BILL REQ. #:  H-2432.3 

READ FIRST TIME 03/05/07.   

     AN ACT Relating to allowing owners of property enrolled in a current use property tax program to transfer the property between one another or to withdraw the property on the death of the owner, without penalty; amending RCW 84.34.070 and 84.34.080; providing an effective date; and declaring an emergency.

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

Sec. 1   RCW 84.34.070 and 1992 c 69 s 10 are each amended to read as follows:
     (1) When land has once been classified under this chapter, it shall remain under such classification and shall not be applied to other use except as provided by subsection (2) of this section for at least ten years from the date of classification ((and)). It shall continue under such classification until and unless withdrawn from classification after notice of request for withdrawal shall be made by the owner.
     (a) Except as provided in (b) of this subsection, during any year after eight years of the initial ten-year classification period have elapsed, notice of request for withdrawal of all or a portion of the land may be given by the owner to the assessor or assessors of the county or counties in which ((such)) the land is situated. In the event that a portion of a parcel is removed from classification, the remaining portion must meet the same requirements as did the entire parcel when ((such)) the land was originally granted classification ((pursuant to)) under this chapter unless the remaining parcel has different income criteria. Within seven days the assessor shall transmit one copy of ((such)) the notice to the legislative body ((which)) that originally approved the application. The assessor or assessors, as the case may be, shall, when two assessment years have elapsed following the date of receipt of such notice, withdraw ((such)) the land from ((such)) the classification and the land shall be subject to the additional tax and applicable interest due under RCW 84.34.108. The open space taxation agreement to tax according to use shall not be considered to be a contract and can be abrogated at any time by the legislature in which event no additional tax or penalty shall be imposed.
     (b) In a county with a population of one million or greater, during any year after the initial ten-year classification period has elapsed, notice of request for withdrawal of all or a portion of the land may be given by the owner to the assessor of the county in which the land is situated. In the event that a portion of a parcel is removed from classification, the remaining portion must meet the same requirements as did the entire parcel when the land was originally granted classification under this chapter unless the remaining parcel has different income criteria. Within seven days the assessor shall transmit one copy of the notice to the legislative body that originally approved the application. Upon receipt of such notice, the assessor shall withdraw the land from the classification and the land shall be subject to the additional tax and applicable interest due under RCW 84.34.108. The open space taxation agreement to tax according to use shall not be considered to be a contract and can be abrogated at any time by the legislature in which event no additional tax or penalty shall be imposed.
     (2)(a) The following reclassifications are not considered withdrawals or removals and are not subject to additional tax under RCW 84.34.108:
     (((a))) (i) Reclassification between lands under RCW 84.34.020 (2) and (3);
     (((b))) (ii) Reclassification of land classified under RCW 84.34.020 (2) or (3) or chapter 84.33 RCW to open space land under RCW 84.34.020(1);
     (((c))) (iii) Reclassification of land classified under RCW 84.34.020 (2) or (3) to forest land classified under chapter 84.33 RCW; and
     (((d))) (iv) Reclassification of land classified as open space land under RCW 84.34.020(1)(c) and reclassified to farm and agricultural land under RCW 84.34.020(2) if the land had been previously classified as farm and agricultural land under RCW 84.34.020(2).
     (b) In a county with a population of one million or greater, the following reclassifications are not considered withdrawals or removals and are not subject to additional tax under RCW 84.34.108:
     (i) Reclassification of land from one current use classification governed by this chapter to another current use classification governed by this chapter;
     (ii) Reclassification of land designated under chapter 84.33 RCW to a current use classification governed by this chapter; and
     (iii) Reclassification of land from a current use classification governed by this chapter to forest land designated under chapter 84.33 RCW.
     (3) Applications for reclassification shall be subject to applicable provisions of RCW 84.34.037, 84.34.035, 84.34.041, and chapter 84.33 RCW.
     (4) The income criteria for land classified under RCW 84.34.020(2) (b) and (c) may be deferred for land being reclassified from land classified under RCW 84.34.020 (1)(c) or (3), or chapter 84.33 RCW into RCW 84.34.020(2) (b) or (c) for a period of up to five years from the date of reclassification.

Sec. 2   RCW 84.34.080 and 1999 sp.s. c 4 s 705 are each amended to read as follows:
     ((When)) If land ((which)) that has been classified under this chapter as open space land, farm and agricultural land, or timber land is applied to some other use, except through reclassification in compliance with RCW 84.34.070, or except as a result solely from any one of the conditions listed in RCW 84.34.108(6), the owner shall within sixty days notify the county assessor of ((such)) the change in use ((and)). The assessor shall impose additional real property tax ((shall be imposed)) upon ((such)) the land in an amount equal to the ((sum of the)) following:
     (1) The total amount of the additional tax and applicable interest due under RCW 84.34.108; plus
     (2) Except as provided in subsection (3) of this section, a penalty amounting to twenty percent of the amount determined in subsection (1) of this section.
     (3) In a county with a population of one million or greater, if the change of use occurs within ten years after the date the land was classified under this chapter, a penalty amounting to twenty percent of the total amount of the additional tax and applicable interest due under RCW 84.34.108.

NEW SECTION.  Sec. 3   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 July 1, 2007.