25.20.120 Delinquent service charges.
(1) Service charges imposed by this title that remain unpaid in whole or in part, when due pursuant to SCC 25.20.090, shall be considered delinquent.
(2)
(a) Except as provided in subsection (c) of this subsection, delinquent service charges under this section are subject to interest as provided in this subsection computed on a monthly basis on the amount of service charges delinquent from the date of delinquency until paid. Interest must be calculated at the rate in effect at the time of the service charge payment, regardless of when the service charges were first delinquent.
(i) Until December 31, 2022, the interest rate is 12 percent per annum for all nonresidential real property and residential real property.
(ii) Beginning January 1, 2023, interest rates are as follows:
(A) Twelve percent per annum for all nonresidential real property and for residential real property with greater than four units per taxable parcel; or
(B) Nine percent per annum for all residential real property with four or fewer units per taxable parcel, including manufactured/mobile homes as defined in RCW 59.20.030.
(b)
(i) Penalties on delinquent service charges under this section may not be assessed beginning January 1, 2022, through December 31, 2022.
(ii) Beginning January 1, 2023, delinquent service charges under this section are subject to penalties for nonresidential real property and for residential real property with greater than four units per taxable parcel as follows:
(A) A penalty of three percent of the amount of service charge delinquent is assessed on the service charge delinquent on June 1st of the year in which the service charge is due.
(B) An additional penalty of eight percent is assessed on the delinquent service charge amount on December 1st of the year in which the service charge is due.
(iii) Penalties may not be assessed on residential real property with four or fewer units per taxable parcel, including manufactured/mobile homes as defined in RCW 59.20.030.
(c)
(i) If a ratepayer is successfully participating in a payment agreement or a partial payment program, the director may not assess additional penalties on delinquent service charges that are included within the payment agreement. Interest and penalties that have been assessed prior to the payment agreement remain due and payable as provided in the payment agreement.
(ii) The following remain due and payable as provided in any payment agreement:
(A) Interest that has been assessed prior to the payment agreement; and
(B) Penalties assessed prior to January 1, 2022, that have been assessed prior to the payment agreement.
(3) As provided by RCW 84.60.010, service charges, or portions thereof, that become delinquent under subsection (1) of this section, including interest and penalties shall constitute a lien against the real property upon which they are imposed. As provided by RCW 84.60.020, such lien shall attach on the first day of January in the year in which the service charges are assessed and shall continue until the service charges, including any interest and penalties, are paid in full. The county’s lien for delinquent service charges shall be superior to all other liens and encumbrances except general taxes and local and special assessments.
(4) As provided in RCW 84.64.050, after the expiration of three years from the date on which service charges, or portions thereof, become delinquent under subsection (1) of this section, the county treasurer shall foreclose the liens arising pursuant to this section in the county’s annual tax foreclosure action under chapter 84.64 RCW unless said delinquent account has been declared to be an uncollectible account as provided for in subsection (6) of this section. Costs of collection and foreclosure shall be included in the amount of the lien. Approval by the county council shall be required prior to any foreclosure action taken by the county treasurer which involves only delinquent charges under subsection (1) of this section. The department shall provide such approval to the county treasurer by February 1st of the foreclosure year. The department shall reimburse the county treasurer for the department’s share of all costs incurred from collection and/or foreclosure under this section.
(5) When the county treasurer does not take foreclosure action pursuant to subsection (4) of this section, the director shall take any and all lawful means to collect the delinquent service charge, or portions thereof, that become delinquent under subsection (1) of this section. The amount collected shall include all accrued interest and penalties, as well as the costs of collection.
(6) If during the course of lawful collection action for the delinquent service charges, or portions thereof, that become delinquent under subsection (1) of this section, the director determines that it is not in the public interest that the lien for collection of said delinquent charges be foreclosed due to lack of economic value of the property subject to foreclosure and/or liability to the public that would arise in the event of acquisition of the property subject to foreclosure, the director may file with the county legislative authority, on or before the first day of February following the year in which such assessments shall remain delinquent for a period of three years, a list of such delinquent accounts together with an affidavit of the director or his designee, stating the reasons why it is not in the public interest that those properties subject to lien for delinquent service charges should be foreclosed. The county legislative authority shall cancel the delinquent charges owing upon those properties as the county legislative authority is satisfied it would not be in the public interest to foreclose based either upon the costs of foreclosure exceeding the economic value of the property to be foreclosed and/or said property being subject to certain liabilities or other obligations which may be assumed by the public if foreclosed.
(7) Nothing herein shall be deemed to require the county treasurer to foreclose on a lien created hereunder in a manner that is more frequent or inconsistent with other lien foreclosure procedures and the costs related thereto. (Added by Amended Ord. 15-069, Nov. 16, 2015, Eff date Jan. 1, 2016; Amended by Ord. 23-019, Apr. 12, 2023, Eff date Apr. 22, 2023).