AN
ACT Relating to recording documents; amending RCW 4.28.320, 36.18.005,
36.18.010, 4.28.325, 47.28.025, 60.44.030, 60.68.045, 61.16.030, 64.32.120,
65.04.015, 65.04.020, 65.04.045, 65.04.047, 65.04.060, 65.08.060, 65.08.140,
65.08.160, 84.26.080, 84.33.120, 84.33.140, 84.34.108, and 84.56.330; adding a
new section to chapter 65.04 RCW; and providing an effective date.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
4.28.320 and 1893 c 127 s 17 are each amended to read as follows:
In
an action affecting the title to real property the plaintiff, at the time of
filing the complaint, or at any time afterwards, or whenever a writ of
attachment of property shall be issued, or at any time afterwards, the
plaintiff or a defendant, when he sets up an affirmative cause of action in his
answer, and demands substantive relief at the time of filing his answer, or at
any time afterwards, if the same be intended to affect real property, may file
with the auditor of each county in which the property is situated a notice of
the pendency of the action, containing the names of the parties, the object of
the action, and a description of the real property in that county affected
thereby. From the time of the filing only shall the pendency of the action be
constructive notice to a purchaser or encumbrancer of the property affected
thereby, and every person whose conveyance or encumbrance is subsequently
executed or subsequently recorded shall be deemed a subsequent purchaser or
encumbrancer, and shall be bound by all proceedings taken after the filing of
such notice to the same extent as if he were a party to the action. For the
purpose of this section an action shall be deemed to be pending from the time
of filing such notice: PROVIDED, HOWEVER, That such notice shall be of no
avail unless it shall be followed by the first publication of the summons, or
by the personal service thereof on a defendant within sixty days after such
filing. And the court in which the said action was commenced may, at its discretion,
at any time after the action shall be settled, discontinued or abated, on
application of any person aggrieved and on good cause shown and on such notice
as shall be directed or approved by the court, order the notice authorized in
this section to be canceled of record, in whole or in part, by the county
auditor of any county in whose office the same may have been filed or recorded,
and such cancellation shall be ((made by an indorsement to that effect on
the margin of the record)) evidenced by the recording of the court order.
Sec.
2. RCW
36.18.005 and 1991 c 26 s 1 are each amended to read as follows:
The
definitions set forth in this section apply throughout this chapter unless the
context clearly requires otherwise.
(1)
"Recording officer" means the county auditor, or in charter counties
the county official charged with the responsibility for recording instruments
in the county records.
(2)
"File," "filed," or "filing" means the act of
delivering an instrument to the auditor or recording officer for recording into
the official public records.
(3)
"Record," "recorded," or "recording" means the
process, such as electronic, mechanical, optical, magnetic, or microfilm
storage used by the auditor or recording officer after filing to incorporate
the instrument into the public records.
(4)
"Multiple transactions" means a document that contains two or more
titles and/or two or more transactions requiring multiple indexing.
Sec.
3. RCW
36.18.010 and 1996 c 143 s 1 are each amended to read as follows:
County
auditors or recording officers shall collect the following fees for their
official services:
For
recording instruments, for the first page eight and one-half by fourteen inches
or less, five dollars; for each additional page eight and one-half by fourteen
inches or less, one dollar((;)). The fee for recording multiple
transactions contained in one instrument will be calculated ((individually))
for each transaction requiring separate indexing as required under RCW
65.04.050 as follows: The fee for each title or transaction is the same fee
as the first page of any additional recorded document; the fee for additional
pages is the same fee as for any additional pages for any recorded document; the
fee for the additional pages may be collected only once and may not be
collected for each title or transaction;
For
preparing and certifying copies, for the first page eight and one-half by
fourteen inches or less, three dollars; for each additional page eight and
one-half by fourteen inches or less, one dollar;
For
preparing noncertified copies, for each page eight and one-half by fourteen
inches or less, one dollar;
For
administering an oath or taking an affidavit, with or without seal, two dollars;
For
issuing a marriage license, eight dollars, (this fee includes taking necessary
affidavits, filing returns, indexing, and transmittal of a record of the
marriage to the state registrar of vital statistics) plus an additional
five-dollar fee for use and support of the prevention of child abuse and
neglect activities to be transmitted monthly to the state treasurer and
deposited in the state general fund plus an additional ten-dollar fee to be
transmitted monthly to the state treasurer and deposited in the state general
fund. The legislature intends to appropriate an amount at least equal to the
revenue generated by this fee for the purposes of the displaced homemaker act,
chapter 28B.04 RCW;
For
searching records per hour, eight dollars;
For
recording plats, fifty cents for each lot except cemetery plats for which the
charge shall be twenty-five cents per lot; also one dollar for each
acknowledgment, dedication, and description: PROVIDED, That there shall be a
minimum fee of twenty-five dollars per plat;
For
recording of miscellaneous records not listed above, for the first page eight
and one-half by fourteen inches or less, five dollars; for each additional page
eight and one-half by fourteen inches or less, one dollar;
For
modernization and improvement of the recording and indexing system, a surcharge
as provided in RCW 36.22.170.
For
recording an emergency nonstandard document as provided in RCW 65.04.047, fifty
dollars, in addition to all other applicable recording fees.
Sec.
4. RCW
4.28.325 and 1963 c 137 s 1 are each amended to read as follows:
In
an action in a United States district court for any district in the state of
Washington affecting the title to real property in the state of Washington, the
plaintiff, at the time of filing the complaint, or at any time afterwards, or a
defendant, when he sets up an affirmative cause of action in his answer, or at
any time afterward, if the same be intended to affect real property, may file with
the auditor of each county in which the property is situated a notice of the
pendency of the action, containing the names of the parties, the object of the
action and a description of the real property in that county affected thereby.
From the time of the filing only shall the pendency of the action be
constructive notice to a purchaser or encumbrancer of the property affected
thereby, and every person whose conveyance or encumbrance is subsequently
executed or subsequently recorded shall be deemed a subsequent purchaser or
encumbrancer, and shall be bound by all proceedings taken after the filing of
such notice to the same extent as if he were a party to the action. For the
purpose of this section an action shall be deemed to be pending from the time of
filing such notice: PROVIDED, HOWEVER, That such notice shall be of no avail
unless it shall be followed by the first publication of the summons, or by
personal service thereof on a defendant within sixty days after such filing.
And the court in which the said action was commenced may, in its discretion, at
any time after the action shall be settled, discontinued or abated, on
application of any person aggrieved and on good cause shown and on such notice
as shall be directed or approved by the court, order the notice authorized in
this section to be canceled ((of record)), in whole or in part, by the
county auditor of any county in whose office the same may have been filed or
recorded, and such cancellation shall be ((made by an indorsement to that
effect on the margin of the record)) evidenced by the recording of the
court order.
Sec.
5. RCW
47.28.025 and 1984 c 7 s 165 are each amended to read as follows:
Whenever
the department establishes the location, width, and lines of any new highway,
or declares any such new highway as a limited access facility and schedules the
acquisition of the right of way for the highway or facility within the ensuing
two years, it may cause the description and plan of any such highway to be made,
showing the center line of the highway and the established width thereof, and
attach thereto a certified copy of the resolution. Such description, plan, and
resolution shall then be recorded in the office of the county auditor of the
proper county ((in a separate book kept for such purposes, which shall be
furnished to the county auditor of the county by the department at the expense
of the state)).
Sec. 6. RCW
60.44.030 and 1937 c 69 s 3 are each amended to read as follows:
The
county auditor shall record the claims mentioned in this chapter ((in a book
to be kept by him for that purpose)), which record must be indexed as deeds
and other conveyances are required by law to be indexed.
Sec.
7. RCW
60.68.045 and 1992 c 133 s 3 are each amended to read as follows:
(1)
When a notice of a tax lien is recorded under RCW 60.68.015(2), the county
auditor shall forthwith enter it in ((an alphabetical tax lien index to be
provided by the board of county commissioners)) the general index
showing ((on one line)) the name and residence of the taxpayer named in
the notice, the collector's serial number of the notice, the date and hour of
recording, and the amount of tax and penalty assessed. The auditor shall
have the ability to produce a separate tax lien index listing.
(2)
When a notice of a tax lien is filed under RCW 60.68.015(3), the department of
licensing shall enter it in the uniform commercial code filing system showing
the name and address of the taxpayer as the debtor, and the internal revenue
service as a secured party, and include the collector's serial number of the
notice, the date and hour of filing, and the amount of tax and penalty
assessed.
Sec.
8. RCW
61.16.030 and 1995 c 62 s 15 are each amended to read as follows:
If
the mortgagee fails to acknowledge satisfaction of the mortgage as provided in
RCW 61.16.020 sixty days from the date of such request or demand, the mortgagee
shall forfeit and pay to the mortgagor damages and a reasonable attorneys' fee,
to be recovered in any court having competent jurisdiction, and said court,
when convinced that said mortgage has been fully satisfied, shall issue an
order in writing, directing the auditor to ((cancel said mortgage, and the
auditor shall)) immediately record the order ((and cancel the mortgage
as directed by the court, upon the margin of the page upon which the mortgage
is recorded, making reference thereupon to the order of the court and to the
page where the order is recorded)).
Sec.
9. RCW
64.32.120 and 1965 ex.s. c 11 s 4 are each amended to read as follows:
Deeds
or other conveyances of apartments shall include the following:
(1)
A description of the land as provided in RCW 64.32.090, or the post office
address of the property, including in either case the date of recording of the
declaration and the volume((,)) and page ((and)) or
county auditor's ((receiving)) recording number of the recorded
declaration;
(2)
The apartment number of the apartment in the declaration and any other data
necessary for its proper identification;
(3)
A statement of the use for which the apartment is intended;
(4)
The percentage of undivided interest appertaining to the apartment, the common
areas and facilities and limited common areas and facilities appertaining
thereto, if any;
(5)
Any further details which the grantor and grantee may deem desirable to set
forth consistent with the declaration and with this chapter.
Sec.
10. RCW
65.04.015 and 1998 c 27 s 3 are each amended to read as follows:
The
definitions set forth in this section apply throughout this chapter unless the
context clearly requires otherwise.
(1)
"Recording officer" means the county auditor, or in charter counties
the county official charged with the responsibility for recording instruments
in the county records.
(2)
"File," "filed," or "filing" means the act of
delivering or transmitting electronically an instrument to the auditor or
recording officer for recording into the official public records.
(3)
"Record," "recorded," or "recording" means the
process, such as electronic, mechanical, optical, magnetic, or microfilm
storage used by the auditor or recording officer after filing to incorporate
the instrument into the public records.
(4)
"((Record location)) Recording number" means a unique
number that identifies the storage location (book or volume and page, reel and
frame, instrument number, auditor or recording officer file number, receiving
number, electronic retrieval code, or other specific place) of each instrument
in the public records accessible in the same recording office where the
instrument containing the reference to the location is found.
(5)
"Grantor/grantee" for recording purposes means the names of the
parties involved in the transaction used to create the recording index. There
will always be at least one grantor and one grantee for any document. In some
cases, the grantor and the grantee will be the same individual(s), or one of
the parties may be the public.
(6)
"Legible and capable of being imaged" means all text, seals,
drawings, signatures, or other content within the document must be legible and
capable of producing a readable image, regardless of what process is used for
recording.
Sec.
11. RCW
65.04.020 and 1985 c 44 s 14 are each amended to read as follows:
For
the purpose of recording deeds and other instruments of writing, required or permitted
by law to be recorded, the county auditor shall procure such ((books)) media
for records as the business of the office requires.
Sec.
12. RCW
65.04.045 and 1998 c 27 s 1 are each amended to read as follows:
(1)
When any instrument is presented to a county auditor or recording officer for
recording, the first page of the instrument shall contain:
(a)
A top margin of at least three inches and a one-inch margin on the bottom and
sides, except that an instrument may be recorded if a minor portion of a notary
seal, incidental writing, or minor portion of a signature extends beyond the
margins;
(b)
The top left-hand side of the page shall contain the name and address to whom
the instrument will be returned;
(c)
The title or titles, or type or types, of the instrument to be recorded
indicating the kind or kinds of documents or transactions contained therein immediately
below the three-inch margin at the top of the page. The auditor or
recording officer shall ((only)) be required to index only the
title or titles captioned on the document;
(d)
Reference numbers of documents assigned or released with reference to the
document page number where additional references can be found, if applicable;
(e)
The names of the grantor(s) and grantee(s), as defined under RCW 65.04.015,
with reference to the document page number where additional names are located,
if applicable;
(f)
An abbreviated legal description of the property, ((including)) and
for purposes of this subsection, "abbreviated legal description of the
property" means lot, block, plat, or section, township, ((and))
range, and quarter/quarter section, and reference to the document page
number where the full legal description is included, if applicable;
(g)
The assessor's property tax parcel or account number set forth separately
from the legal description or other text.
(2)
All pages of the document shall be on sheets of paper of a weight and color
capable of producing a legible image that are not larger than fourteen inches
long and eight and one-half inches wide with text printed or written in eight
point type or larger. All text within the document must be of sufficient
color and clarity to ensure that when the text is imaged all text is readable.
Further, all ((instruments)) pages presented for recording must
have at minimum a one-inch margin on the top, bottom, and sides for all
pages except page one, except that an instrument may be recorded if a minor
portion of a notary seal, incidental writing, or minor portion of a signature
extends beyond the margins, be prepared in ink color capable of being
imaged, and have all seals legible and capable of being imaged((, and)).
No attachments, except firmly attached bar code or address labels,
may be affixed to the pages.
The
information provided on the instrument must be in substantially the following
form:
This
Space Provided for Recorder's Use
When
Recorded Return to:
.................................................................
Document
Title(s)
Grantor(s)
Grantee(s)
Legal
Description
Assessor's
Property Tax Parcel or Account Number
Reference
Numbers of Documents Assigned or Released
Sec.
13. RCW
65.04.047 and 1998 c 27 s 2 are each amended to read as follows:
(1)
If the first page of an instrument presented for recording does not
contain the information required by RCW 65.04.045(1), the person preparing the
instrument for recording shall prepare a cover sheet that contains the required
information. The cover sheet shall be attached to the instrument and shall be
recorded as a part of the instrument. An additional page fee as determined
under RCW 36.18.010 shall be collected for recording of the cover sheet. Any
errors in the cover sheet shall not affect the transactions contained in the
instrument itself. The cover sheet need not be separately signed or
acknowledged. The cover sheet information shall be used to generate the
auditor's grantor/grantee index, however, the names and legal description in
the instrument itself will determine the legal chain of title. The cover sheet
shall be substantially the following form:
((WASHINGTON
STATE COUNTY AUDITOR/RECORDER'S
INDEXING
FORM))
Return
Address
Please
print or type information
Document
Title(s) (or transactions contained therein):
1.
2.
3.
4.
Grantor(s)
(Last name first, then first name and initials)
1.
2.
3.
4.
5. 9 Additional names on page of
document.
Grantee(s)
(Last name first, then first name and initials)
1.
2.
3.
4.
5. 9 Additional names on page of
document.
Legal
Description (abbreviated: i.e., lot, block, plat or
section, township, range)
9 Additional legal description is on page of
document.
Assessor's
Property Tax Parcel or Account Number at the time of recording:
Reference
Number(s) of Documents assigned or released:
9 Additional references on page of
document.
The
Auditor or Recording Officer will rely on the information provided on this
form. The staff will not read the document to verify the accuracy of or the
completeness of the indexing information provided herein.
(2)
Documents which are exempt from format requirements and which may be recorded
with a properly completed cover sheet include: Documents which were signed
prior to January 1, 1997; military separation documents; documents executed
outside of the United States; certified copies of documents; any birth or death
certificate; marriage certificates from outside the state of Washington; any
document, one of whose original signer is deceased or otherwise incapacitated;
and judgments or other documents formatted to meet court requirements.
NEW
SECTION. Sec. 14. A
new section is added to chapter 65.04 RCW to read as follows:
(1)
Documents which must be recorded immediately and which do not meet margin and
font size requirements may be recorded for an additional fee of fifty dollars.
Documents which do not meet legibility requirements must not be recorded as a
nonstandard recording.
(2)
In addition to preparing a properly completed cover sheet as described in RCW
65.04.047, the person preparing the document for recording must sign a
statement which must be attached to the document and which must read
substantially as follows: "I am requesting an emergency nonstandard
recording for an additional fee as provided in RCW 36.18.010. I understand
that the recording processing requirements may cover up or otherwise obscure
some part of the text of the original document."
Sec. 15. RCW
65.04.060 and 1985 c 44 s 17 are each amended to read as follows:
Whenever
any mortgage, bond, lien, or instrument incumbering real estate, has been
satisfied, released or discharged, by the recording of an instrument of
release, or acknowledgment of satisfaction, the auditor shall immediately note,
in ((both the indices, in the column headed remarks, opposite to the
appropriate entry, that such instrument, lien or incumbrance has been
satisfied. And in all cases of the satisfaction or release of any recorded
liens, mortgage, transcript of judgment, mechanic's liens, or other incumbrance
whatsoever, the auditor shall note the same in index of transcripts of judgment))
the comment section of the index, the recording number of the original
mortgage, bond, lien, or instrument.
Sec.
16. RCW
65.08.060 and 1984 c 73 s 1 are each amended to read as follows:
(1)
The term "real property" as used in RCW 65.08.060 through 65.08.150
includes lands, tenements and hereditaments and chattels real and mortgage
liens thereon except a leasehold for a term not exceeding two years.
(2)
The term "purchaser" includes every person to whom any estate or
interest in real property is conveyed for a valuable consideration and every
assignee of a mortgage, lease or other conditional estate.
(3)
The term "conveyance" includes every written instrument by which any
estate or interest in real property is created, transferred, mortgaged or
assigned or by which the title to any real property may be affected, including
an instrument in execution of a power, although the power be one of revocation
only, and an instrument releasing in whole or in part, postponing or
subordinating a mortgage or other lien; except a will, a lease for a term of
not exceeding two years, and an instrument granting a power to convey real property
as the agent or attorney for the owner of the property. "To convey"
is to execute a "conveyance" as defined in this subdivision.
(4)
The term "recording officer" means the county auditor ((of the
county)) or, in charter counties, the county official charged with the
responsibility for recording instruments in the county records.
Sec.
17. RCW
65.08.140 and 1927 c 278 s 9 are each amended to read as follows:
A
recording officer is not liable for recording an instrument in a wrong book,
volume or set of records if the instrument is properly indexed with a reference
to the volume and page or recording number where the instrument is
actually of record.
Sec.
18. RCW
65.08.160 and 1967 c 148 s 1 are each amended to read as follows:
A
mortgage or deed of trust of real estate may be recorded and constructive
notice of the same and the contents thereof given in the following manner:
(1)
An instrument containing a form or forms of covenants, conditions, obligations,
powers, and other clauses of a mortgage or deed of trust may be recorded in the
office of the county auditor of any county and the auditor of such county, upon
the request of any person, on tender of the lawful fees therefor, shall record the
same. Every such instrument shall be entitled on the face thereof as a
"Master form recorded
by . . . (name of person causing
the instrument to be recorded)." Such instrument need not be acknowledged
to be entitled to record.
(2)
When any such instrument is recorded, the county auditor shall index such
instrument under the name of the person causing it to be recorded in the manner
provided for miscellaneous instruments relating to real estate.
(3)
Thereafter any of the provisions of such master form instrument may be
incorporated by reference in any mortgage or deed of trust of real estate
situated within this state, if such reference in the mortgage or deed of trust
states that the master form instrument was recorded in the county in which the
mortgage or deed of trust is offered for record, the date when and the book and
page or pages or recording number where such master form instrument was
recorded, and that a copy of such master form instrument was furnished to the
person executing the mortgage or deed of trust. The recording of any mortgage
or deed of trust which has so incorporated by reference therein any of the
provisions of a master form instrument recorded as provided in this section
shall have like effect as if such provisions of the master form so incorporated
by reference had been set forth fully in the mortgage or deed of trust.
(4)
Whenever a mortgage or deed of trust is presented for recording on which is set
forth matter purporting to be a copy or reproduction of such master form
instrument or of part thereof, identified by its title as provided in ((subdivision))
subsection (1) of this section and stating the date when it was recorded
and the book and page where it was recorded, preceded by the words "do not
record" or "not to be recorded," and plainly separated from the
matter to be recorded as a part of the mortgage or deed of trust in such manner
that it will not appear upon a photographic reproduction of any page containing
any part of the mortgage or deed of trust, such matter shall not be recorded by
the county auditor to whom the instrument is presented for recording; in such
case the county auditor shall record only the mortgage or deed of trust apart
from such matter and shall not be liable for so doing, any other provisions of
law to the contrary notwithstanding.
Sec.
19. RCW
84.26.080 and 1986 c 221 s 6 are each amended to read as follows:
(1)
When property has once been classified and valued as eligible historic
property, it shall remain so classified and be granted the special valuation
provided by RCW 84.26.070 for ten years or until the property is disqualified
by:
(a)
Notice by the owner to the assessor to remove the special valuation;
(b)
Sale or transfer to an ownership making it exempt from property taxation; or
(c)
Removal of the special valuation by the assessor upon determination by the
local review board that the property no longer qualifies as historic property
or that the owner has failed to comply with the conditions established under
RCW 84.26.050.
(2)
The sale or transfer to a new owner or transfer by reason of death of a former
owner to a new owner does not disqualify the property from the special
valuation provided by RCW 84.26.070 if:
(a)
The property continues to qualify as historic property; and
(b)
The new owner files a notice of compliance with the assessor of the county in
which the property is located. Notice of compliance forms shall be prescribed
by the state department of revenue and supplied by the county assessor. The
notice shall contain a statement that the new owner is aware of the special
valuation and of the potential tax liability involved when the property ceases
to be valued as historic property under this chapter. The signed notice of
compliance shall be attached to the real estate excise tax affidavit provided
for in RCW 82.45.120. If the notice of compliance is not signed by the new
owner and attached to the real estate excise tax affidavit, all additional
taxes calculated pursuant to RCW 84.26.090 shall become due and payable by the
seller or transferor at time of sale. The county auditor shall not accept an
instrument of conveyance of specially valued historic property for filing or
recording unless the new owner has signed the notice of compliance or the
additional tax has been paid, as evidenced by the real estate excise tax
stamp affixed thereto by the treasurer.
(3)
When the property ceases to qualify for the special valuation the owner shall
immediately notify the state or local review board.
(4)
Before the additional tax or penalty imposed by RCW 84.26.090 is levied, in the
case of disqualification, the assessor shall notify the taxpayer by mail,
return receipt requested, of the disqualification.
Sec.
20. RCW
84.33.120 and 1997 c 299 s 1 are each amended to read as follows:
(1)
In preparing the assessment rolls as of January 1, 1982, for taxes payable in
1983 and each January 1st thereafter, the assessor shall list each parcel of
forest land at a value with respect to the grade and class provided in this
subsection and adjusted as provided in subsection (2) of this section and shall
compute the assessed value of the land by using the same assessment ratio he or
she applies generally in computing the assessed value of other property in his
or her county. Values for the several grades of bare forest land shall be as
follows.
LAND OPERABILITY VALUES
GRADE CLASS PER ACRE
1 $141
1
2 136
3 131
4 95
1 118
2 2 114
3 110
4 80
1 93
3 2 90
3 87
4 66
1 70
4 2 68
3 66
4 52
1 51
5 2 48
3 46
4 31
1 26
6 2 25
3 25
4 23
1 12
7 2 12
3 11
4 11
8 1
(2)
On or before December 31, 1981, the department shall adjust, by rule under
chapter 34.05 RCW, the forest land values contained in subsection (1) of this
section in accordance with this subsection, and shall certify these adjusted
values to the county assessor for his or her use in preparing the assessment
rolls as of January 1, 1982. For the adjustment to be made on or before
December 31, 1981, for use in the 1982 assessment year, the department shall:
(a)
Divide the aggregate value of all timber harvested within the state between
July 1, 1976, and June 30, 1981, by the aggregate harvest volume for the same
period, as determined from the harvester excise tax returns filed with the
department under RCW 82.04.291 and 84.33.071; and
(b)
Divide the aggregate value of all timber harvested within the state between
July 1, 1975, and June 30, 1980, by the aggregate harvest volume for the same
period, as determined from the harvester excise tax returns filed with the
department under RCW 82.04.291 and 84.33.071; and
(c)
Adjust the forest land values contained in subsection (1) of this section by a
percentage equal to one-half of the percentage change in the average values of
harvested timber reflected by comparing the resultant values calculated under
(a) and (b) of this subsection.
For
the adjustments to be made on or before December 31, 1982, and each succeeding
year thereafter, the same procedure shall be followed as described in this
subsection utilizing harvester excise tax returns filed under RCW 82.04.291 and
this chapter except that this adjustment shall be made to the prior year's
adjusted value, and the five-year periods for calculating average harvested
timber values shall be successively one year more recent.
(3)
In preparing the assessment roll for 1972 and each year thereafter, the
assessor shall enter as the true and fair value of each parcel of forest land
the appropriate grade value certified to him or her by the department of
revenue, and he or she shall compute the assessed value of such land by using
the same assessment ratio he or she applies generally in computing the assessed
value of other property in his or her county. In preparing the assessment roll
for 1975 and each year thereafter, the assessor shall assess and value as
classified forest land all forest land that is not then designated pursuant to
RCW 84.33.120(4) or 84.33.130 and shall make a notation of such classification
upon the assessment and tax rolls. On or before January 15 of the first year
in which such notation is made, the assessor shall mail notice by certified
mail to the owner that such land has been classified as forest land and is
subject to the compensating tax imposed by this section. If the owner desires
not to have such land assessed and valued as classified forest land, he or she
shall give the assessor written notice thereof on or before March 31 of such
year and the assessor shall remove from the assessment and tax rolls the
classification notation entered pursuant to this subsection, and shall
thereafter assess and value such land in the manner provided by law other than
this chapter 84.33 RCW.
(4)
In any year commencing with 1972, an owner of land which is assessed and valued
by the assessor other than pursuant to the procedures set forth in RCW
84.33.110 and this section, and which has, in the immediately preceding year,
been assessed and valued by the assessor as forest land, may appeal to the
county board of equalization by filing an application with the board in the
manner prescribed in subsection (2) of RCW 84.33.130. The county board shall
afford the applicant an opportunity to be heard if the application so requests
and shall act upon the application in the manner prescribed in subsection (3)
of RCW 84.33.130.
(5)
Land that has been assessed and valued as classified forest land as of any year
commencing with 1975 assessment year or earlier shall continue to be so
assessed and valued until removal of classification by the assessor only upon
the occurrence of one of the following events:
(a)
Receipt of notice from the owner to remove such land from classification as
forest land;
(b)
Sale or transfer to an ownership making such land exempt from ad valorem
taxation;
(c)
Determination by the assessor, after giving the owner written notice and an
opportunity to be heard, that, because of actions taken by the owner, such land
is no longer primarily devoted to and used for growing and harvesting timber.
However, land shall not be removed from classification if a governmental
agency, organization, or other recipient identified in subsection (9) or (10)
of this section as exempt from the payment of compensating tax has manifested
its intent in writing or by other official action to acquire a property
interest in classified forest land by means of a transaction that qualifies for
an exemption under subsection (9) or (10) of this section. The governmental
agency, organization, or recipient shall annually provide the assessor of the
county in which the land is located reasonable evidence in writing of the
intent to acquire the classified land as long as the intent continues or within
sixty days of a request by the assessor. The assessor may not request this
evidence more than once in a calendar year;
(d)
Determination that a higher and better use exists for such land than growing
and harvesting timber after giving the owner written notice and an opportunity
to be heard;
(e)
Sale or transfer of all or a portion of such land to a new owner, unless the
new owner has signed a notice of forest land classification continuance, except
transfer to an owner who is an heir or devisee of a deceased owner, shall not,
by itself, result in removal of classification. The signed notice of
continuance shall be attached to the real estate excise tax affidavit provided
for in RCW 82.45.150. The notice of continuance shall be on a form prepared by
the department of revenue. If the notice of continuance is not signed by the
new owner and attached to the real estate excise tax affidavit, all
compensating taxes calculated pursuant to subsection (7) of this section shall
become due and payable by the seller or transferor at time of sale. The county
auditor shall not accept an instrument of conveyance of classified forest land
for filing or recording unless the new owner has signed the notice of
continuance or the compensating tax has been paid, as evidenced by the real
estate excise tax stamp affixed thereto by the treasurer. The seller,
transferor, or new owner may appeal the new assessed valuation calculated under
subsection (7) of this section to the county board of equalization.
Jurisdiction is hereby conferred on the county board of equalization to hear
these appeals.
The
assessor shall remove classification pursuant to (c) or (d) of this subsection
prior to September 30 of the year prior to the assessment year for which
termination of classification is to be effective. Removal of classification as
forest land upon occurrence of (a), (b), (d), or (e) of this subsection shall
apply only to the land affected, and upon occurrence of (c) of this subsection
shall apply only to the actual area of land no longer primarily devoted to and
used for growing and harvesting timber: PROVIDED, That any remaining
classified forest land meets necessary definitions of forest land pursuant to
RCW 84.33.100.
(6)
Within thirty days after such removal of classification as forest land, the
assessor shall notify the owner in writing setting forth the reasons for such
removal. The owner of such land shall thereupon have the right to apply for
designation of such land as forest land pursuant to subsection (4) of this
section or RCW 84.33.130. The seller, transferor, or owner may appeal such
removal to the county board of equalization.
(7)
Unless the owner successfully applies for designation of such land or unless
the removal is reversed on appeal, notation of removal from classification
shall immediately be made upon the assessment and tax rolls, and commencing on
January 1 of the year following the year in which the assessor made such
notation, such land shall be assessed on the same basis as real property is
assessed generally in that county. Except as provided in subsection (5)(e),
(9), or (10) of this section and unless the assessor shall not have mailed
notice of classification pursuant to subsection (3) of this section, a
compensating tax shall be imposed which shall be due and payable to the county
treasurer thirty days after the owner is notified of the amount of the
compensating tax. As soon as possible, the assessor shall compute the amount
of such compensating tax and mail notice to the owner of the amount thereof and
the date on which payment is due. The amount of such compensating tax shall be
equal to the difference, if any, between the amount of tax last levied on such
land as forest land and an amount equal to the new assessed valuation of such
land multiplied by the dollar rate of the last levy extended against such land,
multiplied by a number, in no event greater than ten, equal to the number of
years, commencing with assessment year 1975, for which such land was assessed
and valued as forest land.
(8)
Compensating tax, together with applicable interest thereon, shall become a
lien on such land which shall attach at the time such land is removed from
classification as forest land and shall have priority to and shall be fully
paid and satisfied before any recognizance, mortgage, judgment, debt,
obligation or responsibility to or with which such land may become charged or
liable. Such lien may be foreclosed upon expiration of the same period after
delinquency and in the same manner provided by law for foreclosure of liens for
delinquent real property taxes as provided in RCW 84.64.050. Any compensating
tax unpaid on its due date shall thereupon become delinquent. From the date of
delinquency until paid, interest shall be charged at the same rate applied by
law to delinquent ad valorem property taxes.
(9)
The compensating tax specified in subsection (7) of this section shall not be
imposed if the removal of classification as forest land pursuant to subsection
(5) of this section resulted solely from:
(a)
Transfer to a government entity in exchange for other forest land located
within the state of Washington;
(b)
A taking through the exercise of the power of eminent domain, or sale or
transfer to an entity having the power of eminent domain in anticipation of the
exercise of such power;
(c)
A donation of fee title, development rights, or the right to harvest timber, to
a government agency or organization qualified under RCW 84.34.210 and 64.04.130
for the purposes enumerated in those sections, or the sale or transfer of fee
title to a governmental entity or a nonprofit nature conservancy corporation,
as defined in RCW 64.04.130, exclusively for the protection and conservation of
lands recommended for state natural area preserve purposes by the natural
heritage council and natural heritage plan as defined in chapter 79.70 RCW:
PROVIDED, That at such time as the land is not used for the purposes
enumerated, the compensating tax specified in subsection (7) of this section
shall be imposed upon the current owner;
(d)
The sale or transfer of fee title to the parks and recreation commission for
park and recreation purposes; or
(e)
Official action by an agency of the state of Washington or by the county or
city within which the land is located that disallows the present use of such
land.
(10)
In a county with a population of more than one million inhabitants, the
compensating tax specified in subsection (7) of this section shall not be
imposed if the removal of classification as forest land pursuant to subsection
(5) of this section resulted solely from:
(a)
An action described in subsection (9) of this section; or
(b)
A transfer of a property interest to a government entity, or to a nonprofit
historic preservation corporation or nonprofit nature conservancy corporation,
as defined in RCW 64.04.130, to protect or enhance public resources, or to
preserve, maintain, improve, restore, limit the future use of, or otherwise to
conserve for public use or enjoyment, the property interest being transferred.
At such time as the property interest is not used for the purposes enumerated,
the compensating tax shall be imposed upon the current owner.
(11)
With respect to any land that has been designated prior to May 6, 1974,
pursuant to RCW 84.33.120(4) or 84.33.130, the assessor may, prior to January
1, 1975, on his or her own motion or pursuant to petition by the owner, change,
without imposition of the compensating tax provided under RCW 84.33.140, the
status of such designated land to classified forest land.
Sec.
21. RCW
84.33.140 and 1997 c 299 s 2 are each amended to read as follows:
(1)
When land has been designated as forest land pursuant to RCW 84.33.120(4) or
84.33.130, a notation of such designation shall be made each year upon the
assessment and tax rolls, a copy of the notice of approval together with the
legal description or assessor's tax lot numbers for such land shall, at the
expense of the applicant, be filed by the assessor in the same manner as deeds
are recorded, and such land shall be graded and valued pursuant to RCW
84.33.110 and 84.33.120 until removal of such designation by the assessor upon
occurrence of any of the following:
(a)
Receipt of notice from the owner to remove such designation;
(b)
Sale or transfer to an ownership making such land exempt from ad valorem
taxation;
(c)
Sale or transfer of all or a portion of such land to a new owner, unless the
new owner has signed a notice of forest land designation continuance, except
transfer to an owner who is an heir or devisee of a deceased owner, shall not,
by itself, result in removal of classification. The signed notice of
continuance shall be attached to the real estate excise tax affidavit provided
for in RCW 82.45.150. The notice of continuance shall be on a form prepared by
the department of revenue. If the notice of continuance is not signed by the
new owner and attached to the real estate excise tax affidavit, all
compensating taxes calculated pursuant to subsection (3) of this section shall
become due and payable by the seller or transferor at time of sale. The county
auditor shall not accept an instrument of conveyance of designated forest land
for filing or recording unless the new owner has signed the notice of
continuance or the compensating tax has been paid, as evidenced by the real
estate excise tax stamp affixed thereto by the treasurer. The seller,
transferor, or new owner may appeal the new assessed valuation calculated under
subsection (3) of this section to the county board of equalization.
Jurisdiction is hereby conferred on the county board of equalization to hear
these appeals;
(d)
Determination by the assessor, after giving the owner written notice and an
opportunity to be heard, that:
(i)
Such land is no longer primarily devoted to and used for growing and harvesting
timber. However, land shall not be removed from designation if a governmental
agency, organization, or other recipient identified in subsection (5) or (6) of
this section as exempt from the payment of compensating tax has manifested its
intent in writing or by other official action to acquire a property interest in
designated forest land by means of a transaction that qualifies for an
exemption under subsection (5) or (6) of this section. The governmental
agency, organization, or recipient shall annually provide the assessor of the
county in which the land is located reasonable evidence in writing of the intent
to acquire the designated land as long as the intent continues or within sixty
days of a request by the assessor. The assessor may not request this evidence
more than once in a calendar year;
(ii)
The owner has failed to comply with a final administrative or judicial order
with respect to a violation of the restocking, forest management, fire
protection, insect and disease control and forest debris provisions of Title 76
RCW or any applicable regulations thereunder; or
(iii)
Restocking has not occurred to the extent or within the time specified in the
application for designation of such land.
Removal
of designation upon occurrence of any of (a) through (c) of this subsection
shall apply only to the land affected, and upon occurrence of (d) of this subsection
shall apply only to the actual area of land no longer primarily devoted to and
used for growing and harvesting timber, without regard to other land that may
have been included in the same application and approval for designation:
PROVIDED, That any remaining designated forest land meets necessary definitions
of forest land pursuant to RCW 84.33.100.
(2)
Within thirty days after such removal of designation of forest land, the
assessor shall notify the owner in writing, setting forth the reasons for such
removal. The seller, transferor, or owner may appeal such removal to the
county board of equalization.
(3)
Unless the removal is reversed on appeal a copy of the notice of removal with
notation of the action, if any, upon appeal, together with the legal
description or assessor's tax lot numbers for the land removed from designation
shall, at the expense of the applicant, be filed by the assessor in the same
manner as deeds are recorded, and commencing on January 1 of the year following
the year in which the assessor mailed such notice, such land shall be assessed
on the same basis as real property is assessed generally in that county.
Except as provided in subsection (1)(c), (5), or (6) of this section, a
compensating tax shall be imposed which shall be due and payable to the county
treasurer thirty days after the owner is notified of the amount of the
compensating tax. As soon as possible, the assessor shall compute the amount
of such compensating tax and mail notice to the owner of the amount thereof and
the date on which payment is due. The amount of such compensating tax shall be
equal to the difference between the amount of tax last levied on such land as
forest land and an amount equal to the new assessed valuation of such land
multiplied by the dollar rate of the last levy extended against such land,
multiplied by a number, in no event greater than ten, equal to the number of
years for which such land was designated as forest land.
(4)
Compensating tax, together with applicable interest thereon, shall become a
lien on such land which shall attach at the time such land is removed from
designation as forest land and shall have priority to and shall be fully paid
and satisfied before any recognizance, mortgage, judgment, debt, obligation or responsibility
to or with which such land may become charged or liable. Such lien may be
foreclosed upon expiration of the same period after delinquency and in the same
manner provided by law for foreclosure of liens for delinquent real property
taxes as provided in RCW 84.64.050. Any compensating tax unpaid on its due
date shall thereupon become delinquent. From the date of delinquency until
paid, interest shall be charged at the same rate applied by law to delinquent
ad valorem property taxes.
(5)
The compensating tax specified in subsection (3) of this section shall not be
imposed if the removal of designation pursuant to subsection (1) of this
section resulted solely from:
(a)
Transfer to a government entity in exchange for other forest land located within
the state of Washington;
(b)
A taking through the exercise of the power of eminent domain, or sale or
transfer to an entity having the power of eminent domain in anticipation of the
exercise of such power;
(c)
A donation of fee title, development rights, or the right to harvest timber, to
a government agency or organization qualified under RCW 84.34.210 and 64.04.130
for the purposes enumerated in those sections, or the sale or transfer of fee
title to a governmental entity or a nonprofit nature conservancy corporation,
as defined in RCW 64.04.130, exclusively for the protection and conservation of
lands recommended for state natural area preserve purposes by the natural
heritage council and natural heritage plan as defined in chapter 79.70 RCW: PROVIDED,
That at such time as the land is not used for the purposes enumerated, the
compensating tax specified in subsection (3) of this section shall be imposed
upon the current owner;
(d)
The sale or transfer of fee title to the parks and recreation commission for
park and recreation purposes; or
(e)
Official action by an agency of the state of Washington or by the county or
city within which the land is located that disallows the present use of such
land.
(6)
In a county with a population of more than one million inhabitants, the
compensating tax specified in subsection (3) of this section shall not be
imposed if the removal of classification as forest land pursuant to subsection
(1) of this section resulted solely from:
(a)
An action described in subsection (5) of this section; or
(b)
A transfer of a property interest to a government entity, or to a nonprofit
historic preservation corporation or nonprofit nature conservancy corporation,
as defined in RCW 64.04.130, to protect or enhance public resources, or to
preserve, maintain, improve, restore, limit the future use of, or otherwise to
conserve for public use or enjoyment, the property interest being transferred.
At such time as the property interest is not used for the purposes enumerated,
the compensating tax shall be imposed upon the current owner.
Sec.
22. RCW
84.34.108 and 1992 c 69 s 12 are each amended to read as follows:
(1)
When land has once been classified under this chapter, a notation of such
classification shall be made each year upon the assessment and tax rolls and
such land shall be valued pursuant to RCW 84.34.060 or 84.34.065 until removal
of all or a portion of such classification by the assessor upon occurrence of
any of the following:
(a)
Receipt of notice from the owner to remove all or a portion of such
classification;
(b)
Sale or transfer to an ownership, except a transfer that resulted from a
default in loan payments made to or secured by a governmental agency that
intends to or is required by law or regulation to resell the property for the
same use as before, making all or a portion of such land exempt from ad valorem
taxation;
(c)
Sale or transfer of all or a portion of such land to a new owner, unless the
new owner has signed a notice of classification continuance, except transfer to
an owner who is an heir or devisee of a deceased owner shall not, by itself,
result in removal of classification. The signed notice of continuance shall be
attached to the real estate excise tax affidavit provided for in RCW 82.45.120,
as now or hereafter amended. The notice of continuance shall be on a form
prepared by the department of revenue. If the notice of continuance is not
signed by the new owner and attached to the real estate excise tax affidavit,
all additional taxes calculated pursuant to subsection (3) of this section
shall become due and payable by the seller or transferor at time of sale. The
county auditor shall not accept an instrument of conveyance of classified land
for filing or recording unless the new owner has signed the notice of
continuance or the additional tax has been paid, as evidenced by the real
estate excise tax stamp affixed thereto by the treasurer. The seller,
transferor, or new owner may appeal the new assessed valuation calculated under
subsection (3) of this section to the county board of equalization.
Jurisdiction is hereby conferred on the county board of equalization to hear
these appeals;
(d)
Determination by the assessor, after giving the owner written notice and an
opportunity to be heard, that all or a portion of such land no longer meets the
criteria for classification under this chapter. The criteria for
classification pursuant to this chapter continue to apply after classification
has been granted.
The
granting authority, upon request of an assessor, shall provide reasonable
assistance to the assessor in making a determination whether such land
continues to meet the qualifications of RCW 84.34.020 (1) or (3). The assistance
shall be provided within thirty days of receipt of the request.
(2)
Within thirty days after such removal of all or a portion of such land from
current use classification, the assessor shall notify the owner in writing,
setting forth the reasons for such removal. The seller, transferor, or owner
may appeal such removal to the county board of equalization.
(3)
Unless the removal is reversed on appeal, the assessor shall revalue the
affected land with reference to full market value on the date of removal from
classification. Both the assessed valuation before and after the removal of
classification shall be listed and taxes shall be allocated according to that
part of the year to which each assessed valuation applies. Except as provided
in subsection (5) of this section, an additional tax, applicable interest, and
penalty shall be imposed which shall be due and payable to the county treasurer
thirty days after the owner is notified of the amount of the additional tax.
As soon as possible, the assessor shall compute the amount of such an
additional tax, applicable interest, and penalty and the treasurer shall mail
notice to the owner of the amount thereof and the date on which payment is
due. The amount of such additional tax, applicable interest, and penalty shall
be determined as follows:
(a)
The amount of additional tax shall be equal to the difference between the
property tax paid as "open space land", "farm and agricultural
land", or "timber land" and the amount of property tax otherwise
due and payable for the seven years last past had the land not been so
classified;
(b)
The amount of applicable interest shall be equal to the interest upon the
amounts of such additional tax paid at the same statutory rate charged on
delinquent property taxes from the dates on which such additional tax could
have been paid without penalty if the land had been assessed at a value without
regard to this chapter;
(c)
The amount of the penalty shall be as provided in RCW 84.34.080. The penalty
shall not be imposed if the removal satisfies the conditions of RCW 84.34.070.
(4)
Additional tax, applicable interest, and penalty, shall become a lien on such
land which shall attach at the time such land is removed from classification
under this chapter and shall have priority to and shall be fully paid and
satisfied before any recognizance, mortgage, judgment, debt, obligation or
responsibility to or with which such land may become charged or liable. Such
lien may be foreclosed upon expiration of the same period after delinquency and
in the same manner provided by law for foreclosure of liens for delinquent real
property taxes as provided in RCW 84.64.050 now or as hereafter amended. Any
additional tax unpaid on its due date shall thereupon become delinquent. From the
date of delinquency until paid, interest shall be charged at the same rate
applied by law to delinquent ad valorem property taxes.
(5)
The additional tax, applicable interest, and penalty specified in subsection
(3) of this section shall not be imposed if the removal of classification
pursuant to subsection (1) of this section resulted solely from:
(a)
Transfer to a government entity in exchange for other land located within the
state of Washington;
(b)(i)
A taking through the exercise of the power of eminent domain, or (ii) sale or
transfer to an entity having the power of eminent domain in anticipation of the
exercise of such power, said entity having manifested its intent in writing or
by other official action;
(c)
A natural disaster such as a flood, windstorm, earthquake, or other such
calamity rather than by virtue of the act of the landowner changing the use of
such property;
(d)
Official action by an agency of the state of Washington or by the county or
city within which the land is located which disallows the present use of such
land;
(e)
Transfer of land to a church when such land would qualify for exemption
pursuant to RCW 84.36.020;
(f)
Acquisition of property interests by state agencies or agencies or
organizations qualified under RCW 84.34.210 and 64.04.130 for the purposes
enumerated in those sections: PROVIDED, That at such time as these property
interests are not used for the purposes enumerated in RCW 84.34.210 and
64.04.130 the additional tax specified in subsection (3) of this section shall
be imposed; or
(g)
Removal of land classified as farm and agricultural land under RCW
84.34.020(2)(d).
Sec.
23. RCW
84.56.330 and 1961 c 15 s 84.56.330 are each amended to read as follows:
Any
person who has a lien by mortgage or otherwise, upon any real property upon
which any taxes have not been paid, may pay such taxes, and the interest,
penalty and costs thereon; and the receipt of the county treasurer or other
collecting official shall constitute an additional lien upon such land, to the
amount therein stated, and the amount so paid and the interest thereon at the
rate specified in the mortgage or other instrument shall be collectible with,
or as a part of, and in the same manner as the amount secured by the original
lien: PROVIDED, That the person paying such taxes shall pay the same as
mortgagee or other lien holder and shall procure the receipt of the county
treasurer therefor, showing the mortgage or other lien relationship of the person
paying such taxes, and the same shall have been recorded with the county
auditor of the county wherein the said real estate is situated, within ten days
after the payment of such taxes and the issuance of such receipt. It shall be
the duty of any treasurer issuing such receipt to make notation thereon of the
lien relationship claim of the person paying such taxes. It shall be the duty
of the county auditor in such cases to index and record such receipts in the
same manner as provided for the recording of liens on real estate, upon the
payment to the county auditor of the ((sum of fifty cents)) appropriate
recording fees by the person presenting the same for recording: AND
PROVIDED FURTHER, That in the event the above provision be not complied with, the
lien created by any such payment shall be subordinate to the liens of all
mortgages or encumbrances upon such real property, which are senior to the
mortgage or other lien of the person so making such payment.
NEW SECTION. Sec. 24. This
act takes effect August 1, 1999.
