any other ancillary documents that can be included in a rule revision? (List ancillary documents in the space provided).
	na	If reviewing an ETB or PTB or any other ancillary document can it be easily included in an existing rule?
X		Is the document necessary to comply with the statutes that authorize it?
	X	Is the document obsolete to a degree that warrants repeal or revision?
	X	Have laws or other circumstances changed so that the document should be amended or repealed?
X		Is the document necessary to protect or safeguard the health, welfare, or safety of Washington’s citizens (welfare includes budget levels necessary to provide services to the citizens of the state of Washington)?

Please explain and list those ancillary documents recommended for repeal either because they should be incorporated into a revised rule or have outlived their usefulness. (An ancillary document is "an interpretive or policy statement that advise the public of the Department’s opinions, approaches, or likely course of action." Ancillary documents do not have the same force of law as granted rules in the Administrative Procedures Act (Chapter 34.05 RCW). It includes documents such as Excise Tax Bulletins (ETB), Property Tax Bulletins (PTB), and Revenue Policy Memorandums (RPM). Court cases, Board of Tax Appeals (BTRA) decisions, Appeals Division decisions (WTD), Statutes (RCW) ARE NOT ancillary documents.): This rule was last revised in 1993 and there have been no statutory amendments or case rulings that affect the correctness of the existing rule since that time.

Effectiveness:

YES	NO
X		Is the document providing the results that it was originally designed to achieve in a reasonable manner?
	X	Are there regulatory alternatives or new technologies that could more effectively or efficiently achieve the same objectives?

Please explain answer(s): The rule accurately reflects existing law and achieves its goals and purposes. This rule provides a detailed definition of "real property". This term is used throughout title 84 RCW and chapter 458-12 WAC. The Department generally prefers to provide definitions in the rules discussing the application of a particular tax or tax exemption. However, it would be impractical to do so in this case because the term is used in a large number of different rules.

Clarity:

YES	NO
X		Is the document written and organized in a clear and concise manner so that it can be readily understood by those to whom it applies?

Please explain answer(s): The format for the existing rule is slightly out of date in that the subsections do not have bolded headings. Otherwise, the rule is clearly written and understandable.

Intent and Statutory Authority:

YES	NO
x		Is the document consistent with the legislative intent of the statutes that authorize it?
x		Is the document based upon sufficient statutory authority?
	x	Is there a need to develop a more specific legislative authorization in order to protect the health, safety, and welfare of Washington’s citizens?
	x	Is there a need to recommend legislative changes to the underlying statutes?.

List authorizing statutes, Give cites as required and explain answer(s): RCW 84.08.070 provides the Department with the statutory authority to adopt this rule.

Coordination: Agencies should consult with and coordinate with other jurisdictions that have similar regulatory requirements when it is likely that coordination can reduce duplication and inconsistency.

YES	NO
	x	Could additional consultation and coordination with other governmental jurisdictions and state agencies with similar regulatory authority eliminate or reduce duplication and inconsistency?

Please explain answer: No other federal or state agency deals with or supervises the administration of the property tax.

Cost: (Answer yes only when a Cost Benefit Analysis was completed when the rule was last amended).

YES	NO
	x	Have qualitative and quantitative benefits of the document been considered in relation to its costs? (Consider only costs imposed by document not statute.)

Please explain answer: This is an interpretive rule that imposes no new or additional administrative burdens on taxpayers or local government officials that are not imposed by law.

Fairness:

YES	NO
x		Does the document result in equitable treatment of those required to comply with it?
	x	Should it be modified to eliminate or minimize any disproportionate impacts on the regulated community? (Consider only impacts imposed by document not statute).
	x	Should it be strengthened to provide additional protection?

Please explain answer(s): This rule helps to provide consistency in the administration and application of the property tax throughout the state, both in relation to assessors and in relation to taxpayers.

LISTING OF DOCUMENTS REVIEWED: (Include any documents discussed above. When listing statutes, ancillary documents, or other regulations also provide titles. Court, Board of Tax Appeals (BTA), or Appeals Division (WTD) decisions should be listed by citation followed by a brief description (phrase or sentence) of the pertinent issue(s).)

Statute(s) Implemented: RCW 84.04.090--"Real property"

Court Cases: None since the last amendment of the rule.

Ancillary documents: None

Administrative Decisions: None

Yes No

x Business Methods have substantially changed to warrant repealing or amending the document.

x Administrative Changes have occurred enough to warrant repealing or amending the document.

Review Recommendation: Indicate whether you are recommending that the Department amend; repeal; or leave the rule or ancillary document as is.

Amend

Repeal

x Leave as is

Incorporate ancillary document into a new or existing rule. (Subject of this review must an ancillary document and not a rule).

Explanation: (If you chose amend or a new rule, please explain why rule making is being considered and list specific reasons why the rule is necessary. If you choose "leave as is" explain why rule should remain in its present state. Also explain any recommendation to incorporate and/or repeal an ancillary document): Although this rule could be revised to modify the format and make it somewhat easier to use, there is no need to substantively amend the rule at this time.

Manager action: Date: ________________

_____ Reviewed recommendation _____ Accepted recommendation

_____ Returned for further action

Comments: