AN ACT
Relating to current use taxation provisions; amending RCW 84.33.120 and
84.33.140; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE
OF THE STATE OF WASHINGTON:
Sec.
1. RCW
84.33.120 and 1992 c 69 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) 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) 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 ((82.45.120, as now or hereafter amended)) 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. 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 ((subsections)) (c) or
(d) ((above)) 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 ((subsection))
(a), (b), (d), or (e) ((above)) of this subsection shall apply
only to the land affected, and upon occurrence of ((subsection)) (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 as now or hereafter amended.
(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 subsections (5)(e)
and (9) 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((:
(a))) 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 (((b))) 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.
(10)
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.
2. RCW
84.33.140 and 1992 c 69 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 ((82.45.120, as now or hereafter amended)) 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. 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) 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) 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)
((such)) 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 ((subsections)) (a) through (c) ((above))
of this subsection shall apply only to the land affected, and upon
occurrence of ((subsection)) (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 as now or hereafter amended.
(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 (5) 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((: (a))) 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 (((b)))
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.
NEW SECTION. Sec. 3. This act
is necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public
institutions, and shall take effect immediately.
