H-2987.2  _______________________________________________

                          HOUSE BILL 2093

          _______________________________________________

State of Washington      54th Legislature     1995 Regular Session

By Representatives Campbell, Smith, L. Thomas, McMorris, Chandler, Beeksma, McMahan, Mulliken and Lisk

Read first time 04/13/95.  Referred to Committee on Agriculture & Ecology.

Providing a property tax exemption for land that has been denied a water use application.

    AN ACT Relating to taxation of property without water permits; adding a new section to chapter 84.36 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  The intent of this act is to properly take into account the effect on property values that is caused by delays in issuing water permits by the department of ecology.

NEW SECTION. Sec. 2.  A new section is added to chapter 84.36 RCW to read as follows:

    Land, platted for residential development, for which an application to the appropriate water supplier or agency for residential water use has been denied, is exempt from taxation.  Land assessed under chapter 84.33 or 84.34 RCW is not eligible for exemption.  Land used for commercial purposes is not eligible for exemption.

    Claims for exemption under this section shall be made to the assessor each year by March 31st for exemption from taxes payable in the following year.  The exemption is limited to one year.  The applicant must show denial of residential water use dated within twelve months before the March 31st exemption application date.

    The land loses its exempt status as of the date on which an application for residential water use is granted by the appropriate water supplier or agency.  Land which changes from exempt to taxable status is subject to a pro rata portion of taxes as provided in RCW 84.40.350 through 84.40.390.

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