Washington State House of Representatives Office of Program Research	BILL ANALYSIS
Natural Resources Committee

HB 2765

Brief Description:  Providing a forest land owner sixty days to file a timber management plan with the assessor.

Sponsors:  Representatives Orcutt, Fromhold, Morell and McDermott.

Brief Summary of Bill

$Requires county assessors to give applicants for forest land designation at least 60 days to complete a timber management plan.

Hearing Date:  2/6/02

Staff:  Jason Callahan (786‑7117).

Background:

All property in this state is subject to a property tax each year based on the property's value unless a specific exemption is provided by law. The state Constitution authorizes agricultural, timber, and open space lands to be valued on the basis of their current use rather than fair market value.  Standing timber is generally exempt from property taxes and is instead subject to a yield tax on harvest.

Two programs currently implement this constitutional exception to fair market value:  the "open space" program and the "forest land" program.  Both of these programs allow for a tax to be assessed on the current use.  This status is available for certain agricultural, timber, and open space lands.  Qualifying lands must meet certain acreage and/or gross income requirements.  Timbered land may qualify for the open space assessment if it is at least five acres in size and used primarily for the commercial growth and harvest of commercial crops.  Forested stands over 20 acres in size are qualified to be assessed in the forest lands program.

When a property being taxed at current use is sold or transferred, the new owner has the option of maintaining the current use designation for the land.  When forest lands are transferred, the county assessor for those lands has the option of requiring the owner to file a timber management plan.  Timbered property eligible for current use under the open space program must have a timber management plan submitted to the county assessor whenever an initial application is made, or the property is sold or transferred.

Summary of Bill:

County assessors must give applicants for forest land designation at least 60 days to complete a timber management plan.

Appropriation:  None.

Fiscal Note:  Not Requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.