SENATE BILL REPORT

SB 5169

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Title: An act relating to encouraging economic development by exempting certain counties from the forest land compensating tax.

Brief Description: Encouraging economic development by exempting certain counties from the forest land compensating tax.

Committee Activity: Economic Development, Trade & Innovation: 2/07/11.

Background: When land is designated as forest land it is generally assessed at a lower value resulting in lower taxes. Land so designated must meet certain use, size, and other requirements. When land is removed from designation as forest land, a compensating tax must, with certain exceptions, be paid. An exception for payment of compensating tax exists for land located in counties with a population greater than 600,000 if the sale or transfer of land is to certain entities for the conservation of open space land or other approved purposes.

Summary of Bill: The exception for payment of compensating tax applies in counties with a population greater than 600,000 and a county with a population density of between 625 and 675 inhabitants per square mile.

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