WAC 458-30-590
Rate of inflation -- Publication -- Interest
rate -- Calculation. (1) Introduction. This section sets forth
the rates of inflation discussed in WAC 458-30-550. It also
explains the department of revenue's obligation to annually
publish a rate of inflation and the manner in which this rate
is determined.
(2) General duty of department -- Basis for inflation rate.
Each year the department determines and publishes a rule
establishing an annual rate of inflation. This rate of
inflation is used in computing the interest that is assessed
when farm and agricultural or timber land, which are exempt
from special benefit assessments, is withdrawn or removed from
current use classification.
(a) The rate of inflation is based upon the implicit
price deflator for personal consumption expenditures
calculated by the United States Department of Commerce. This
rate is used to calculate the rate of interest collected on
exempt special benefit assessments.
(b) The rate is published by December 31st of each year
and applies to all withdrawals or removals from farm and
agricultural or timber land classification that occur the
following year.
(3) Assessment of rate of interest. An owner of
classified farm and agricultural or timber land is liable for
interest on the exempt special benefit assessment. Interest
accrues from the date the local improvement district is
created until the land is withdrawn or removed from
classification. Interest accrues and is assessed in
accordance with WAC 458-30-550.
(a) Interest is assessed only for the time (years and
months) the land remains classified under RCW 84.34.020 (2) or
(3).
(b) If the classified land is exempt from the special
benefit assessment for more than one year, the annual
inflation rates are used to calculate an average rate of
interest. This average is determined by adding the inflation
rate for each year the classified land was exempt from the
special benefit assessment after the local improvement
district was created. The sum of the inflation rates is then
divided by the number of years involved to determine the
applicable rate of interest.
(c) Example. A local improvement district for a domestic
water supply system was created in January 1990 and the owner
used the statutory exemption provided in RCW 84.34.320. On
July 1, 1997, the land was removed from the farm and
agricultural classification. An average interest rate was
calculated using the inflation rates for 1990 through 1997. The owner was then notified of the amount of previously exempt
special benefit assessment, plus the average interest rate.
(4) Rates of inflation. The rates of inflation used to
calculate the interest as required by WAC 458-30-550 are as
follows:
| YEAR |
PERCENT |
YEAR |
PERCENT |
| 1976 |
5.6 |
|
|
1977 |
6.5 |
|
|
| 1978 |
7.6 |
|
1979 |
11.3 |
|
|
| 1980 |
13.5 |
|
1981 |
10.3 |
|
|
| 1982 |
6.2 |
|
1983 |
3.2 |
|
|
| 1984 |
4.3 |
|
1985 |
3.5 |
|
|
| 1986 |
1.9 |
|
1987 |
3.7 |
|
|
| 1988 |
4.1 |
|
1989 |
4.8 |
|
|
| 1990 |
5.4 |
|
1991 |
4.2 |
|
|
| 1992 |
3.3 |
|
1993 |
2.7 |
|
|
| 1994 |
2.2 |
|
1995 |
2.3 |
|
|
| 1996 |
2.2 |
|
1997 |
2.1 |
|
|
| 1998 |
0.85 |
|
1999 |
1.42 |
|
|
| 2000 |
2.61 |
|
|
2001 |
1.89 |
|
|
| 2002 |
1.16 |
|
|
2003 |
1.84 |
|
|
| 2004 |
2.39 |
|
|
2005 |
2.54 |
|
|
| 2006 |
3.42 |
|
|
2007 |
2.08 |
|
|
| 2008 |
4.527 |
|
|
2009 |
-0.85 (negative) |
| 2010 |
1.539 |
|
|
2011 |
2.755 |
|
[Statutory Authority: RCW 84.34.360, 84.34.065, 84.34.141,
and 84.69.100. 12-01-040, § 458-30-590, filed 12/13/11,
effective 1/1/12. Statutory Authority: RCW 84.34.360. 11-02-016, § 458-30-590, filed 12/29/10, effective 1/1/11;
10-02-027, § 458-30-590, filed 12/29/09, effective 1/1/10;
08-24-115, § 458-30-590, filed 12/3/08, effective 1/3/09;
08-04-050, § 458-30-590, filed 1/31/08, effective 3/2/08. Statutory Authority: RCW 84.34.360 and 84.34.310. 07-01-012,
§ 458-30-590, filed 12/7/06, effective 1/1/07; 05-24-119, §
458-30-590, filed 12/7/05, effective 1/1/06; 05-01-052, §
458-30-590, filed 12/7/04, effective 1/1/05; 03-24-076, §
458-30-590, filed 12/2/03, effective 1/2/04; 02-24-058, §
458-30-590, filed 12/3/02, effective 1/3/03; 02-03-041, §
458-30-590, filed 1/8/02, effective 2/8/02; 00-24-107, §
458-30-590, filed 12/6/00, effective 1/1/01; 99-24-035, §
458-30-590, filed 11/23/99, effective 12/24/99; 99-01-068, §
458-30-590, filed 12/14/98, effective 1/1/99; 98-01-179, §
458-30-590, filed 12/23/97, effective 1/1/98; 97-02-067, §
458-30-590, filed 12/31/96, effective 1/1/97; 96-01-094, §
458-30-590, filed 12/19/95, effective 1/1/96; 95-06-043, §
458-30-590, filed 2/24/95, effective 3/27/95. Statutory
Authority: RCW 84.34.360. 94-11-098, § 458-30-590, filed
5/17/94, effective 6/17/94; 92-22-061, § 458-30-590, filed
10/29/92, effective 11/29/92. Statutory Authority: RCW 84.08.010 and 84.08.070. 90-24-087, § 458-30-590, filed
12/5/90, effective 1/5/91. Statutory Authority: Chapter 84.34 RCW and RCW 84.34.360. 89-05-010 (Order PT 89-3), §
458-30-590, filed 2/8/89. Statutory Authority: RCW 84.34.360. 88-07-004 (Order PT 88-4), § 458-30-590, filed
3/3/88; 87-07-009 (Order PT 87-3), § 458-30-590, filed
3/10/87.]