H-2675.1  _______________________________________________

                 SECOND SUBSTITUTE HOUSE BILL 1557

          _______________________________________________

State of Washington      55th Legislature     1997 Regular Session

By House Committee on Finance (originally sponsored by Representatives Buck, Linville, Crouse, Kastama, Hankins, Grant, Lisk, Doumit, Hatfield, Johnson and Regala)

Read first time 03/10/97.

Exempting from taxation and valuation of property improvements used for fish and habitat restoration and protection and water quantity and quality improvement programs.

    AN ACT Relating to taxation of property improvements used for fish and wildlife habitat restoration and protection and water quantity and quality improvement programs; adding a new section to chapter 84.36 RCW; adding a new section to chapter 89.08 RCW; and creating new sections.

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

NEW SECTION. Sec. 1.  The purpose of this act is to improve fish and wildlife habitat, water quality, and water quantity for the benefit of the public at large.  Private property owners should be encouraged to make voluntary improvements to their property as recommended by governmental agencies without the penalty of paying higher property taxes as a result of those improvements.

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

    (1) All real property improvements and personal property that benefit fish and wildlife habitat, water quality, or water quantity are exempt from taxation if the property is included in a written best management practices agreement entered into by the property owner and the federal natural resource conservation service, a conservation district, the department of ecology, the department of fish and wildlife, or a nonprofit organization.  A conservation district must certify that the agreement between a property owner and a nonprofit organization benefits fish and wildlife habitat, water quality, or water quantity.  A habitat conservation plan under the terms of the federal endangered species act shall not be considered a best management practices agreement for purposes of this exemption.

    (2) The exemption shall remain in effect only if improvements identified in the written best management practices agreement are maintained as originally approved or amended.  Improvements made as a requirement to mitigate for impacts to fish and wildlife habitat, water quality, or water quantity are not eligible for exemption under this section.

    (3) A claim for exemption under this section may be filed with the county assessor at any time during the year for exemption from taxes levied for collection in the following year when submitted on forms prescribed by the department of revenue.

NEW SECTION. Sec. 3.  A new section is added to chapter 89.08 RCW to read as follows:

    (1) For the purpose of identifying property that may qualify for the exemption provided under section 2 of this act, the commission shall keep a current list of property owners that manage property under a written best management practices agreement.  The list may include any written agreements entered into by a property owner and the federal natural resource conservation service, a conservation district, the department of ecology, the department of fish and wildlife, or a nonprofit organization.

    (2) The commission shall ensure that the appropriate assessor is notified of the property owners who have entered into a written best management practices agreement.

NEW SECTION. Sec. 4.  Section 2 of this act applies to taxes levied for collection in 1998 and thereafter.

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