S-1473.1  _______________________________________________

 

                    SUBSTITUTE SENATE BILL 5702

          _______________________________________________

 

State of Washington      57th Legislature     2001 Regular Session

 

By Senate Committee on Ways & Means (originally sponsored by Senators Snyder, Winsley, Spanel, Rossi and Rasmussen)

 

READ FIRST TIME 02/21/01.

Changing taxation of forest lands.


    AN ACT Relating to simplifying and harmonizing the taxation of lands valued at current use; amending RCW 84.33.035, 84.33.130, 84.33.140, 84.33.145, 84.33.170, 84.33.210, 84.33.220, 84.33.230, 84.33.250, 84.33.260, 84.33.270, 84.34.020, and 84.34.065; reenacting and amending RCW 84.34.108; decodifying RCW 84.33.112, 84.33.113, 84.33.114, 84.33.115, 84.33.116, and 84.33.118; and repealing RCW 84.33.020, 84.33.073, 84.33.100, 84.33.110, and 84.33.120.

 

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

 

    Sec. 1.  RCW 84.33.035 and 1995 c 165 s 1 are each amended to read as follows:

    Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

    (1) "Agricultural methods" means the cultivation of trees that are grown on land prepared by intensive cultivation and tilling, such as irrigating, plowing, or turning over the soil, and on which all unwanted plant growth is controlled continuously for the exclusive purpose of raising trees such as Christmas trees and short-rotation hardwoods.

    (2) "Average rate of inflation" means the annual rate of inflation as determined by the department averaged over the period of time as provided in RCW 84.33.220 (1) and (2).  This rate shall be published in the state register by the department not later than January 1st of each year for use in that assessment year.

    (3) "Composite property tax rate" for a county means the total amount of property taxes levied upon forest lands by all taxing districts in the county other than the state, divided by the total assessed value of all forest land in the county.

    (((3))) (4) "Forest land" is synonymous with "designated forest land" and means ((forest land which is classified or designated forest land under this chapter)) any parcel of land that is twenty or more acres or multiple parcels of land that are contiguous and total twenty or more acres that is or are devoted primarily to growing and harvesting timber.  Designated forest land means the land only and does not include a residential homesite.  The term includes land used for incidental uses that are compatible with the growing and harvesting of timber but no more than ten percent of the land may be used for such incidental uses.  It also includes the land on which appurtenances necessary for the production, preparation, or sale of the timber products exist in conjunction with land producing these products.

    (((4))) (5) "Harvested" means the time when in the ordinary course of business the quantity of timber by species is first definitely determined.  The amount harvested shall be determined by the Scribner Decimal C Scale or other prevalent measuring practice adjusted to arrive at substantially equivalent measurements, as approved by the department ((of revenue)).

    (((5))) (6) "Harvester" means every person who from the person's own land or from the land of another under a right or license granted by lease or contract, either directly or by contracting with others for the necessary labor or mechanical services, fells, cuts, or takes timber for sale or for commercial or industrial use((:  PROVIDED, That whenever)).  When the United States or any instrumentality thereof, the state, including its departments and institutions and political subdivisions, or any municipal corporation therein so fells, cuts, or takes timber for sale or for commercial or industrial use, the harvester is the first person other than the United States or any instrumentality thereof, the state, including its departments and institutions and political subdivisions, or any municipal corporation therein, who acquires title to or a possessory interest in ((such)) the timber.  The term "harvester" does not include persons performing under contract the necessary labor or mechanical services for a harvester.

    (((6))) (7) "Harvesting and marketing costs" means only those costs directly associated with harvesting the timber from the land and delivering it to the buyer and may include the costs of disposing of logging residues.  Any other costs that are not directly and exclusively related to harvesting and marketing of the timber, such as costs of permanent roads or costs of reforesting the land following harvest, are not harvesting and marketing costs.

    (8) "Incidental use" means a use of designated forest land that is compatible with its purpose for growing and harvesting timber.  An incidental use may include a gravel pit, a shed or land used to store machinery or equipment used in conjunction with the timber enterprise, and any other use that does not interfere with or indicate that the forest land is no longer primarily being used to grow and harvest timber.

    (9) "Local government" means any city, town, county, water-sewer district, public utility district, port district, irrigation district, flood control district, or any other municipal corporation, quasi-municipal corporation, or other political subdivision authorized to levy special benefit assessments for sanitary or storm sewerage systems, domestic water supply or distribution systems, or road construction or improvement purposes.

    (10) "Local improvement district" means any local improvement district, utility local improvement district, local utility district, road improvement district, or any similar unit created by a local government for the purpose of levying special benefit assessments against property specially benefited by improvements relating to the districts.

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

    (12) "Primarily" or "primary use" means the existing use of the land is so prevalent that when the characteristic use of the land is evaluated any other use appears to be conflicting or nonrelated.

    (13) "Short-rotation hardwoods" means hardwood trees, such as but not limited to hybrid cottonwoods, cultivated by agricultural methods in growing cycles shorter than ten years.

    (((7))) (14) "Small harvester" means every person who from his or her own land or from the land of another under a right or license granted by lease or contract, either directly or by contracting with others for the necessary labor or mechanical services, fells, cuts, or takes timber for sale or for commercial or industrial use in an amount not exceeding two million board feet in a calendar year.  When the United States or any instrumentality thereof, the state, including its departments and institutions and political subdivisions, or any municipal corporation therein so fells, cuts, or takes timber for sale or for commercial or industrial use, not exceeding these amounts, the small harvester is the first person other than the United States or any instrumentality thereof, the state, including its departments and institutions and political subdivisions, or any municipal corporation therein, who acquires title to or a possessory interest in the timber.  Small harvester does not include persons performing under contract the necessary labor or mechanical services for a harvester, and it does not include the harvesters of Christmas trees or short-rotation hardwoods.

    (15) "Special benefit assessments" means special assessments levied or capable of being levied in any local improvement district or otherwise levied or capable of being levied by a local government to pay for all or part of the costs of a local improvement and which may be levied only for the special benefits to be realized by property by reason of that local improvement.

    (16) "Stumpage value of timber" means the appropriate stumpage value shown on tables prepared by the department ((of revenue)) under RCW 84.33.091, provided that for timber harvested from public land and sold under a competitive bidding process, stumpage value shall mean ((that)) the actual amount paid to the seller in cash or other consideration.  Whenever payment for the stumpage includes considerations other than cash, the value shall be the fair market value of the other consideration((, provided that)).  If the other consideration is permanent roads, the value of the roads shall be the appraised value as appraised by the seller.

    (((8))) (17) "Timber" means forest trees, standing or down, on privately or publicly owned land, and except as provided in RCW 84.33.170 includes Christmas trees and short-rotation hardwoods.

    (((9))) (18) "Timber assessed value" for a county means a value, calculated by the department ((of revenue)) before October 1st of each year, equal to the total stumpage value of timber harvested from privately owned land in the county during the most recent four calendar quarters for which the information is available multiplied by a ratio.  The numerator of the ratio is the rate of tax imposed by the county under RCW 84.33.051 for the year of the calculation.  The denominator of the ratio is the composite property tax rate for the county for taxes due in the year of the calculation, expressed as a percentage of assessed value.

    (((10))) (19) "Timber assessed value" for a taxing district means the timber assessed value for the county multiplied by a ratio.  The numerator of the ratio is the total assessed value of forest land in the taxing district.  The denominator is the total assessed value of forest land in the county.  As used in this section, "assessed value of forest land" means the assessed value of forest land for taxes due in the year the timber assessed value for the county is calculated.

    (20) "Timber management plan" means a plan prepared by a trained forester, or any other person with adequate knowledge of timber management practices, concerning the use of the land to grow and harvest timber.  Such a plan includes:

    (a) A legal description of the forest land;

    (b) A statement that the forest land is held in contiguous ownership of twenty or more acres and is primarily devoted to and used to grow and harvest timber;

    (c) A brief description of the timber on the forest land or, if the timber on the land has been harvested, the owner's plan to restock the land with timber;

    (d) A statement about whether the forest land is also used to graze livestock;

    (e) A statement about whether the land has been used in compliance with the restocking, forest management, fire protection, insect and disease control, and forest debris provisions of Title 76 RCW; and

    (f) If the land has been recently harvested or supports a growth of brush and noncommercial type timber, a description of the owner's plan to restock the forest land within three years.

 

    Sec. 2.  RCW 84.33.130 and 1994 c 301 s 32 are each amended to read as follows:

    (1) Notwithstanding any other provision of law, lands that were assessed as classified forest land before the effective date of this section shall be designated forest land for the purposes of this chapter.  The owners of previously classified forest land shall not be required to apply for designation under this chapter.  As of the effective date of this section, the land and timber on such land shall be assessed and taxed in accordance with the provisions of this chapter.

    (2) An owner of land desiring that it be designated as forest land and valued ((pursuant to RCW 84.33.120)) under RCW 84.33.140 as of January 1st of any year shall ((make)) submit an application to the ((county)) assessor ((before such)) of the county in which the land is located before January 1st of that yearThe application shall be accompanied by a reasonable processing fee when the county legislative authority has established the requirement for such a fee.

    (3) No application of designation is required when publicly owned forest land is exchanged for privately owned forest land designated under this chapter.  The land exchanged and received by an owner subject to ad valorem taxation shall be automatically granted designation under this chapter if the following conditions are met:

    (a) The land will be used to grow and harvest timber; and

    (b) The owner of the land submits a document to the assessor's office that explains the details of the forest land exchange within sixty days of the closing date of the exchange.  However, if the owner fails to submit information regarding the exchange by the end of this sixty-day period, the owner must file an application for designation as forest land under this chapter and the regular application process will be followed.

    (((2))) (4) The application shall be made upon forms prepared by the department ((of revenue)) and supplied by the ((county)) assessor, and shall include the following:

    (a) A legal description of, or assessor's ((tax lot)) parcel numbers for, all land the applicant desires to be designated as forest land;

    (b) The date or dates of acquisition of ((such)) the land;

    (c) A brief description of the timber on ((such)) the land, or if the timber has been harvested, the owner's plan for restocking;

    (d) ((Whether there is a forest)) A copy of the timber management plan, if one exists, for ((such)) the land prepared by a trained forester or any other person with adequate knowledge of timber management practices;

    (e) If ((so,)) a timber management plan exists, an explanation of the nature and extent ((of implementation of such plan)) to which the management plan has been implemented;

    (f) Whether ((such)) the land is used for grazing;

    (g) Whether ((such)) the land has been subdivided or a plat has been filed with respect ((thereto)) to the land;

    (h) Whether ((such)) the land and the applicant are in compliance with the restocking, forest management, fire protection, insect and disease control, and forest debris provisions of Title 76 RCW or any applicable ((regulations thereunder)) rules;

    (i) Whether ((such)) the land is subject to forest fire protection assessments ((pursuant to)) under RCW 76.04.610;

    (j) Whether ((such)) the land is subject to a lease, option, or other right ((which)) that permits it to be used for any purpose other than growing and harvesting timber;

    (k) A summary of the past experience and activity of the applicant in growing and harvesting timber;

    (l) A summary of current and continuing activity of the applicant in growing and harvesting timber;

    (m) A statement that the applicant is aware of the potential tax liability involved when ((such)) the land ceases to be designated as forest land;

    (n) An affirmation that the statements contained in the application are true and that the land described in the application ((is, by itself or with other forest land not included in the application, in contiguous ownership of twenty or more acres which is primarily devoted to and used for growing and harvesting timber)) meets the definition of forest land in RCW 84.33.035; and

    (o) A description and/or drawing showing what areas of land for which designation is sought are used for incidental uses compatible with the definition of forest land in RCW 84.33.035.

    (5) The assessor shall afford the applicant an opportunity to be heard if the ((application)) applicant so requests.

    (((3))) (6) The assessor shall act upon the application with due regard to all relevant evidence and without any one or more items of evidence necessarily being determinative, except that the application may be denied for one of the following reasons, without regard to other items:

    (a) The land does not contain either a "merchantable stand of timber" ((or an "adequate stocking")) as defined ((by rule adopted by the forest practices board, except this reason (a))) in chapter 76.09 RCW and applicable rules.  This reason shall not alone be sufficient ((for denial of)) to deny the application (i) if ((such)) the land has been recently harvested or supports a growth of brush or noncommercial type timber, and the application includes a plan for restocking within three years or ((such)) a longer period necessitated by unavailability of seed or seedlings, or (ii) if only isolated areas within ((such)) the land do not meet ((such)) the minimum standards due to rock outcroppings, swamps, unproductive soil or other natural conditions;

    (b) The applicant, with respect to ((such)) the land, 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)) rules; or

    (c) The land abuts a body of salt water and lies between the line of ordinary high tide and a line paralleling ((such)) the ordinary high tide line and two hundred feet horizontally landward ((therefrom, except that)) from the high tide line.  However, if the assessor determines that a higher and better use ((determined by the assessor to)) exists for ((such)) the land but this use would not be permitted or economically feasible by virtue of any federal, state, or local law or regulation ((such)), the land shall be assessed and valued ((pursuant to the procedures set forth in RCW 84.33.110 and 84.33.120)) under RCW 84.33.140 without being designated as forest land.

    (7) The application shall be deemed to have been approved unless, prior to May ((1,)) 1st of the year after ((such)) the application was mailed or delivered to the assessor, the assessor ((shall notify)) notifies the applicant in writing of the extent to which the application is denied.

    (((4))) (8) An owner who receives notice ((pursuant to subsection (3) of this section)) that his or her application has been denied, in whole or in part, may appeal ((such)) the denial to the county board of equalization.

 

    Sec. 3.  RCW 84.33.140 and 1999 sp.s. c 4 s 703 are each amended to read as follows:

    (1) When land has been designated as forest land ((pursuant to RCW 84.33.120(4) or)) under RCW 84.33.130, a notation of ((such)) the 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)) parcel numbers for ((such)) the land shall, at the expense of the applicant, be filed by the assessor in the same manner as deeds are recorded((, and such)).

    (2) In preparing the assessment roll as of January 1, 2002, for taxes payable in 2003 and each January 1st thereafter, the assessor shall list each parcel of designated forest land at a value with respect to the grade and class provided in this subsection and adjusted as provided in subsection (3) of this section.  The assessor shall compute the assessed value of the land using the same assessment ratio applied generally in computing the assessed value of other property in the county.  Values for the several grades of bare forest land shall be as follows:

    LAND            OPERABILITY          VALUES

    GRADE              CLASS             PER ACRE

                         1                 $234

      1                  2                  229

                         3                  217

                         4                  157

                         1                  198

      2                  2                  190

                         3                  183

                         4                  132

                         1                  154

      3                  2                  149

                         3                  148

                         4                  113

                         1                  117

      4                  2                  114

                         3                  113

                         4                   86

                         1                   85

      5                  2                   78

                         3                   77

                         4                   52

                         1                   43

      6                  2                   39

                         3                   39

                         4                   37

                         1                   21

      7                  2                   21

                         3                   20

                         4                   20

      8                                       1

 

    (3) On or before December 31, 2002, the department shall adjust by rule under chapter 34.05 RCW, the forest land values contained in subsection (2) of this section in accordance with this subsection, and shall certify the adjusted values to the assessor who will use these values in preparing the assessment roll as of January 1, 2003.  For the adjustment to be made on or before December 31, 2002, for use in the 2003 assessment year, the department shall:

    (a) Divide the aggregate value of all timber harvested within the state between July 1, 1997, and June 30, 2002, by the aggregate harvest volume for the same period, as determined from the harvester excise tax returns filed with the department under RCW 84.33.074; and

    (b) Divide the aggregate value of all timber harvested within the state between July 1, 1996, and June 30, 2001, by the aggregate harvest volume for the same period, as determined from the harvester excise tax returns filed with the department under RCW 84.33.074; and

    (c) Adjust the forest land values contained in subsection (2) 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.

    (4) For the adjustments to be made on or before December 31, 2003, and each succeeding year thereafter, the same procedure described in subsection (3) of this section shall be followed using harvester excise tax returns filed under RCW 84.33.074.  However, 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.

    (5) Land ((shall be)) graded, assessed, and valued ((pursuant to RCW 84.33.110 and 84.33.120)) as forest land shall continue to be so graded, assessed, and valued until removal of ((such)) designation by the assessor upon the occurrence of any of the following:

    (a) Receipt of notice from the owner to remove ((such)) the designation;

    (b) Sale or transfer to an ownership making ((such)) the land exempt from ad valorem taxation;

    (c) Sale or transfer of all or a portion of ((such)) the 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)) designation.  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)) under subsection (((3))) (11) 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, as evidenced by the real estate excise tax stamp affixed thereto by the treasurer.  The seller, transferor, or new owner may appeal the new assessed valuation calculated under subsection (((3))) (11) 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)) The 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))) (13) or (((6))) (14) 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 the designated forest land by means of a transaction that qualifies for an exemption under subsection (((5))) (13) or (((6))) (14) 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)) rules; 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.

    (2))) (6) Land shall not be removed from designation if there is a governmental restriction that prohibits, in whole or in part, the harvesting of timber from the owner's designated forest land.  If only a portion of the parcel is impacted by governmental restrictions of this nature, the restrictions cannot be used as a basis to remove the remainder of the forest land from designation under this chapter.  For the purposes of this section, "governmental restrictions" includes:  (a) Any law, regulation, rule, ordinance, program, or other action adopted or taken by a federal, state, county, city, or other governmental entity; or (b) the land's zoning or its presence within an urban growth area designated under RCW 36.70A.110.

    (7) The assessor shall have the option of requiring an owner of forest land to file a timber management plan with the assessor upon the occurrence of one of the following:

    (a) An application for designation as forest land is submitted; or

    (b) Designated forest land is sold or transferred and a notice of continuance, described in subsection (5)(c) of this section, is signed.

    (8) If land is removed from designation because of any of the circumstances listed in subsection (5)(a) through (c) of this section, the removal shall apply only to the land affected.  If land is removed from designation because of subsection (5)(d) of this section, the removal shall apply only to the actual area of land that is no longer primarily devoted to the growing and harvesting of timber, without regard to any other land that may have been included in the application and approved for designation, as long as the remaining designated forest land meets the definition of forest land contained in RCW 84.33.035.

    (9) Within thirty days after ((such)) the removal of designation ((of)) as forest land, the assessor shall notify the owner in writing, setting forth the reasons for ((such)) the removal.  The seller, transferor, or owner may appeal ((such)) the removal to the county board of equalization.

    (((3))) (10) Unless the removal is reversed on appeal a copy of the notice of removal with a notation of the action, if any, upon appeal, together with the legal description or assessor's ((tax lot)) parcel 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)) and a notation of removal from designation shall immediately be made upon the assessment and tax rolls.  The assessor shall revalue the land to be removed with reference to its true and fair value as of January 1st of the year of removal from designation.  Both the assessed value before and after the removal of designation shall be listed.  Taxes based on the value of the land as forest land shall be assessed and payable up until the date of removal and taxes based on the true and fair value of the land shall be assessed and payable from the date of removal from designation.

    (11) Except as provided in subsection (((1)(c), (5), or (6))) (5)(c), (13), or (14) of this section, a compensating tax shall be imposed ((which)) on land removed from designation as forest land.  The compensating tax shall be due and payable to the ((county)) treasurer thirty days after the owner is notified of the amount of ((the compensating)) this tax.  As soon as possible after the land is removed from designation, the assessor shall compute the amount of ((such)) compensating tax and mail a notice to the owner of the amount ((thereof)) of compensating tax owed and the date on which payment of this tax is due.  The amount of ((such)) compensating tax shall be equal to the difference between the amount of tax last levied on ((such)) the land as designated forest land and an amount equal to the new assessed ((valuation)) value of ((such)) the land multiplied by the dollar rate of the last levy extended against ((such)) the land, multiplied by a number, in no event greater than ((ten)) nine, equal to the number of years for which ((such)) the land was designated as forest land, plus compensating taxes on the land at forest land values up until the date of removal and the prorated taxes on the land at true and fair value from the date of removal to the end of the current tax year.

    (((4))) (12) Compensating tax, together with applicable interest thereon, shall become a lien on ((such)) the land which shall attach at the time ((such)) the 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)) the land may become charged or liable.  ((Such)) The 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))) (13) The compensating tax specified in subsection (((3))) (11) of this section shall not be imposed if the removal of designation ((pursuant to)) under subsection (((1))) (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 (((3))) (11) 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;

    (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)) the land;

    (f) The creation, sale, or transfer of forestry riparian easements under RCW 76.13.120; or

    (g) The creation, sale, or transfer of a fee interest or a conservation easement for the riparian open space program under RCW 76.09.040.

    (((6))) (14) In a county with a population of more than one million inhabitants, the compensating tax specified in subsection (((3))) (11) of this section shall not be imposed if the removal of ((classification)) designation as forest land ((pursuant to)) under subsection (((1))) (5) of this section resulted solely from:

    (a) An action described in subsection (((5))) (13) 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. 4.  RCW 84.33.145 and 1999 sp.s. c 4 s 704 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 chapter 84.34 RCW ((84.34.030)) is denied or the property is removed from ((designation)) classification under RCW 84.34.108.  Upon removal ((from designation)) of classification 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)) the land as designated forest land and an amount equal to the new assessed valuation of ((such)) the land when removed from ((designation)) classification under RCW 84.34.108 multiplied by the dollar rate of the last levy extended against ((such)) the 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)) definition((s)) of forest land under RCW ((84.33.100)) 84.33.035.  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(6).

 

    Sec. 5.  RCW 84.33.170 and 1995 c 165 s 2 are each amended to read as follows:

    Notwithstanding any provision of this chapter to the contrary, this chapter shall not exempt from the ad valorem tax nor subject to the excise tax imposed by this chapter, Christmas trees and short-rotation hardwoods, which are cultivated by agricultural methods, and ((such)) the land on which ((such)) the Christmas trees and short-rotation hardwoods stand shall not be taxed as provided in RCW ((84.33.100 through)) 84.33.140.  However, short-rotation hardwoods, which are cultivated by agricultural methods, on land classified as timber land under chapter 84.34 RCW, shall be subject to the excise tax imposed under this chapter.

 

    Sec. 6.  RCW 84.33.210 and 1992 c 52 s 7 are each amended to read as follows:

    (1) Any ((forest)) land that is designated ((for classification pursuant to)) as forest land under this chapter ((84.33 RCW)) at the earlier of the times the legislative authority of a local government adopts a resolution, ordinance, or legislative act (a) to create a local improvement district, in which ((such)) the land is included or would have been included but for ((such classification)) the designation, or (b) to approve or confirm a final special benefit assessment roll relating to a sanitary or storm sewerage system, domestic water supply or distribution system, or road construction or improvement, which roll would have included ((such)) the land but for ((such classification)) the designation, shall be exempt from special benefit assessments or charges in lieu of assessment for such purposes as long as that land remains ((in such classification)) designated as forest land, except as otherwise provided in RCW 84.33.250.

    (2) Whenever a local government creates a local improvement district, the levying, collection, and enforcement of assessments shall be in the manner and subject to the same procedures and limitations as are provided ((pursuant to)) under the law concerning the initiation and formation of local improvement districts for the particular local government.  Notice of the creation of a local improvement district that includes designated forest land shall be filed with the ((county)) assessor and the legislative authority of the county in which ((such)) the land is located.  The ((county)) assessor, upon receiving notice of the creation of ((such)) a local improvement district, shall send a notice to the owners of the designated forest lands listed on the tax rolls of the applicable ((county)) treasurer of:

    (a) The creation of the local improvement district;

    (b) The exemption of that land from special benefit assessments;

    (c) The fact that the designated forest land may become subject to the special benefit assessments if the owner waives the exemption by filing a notarized document with the governing body of the local government creating the local improvement district before the confirmation of the final special benefit assessment roll; and

    (d) The potential liability, pursuant to RCW 84.33.220, if the exemption is not waived and the land is subsequently removed from ((the)) designated forest land status.

    (3) When a local government approves and confirms a special benefit assessment roll, from which designated forest land has been exempted ((pursuant to)) under this section, it shall file a notice of ((such)) this action with the ((county)) assessor and the legislative authority of the county in which ((such)) the land is located and with the treasurer of that local government((, which)).  The notice shall describe the action taken, the type of improvement involved, the land exempted, and the amount of the special benefit assessment that would have been levied against the land if it had not been exempted.  The filing of ((such)) the notice with the ((county)) assessor and the treasurer of that local government shall constitute constructive notice to a purchaser or encumbrancer of the affected land, and every person whose conveyance or encumbrance is subsequently executed or subsequently recorded, that ((such)) the exempt land is subject to the charges provided in RCW 84.33.220 and 84.33.230, if ((such)) the land is ((withdrawn or)) removed from its ((classification)) designation as forest land.

    (4) The owner of the land exempted from special benefit assessments ((pursuant to)) under this section may waive that exemption by filing a notarized document to that effect with the legislative authority of the local government upon receiving notice from said local government concerning the assessment roll hearing and before the local government confirms the final special benefit assessment roll.  A copy of that waiver shall be filed by the local government with the ((county)) assessor, but the failure ((of such filing)) to file this copy shall not affect the waiver.

    (5) Except to the extent provided in RCW 84.33.250, the local government shall have no duty to furnish service from the improvement financed by the special benefit assessment to ((such)) the exempted land.

 

    Sec. 7.  RCW 84.33.220 and 1992 c 52 s 8 are each amended to read as follows:

    Whenever forest land has ((once)) been exempted from special benefit assessments ((pursuant to)) under RCW 84.33.210, any ((withdrawal)) removal from ((classification)) designation or change in use from forest land under this chapter ((84.33 RCW)) shall result in the following:

    (1) If the bonds used to fund the improvement in the local improvement district have not been completely retired, ((such)) the land shall immediately become liable for:

    (a) The amount of the special benefit assessment listed in the notice provided for in RCW 84.33.210; plus

    (b) Interest on the amount determined in (a) of this subsection, compounded annually at a rate equal to the average rate of inflation from the time the initial notice is filed by the governmental entity that created the local improvement district as provided in RCW 84.33.210, to the time the owner ((withdraws such)) or the assessor removes the land from the exemption category provided by this chapter; or

    (2) If the bonds used to fund the improvement in the local improvement district have been completely retired, ((such)) the land shall immediately become liable for: 

    (a) The amount of the special benefit assessment listed in the notice provided for in RCW 84.33.210; plus

    (b) Interest on the amount determined in (a) of this subsection compounded annually at a rate equal to the average rate of inflation from the time the initial notice is filed by the governmental entity that created the local improvement district as provided in RCW 84.33.210, to the time the bonds used to fund the improvement have been retired; plus

    (c) Interest on the total amount determined in (a) and (b) of this subsection at a simple per annum rate equal to the average rate of inflation from the time the bonds used to fund the improvement have been retired to the time the owner ((withdraws such)) or the assessor removes the land((s)) from the exemption category provided by this chapter;

    (3) The amount payable ((pursuant to)) under this section shall become due on the date ((such)) the land is ((withdrawn or)) removed from its forest land ((classification and)) designation.  This amount shall be a lien on the land prior and superior to any other lien whatsoever except for the lien for general taxes, and shall be enforceable in the same manner as the collection of special benefit assessments are enforced by that local government.

 

    Sec. 8.  RCW 84.33.230 and 1992 c 52 s 9 are each amended to read as follows:

    Whenever forest land is ((withdrawn or)) removed from its forest land ((classification)) designation, the ((county)) assessor of the county in which ((such)) the land is located shall forthwith give written notice of ((such withdrawal or)) the removal to the local government or its successor that ((had)) filed with the assessor the notice required by RCW 84.33.210.  Upon receipt of the notice from the assessor, the local government shall mail a written statement to the owner of ((such)) the land for the amounts payable as provided in RCW 84.33.220.  ((Such)) The amounts due shall be delinquent if not paid within one hundred eighty days after the date of mailing of the statement((, and)).  The amount payable shall be subject to the same interest, penalties, lien priority, and enforcement procedures that are applicable to delinquent assessments on the assessment roll from which that land had been exempted, except that the rate of interest charged shall not exceed the rate provided in RCW 84.33.220.

 

    Sec. 9.  RCW 84.33.250 and 1992 c 52 s 11 are each amended to read as follows:

    The department ((of revenue)) shall adopt rules it shall deem necessary to implement RCW ((84.33.100 and)) 84.33.210 through 84.33.270, which shall include, but not be limited to, procedures to determine the extent to which a portion of the land otherwise exempt may be subject to a special benefit assessment for:  (1) The actual connection to the domestic water system or sewerage facilities; (2) ((for)) access to the road improvement in relation to its value as forest land as distinguished from its value under more intensive uses; and (3) ((for such)) the lands that benefit from or cause the need for a local improvement district.  The provision for limited special benefit assessments shall not relieve ((such)) the land from liability for the amounts provided in RCW 84.33.220 and 84.33.230 when ((such)) the land is ((withdrawn or)) removed from its forest land ((classification)) designation.

 

    Sec. 10.  RCW 84.33.260 and 1992 c 52 s 12 are each amended to read as follows:

    Whenever a portion of a parcel of land that was ((classified)) designated as forest land ((pursuant to)) under this chapter is ((withdrawn)) removed from ((classification)) designation or there is a change in use, and ((such)) the land has been exempted from any benefit assessments ((pursuant to)) under RCW 84.33.210, the previously exempt benefit assessments shall become due on only that portion of the land that is ((withdrawn)) removed or changed in use.

 

    Sec. 11.  RCW 84.33.270 and 1992 c 52 s 13 are each amended to read as follows:

    (1) Forest land on which the right ((to)) of future development has been acquired by any local government, the state of Washington, or the United States government shall be exempt from special benefit assessments in lieu of assessment for ((such)) the purposes in the same manner, and under the same liabilities for payment and interest, as land ((classified)) designated under this chapter as forest land, for as long as ((such classification)) the designation applies.

    (2) Any interest, development right, easement, covenant, or other contractual right that effectively protects, preserves, maintains, improves, restores, prevents the future nonforest use of, or otherwise conserves forest land shall be exempt from special benefit assessments as long as ((such)) the development right or other ((such)) interest effectively serves to prevent nonforest development of ((such)) the land.

 

    Sec. 12.  RCW 84.34.020 and 1998 c 320 s 7 are each amended to read as follows:

    As used in this chapter, unless a different meaning is required by the context:

    (1) "Open space land" means (a) any land area so designated by an official comprehensive land use plan adopted by any city or county and zoned accordingly, or (b) any land area, the preservation of which in its present use would (i) conserve and enhance natural or scenic resources, or (ii) protect streams or water supply, or (iii) promote conservation of soils, wetlands, beaches or tidal marshes, or (iv) enhance the value to the public of abutting or neighboring parks, forests, wildlife preserves, nature reservations or sanctuaries or other open space, or (v) enhance recreation opportunities, or (vi) preserve historic sites, or (vii) preserve visual quality along highway, road, and street corridors or scenic vistas, or (viii) retain in its natural state tracts of land not less than one acre situated in an urban area and open to public use on such conditions as may be reasonably required by the legislative body granting the open space classification, or (c) any land meeting the definition of farm and agricultural conservation land under subsection (8) of this section.  As a condition of granting open space classification, the legislative body may not require public access on land classified under (b)(iii) of this subsection for the purpose of promoting conservation of wetlands.

    (2) "Farm and agricultural land" means:

    (a) Any parcel of land that is twenty or more acres or multiple parcels of land that are contiguous and total twenty or more acres:

    (i) Devoted primarily to the production of livestock or agricultural commodities for commercial purposes;

    (ii) Enrolled in the federal conservation reserve program or its successor administered by the United States department of agriculture; or

    (iii) Other similar commercial activities as may be established by rule;

    (b) Any parcel of land that is five acres or more but less than twenty acres devoted primarily to agricultural uses, which has produced a gross income from agricultural uses equivalent to, as of January 1, 1993:

    (i) One hundred dollars or more per acre per year for three of the five calendar years preceding the date of application for classification under this chapter for all parcels of land that are classified under this subsection or all parcels of land for which an application for classification under this subsection is made with the granting authority prior to January 1, 1993; and

    (ii) On or after January 1, 1993, two hundred dollars or more per acre per year for three of the five calendar years preceding the date of application for classification under this chapter;

    (c) Any parcel of land of less than five acres devoted primarily to agricultural uses which has produced a gross income as of January 1, 1993, of:

    (i) One thousand dollars or more per year for three of the five calendar years preceding the date of application for classification under this chapter for all parcels of land that are classified under this subsection or all parcels of land for which an application for classification under this subsection is made with the granting authority prior to January 1, 1993; and

    (ii) On or after January 1, 1993, fifteen hundred dollars or more per year for three of the five calendar years preceding the date of application for classification under this chapter.

Parcels of land described in (b)(i) and (c)(i) of this subsection shall, upon any transfer of the property excluding a transfer to a surviving spouse, be subject to the limits of (b)(ii) and (c)(ii) of this subsection.

    ((Agricultural lands shall also include such)) (d) Any lands including incidental uses as are compatible with agricultural purposes, including wetlands preservation, provided such incidental use does not exceed twenty percent of the classified land and the land on which appurtenances necessary to the production, preparation, or sale of the agricultural products exist in conjunction with the lands producing such products.  Agricultural lands shall also include any parcel of land of one to five acres, which is not contiguous, but which otherwise constitutes an integral part of farming operations being conducted on land qualifying under this section as "farm and agricultural lands"; or

    (((d))) (e) The land on which housing for employees and the principal place of residence of the farm operator or owner of land classified pursuant to (a) of this subsection is sited if:  The housing or residence is on or contiguous to the classified parcel; and the use of the housing or the residence is integral to the use of the classified land for agricultural purposes.

    (3) "Timber land" means any parcel of land that is five or more acres or multiple parcels of land that are contiguous and total five or more acres which is or are devoted primarily to the growth and harvest of ((forest crops)) timber for commercial purposes.  A timber management plan shall be filed with the county legislative authority at the time (a) an application is made for classification as timber land pursuant to this chapter or (b) when a sale or transfer of timber land occurs and a notice of classification continuance is signed.  Timber land means the land only.

    (4) "Current" or "currently" means as of the date on which property is to be listed and valued by the assessor.

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

    (6) "Contiguous" means land adjoining and touching other property held by the same ownership.  Land divided by a public road, but otherwise an integral part of a farming operation, shall be considered contiguous.

    (7) "Granting authority" means the appropriate agency or official who acts on an application for classification of land pursuant to this chapter.

    (8) "Farm and agricultural conservation land" means either:

    (a) Land that was previously classified under subsection (2) of this section, that no longer meets the criteria of subsection (2) of this section, and that is reclassified under subsection (1) of this section; or

    (b) Land that is traditional farmland that is not classified under chapter 84.33 or 84.34 RCW, that has not been irrevocably devoted to a use inconsistent with agricultural uses, and that has a high potential for returning to commercial agriculture.

 

    Sec. 13.  RCW 84.34.065 and 2000 c 103 s 23 are each amended to read as follows:

    The true and fair value of farm and agricultural land shall be determined by consideration of the earning or productive capacity of comparable lands from crops grown most typically in the area averaged over not less than five years, capitalized at indicative rates.  The earning or productive capacity of farm and agricultural lands shall be the "net cash rental", capitalized at a "rate of interest" charged on long term loans secured by a mortgage on farm or agricultural land plus a component for property taxes.  The current use value of land under RCW 84.34.020(2)(((d))) (e) shall be established as:  The prior year's average value of open space farm and agricultural land used in the county plus the value of land improvements such as septic, water, and power used to serve the residence.  This shall not be interpreted to require the assessor to list improvements to the land with the value of the land.

    For the purposes of the above computation:

    (1) The term "net cash rental" shall mean the average rental paid on an annual basis, in cash, for the land being appraised and other farm and agricultural land of similar quality and similarly situated that is available for lease for a period of at least three years to any reliable person without unreasonable restrictions on its use for production of agricultural crops.  There shall be allowed as a deduction from the rental received or computed any costs of crop production charged against the landlord if the costs are such as are customarily paid by a landlord.  If "net cash rental" data is not available, the earning or productive capacity of farm and agricultural lands shall be determined by the cash value of typical or usual crops grown on land of similar quality and similarly situated averaged over not less than five years.  Standard costs of production shall be allowed as a deduction from the cash value of the crops.

    The current "net cash rental" or "earning capacity" shall be determined by the assessor with the advice of the advisory committee as provided in RCW 84.34.145, and through a continuing internal study, assisted by studies of the department of revenue.  This net cash rental figure as it applies to any farm and agricultural land may be challenged before the same boards or authorities as would be the case with regard to assessed values on general property.

    (2) The term "rate of interest" shall mean the rate of interest charged by the farm credit administration and other large financial institutions regularly making loans secured by farm and agricultural lands through mortgages or similar legal instruments, averaged over the immediate past five years.

    The "rate of interest" shall be determined annually by a rule adopted by the department of revenue and such rule shall be published in the state register not later than January 1 of each year for use in that assessment year.  The department of revenue determination may be appealed to the state board of tax appeals within thirty days after the date of publication by any owner of farm or agricultural land or the assessor of any county containing farm and agricultural land.

    (3) The "component for property taxes" shall be a figure obtained by dividing the assessed value of all property in the county into the property taxes levied within the county in the year preceding the assessment and multiplying the quotient obtained by one hundred.

 

    Sec. 14.  RCW 84.34.108 and 1999 sp.s. c 4 s 706 and 1999 c 233 s 22 are each reenacted and amended to read as follows:

    (1) When land has once been classified under this chapter, a notation of ((such)) the classification shall be made each year upon the assessment and tax rolls and ((such)) the land shall be valued pursuant to RCW 84.34.060 or 84.34.065 until removal of all or a portion of ((such)) the classification by the assessor upon occurrence of any of the following:

    (a) Receipt of notice from the owner to remove all or a portion of ((such)) the classification;

    (b) Sale or transfer to an ownership, except a transfer that resulted from a default in loan payments made to or secured by a governmental agency that intends to or is required by law or regulation to resell the property for the same use as before, making all or a portion of ((such)) the land exempt from ad valorem taxation;

    (c) Sale or transfer of all or a portion of ((such)) the land to a new owner, unless the new owner has signed a notice of 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 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 additional taxes calculated pursuant to subsection (4) 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 land for filing or recording unless the new owner has signed the notice of continuance or the additional tax has been paid, as evidenced by the real estate excise tax stamp affixed thereto by the treasurer.  The seller, transferor, or new owner may appeal the new assessed valuation calculated under subsection (4) 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 all or a portion of ((such)) the land no longer meets the criteria for classification under this chapter.  The criteria for classification pursuant to this chapter continue to apply after classification has been granted.

    The granting authority, upon request of an assessor, shall provide reasonable assistance to the assessor in making a determination whether ((such)) the land continues to meet the qualifications of RCW 84.34.020 (1) or (3).  The assistance shall be provided within thirty days of receipt of the request.

    (2) Land may not be removed from classification because of:

    (a) The creation, sale, or transfer of forestry riparian easements under RCW 76.13.120; or

    (b) The creation, sale, or transfer of a fee interest or a conservation easement for the riparian open space program under RCW 76.09.040.

    (3) Within thirty days after such removal of all or a portion of ((such)) the land from current use classification, the assessor shall notify the owner in writing, setting forth the reasons for ((such)) the removal.  The seller, transferor, or owner may appeal ((such)) the removal to the county board of equalization.

    (4) Unless the removal is reversed on appeal, the assessor shall revalue the affected land with reference to ((full market)) its true and fair value on ((the date)) January 1st of the year of removal from classification.  Both the assessed valuation before and after the removal of classification shall be listed and taxes shall be allocated according to that part of the year to which each assessed valuation applies.  Except as provided in subsection (6) of this section, an additional tax, applicable interest, and penalty 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 additional tax.  As soon as possible, the assessor shall compute the amount of ((such an)) additional tax, applicable interest, and penalty and the treasurer shall mail notice to the owner of the amount thereof and the date on which payment is due.  The amount of ((such)) the additional tax, applicable interest, and penalty shall be determined as follows:

    (a) The amount of additional tax shall be equal to the difference between the property tax paid as "open space land", "farm and agricultural land", or "timber land" and the amount of property tax otherwise due and payable for the seven years last past had the land not been so classified;

    (b) The amount of applicable interest shall be equal to the interest upon the amounts of ((such)) the additional tax paid at the same statutory rate charged on delinquent property taxes from the dates on which ((such)) the additional tax could have been paid without penalty if the land had been assessed at a value without regard to this chapter;

    (c) The amount of the penalty shall be as provided in RCW 84.34.080.  The penalty shall not be imposed if the removal satisfies the conditions of RCW 84.34.070.

    (5) Additional tax, applicable interest, and penalty, shall become a lien on ((such)) the land which shall attach at the time ((such)) the land is removed from classification under this chapter 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)) the land may become charged or liable.  ((Such)) This 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 now or as hereafter amended.  Any additional 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.

    (6) The additional tax, applicable interest, and penalty specified in subsection (4) of this section shall not be imposed if the removal of classification pursuant to subsection (1) of this section resulted solely from:

    (a) Transfer to a government entity in exchange for other land located within the state of Washington;

    (b)(i) A taking through the exercise of the power of eminent domain, or (ii) sale or transfer to an entity having the power of eminent domain in anticipation of the exercise of such power, said entity having manifested its intent in writing or by other official action;

    (c) A natural disaster such as a flood, windstorm, earthquake, or other such calamity rather than by virtue of the act of the landowner changing the use of ((such)) the property;

    (d) 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)) the land;

    (e) Transfer of land to a church when ((such)) the land would qualify for exemption pursuant to RCW 84.36.020;

    (f) Acquisition 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((:  PROVIDED, That)).  At such time as these property interests are not used for the purposes enumerated in RCW 84.34.210 and 64.04.130 the additional tax specified in subsection (4) of this section shall be imposed;

    (g) Removal of land classified as farm and agricultural land under RCW 84.34.020(2)(((d))) (e);

    (h) Removal of land from classification after enactment of a statutory exemption that qualifies the land for exemption and receipt of notice from the owner to remove the land from classification;

    (i) The creation, sale, or transfer of forestry riparian easements under RCW 76.13.120; or

    (j) The creation, sale, or transfer of a fee interest or a conservation easement for the riparian open space program under RCW 76.09.040.

 

    NEW SECTION.  Sec. 15.  The following sections are decodified:

    (1) RCW 84.33.112 (Forest land valuation--Grading forest land--Completion date--Hearings);

    (2) RCW 84.33.113 (Forest land valuation--Grading forest land--Review of grades);

    (3) RCW 84.33.114 (Forest land valuation--Grading forest land--Certification of grades to department of revenue by department of natural resources);

    (4) RCW 84.33.115 (Forest land valuation--Grading forest land--Certification of grades to county assessors--Placement of forest land within land grades);

    (5) RCW 84.33.116 (Forest land valuation--Grading forest land--Notice to owners of grades--Petition for correction of grade--Appeal); and

    (6) RCW 84.33.118 (Forest land valuation--Grading forest land--Notice to owners of value established--Petitions for correction of value).

 

    NEW SECTION.  Sec. 16.  The following acts or parts of acts are each repealed:

    (1) RCW 84.33.020 (Classification of timberlands) and 1990 c 33 s 599, 1984 c 204 s 17, & 1971 ex.s. c 294 s 2;

    (2) RCW 84.33.073 (Definitions) and 1995 c 325 s 1, 1987 c 166 s 2, 1986 c 315 s 2, 1982 2nd ex.s. c 4 s 3, & 1981 c 146 s 1;

    (3) RCW 84.33.100 (Forest land valuation--Definitions) and 1999 c 153 s 70, 1992 c 52 s 6, 1983 c 3 s 224, & 1971 ex.s. c 294 s 10;

    (4) RCW 84.33.110 (Forest land valuation--Grading forest land--Classes) and 1981 c 148 s 4, 1974 ex.s. c 187 s 4, & 1971 ex.s. c 294 s 11; and

    (5) RCW 84.33.120 (Forest land valuation--Assessor to list forest land at grade and class values--Computation of assessed value--Adjustment of values--Certification--Use--Notice of continuance--Appeals--Removal of classification--Compensating tax) and 1999 sp.s. c 4 s 702, 1999 c 233 s 20, 1997 c 299 s 1, 1995 c 330 s 1, 1992 c 69 s 1, 1986 c 238 s 1, 1984 c 204 s 23, 1981 c 148 s 7, 1980 c 134 s 2, 1974 ex.s. c 187 s 5, 1972 ex.s. c 148 s 5, & 1971 ex.s. c 294 s 12.

 


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