County treasurer costs

AN ACT Relating to cost recovery for county treasurers; amending 1
RCW 84.69.180; adding a new section to chapter 84.69 RCW; and 2
creating a new section. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
NEW SECTION. Sec. 1. The county treasurer holds a key position 5
of public trust in the financial affairs of local government. Acting 6
as the bank for the county, school districts, fire districts, water 7
districts, and other units of local government, the treasurer's 8
office receipts, disburses, invests, and accounts for the funds of 9
each of these entities. In addition, the treasurer is charged with 10
the collection of various taxes that benefit a wide range of local 11
and state governmental units. The majority of the workload of the 12
county treasurer is directed toward providing services to taxing 13
districts other than the county. This act allows county treasurers to 14
recover costs related to the billing, collection, and distribution of 15
property taxes on behalf of tax districts.16
NEW SECTION. Sec. 2. A new section is added to chapter 84.69 17
RCW to read as follows: 18
(1) A county treasurer may set a cost recovery fee and recover 19
allowable prior year actual costs on a pro rata basis from each 20
H-0026.2
HOUSE BILL 1042
State of Washington 69th Legislature 2025 Regular Session
By Representatives Wylie, Volz, and Stonier
Prefiled 12/11/24. Read first time 01/13/25. Referred to Committee
on Finance.
p. 1 HB 1042
taxing district's tax roll. The first $50,000 of the district's 1
aggregate collections must be excluded. Prior year collection rates 2
may also be considered when establishing the cost recovery fee.3
(2) The cost recovery fee may not exceed one percent of the 4
district's tax roll for counties larger than 250,000 and two percent 5
for counties smaller than 250,000. Real estate excise tax 6
administration, local investment pool administration, foreclosure and 7
distraint administration, and other existing recoverable costs shall 8
not be included. 9
(3) Recovered costs must be credited to the county treasurer's 10
cost recovery fund without regard to budget limitations and not 11
subject to indirect costs or other charges, to fund ongoing billing, 12
collection, and distribution operations. 13
(4) The county treasurer shall furnish the amount of the cost 14
recovery fee to the affected taxing districts no later than September 15
1st of the current year. 16
(5) Recovery of capitalized expenditures may not be recovered 17
over a period of time that exceeds the useful life of the asset.18
(6) For purposes of this section: 19
(a) "Cost recovery fee" means the total recoverable costs divided 20
by the total tax roll after the first $50,000 of the district's 21
aggregate collections are excluded for real and personal property for 22
the year in which the cost recovery occurs. 23
(b) "Recoverable costs" means all costs incurred by the county 24
treasurer during a prior 12-month period for the billing, collection, 25
and distribution of real and personal property taxes. Real estate 26
excise tax administration, local investment pool administration, 27
foreclosure and distraint administration, and other existing 28
recoverable costs are excluded. 29
Sec. 3. RCW 84.69.180 and 2013 c 239 s 1 are each amended to 30
read as follows: 31
(1) Taxing districts other than the state may levy a tax upon all 32
the taxable property within the district for the purpose of:33
(a) Funding refunds paid or to be paid under this chapter, except 34
for refunds under RCW 84.69.020(1), including interest, as ordered by 35
the county treasurer or county legislative authority within the 36
preceding ((twelve)) 12 months; ((and))37
(b) Reimbursing the taxing district for taxes abated or canceled, 38
offset by any supplemental taxes collected under this title, other 39
p. 2 HB 1042
than amounts collected under RCW 84.52.018 within the preceding 1
((twelve)) 12 months. This subsection (1)(b) only applies to 2
abatements and cancellations that do not require a refund under this 3
chapter. Abatements and cancellations that require a refund are 4
included within the scope of (a) of this subsection; and5
(c) Reimbursing the taxing district for costs incurred as a 6
result of county treasurer cost recovery pursuant to section 2 of 7
this act. 8
(2) As provided in RCW 84.55.070, the provisions of chapter 84.55 9
RCW do not apply to a levy made by or for a taxing district under 10
this section. 11
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p. 3 HB 1042