6456-S

AN ACT Relating to creating a property tax credit as an incentive for the improvement and restoration of streams, rivers, and riparian areas; adding a new section to chapter 89.08 RCW; adding a new chapter to Title 84 RCW; providing an effective date; and providing an expiration date.

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

NEW SECTION. Sec. 1. (1) The legislature finds that:

(a) Cooperative partnerships formed by governmental agencies and private landowners can provide needed improvement to and restoration of streams, rivers, and riparian areas;

(b) Improving and restoring the habitat of streams, rivers, and riparian areas will:

(i) Benefit the aquatic and wildlife species in the state;

(ii) Improve water quality for all water resource users;

(iii) Reduce damage to property that often accompanies flooding; and

(iv) Potentially improve the availability of water for all users; and

(c) Some salmonid stocks within the state of Washington have declined at an accelerated rate during the past few years and improving and restoring the habitat of streams, rivers, and riparian areas upon which spawning salmonid stocks depend for survival will help to reverse this decline.

(2) It is the intent of the legislature that a program be created to improve and restore the habitat of aquatic and wildlife species of streams, rivers, and riparian areas located on privately owned land and that owners of land abutting streams and rivers be allowed a credit against the state portion of property taxes levied on such land for expenditures made to improve, restore, rebuild, or rehabilitate the habitat of streams, rivers, and riparian areas.

NEW SECTION. Sec. 2. The definitions in this section apply throughout this chapter unless the context clearly requires otherwise.

(1) "Conservation commission" and "state conservation commission" mean the agency created in accordance with RCW 89.08.030.

(2) "Conservation district" means a governmental subdivision of this state and a public body corporate and politic, organized in accordance with chapter 89.08 RCW.

(3)"Improvement or restoration" and "improve or restore" mean expenditures made to improve, restore, rebuild, or rehabilitate the water quality and quantity, wildlife habitat, and aquatic habitat of streams, rivers, or riparian areas in the state.

(4) "Owner" means the party or parties having the fee interest in land, except that where land is subject to real estate contract, "owner" means the contract vendee.

(5) "Riparian" means areas next to streams or rivers that are capable of supporting plant and animal species that require more moisture than the plant and animal communities growing on adjacent uplands. Riparian areas are adjacent to streams and rivers where specific measures are needed to protect aquatic and wildlife habitat needs and watershed.

(6) "Salmonid" means a fish of the family salmonidae. Fish in this family include salmon, steelhead, trout, char, whitefish, and grayling.

(7) "State portion of property taxes" means the taxes levied by the state for support of the common schools of the state in accordance with RCW 84.52.065.

(8) "Tax year" means the year when property taxes are due and payable.

(9) "Watershed" means a geographic region within which water drains into a particular river, stream, or body of water identified and numbered as state of Washington water resource inventory areas under RCW 43.27A.130 and defined by WAC 173-500-040 as existing on the effective date of this act.

NEW SECTION. Sec. 3. (1) An owner of land shall be allowed a credit against the state portion of property taxes levied on land abutting a stream, river, or riparian area if the land falls within one of the categories set forth in section 4 of this act and the following conditions have been met:

(a) A conservation district has determined that certain improvements or restorations are necessary to improve or restore the habitat of the stream, river, or riparian area;

(b) A conservation district has prepared a management plan detailing the required improvements or restorations;

(c) The improvements or restorations to the habitat of the stream, river, or riparian area detailed in the management plan would be required to be made by a governmental agency, as resources are available, if the owner does not make the required improvements or restorations;

(d) The owner has completed the required improvements or restorations in accordance with the management plan and has provided a conservation district with all receipts for work and materials associated with the improvements or restorations;

(e) A conservation district has inspected the improvements or restorations and has determined that the improvements or restorations required by the management plan have been satisfactorily completed; and

(f) A conservation district has provided the owner with an affidavit certifying that the owner has completed improvements or restorations to the portion of his or her land abutting a stream, river, or riparian area and certifying the total amount of money spent by the owner in this effort.

(2) To receive credit for the completed improvements or restorations, the owner must present the notice received from the county treasurer under RCW 84.56.050, or a copy thereof, showing the property taxes levied on the land abutting a stream, river, or riparian area to the conservation district by April 1st. The notice must show what portion of property taxes are levied by the state.

(a) Upon receipt of this notice, the conservation district shall determine the amount of credit the owner is entitled to receive during the current tax year and shall issue a credit voucher to the owner in that amount.

(b) If the amount spent on the required improvements or restorations exceeds the state portion of property taxes due in the current tax year, the excess may be carried forward and credited against the state portion of property taxes due in succeeding tax years. The conservation districts shall maintain a list of all owners and the amount of credit they are entitled to claim in succeeding tax years.

(3) The owner must submit the credit voucher received from a conservation district for improvements or restorations, along with the balance of property taxes due, to the treasurer of the county in which the improved or restored stream, river, or riparian area is located. The treasurer shall treat this credit voucher in the same manner as a monetary payment of property taxes.

NEW SECTION. Sec. 4. An owner of land that falls within one of the following categories may qualify for the property tax credit set forth in section 3 of this act for improvements or restorations to the habitat of streams, rivers, or riparian areas:

(1) Land bordering streams that are critical to the recovery of anadromous fishery stocks listed as "critical" or "depressed" in the 1992 Washington State Salmon and Steelhead Stock Inventory published by the department of fisheries, the department of wildlife, and the Western Washington Treaty of Indian Tribes in March 1993;

(2) Land within a watershed that is listed as a priority in the Preliminary Priority Watersheds for Restoration and Conservation of Fish and Wildlife published by the Washington department of fish and wildlife and the department of natural resources in February 1995;

(3) Land bordering streams, rivers, and riparian areas that do not meet water quality standards according to the May 1994 Section 303(d) list published by the department of ecology;

(4) Land within watersheds that have an approved watershed plan developed in accordance with chapter 90.70 RCW;

(5) Land bordering streams, rivers, and riparian areas that have been damaged by flooding; or

(6) Land included within watershed restoration projects that have been approved in accordance with RCW 89.08.450 through 89.08.510.

NEW SECTION. Sec. 5. In order to qualify for the property tax credit set forth in section 3 of this act, a management plan must be developed. Conservation districts in conjunction with owners of land abutting streams, rivers, or riparian areas shall develop a management plan to improve or restore the stream, river, or riparian areas at issue using:

(1) Practices listed in the United States department of agriculture/natural resources conservation service's field office technical guide, as existing on the effective date of this act, for the protection or improvement of riparian areas; or

(2) Practices listed in the 1995 Fish and Wildlife Priority Habitat Management Recommendations: RIPARIAN.

NEW SECTION. Sec. 6. (1) The credit authorized by this chapter shall be used as a credit against the state portion of property taxes due on the improved or restored tax parcel during the tax year in which the credit voucher is submitted to the county treasurer. This credit shall not be used to reduce the nonstate portion of property taxes levied against the tax parcel.

(2) The credit in any tax year shall not exceed the amount of the state portion of property taxes levied on a parcel of land nor shall it exceed the amount of money the owner spent to improve or restore the stream, river, or riparian area.

(3) The credit shall be allowed for the tax year, or years, following completion of and payment for the improvements or restorations. If the cost of the improvements or restorations exceeds the state portion of property taxes due in the current tax year, the excess may be carried forward and credited toward the state portion of property taxes due in succeeding tax years. The conservation districts shall monitor and maintain a record of all credits that may be claimed in the succeeding tax years.

NEW SECTION. Sec. 7. (1) The total amount of credits to be allowed for the purposes in section 1 of this act shall not exceed three million dollars for the biennium ending June 30, 1997, six million dollars for fiscal year 1997-1998, and six million dollars for fiscal year 1998-1999.

(2) The conservation commission shall keep current the total dollar amount of credits approved and submitted to county treasurers. The commission shall suspend issuance of credit vouchers when the annual limit is reached.

NEW SECTION. Sec. 8. Any portion of the state levy reduced as a result of this chapter and section 9 of this act shall be made whole from other state revenues. This chapter and section 9 of this act shall not result in the reduction in any manner of the amount of the state school levy for support of the common schools.

NEW SECTION. Sec. 9. A new section is added to chapter 89.08 RCW to read as follows:

(1) Conservation districts shall monitor and provide monthly reports to the state conservation commission on the number of owners who submit applications and who are approved to participate in the improvement or restoration program set forth in section 3 of this act.

(2) Conservation districts shall monitor and maintain a list of owners who have expended more on improvements or restorations than the amount of the state portion of property taxes due in any tax year and who are eligible to receive a credit towards property taxes due in succeeding tax years. The districts shall also maintain a record of the total amount of credits that owners may claim in succeeding tax years.

(3) The conservation commission shall:

(a) Provide grants to conservation districts to reimburse them for the technical assistance costs incurred in developing the management plans required by section 3 of this act;

(b) Monitor and provide to the state treasurer a total of the number and dollar amount of credit vouchers issued on a monthly basis by the conservation districts for the improvement or restoration program set forth in section 3 of this act; and

(4) The conservation commission in conjunction with the Washington department of fish and wildlife shall submit a report to the office of the governor summarizing the progress of the program set forth in chapter 84.-- RCW (sections 1 through 8 of this act) by October 1, 1997.

(5) The conservation commission in cooperation with the Washington department of fish and wildlife shall prepare and submit a report by October 1, 1998, to the environmental committees of the legislature and to the office of the governor summarizing the progress of the program set forth in chapter 84.-- RCW (sections 1 through 8 of this act) to date.

NEW SECTION. Sec. 10. Sections 1 through 8 of this act constitute a new chapter in Title 84 RCW.

NEW SECTION. Sec. 11. This act shall take effect July 1, 1996.

NEW SECTION. Sec. 12. This act shall expire June 30, 1999.