AN
ACT Relating to current use taxation provisions; amending RCW 84.33.120,
84.33.140, and 84.33.145; and declaring an emergency.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
84.33.120 and 1995 c 330 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) or
(10) 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) or (10) 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 82.45.150. 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 (c) or (d) 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 (a), (b), (d), or (e) of this subsection shall
apply only to the land affected, and upon occurrence of (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 subsection((s))
(5)(e) ((and)), (9), or (10) 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 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 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; or
(e)
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.
(10)
In a county with a population of more than one million inhabitants, 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)
An action described in subsection (9) of this section; or
(b)
A transfer of a property interest to a government entity, or to a nonprofit
historic preservation corporation or nonprofit nature conservancy corporation,
as defined in RCW 64.04.130, to protect or enhance public resources, or to
preserve, maintain, improve, restore, limit the future use of, or otherwise to
conserve for public use or enjoyment, the property interest being transferred.
At such time as the property interest is not used for the purposes enumerated,
the compensating tax shall be imposed upon the current owner.
(11)
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 1995 c 330 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 82.45.150. 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) or (6)
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) or (6) 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)
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 (a) through (c) of this subsection
shall apply only to the land affected, and upon occurrence of (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 (1)(c), (5), or (6) 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 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 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; or
(e)
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.
(6)
In a county with a population of more than one million inhabitants, the
compensating tax specified in subsection (3) of this section shall not be
imposed if the removal of classification as forest land pursuant to subsection
(1) of this section resulted solely from:
(a)
An action described in subsection (5) of this section; or
(b)
A transfer of a property interest to a government entity, or to a nonprofit
historic preservation corporation or nonprofit nature conservancy corporation,
as defined in RCW 64.04.130, to protect or enhance public resources, or to
preserve, maintain, improve, restore, limit the future use of, or otherwise to
conserve for public use or enjoyment, the property interest being transferred.
At such time as the property interest is not used for the purposes enumerated,
the compensating tax shall be imposed upon the current owner.
Sec.
3. RCW
84.33.145 and 1992 c 69 s 3 are each amended to read as follows:
(1)
If no later than thirty days after removal of classification or designation the
owner applies for classification under RCW 84.34.020 (1), (2), or (3), then the
classified or designated forest land shall not be considered removed from
classification or designation for purposes of the compensating tax under RCW
84.33.120 or 84.33.140 until the application for current use classification
under RCW 84.34.030 is denied or the property is removed from designation under
RCW 84.34.108. Upon removal from designation under RCW 84.34.108, the amount
of compensating tax due under this chapter 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 when
removed from designation under RCW 84.34.108 multiplied by the dollar rate of
the last levy extended against such land, multiplied by
(b)
A number equal to:
(i)
The number of years the land was classified or designated under this chapter,
if the total number of years the land was classified or designated under this
chapter and classified under chapter 84.34 RCW is less than ten; or
(ii)
Ten minus the number of years the land was classified under chapter 84.34 RCW,
if the total number of years the land was classified or designated under this
chapter and classified under chapter 84.34 RCW is at least ten.
(2)
Nothing in this section authorizes the continued classification or designation
under this chapter or defers or reduces the compensating tax imposed upon
forest land not transferred to classification under subsection (1) of this
section which does not meet the necessary definitions of forest land under RCW
84.33.100. Nothing in this section affects the additional tax imposed under
RCW 84.34.108.
(3)
In a county with a population of more than one million inhabitants, no amount
of compensating tax is due under this section if the removal from
classification under RCW 84.34.108 results from a transfer of property
described in RCW 84.34.108(5).
NEW
SECTION. Sec. 4. 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 takes effect immediately.
