BILL REQ. #: H-0230.1
_____________________________________________
HOUSE BILL 1570
_____________________________________________| State of Washington | 61st Legislature | 2009 Regular Session |
By Representatives Liias, Hope, and O'BrienRead first time 01/23/09. Referred to Committee on Finance.
AN ACT Relating to conserving forest lands; and amending RCW
84.33.140 and 84.33.145.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 84.33.140 and 2007 c 54 s 24 are each amended to read
as follows:
(1) When land has been designated as forest land under RCW
84.33.130, a notation of 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 parcel numbers for
the land shall, at the expense of the applicant, be filed by the
assessor in the same manner as deeds are recorded.
(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
GRADE | OPERABILITY
CLASS | VALUES
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, 2001, 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, 2002. For the
adjustment to be made on or before December 31, 2001, for use in the
2002 assessment year, the department shall:
(a) 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
(b) Divide the aggregate value of all timber harvested within the
state between July 1, 1995, and June 30, 2000, 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, 2002,
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 graded, assessed, and valued as forest land shall continue
to be so graded, assessed, and valued until removal of designation by
the assessor upon the occurrence of any of the following:
(a) Receipt of notice from the owner to remove the designation;
(b) Sale or transfer to an ownership making the land exempt from ad
valorem taxation;
(c) Sale or transfer of all or a portion of 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
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.
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 under subsection (11) of this section shall become due
and payable by the seller or transferor at time of sale. The auditor
shall not accept an instrument of conveyance regarding 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 (11) of this section to
the county board of equalization in accordance with the provisions of
RCW 84.40.038. 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) 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 (13) or (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 (13) or (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 rules under Title
76 RCW; or
(iii) Restocking has not occurred to the extent or within the time
specified in the application for designation of such land.
(6) Land shall not be removed from designation if there is a
governmental restriction that prohibits, in whole or in part, the owner
from harvesting 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 the removal of designation as forest
land, the assessor shall notify the owner in writing, setting forth the
reasons for the removal. The seller, transferor, or owner may appeal
the removal to the county board of equalization in accordance with the
provisions of RCW 84.40.038.
(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 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 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 (5)(c), (13), or (14) of this
section, a compensating tax shall be imposed on land removed from
designation as forest land. The compensating tax shall be due and
payable to the treasurer thirty days after the owner is notified of the
amount of this tax. As soon as possible after the land is removed from
designation, the assessor shall compute the amount of compensating tax
and mail a notice to the owner of the amount of compensating tax owed
and the date on which payment of this tax is due. The amount of
compensating tax shall be equal to the difference between the amount of
tax last levied on the land as designated forest land and an amount
equal to the new assessed value of the land multiplied by the dollar
rate of the last levy extended against the land, multiplied by a
number, in no event greater than nine, equal to the number of years for
which 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.
(12) Compensating tax, together with applicable interest thereon,
shall become a lien on the land which shall attach at the time 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 the land may become charged or liable. 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.
(13) The compensating tax specified in subsection (11) of this
section shall not be imposed if the removal of designation under
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 or approved for state natural resources conservation area purposes
as defined in chapter 79.71 RCW. At such time as the land is not used
for the purposes enumerated, the compensating tax specified in
subsection (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 the land;
(f) The creation, sale, or transfer of forestry riparian easements
under RCW 76.13.120;
(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; or
(h) The sale or transfer of land within two years after the death
of the owner of at least a fifty percent interest in the land if the
land has been assessed and valued as classified forest land, designated
as forest land under this chapter, or classified under chapter 84.34
RCW continuously since 1993. The date of death shown on a death
certificate is the date used for the purposes of this subsection
(13)(h).
(14) In a county with a population of more than ((one million)) six
hundred thousand inhabitants, the compensating tax specified in
subsection (11) of this section shall not be imposed if the removal of
designation as forest land under subsection (5) of this section
resulted solely from:
(a) An action described in subsection (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. 2 RCW 84.33.145 and 2001 c 249 s 4 are each amended to read
as follows:
(1) If no later than thirty days after removal of designation the
owner applies for classification under RCW 84.34.020 (1), (2), or (3),
then the designated forest land shall not be considered removed from
designation for purposes of the compensating tax under RCW 84.33.140
until the application for current use classification under chapter
84.34 RCW is denied or the property is removed from classification
under RCW 84.34.108. Upon removal 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 the land as designated forest land and an amount equal to the new
assessed valuation of the land when removed from classification under
RCW 84.34.108 multiplied by the dollar rate of the last levy extended
against the land, multiplied by
(b) A number equal to:
(i) The number of years the land was designated under this chapter,
if the total number of years the land was 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 designated
under this chapter and classified under chapter 84.34 RCW is at least
ten.
(2) Nothing in this section authorizes the continued 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 definition of forest land under
RCW 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)) six
hundred thousand 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).
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