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SB 5221

Simplifying processes and timelines related to personal property distraint.

2025-2026 Regular Session Introduced by Jess Bateman and 2 co-sponsors

SB 5221 allows county treasurers to cancel unpaid personal-property taxes if collection costs exceed the tax, and updates excess-proceeds and title rules for distraint sales.

Effective date 7/27/2025.
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Bill Summary · SB 5221

SB 5221 — Simplifying processes and timelines related to personal property distraint

Status: Chapter 130, 2025 Laws. Governor signed 4/22/2025. Effective 7/27/2025.
Sponsors: Senate Committee on Local Government (orig. Sen. Bateman, Nobles, Wagoner). Amends RCW 84.56.070, 84.56.240, and 46.12.680.

Purpose / intent

To modernize and simplify county distraint (seizure and sale) procedures for unpaid personal property taxes, reduce collection costs for counties, align excess-proceeds rules for personal property with real property, and ease title issuance for buyers of distrained mobile/manufactured homes.

Key provisions

  • County treasurer authority to cancel (write off) personal property taxes — including for titled mobile/manufactured homes — when the treasurer determines the cost to collect and distrain would exceed the tax amount due. (Amends RCW 84.56.070 / 84.56.240)
  • Excess sale proceeds: removes the prior requirement that treasurers automatically pay excess proceeds to owners. Instead:
    • Excess proceeds from the sale of personal property (or improvements on real property) must be refunded to the owner only upon application.
    • “Owner” is defined as the person who held title on the date the notice of distraint was issued; assignments or deeds recorded after that date do not change entitlement.
    • If no claim is made within 3 years after sale, any unclaimed excess is deposited into the county’s current expense fund and owner claims are extinguished.
  • Title creation for buyers: authorizes the Department of Licensing (DOL) to issue a new certificate of title when a mobile home, manufactured home, or park model is purchased at a county treasurer’s foreclosure/distraint sale and an existing title cannot be located. (Amends RCW 46.12.680)
  • Maintains existing protections such as the three‑year prohibition on distraint for certain non-title‑eliminated mobile/manufactured homes (with exceptions) and provides authority for treasurers to waive interest/penalties in qualified circumstances; allows electronic auction sales.

Who is affected

  • County treasurers and county budgets (reducing inefficient distraint costs; potential one‑time receipts from unclaimed proceeds revert to counties).
  • Owners of personal property (including mobile/manufactured home owners): changes entitlement and claim procedures for excess proceeds; potential loss of unclaimed funds after 3 years.
  • Buyers at distraint/foreclosure sales: can obtain titles more quickly when an original title cannot be found.
  • Department of Licensing: processes for creating replacement titles when necessary.

Fiscal/administrative notes

  • No appropriation in the bill; fiscal note available. Expected to reduce county collection costs and align administrative processes for personal and real property excess funds.
  • Effective date: 90 days after adjournment (codified as 7/27/2025).

Compiled from official sources — confirm details with the bill’s official record.

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