BILL REQ. #:  S-4307.2 

READ FIRST TIME 02/03/12.   

     AN ACT Relating to contiguous land under the current use open space property tax programs; and amending RCW 84.34.020, 84.34.030, and 84.33.130.

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

Sec. 1   RCW 84.34.020 and 2011 c 101 s 1 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)(i) 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:
     (A) 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
     (B) 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;
     (ii) For the purposes of (b)(i) of this subsection, "gross income from agricultural uses" includes, but is not limited to, the wholesale value of agricultural products donated to nonprofit food banks or feeding programs;
     (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)(A) and (c)(i) of this subsection will, upon any transfer of the property excluding a transfer to a surviving spouse or surviving state registered domestic partner, be subject to the limits of (b)(i)(B) and (c)(ii) of this subsection;
     (d) Any parcel of land that is five acres or more but less than twenty acres devoted primarily to agricultural uses, which meet one of the following criteria:
     (i) Has produced a gross income from agricultural uses equivalent to 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;
     (ii) Has standing crops with an expectation of harvest within seven years, except as provided in (d)(iii) of this subsection, and a demonstrable investment in the production of those crops equivalent to one hundred dollars or more per acre in the current or previous calendar year. For the purposes of this subsection (2)(d)(ii), "standing crop" means Christmas trees, vineyards, fruit trees, or other perennial crops that: (A) Are planted using agricultural methods normally used in the commercial production of that particular crop; and (B) typically do not produce harvestable quantities in the initial years after planting; or
     (iii) Has a standing crop of short rotation hardwoods with an expectation of harvest within fifteen years and a demonstrable investment in the production of those crops equivalent to one hundred dollars or more per acre in the current or previous calendar year;
     (e) 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 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";
     (f) 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; or
     (g) Any land that is used primarily for equestrian related activities for which a charge is made, including, but not limited to, stabling, training, riding, clinics, schooling, shows, or grazing for feed and that otherwise meet the requirements of (a), (b), or (c) of this subsection.
     (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 timber for commercial purposes. Timber 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) "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" means the contract vendee.
     (6)(a) "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, is considered contiguous.
     (b) For purposes of this subsection (6):
     (i) "Same ownership" means owned by the same person or persons, except that parcels owned by different persons are deemed held by the same ownership if the parcels are:
     (A) Managed as part of a single operation; and
     (B) Owned by:
     (I) Individuals who are all members of the same family;
     (II) Legal entities that are wholly owned by members of the same family; or
     (III) ((An individual who owns at least one of the parcels and a legal entity or entities that own the other parcel or parcels if the entity or entities are wholly owned by that individual, members of his or her family, or that individual and members of his or her family)) Any combination of one or more individuals and legal entities, where the individuals and all of the owners of the legal entities are members of the same family. As used in (b)(i)(B) of this subsection (6), "legal entity" includes a trust in which all the beneficial owners of the trust's real property are members of the same family.
     (ii)(A) "Family" means both immediate and extended family and includes ((only)):
     (((A))) (I) An individual and his or her spouse or domestic partner, child, stepchild, adopted child, grandchild, great-grandchild, parent, stepparent, grandparent, great-grandparent, cousin, ((or)) sibling, aunt, uncle, niece, or nephew;
     (((B))) (II) The spouse or domestic partner of an individual's child, stepchild, adopted child, grandchild, great-grandchild, parent, stepparent, grandparent, great-grandparent, cousin, ((or)) sibling, aunt, uncle, niece, or nephew;
     (((C))) (III) A child, stepchild, adopted child, grandchild, great-grandchild, parent, stepparent, grandparent, great-grandparent, cousin, ((or)) sibling, aunt, uncle, niece, or nephew of the individual's spouse or the individual's domestic partner; and
     (((D))) (IV) The spouse or domestic partner of any individual described in (b)(ii)(((C))) (A)(III) of this subsection (6).
     (B) For the purposes of (b)(ii)(A) of this subsection, the term "cousin" includes only those individuals who are a direct lineal descendant of a family member who has held title to the property and who share one or more common ancestors with all other persons making an application under RCW 84.34.030.
     (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. 2   RCW 84.34.030 and 1989 c 378 s 10 are each amended to read as follows:
     (1) An owner of agricultural land desiring current use classification under ((subsection (2) of)) RCW 84.34.020 ((shall)) (2) must make application to the county assessor upon forms prepared by the state department of revenue and supplied by the county assessor.
     (2) An owner of open space or timber land desiring current use classification under ((subsections (1) and (3) of)) RCW 84.34.020 ((shall)) (1) and (3) must make application to the county legislative authority upon forms prepared by the state department of revenue and supplied by the county assessor.
     (3) The application ((shall)) must be accompanied by a reasonable processing fee if such processing fee is established by the city or county legislative authority. ((Said))
     (4)(a) The application ((shall)) must require only such information reasonably necessary to properly classify an area of land under this chapter ((with a notarized verification of the truth thereof and shall)). The application must include a declaration from each applicant, in accordance with the requirements of RCW 9A.72.085, that the information provided in the application is true; and, if applicable, the parcels for which classification under this chapter is sought meet the definition of contiguous in RCW 84.34.020. The application must also include a statement that the applicant is aware of the potential tax liability involved when such land ceases to be designated as open space, farm and agricultural, or timber land.
     (b) Applications must be made during the calendar year preceding that in which such classification is to begin.
     (5) The assessor ((shall)) must make necessary information, including copies of this chapter and applicable regulations, readily available to interested parties, and ((shall)) must render reasonable assistance to such parties upon request.

Sec. 3   RCW 84.33.130 and 2003 c 170 s 4 are each amended to read as follows:
     (1) Notwithstanding any other provision of law, lands that were assessed as classified forest land before July 22, 2001, ((shall)) must be designated forest land for the purposes of this chapter. The owners of previously classified forest land ((shall)) are not ((be)) required to apply for designation under this chapter. As of July 22, 2001, the land and timber on such land ((shall)) must 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 under RCW 84.33.140 as of January 1st of any year ((shall)) must submit an application to the assessor of the county in which the land is located before January 1st of that year. The application ((shall)) must 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)) is 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)) must be followed.
     (4) The application ((shall)) must be made upon forms prepared by the department and supplied by the assessor, and ((shall)) must include the following:
     (a) A legal description of, or assessor's parcel numbers for, all land the applicant desires to be designated as forest land;
     (b) The date or dates of acquisition of the land;
     (c) A brief description of the timber on the land, or if the timber has been harvested, the owner's plan for restocking;
     (d) A copy of the timber management plan, if one exists, for the land prepared by a trained forester or any other person with adequate knowledge of timber management practices;
     (e) If a timber management plan exists, an explanation of the nature and extent to which the management plan has been implemented;
     (f) Whether the land is used for grazing;
     (g) Whether the land has been subdivided or a plat has been filed with respect to the land;
     (h) Whether 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 rules under Title 76 RCW;
     (i) Whether the land is subject to forest fire protection assessments under RCW 76.04.610;
     (j) Whether the land is subject to a lease, option, or other right 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 the land ceases to be designated as forest land;
     (n) ((An affirmation)) A declaration from each applicant, in accordance with the requirements of RCW 9A.72.085, that the statements contained in the application are true ((and that)); the land described in the application meets the definition of forest land in RCW 84.33.035; and, if applicable, the parcels for which designation under this chapter is sought meet the definition of contiguous in RCW 84.34.020; 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)) must afford the applicant an opportunity to be heard if the applicant so requests.
     (6) The assessor ((shall)) must 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 a "merchantable stand of timber" as defined in chapter 76.09 RCW and applicable rules. This reason ((shall not)) alone ((be)) is not sufficient to deny the application (i) if 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 a longer period necessitated by unavailability of seed or seedlings, or (ii) if only isolated areas within the land do not meet the minimum standards due to rock outcroppings, swamps, unproductive soil or other natural conditions;
     (b) The applicant, with respect to 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 rules under Title 76 RCW; or
     (c) The land abuts a body of salt water and lies between the line of ordinary high tide and a line paralleling the ordinary high tide line and two hundred feet horizontally landward from the high tide line. However, if the assessor determines that a higher and better use exists for the land but this use would not be permitted or economically feasible by virtue of any federal, state, or local law or regulation, the land shall be assessed and valued under RCW 84.33.140 without being designated as forest land.
     (7) The application ((shall be)) is deemed to have been approved unless, prior to May 1st of the year after the application was mailed or delivered to the assessor, the assessor notifies the applicant in writing of the extent to which the application is denied.
     (8) An owner who receives notice that his or her application has been denied, in whole or in part, may appeal the denial to the county board of equalization in accordance with the provisions of RCW 84.40.038.