S-1240.2 _______________________________________________
SENATE BILL 5730
_______________________________________________
State of Washington 54th Legislature 1995 Regular Session
By Senators Haugen, Fraser, Oke, Rasmussen, Loveland, Hargrove, Swecker, Spanel and Winsley
Read first time 02/02/95. Referred to Committee on Ways & Means.
AN ACT Relating to removal of classification or designation of forest land for tax purposes; 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, except for transactions qualifying for the exemptions specified under subsection (9) of this section;
(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, such a removal of designation shall not occur if a government agency or other entity qualified to be a recipient of such land under a transaction specified as exempt under subsection (9) of this section has manifested its intent in writing or by other official action to acquire an interest in such land by means of a transaction that qualifies for an exemption from compensating tax under subsection (9) of this section. The recipient shall provide reasonable evidence in writing of the intent to the assessor annually so long as the intent continues, or within sixty days of a request by the assessor, which request shall not be made 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.)) 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)(i) A
donation of fee title, development rights, or the right to harvest
timber, to a government agency ((or));
(ii) A donation of
fee title, development rights, or the right to harvest timber, to an
organization qualified under RCW 84.34.210 and 64.04.130 for the purposes
enumerated in those sections ((or));
(iii) 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;
(iv) Acquisitions 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; or
(v) The sale or transfer of fee title to:
(A) A governmental entity; or
(B) 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 transferred under (c)(iv) or (v) of this subsection is not used for the purposes enumerated, the compensating tax specified in subsection (7) of this section shall be imposed upon the then-current owner.
(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, except for transactions qualifying for the exemptions specified under subsection (5) of this section;
(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.)) 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, such a removal
of designation shall not occur if a government agency or other entity qualified
to be a recipient of such land under a transaction specified as exempt under
subsection (5) of this section has manifested its intent in writing or by other
official action to acquire an interest in such land by means of a transaction
that qualifies for an exemption from compensating tax under subsection (5) of
this section. The recipient shall provide reasonable evidence in writing of
the intent to the assessor annually so long as the intent continues, or within
sixty days of a request by the assessor, which request shall not be made more
than once in a calendar year;
(ii) Such 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)(i) A
donation of fee title, development rights, or the right to harvest
timber, to a government agency ((or));
(ii) A donation of
fee title, development rights, or the right to harvest timber, to an
organization qualified under RCW 84.34.210 and 64.04.130 for the purposes
enumerated in those sections ((or));
(iii) 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;
(iv) Acquisitions of property interests by state agencies, or agencies or organization qualified under RCW 84.34.210 and 64.04.130, for the purposes enumerated in those sections; or
(v) The sale or transfer of fee title to:
(A) A governmental entity; or
(B) 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 transferred under (c)(iv) or (v) of this subsection is not used for the purposes enumerated, the compensating tax specified in subsection (3) of this section shall be imposed upon the then-current owner.
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.
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