SENATE BILL REPORT

SB 5286

BYSenator Saling

Revising taxation of real property within easements for electrical transmission lines.

Senate Committee on Energy & Utilities

Senate Hearing Date(s):February 10, 1989

Senate Staff:Paul Ahern (786-7449)

AS OF FEBRUARY 9, 1989

BACKGROUND:

Forest land defined as any contiguous twenty acres of timber land is currently taxed according to a schedule set by the Department of Revenue.  Use of land subject to transmission line easement is restricted and is considered by some to be unproductive and therefore should not be subject to this tax.  Last year similar legislation was considered by the Committee on Governmental Operations and concerned a landowner in eastern Washington who has considerable holdings of forest lands.  The easement portions of this land cannot be used to grow timber.  The owner considers this land to be of no practical use and should not be subject to property taxation.

SUMMARY:

A new section is added to RCW 84.36 requiring tax exempt status for real property within easements acquired for electrical transmission lines across designated forest land.  This bill applies only to easements acquired by the federal government, a public utility district, a municipal utility, an electric company, a nonprofit cooperative or a mutual corporation that generates or transmits electricity.

Appropriation:    none

Revenue:    none

Fiscal Note:      requested February 9, 1989