BILL REQ. #:  S-4892.1 

READ FIRST TIME 02/01/06.   

     AN ACT Relating to a property tax exemption for land used for growing agricultural crops used in the production of biodiesel feedstock; and adding a new section to chapter 84.36 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 84.36 RCW to read as follows:
     (1) Land used for growing agricultural crops used in the production of biodiesel feedstock is exempt from the state property tax levied in RCW 84.52.065, to the extent provided in subsection (2) of this section.
     (2)(a) A parcel used exclusively for growing an agricultural crop used in the production of biodiesel feedstock is exempt from the state property tax levied in RCW 84.52.065 for the assessment year in which the crop used in the production of biodiesel feedstock is harvested. A person claiming the exemption under this subsection (2)(a) shall file a claim for exemption with the county assessor by November 1st of the assessment year during which these crops are harvested.
     (b) A parcel used for growing an agricultural crop used in the production of biodiesel feedstock and other crops is exempt from the state property tax levied in RCW 84.52.065 on a proportional basis for the assessment year in which the crop used in the production of biodiesel feedstock is harvested. This basis shall be derived by dividing the acreage used to grow an agricultural crop used in the production of biodiesel feedstock by the total acreage under cultivation. A person claiming the exemption under this subsection (2)(b) shall file a claim for exemption with the county assessor by November 1st of the assessment year during which the crops are harvested identifying the total acreage under cultivation and the acreage devoted to an agricultural crop used in the production of biodiesel feedstock.
     (c) Land on which buildings are situated is not subject to the exemption in this section.
     (3) Claims for exemption under this section shall be filed with the county assessor on forms prescribed by the department and furnished by the assessor. The assessor shall verify and approve claims as the assessor determines to be justified and in accordance with this section. A claim for exemption under this section shall be for taxes due and payable in the year following the year in which the claim is filed.
     (4) The department may adopt rules necessary to administer this section.
     (5) For the purposes of this section, "biodiesel feedstock" has the same meaning as provided in RCW 84.36.635.