AN ACT
Relating to property tax reform; amending RCW 84.33.035 and 84.33.170; and
creating a new section.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
Sec.
1. RCW
84.33.035 and 1986 c 315 s 1 are each amended to read as follows:
Unless
the context clearly requires otherwise, the definitions in this section apply
throughout this chapter.
(1) "Agricultural
methods" means the cultivation of trees that are grown on land prepared by
intensive cultivation and tilling, such as irrigating, plowing, or turning over
the soil, and on which all unwanted plant growth is controlled continuously for
the exclusive purpose of raising trees such as Christmas trees and
short-rotation hardwoods.
(2)
"Composite property tax rate" for a county means the total amount of
property taxes levied upon forest lands by all taxing districts in the county
other than the state, divided by the total assessed value of all forest land in
the county.
(((2)))
(3) "Forest land" means forest land which is classified or
designated forest land under this chapter.
(((3)))
(4) "Harvested" means the time when in the ordinary course of
business the quantity of timber by species is first definitely determined. The
amount harvested shall be determined by the Scribner Decimal C Scale or other
prevalent measuring practice adjusted to arrive at substantially equivalent
measurements, as approved by the department of revenue.
(((4)))
(5) "Harvester" means every person who from the person's own
land or from the land of another under a right or license granted by lease or
contract, either directly or by contracting with others for the necessary labor
or mechanical services, fells, cuts, or takes timber for sale or for commercial
or industrial use: PROVIDED, That whenever the United States or any
instrumentality thereof, the state, including its departments and institutions
and political subdivisions, or any municipal corporation therein so fells,
cuts, or takes timber for sale or for commercial or industrial use, the
harvester is the first person other than the United States or any
instrumentality thereof, the state, including its departments and institutions
and political subdivisions, or any municipal corporation therein, who acquires
title to or a possessory interest in such timber. The term
"harvester" does not include persons performing under contract the
necessary labor or mechanical services for a harvester.
(((5)))
(6) "Short-rotation hardwoods" means hardwood trees, such as but
not limited to hybrid cottonwoods, cultivated by agricultural methods in
growing cycles shorter than ten years.
(7)
"Stumpage value of timber" means the appropriate stumpage value shown
on tables prepared by the department of revenue under RCW 84.33.091, provided
that for timber harvested from public land and sold under a competitive bidding
process, stumpage value shall mean that actual amount paid to the seller in
cash or other consideration. Whenever payment for the stumpage includes
considerations other than cash, the value shall be the fair market value of the
other consideration, provided that if the other consideration is permanent
roads, the value of the roads shall be the appraised value as appraised by the
seller.
(((6)))
(8) "Timber" means forest trees, standing or down, on
privately or publicly owned land, and except as provided in RCW 84.33.170
includes Christmas trees and short-rotation hardwoods.
(((7)))
(9) "Timber assessed value" for a county means a value,
calculated by the department of revenue before October 1 of each year, equal to
the total stumpage value of timber harvested from privately owned land in the
county during the most recent four calendar quarters for which the information
is available multiplied by a ratio. The numerator of the ratio is the rate of
tax imposed by the county under RCW 84.33.051 for the year of the calculation.
The denominator of the ratio is the composite property tax rate for the county
for taxes due in the year of the calculation, expressed as a percentage of
assessed value.
(((8)))
(10) "Timber assessed value" for a taxing district means the
timber assessed value for the county multiplied by a ratio. The numerator of
the ratio is the total assessed value of forest land in the taxing district.
The denominator is the total assessed value of forest land in the county. As
used in this section, "assessed value of forest land" means the
assessed value of forest land for taxes due in the year the timber assessed
value for the county is calculated.
Sec.
2. RCW
84.33.170 and 1984 c 204 s 24 are each amended to read as follows:
Notwithstanding
any provision of this chapter to the contrary, this chapter shall not exempt
from the ad valorem tax nor subject to the excise tax imposed by this chapter,
Christmas trees ((which are grown on land which has been prepared by
intensive cultivation and tilling, such as by plowing or turning over the soil,
and on which all unwanted plant growth is controlled continuously for the
exclusive purpose of raising such Christmas trees)) and short-rotation
hardwoods, which are cultivated by agricultural methods, and such land on
which such Christmas trees and short-rotation hardwoods stand shall not
be taxed as provided in RCW 84.33.100 through 84.33.140. However,
short-rotation hardwoods, which are cultivated by agricultural methods, on land
classified as timber land under chapter 84.34 RCW, shall be subject to the
excise tax imposed under this chapter.
NEW SECTION. Sec. 3. This act
applies to taxes levied in 1995 for collection in 1996 and thereafter.
